Thames Water has reported a £1.65bn annual loss, rising debts, and warned that it will take "at least a decade" to turn around its fortunes if it swerves the threat of nationalisation, reports Sky News.

The UK's largest water provider suffered a series of hits to its bottom line in the year to the end of March.

Within its loss for the period, compared with a £157m profit over the previous 12 months, Thames Water recorded a £1.27bn provision against a loan from its parent company.

There were also hits from £198m in restructuring plan fees and £151m of restructuring costs.

A £122m fine from the industry regulator related to poor wastewater performance and dividend payouts were also included.

Sky News said: "It [Thames Water] admitted that sewage spills were up by a third on the 2023/24 financial year - a fact it blamed on higher-than-average rainfall.

"The company is trying to win approval for a rescue plan funded by its senior creditors after the investment giant lined up to rescue Thames Water pulled out of a proposed deal.

"KIKR had been given preferred bidder status in March before its exit from the process was revealed in June."

Thames Water said in its results there was a "material uncertainty" as to whether it could deliver the recapitalisation, leaving it at risk of a special administration process.

Commenting on the company's performance, chief executive Chris Weston told Sky News: "We recognise that our current gearing is too high and, to address this, we are progressing with our senior creditors' plan to recapitalise the business which will see us return to a more stable financial foundation.

"This will come with a requirement to re-set the regulatory landscape and acknowledge it will take at least a decade to turn Thames around."