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The interim bosses of Thames Water have stressed that the company is in a “strong” position in a video message recorded for all employees.
In the video – marked as “secret” – interim co-CEOs Cathryn Ross and Alastair Cochran urge staff to continue work as normal despite growing uncertainty about the company’s future.
The interim bosses concede that it has been an “unsettling week” but stress that the company is in a strong position with access to £4 billion.
The future of Thames Water was thrown into doubt after the sudden departure of its chief executive Sarah Bentley. It sparked reports that the company is on the brink of collapse, with the government and regulator drawing up contingency plans and investors split on whether to inject extra capital.
However, in the video message obtained by Utility Week, Ross and Cochran play down those fears and reassure staff that the company is not in the dire state suggested by some media outlets.
Cochran addresses the company’s much talked about balance sheet. He says: “Thames is in a solid financial position. We have £4 billion of cash and liquidity readily available to us and we generate over £1 billion of cash every single year.”
He adds that shareholders “have consistently supported us by providing funding when we’ve needed it”.
Investors stumped up £500 million in March this year with a further £1 billion needed to support investment plans.
Ross, former chief executive of Ofwat, is director of regulation at Thames. She and chief financial officer Cochran are taking over chief executive responsibilities after Bentley’s resignation.
The interim leadership duo also assert their commitment to carrying on the work started by Bentley.
“Now we all appreciate that Sarah’s decision to resign and sharing the news with all of you on that earlier this week was really unsettling,” Ross says. “But the work she started has really put us in a good place to move forward. Al and I are really focused on continuing that.”
Ross adds that both herself and Cochran have the same vision as Bentley and “are really focused on that turnaround”.
They urge staff to be united by the common mission to deliver for customers and the environment and to “continue to make progress that was started on Sarah’s watch”.
Bentley left last week after almost three years leading Thames, and after year two of her eight-year plan to get the company’s performance back to standard. In May she told Utility Week it would take every day of the eight years to achieve the turnaround.
The top team are working with regulators and shareholders to deliver for the long term, Cochran explains.
“Sarah’s resignation and media speculation is unsettling, but it doesn’t change our plans,” he says and urges employees to continue playing their critical roles.
Cochran adds that his and Ross’ priorities in the near term are to ensure all staff, customers and stakeholders remain informed. Secondly, he says as interim chief executives they want to minimise disruption, to allow staff to deliver essential services, and continue to deliver the turnaround.
Employees are also encouraged by the chief financial officer to support one another and discuss any concerns with management.
“It’s a tough old time at the moment, but with a purpose, vision and a turnaround plan I’m sure we’ll achieve great things,” Cochran adds.
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