Jersey Water today published its preliminary results for 2012.
The Company is reporting a profit before tax of £4.49 million, a reduction of £475,000 on the previous year. The reduction was principally driven by fewer surplus asset sales in 2012 and the cost of the Company’s 130th Anniversary fund.
Underlying operating profits were 2% down on the previous year. The very wet weather experienced in 2012 combined with the increase in metering has meant that demand for water in the year was 1.9% below 2011 resulting in a reduction in water related turnover of 1%. This coupled with a reduced demand for new water connections from the construction sector meant that turnover for the year was 1.4% lower than in 2011.
The Company has been successful in keeping operating costs down in the year; 1% below 2011 and less than budgeted. This being despite the planned increase in depreciation charges arising from metering and other capital investment. This has meant that the Company has been able to limit price increases for 2013 to 2%, the eleventh consecutive below RPI increase.
In 2012, the Company invested £2.9 million on capital works including the renewal of 2.1km of water mains. The Company also installed 3,700 meters as part of the island wide metering programme. Approximately 65% of connections are now metered and the project is currently ahead of schedule and under budget. This puts the Company in a strong position before it starts working in St Helier where the congestion of utilities in the roadway is expected to slow the rate of installation.
The Board of Jersey Water is proposing a final dividend on its Ordinary and ‘A’ Ordinary shares of 12.09 pence per share, bringing the total dividend for 2012 to 18.39 pence, an increase of 3% on 2011.
The quality of the water supplied by the Company during the year was extremely good, with 99.99% of samples meeting or exceeding quality parameters.
Helier Smith, Jersey Water’s Finance Director, commented:
“Whilst headline profits for the year are down on 2011, the year is one in which the Company has recorded many achievements. Water quality was excellent, we have reduced leakage levels, been awarded an Investors in People – Silver award and celebrated our 130th Anniversary through the distribution of £130,000 to twenty local charities. Our on-going focus on keeping costs down has meant that we have been able to announce a below RPI tariff increase of 2% for 2013. We have also made great strides in our metering programme.”
“Although there is increased variability in our income caused by metering, we are very pleased with the effect that metering is having. Total water supplied reduced by 1.9% on 2011 and 3.6% on the five-year average and leakage reduced by 4.5%. Customers are benefitting too; approximately 59% of customers are seeing a reduction in their bills since the introduction of metering.”
“Even though 2012 was a very wet year, the Company remains very focussed on the future and the effects on water resources of the increasingly unpredictable weather patterns that Jersey is experiencing. With relatively low storage capacity, our metering programme is vitally important in minimising waste and protecting our water resources.”
The Company will be publishing full financial statements which will be sent to all shareholders and be available from the Company’s website towards the end of March.
Summary of results
• Profit before tax was £4,486,000 (2011: 4,961,000)
• Profit on sale of fixed assets – £598,000 (2011: £918,000)
• Operating profit (before exceptional items) £4,760,000 (2011:£ 4,858,000)
• Investment in infrastructure in 2012 – £2.9 million (2010: 5.5 million)
• 3,700 meters installed (65% of connections now metered)
• Total water supplied was 7,015 million litres, down by 1.9% on 2011.
• Water quality compliance is 99.99% (2011:99.81%)
• 2013 tariffs have increased by 2.0%, below the rate of inflation
• Jersey Water is the trading name of The Jersey New Waterworks Company Limited.
• Of the 9,660,000 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).
For a copy of the Preliminary results click here
Jersey Water is not listed on any stock exchange and therefore has no official share price.
For further information contact
Helier Smith, Finance Director
Tel: 01534 707300
T: 01534 707378