Jersey Water publishes 2009 Financial Statements and Water Quality Report

Jersey Water today published its financial statements and water quality report for 2009. 
The Company has announced profits for 2009 of £4,085,000, an increase of 1.3% on 2008.

Revenue for the year increased by 2.4% despite an overall reduction in the volume of water supplied and a below inflation tariff increase in 2009. Operating expenditure increased by only 2.5% in spite of a number of one off costs in the year. The Company is proposing a final dividend on ordinary and ‘A’ ordinary shares of £2.14 per share, bringing the ordinary dividend for the year to £3.19. A special dividend of £2.28 per ordinary and ‘A’ ordinary share is also proposed.
If approved, dividends payable to the majority shareholder, the States of Jersey, will total £1,950,000.

Capital expenditure totalled £3.3 million, an increase on the £3 million in 2008. The Company continued with its programme of capital works including the renewal of 1.8km of water mains,
the installation of 0.9km of new trunk mains between Trinity and St Martin to strengthen the treated water network in the north east of the Island and the refurbishment of the raw water pumping station at Queen’s Valley Reservoir. An additional 1,272 meters were installed on existing connections during the year as part of the Company’s water metering programme, bringing the total number of metered connections to 13,188 (36% of all connections).
The 2009 Water Quality Report shows that water produced by the Company continues to be
of a very high standard with 99.84% of regulatory samples meeting or exceeding water quality standards.

Kevin Keen, Jersey Water’s Chairman, said:
“In spite of a very challenging year we are pleased to have been able to announce a freezing of tariffs for 2010 for our customers, an increase in dividends for our shareholders (of which the States of Jersey is the biggest) and continuing investment in our infrastructure. This is a considerable success and is entirely due to the hard work and dedication of the team led by Howard Snowden.”

Howard Snowden, Jersey Water’s Managing Director, added:
“Last year was relatively dry with rainfall levels for the year 6% below average. We experienced prolonged periods without any substantial rainfall interspersed with short periods of heavy rainfall; a pattern that has continued into 2010. The extremes of weather that are now becoming more commonplace emphasise the need for both effective planning for and management of water resources.  Our universal mains water metering programme, a key element of our 25 year water resources management strategy, is due to commence imminently and aims to conserve Jersey’s limited water resources by minimising waste and reducing leakage.”