Jersey Water has released its preliminary financial results for 2015. The Company had a profitable and busy year, which included investing in a substantial capital programme to ensure that Jersey has safe, secure and affordable water for generations to come.
The Company is also announcing plans to resume its treated water mains extension programme by adding approximately 2km per year, depending on the commitment from those properties along the proposed routes to connect to mains water when it is installed.
- Turnover up 1.2% to £15.4m.
- Pre-tax profit of £4m, down 4% on 2014 due to a planned increase in operating costs and interest charges.
- £6.6m invested in capital projects (112% increase on 2014), including refurbishment and extension of desalination plant, mains and service renewals, water quality enhancement projects and metering programme.
- Quality of water supplied by Jersey Water in 2015 of very high standard with an overall compliance rate of 99.99%.
- 3.8km of new and replacement mains infrastructure laid. Network extended by 1.3 km in 2015. 506 new connections were made – an increase of 25% on 2014.
- Installation of water meters on all properties in the Island substantially completed in 2015. Remaining 10% of already-metered properties will move to paying for water on a measured basis in 2016/17. Measured water income now accounts for 87% of water revenue in 2015 compared to 85% in 2014.
- A final dividend of 13.260 pence per share is being recommended, subject to shareholder approval at the AGM, bringing the total dividend for the year to 19.946 pence per share, an increase of 2% on the 2014 dividend.
Jersey Water Chief Executive Helier Smith said: ‘We are proud of our performance in 2015 and, in particular, our completion of the installation of water meters for the vast majority of homes and businesses.’
‘With 90 per cent of homes now paying for water by meter, we have undoubtedly reached a major milestone in our endeavours to minimise waste and manage the demand for water. Our customers have also benefited from being in control of their water bills and are often paying less than they were before.’
‘Now that the metering programme is substantially complete, we are very pleased to announce the resumption of our mains extension programme. We know there is a high demand for mains water from householders not already connected and we are committed to meeting that demand where it is feasible for us to do so. Property owners interested in a mains connection should register their interest with Jersey Water to help us plan our future programme.’
‘One of the major projects we started in 2015 was the £6m extension of the desalination plant, designed to increase the capacity of the plant to produce up to 50% of the Island’s daily demand for water. The project is well advanced and we look forward to completion of this vital infrastructure project during the summer.’
‘We are also proud of the quality of water that we supply to our customers. I know this has been a high-profile issue recently. The small size of the water catchments in Jersey and the intensity of farming practices do mean that water resources are vulnerable to pollution from nitrates and other substances. We are working with all stakeholders on a long term solution but in the meantime, through the effective management of water resources, we continue to provide water that reaches the highest safety and regulatory standards.’