The creditors of Thames Water have put a new rescue plan together which is being submitted today to Ofwat. Under the new plans, £5.4bn of funding will be provided and some investors will write off up to £12.5bn of debt. The regulator must approve the plans to avoid the company going into temporary nationalisation.
Meanwhile, the FTSE 100 hit new record highs yesterday as stock markets largely ignored the US government being in shutdown, while Thursday will see a new company debut on the London Stock Exchange - a data centre company called Firmi, which is the first Nasdaq-LSE dual listing in decades.
Elsewhere, Elon Musk’s net worth briefly surpassed half a trillion dollars, Greggs confirmed they are raising prices again and David Beckham was paid out £26m in dividends by the company which controls his brands and media work.
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Key points
- Thames Water creditors submit new plan to Ofwat
- £45bn in infrastructure spending planned
- Company could return to stock market if turnaround leaves finances on solid footing
One in six businesses have no cash reserves
11:20
,
Karl Matchett
The latest ONS figures today paint a pretty mixed picture of UK businesses.
Approximately one in six (17%) trading businesses reported they had no cash reserves in late September 2025, says the release - the largest proportion since the question was introduced in mid-2020.
However, more than a quarter (26%) reported that they currently have no debt obligations. That figure is down slightly from late June.
FTSE 100 flat as European stocks soar
11:00
,
Karl Matchett
No movement at all really on the FTSE 100 today - after a couple hours trading the index is at -0.02 per cent.
Contrast that with a surge in European equities, with the DAX up 1.1% and France’s CAC 40 up 1% too.
“Yesterday, the FTSE 100 bucked a weak market open by rising above its peers in Europe. Today, it’s done the opposite,” says Russ Mould, investment director at AJ Bell.
“Strength among financials and miners wasn’t enough to offset weakness in utilities, tobacco and energy stocks.
“Experian’s shares tumbled after the emergence of a new competitive threat. Analytics software group FICO launched a new service that it believes could make US mortgage brokers and lenders less reliant on credit agencies such as Experian to calculate consumer credit risk.”
Thames Water could return to stock market under creditor plans
10:33
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Karl Matchett
One of the long-term plans for the restructuring of Thames Water is for it to return to the stock market in an eventual float.
That’s noted in the creditors’ plan as the eventual goal, once the turnaround is completed and the firm becomes a viable concern again financially.
Thames Water’s gross debt would come down from over £20bn to £14.5bn, but smaller creditors (class B) would receive nothing in return for almost £1bn in loans.
There is a notional 22 October deadline but the Times report this is unlikely to be a meaningful one.
Ten-year plan suggests more than £45bn in infrastructure boosts
10:02
,
Karl Matchett
Part of the plan submitted by the creditors concerns how much they will spend on improving infrastructure.
That capital expenditure is split into two sections: the five years through to 2030 deemed a catch-up period, and the five years thereafter.
A total of £20.5bn of investment is to come in that first five years with a further £24.9bn afterward.
Thames Water lenders propose new rescue deal to prevent collapse
09:44
,
Karl Matchett
A group of Thames Water lenders has put forward a new rescue deal for the struggling supplier pledging an extra £1 billion in investment, and plans to write off around a third of the firm’s near-£20 billion debt pile.
London & Valley Water – a consortium of the supplier’s main creditors, including investors and financial institutions – said its offer was “more ambitious, delivers greater value for customers and follows three months of discussion with and feedback from Ofwat” to help turn around Thames Water.
The group said its extra £1 billion of investment, on top of the proposal submitted in May, would “ensure long-term financial resilience” and cover existing fines Thames Water must pay for regulatory and pollution failures.
More from PA:
Thames Water creditors submit new plan to Ofwat
09:22
,
Karl Matchett
Today sees London & Valley Water - the group of firms who hold a lot of the debt of Thames Water - put forward new proposals to Ofwat.
The headline figures included are £4bn of debt written off by class A investors, compared with their earlier offer of £3.2bn.
No dividends are to be paid out during the turnaround period, and in return for the writedowns they are seeking renegotiated targets for pollution incidents and leakage.
Mike McTighe, who would be the future chair of Thames if the plans are greenlighted, said:
“There is a huge amount of work to be done to turn around Thames Water and deliver the improved service and environmental outcomes that customers and local communities deserve.
“From day one, we will inject billions in new investment, strengthen Thames Water’s balance sheet, transform the company for thousands of hard-working frontline staff and begin the delivery of an operational turnaround that puts 16 million customers and the environment first.”
Business and Money - 2 October
09:00
,
Karl Matchett
Morning all - as usual, plenty to get through this morning.
Key names featuring include Tescos, Greggs, Elon Musk and...David Beckham. Why not?
We’ll start with Thames Water though and try to unravel some of the latest mess.
