Thames Water says it can operate until October

The chief executive of Thames Water has stated the company has enough funding to continue operating until October, as the debt-laden utility seeks urgent clarity from the incoming prime minister on its future. Chris Weston revealed the company is reliant on creditors to secure a rescue deal to avoid temporary nationalization, while also reporting a return to annual profit.

Thames Water, the UK's largest water supplier serving 16 million customers across London and the South East, reported a pretax profit of 226.4 million pounds for the year ending March 31, a significant improvement from a 1.65 billion pound loss the previous year. However, its debt pile swelled to 19.77 billion pounds, up from 17.73 billion pounds, as the company continued to draw down funds for capital investment. The company's cash outflow stood at 1.1 billion pounds before raising any new debt, with Weston stating that customer bills alone cannot fund the required investment.

The company's immediate future hinges on a proposed 10 billion pound rescue takeover by a consortium of creditors, which would see the group take control under a new business called London Valley Water. The deal includes a request for a...