Jersey Water today published its Annual Report and Accounts and Water Quality Report for 2010.
The Company reports profits before tax of £4,151,000, an increase of 1.6% on the results for 2009.
Turnover for the year was slightly down on 2009 at £14,652,000. The reduction was due to the downturn in the construction of new homes in Jersey and consequently lower levels of income from connection charges. Water related income increased slightly on 2009 despite there being no tariff increase during the year.
Operating expenditure has reduced by 5.5% to £9,594,000. During the year the Company benefited from the ongoing savings achieved as a result of the reorganisation in 2009.
The Board is recommending a final net dividend of 224 pence per Ordinary and A Ordinary share, bringing the total equity dividend to 340 pence, an increase of 6.6% on 2009.
In conjunction with the publication of the results, the Company has also announced proposals to restructure the share capital of the Company at the forthcoming Annual General Meeting, through the conversion of reserves into share capital by way of a bonus issue and the division of equity shares into smaller denominations. The restructuring will not change the percentage holding in the Company by the States of Jersey or other equity shareholders. Shares in Jersey Water are now traded on a matched bargain basis through Standard Bank Stockbrokers.
During the year the Company announced the roll out of Island wide metering of properties connected to the mains water network. The Company fitted 2,690 meters to properties during the year, bringing the total metered properties at the end of the year to approximately 45% of all water connections.
The Water Quality Report confirms that water supplied by the Company continues to be of a very high quality. Water quality compliance levels for 2010 were 99.86%, up slightly on the 99.84% for the previous year. The Company remains concerned about the ongoing relatively high levels of nitrates in water resources and continues to promote the need for the States of Jersey Environment Department to implement an appropriate, sustainable and long-term solution to this ongoing problem.
Howard Snowden, Managing Director & Engineer of Jersey Water said:
“We are pleased to announce another good set of results for the year. Our work in bringing about increased efficiency in the way Jersey Water operates is showing positive results. This is good for the Company, good for shareholders and good for customers. Increased efficiency helps us to keep water charges down for our customers. Jersey Water is holding prices for metered customers at 2009 levels through to March 2012.”
“Our metering programme and other demand management initiatives are already showing benefits. During 2010, the total volume of water supplied was 7,220 million litres which was 0.5% less than 2009, despite the connection of an additional 337 properties to the mains water network. In 2011, we plan to install well over 3,000 meters and will be well on our way to achieving the target of metering all connections across the Island within the next five years.”
Summarised results for 2010 and comparisons to the year before (2009):
- Profit before tax was £4.1 million (1.6% increase)
- No increase in water charges for any customers in 2010
- Metered water prices held until March 2012
- Operating costs reduced by 5.5%
- 2,690 meters installed (45% of all connections now metered)
- Total water supplied down by 0.5%
- Water quality compliance increased to 99.86%
- £3.46 million invested in the water supply infrastructure
Summarised results for 2010 and comparisons to the year before (2009):
- Jersey Water is the trading name of The Jersey New Waterworks Company Limited.
- Of the 483,000 equity shares of Jersey Water in issue, 73.9% is owned by the States of Jersey. The balance of shares are owned by Companies and individuals (mainly Jersey residents).
- Jersey Water is not listed on any stock exchange and therefore has no official share price.
- A copy of the Company’s 2010 Annual Report available from the Shareholder Information section on the website.
- A copy of the Company’s 2010 Water Quality available from the Water Quality section on the website.
For further information, please contact:
Howard Snowden
Managing Director & Engineer
T: 707300