Thames Water bosses said its turnaround “will take time” as it announced falling profits amid concerns about its finances.

The utility company’s pre-tax profits slumped by 54pc to £246.4m as it spent a record £1bn in the six months to September on improving its network.

Revenue increased 12pc to £1.2bn during the period, while net debt increased by 7pc to £14.7bn.

It comes days after it emerged that Thames Water’s parent company was warned by its auditors that it could run out of money by next April if its shareholders don’t inject more equity into the utility business. 

The group’s auditors, PricewaterhouseCoopers (PWC), said there is “material uncertainty” about its future because there are no firm arrangements in place to refinance a £190m loan held by one of the company’s subsidiary businesses.

Interim co-chief executives Cathryn Ross and Alastair Cochran said: “Turning around Thames will take time. 

“We simply cannot do everything that our customers and stakeholders wish to see at a pace and for a price that everyone would like. 

“We will continue to make the tough choices required to deliver what matters most to our customers and the environment.”

Earlier this year, Thames Water shareholders pledged to support the company, with a commitment in writing to inject £750m of further equity into the group. But PWC said that “the letter is not legally binding and there are no other firm commitments to refinance the £190m loan”.

Read the latest updates below.