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South East Water warns its funding runs out after July 2027
The company said new loan facilities are needed to keep operating after shortly after July 2027, with advanced discussions that are expected to conclude over summer 2026 but are not legally committed.
South East Water, a supplier to 2.4 million customers across Kent, Sussex, Surrey, Hampshire and Berkshire, warned it faces “material uncertainty” about its survival, saying it has enough funds only through July 2027. In its annual report published Friday, the company said it will need new loan facilities to continue as a going concern shortly after that date.
South East Water added that discussions with lenders to provide the next round of funding are at an advanced stage and expected to conclude over summer 2026, but the funding is not legally committed. The company also said its risk assessment reflected that it had not yet received legally committed new shareholder funds, contributing to the “material uncertainty” finding.
The warning comes after a difficult year marked by major outages and financial penalties, including a forced leadership change. The regulator Ofwat said South East will pay a 30.5 million pound redress package tied to those outages, adding further pressure on finances.
South East Water reported losses widening to 33 million pounds from 14 million pounds last year, even as revenues rose from 285 million pounds to 352 million pounds after Ofwat allowed bill increases of 7%. The annual report also showed chief executive David Hinton’s total pay rose to 488,000 pounds.