Thames Water's chief financial officer has quit his job at 1.3 beans, the cash-bound water company announced.
Alastair Cochrane, who recently served as interim CEO of the Thames, will leave his role within days. His departure is at a critical time for the UK's biggest water company amidst a fragile financial scrutiny.
It is trying to secure new equity funds for its business by the end of June, preventing it from bankruptcy after a court ruling earlier this month, agreeing to assume billions of more liabilities from creditors.
Industry sources said managing the business and due diligence requirements of potential bidders without an experienced chief financial officer could make the company even more challenging.
Thames said Group Finance Director Stuart Tom will serve as interim CFO “while long-term arrangements are in place.”
The company, which serves 16 million customers in London and the Thames Valley, has not secured fresh debt financing of £3 billion, resulting in bankruptcy and temporary nationalization, increasing its total debt to more than £20 billion. If it collapsed at the end of this month, the rest would have been just £39 million, according to court documents.
Thames Water said in a statement that Cochrane will step down from the company's board of directors and his executive posts by the time it arrives Monday, March 31st. He added that his replacement would be appointed “in time.”
Cochrane's Wage Packet faced criticism along with other senior water executives amid the public's rage over the UK's water condition. His base salary in 2024 was £450,000 plus a bonus of £446,000 and other benefits, bringing his annual gross profit to £1.3 million.
Ir Adrian Montague, chairman of Thames, said Cochrane had “leaned the work to put Twul” [Thames Water Utility Ltd] A more stable scaffolding finance oversees the first stages of our capital raises and financial restructuring, laying the foundation for wholesale business recapitalization. ”
Cochrane joined the Thames in 2021 and resumed his role as Chief Financial Officer after serving as Co-Interm's CEO between June 2023 and January 2024. Prior to joining Water Company, he was Chief Financial Officer of Petrofuck, a multinational petrofak.
Last year, The Guardian reported internal criticism of Cochrane's era on the island of Thames. This included allegations by current and former staff that they slowed down time-critical decisions regarding the operation of water companies in the area, such as chemical orders and employment decisions. The company pushed back the allegations and said Cochrane officially approved it in a total of over £10 million.
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Thames reviews six approaches from potential suitors, including CK Infrastructure Holdings, Castle Water and private equity firm KKR. The majority of bidders want the peace of mind that they can avoid or manage future fines and penalties for poor performance.
The Guardian also revealed earlier this month that Thames asked water controllers to delay mentioning decisions on bills that the company has allowed consumers to impose on competition and market authority. I also requested Special treatment for fines and other regulatory surveillance.
OFWAT agreed to Thames' request to delay the referral after concerns emerged that it could add months of uncertainty to investors seeking to gain a clear sense of Thames' financial position by awaiting the CMA's decision.
