THAMES WATER UTILITIES FINANCE PLC

• ⚠

  Material uncertainty over going concern

  In their assessment, the Directors have identified a material uncertainty related to events that are outside the control of the Board and may cast significant doubt on the Company's ability to continue as a going concern. In assessing the appropriateness of the going concern basis, the Directors have considered various factors that are described in further detail on pages 28 to 34. The TWUL Group identified a material uncertainty in relation to the going concern basis of preparation adopted in its Annual Report for 2024/25. These conditions, along with the other matters explained in note the Material accounting policy information within the financial statements to the financial statements, indicate the existence of a material uncertainty which may cast significant doubt about the Company's ability to continue as a going concern.

Values shown as filed in the company's annual accounts. — indicates the figure wasn't present under that line item in that period. About these numbers

Margins divide P&L lines by turnover. Gearing is liabilities over total assets. Current ratio is current assets over creditors falling due within one year. Interest cover is operating profit over absolute finance costs. Sector-distribution context coming next.

Accounting basis

UK-adopted international accounting standards

Reporting scope

Standalone (parent only)

Auditor

PricewaterhouseCoopers LLP

Audit opinion

Unqualified (clean)

Going concern

Material uncertainty disclosed

“In their assessment, the Directors have identified a material uncertainty related to events that are outside the control of the Board and may cast significant doubt on the Company's ability to continue as a going concern. In assessing the appropriateness of the going concern basis, the Directors have considered various factors that are described in further detail on pages 28 to 34. The TWUL Group identified a material uncertainty in relation to the going concern basis of preparation adopted in its Annual Report for 2024/25. These conditions, along with the other matters explained in note the Material accounting policy information within the financial statements to the financial statements, indicate the existence of a material uncertainty which may cast significant doubt about the Company's ability to continue as a going concern.”

Significant events

• “Following the issue of the Final Determination by Ofwat in December 2024, TWUL concluded that the balance of risks and reward did not provide what was needed for an investible and financeable business plan during the 2025-2030 period. This is unlikely to change without a re-set of the regulatory landscape.”
• “In February 2025, the High Court sanctioned TWUHL's initial, interim restructuring plan (RP1) which included £3.0 billion in new super senior funding to extend TWUL's liquidity runway.”
• “An equity raise process commenced by TWUL in summer 2024, resulting in five non-binding offers received on 5 December 2024. On 31 March 2025, TWUL announced that it had selected KKR to enter the second phase of its due diligence process as preferred partner.”
• “A Member of Parliament is seeking to challenge the court-sanctioned restructuring plan in the Supreme Court. The outcome of this legal challenge is uncertain and could have a material impact on the Company's financial position.”
• “In May 2025 Ofwat announced that TWUL would be fined £122.7 million. £104.5 million of the fine relates to penalties for sewage leaks and £18.2 million relates to penalties for a breach of dividend rules.”
• “On 18 July 2025, TWUL announced that Ofwat had agreed a further 3 month deferral until 22 October 2025 to its referral of the Final Determination for AMP8 to the CMA for a re-determination.”

Auditor, going-concern and subsidiary information is drawn from the narrative of the latest annual accounts. About these numbers

Filings

2

last 12 months

Capital events

0

last 24 months

Officers appointed

0

last 12 months

Officers resigned

0

last 12 months

Direct counts from the register. No score, no rating — see the Filing timeline for the underlying events.

• Turnover

  —

  Not reported

• Cash

  -12.5%

  £1,600,000 → £1,400,000

• Net assets

  -1,828.1%

  £216,600,000 → -£3,743,000,000

  lowest in 3 filed years

• Employees

  —

  Not reported

• Operating profit

  -100%

  -£100,000 → -£200,000

• Profit before tax

  -3,806.6%

  £106,800,000 → -£3,958,700,000

Each % is (latest − prior) ÷ |prior| for the line item as filed. Periods don't have to be exactly 12 months apart — a long or short period (typical around incorporation or year-end changes) will distort the comparison. Lines a company doesn't report are omitted. About these numbers