Proactive Investors -
- FTSE 100 down 9 points
- NatWest jumps as results please
- Consumer confidence hit by Budget fears
Thames Water floats liquidity extension plan
Thames Water has unveiled plans to secure a £3 billion lifeline from creditors to shore up its finances into late next year as the supplier grapples with a £15 billion debt pile.
Following reports creditors were lining up to offer cash for London’s struggling water supplier, Thames said on Friday that a consent process would be launched for the liquidity extension.
This would include an initial tranche of £1.5 billion from some creditors, followed by the rest once regulator Ofwat had confirmed spending and bill rules for the sector covering 2025 to 2030.
Maturities of all of Thames’ class A and B debt would also be extended by two years under the plan, after the firm warned it only had enough cash to last until May.
“Today's news demonstrates further progress to put Thames Water onto a more stable financial footing as we seek a long-term solution to our financial resilience,” chief executive Chris Weston commented.
Creditors holding some £6.7 billion worth of Thames’ debt were said to have backed the plan.
NatWest impresses with results
NatWest Group PLC (LON:NWG) shares ticked up early on Friday after the lender upgraded its outlook in third-quarter figures.
It did so on the back of a 26% increase in third-quarter profit, driven by expanded lending and stable profit margins despite declining central bank rates.
Shares climbed 3.9% on Friday morning.
Kooth regains after reassuring on California contract
Kooth Plc (LON:KOO) has reassured on a US$188 million contract in California and said an article which prompted its shares to fall by over 18% on Thursday was based on “outdated information”.
“The company's contract in California has not changed since it was announced,” Kooth said on Friday, following a report that a director of the state’s mental health commission had worked to prevent cuts which could have defunded the deal.
Shares climbed almost 8% as trading got underway on Friday.
Consumers in “despondent mood” ahead of Budget - GfK
GfK has reported a drop in consumer confidence through October as households braced for speculated tax hikes in next week’s Autumn Budget.
The group’s consumer confidence index fell by 1 point over the month to -21, reflecting its joint-lowest reading of 2024.
Though optimism around consumers’ finances and major purchases ahead ticked up, concerns around the UK’s broader economic state weighed on the index.
“The largest drop though was in our view of the general economic situation over the last 12 months, down five points to -42,” GfK consumer insights director Neil Bellamy said.
“As the Budget statement looms, consumers are in a despondent mood despite a fall in the headline rate of inflation.
“This month’s consumer confidence barometer paints a picture of people holding their breath to see what’s in store for them on 30 October.”
Stocks seen lower
Futures had the FTSE 100 almost entirely giving up Thursday’s gain on Friday morning, pointing to an 8-point drop to 8,303.
Barclays PLC (LON:BARC) had helped to buoy the index after results on Thursday, alongside the likes of Anglo American PLC (LON:AAL), Unilever PLC (LON:ULVR) and London Stock Exchange Group PLC (LON:LSEG).
However, uncertainty around next week’s Autumn Budget was said to be holding back gains, with chancellor Rachel Reeves having firmed up plans to raise taxes and tweak UK debt rules in order to unlock funds for further borrowing.
Overnight, Asian markets were mixed, with a 1.6% gain for China’s Shenzhen index placing it as the biggest riser.
Back in London, attention on Friday was set to be on NatWest Group PLC’s latest trading update, alongside consumer confidence figures from GfK.