Thames Water says turnaround will 'take time'

Thames Water has said that reviving the business will "take time" as it struggles to improve services while coping with billions of debts.

On Tuesday, Thames reported profits of £188m for the first half of its financial year.

However, worries persist about how the UK's largest water company will deal with its £14.7bn debt pile.

Concern over its financial strength earlier this year led to speculation it might be taken over by the government.

Thames Water's two interim chief executives have said that will not be necessary as it has more than £3bn in cash and recently got a £500m cash injection from its shareholders.

However, the source of that money was a further loan and the Environment Select Committee has questioned whether the company has represented its finances accurately.

Investors have also said they will pump in an additional £750m but that is contingent on the regulator agreeing to bill increases of 40% by 2030.

Thames Water's co-chief executives, Cathryn Ross and Alastair Cochran, said: "It is clear that immediate and radical action is required."

They added: "Turning around Thames will take time. We simply cannot do everything that our customers and stakeholders wish to see at a pace and for a price that everyone would like.

"We will continue to make the tough choices required to deliver what matters most to our customers and the environment."