Jersey Water has today announced its results for 2007 in its Annual Report and Accounts. The Company is reporting a Profit before tax of £3.5 million, an increase of nearly 13% on the prior year.
Despite tariff increases in 2007 of less than the rate of inflation, turnover increased by 2.4% to £13.8 million. The increase being driven mainly by the 1,454 new customers taken on during 2006 and 2007.
An abundance of rain during 2007 meant that the Company did not have to operate the desalination plant and this, together with other cost savings meant that operating expenditure fell 3.2%. The volume of water supplied in the year was 7,182Ml, 4% lower than in 2006.
The Board is recommending a final net dividend for 2007 of £1.64 per Ordinary and A Ordinary share, bringing the total dividend for 2007 to £1,217,000.
The Company’s Water Quality Report, which has also been published today, demonstrates the excellent overall quality of water produced, with 99.86% samples taken meeting or exceeding regulatory water quality requirements. Due to the wet spring weather, nitrate levels were, at times, slightly above the 50 mg/l level (although well within the Company’s authorised limits) and this reduced the overall compliance rate achieved in the year. The Company is keen for the States of Jersey to introduce effective Water Catchment Management Areas to help protect water resources from nitrate pollution.
In 2007, the Company continued with its programme of renewing the older sections of the treated water network and re-laid 1.98km of water mains. It also laid 5.6km of new mains and made 453 additional connections to the network. Capital expenditure totalled £2.5 million, one third of which was spent on mains renewals, the balance being used on programmes to maintain and improve water treatment, processing and operating capability.
In his Chairman’s Statement in the Annual Report, David Norman has indicated that the Company is conscious of the need to prepare for the potential effects of future climate change on the availability of water resources and the effects of potential population growth on demand for water. As well as commissioning a Water Resource Plan looking at the future water requirements of the Island, the Company has announced measures to increase the rate at which customers are required to switch to meter. With effect from 1 January 2009, where there is a change of account holder, for example on the change of occupier of a property, the new account holder will be required to pay for water by meter. The Company has confirmed that meters will continue to be fitted free of charge.
Chairman of Jersey Water, David Norman, commented:
“We are pleased with the results for the year which demonstrate our continued commitment to delivering shareholder value whilst trying to keep increases in tariffs and charges at or below inflation each year. The financial and water quality results are evidence of the hard work and dedication of Jersey Water staff across all areas of the business.
In respect of metering, research in the UK has shown that it can result in reductions in water demand of between 5%-15% per household and help to identify leakage. Many water companies in the UK have introduced metering programmes to harness these water savings and protect water resources. Jersey Water needs to do the same. We live on an Island with finite water resources and limited storage capacity. Adding additional sources of water or storage to meet demand can be done, but at significant cost. Metering encourages consumers to use water more efficiently, preserves stocks of water during the summer months and helps to defer the point at which additional resources or storage are required. Metering is just one of the many measures being followed by the Company to help make sure we are making the most of our water resources”.
| • | 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% are 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 2007 Annual Report is available from the Shareholder Information section of the website |
| • | A copy of the Company’s 2007 Water Quality Report is available from the Water Quality section of the website |
For further information, please contact:
Howard Snowden
Managing Director & Engineer
T: 707300