Jersey Water today published its preliminary results for 2011.
The Company is reporting profit before tax of £4.96 million, an increase of £0.8 million on the previous year. 2011 results were boosted by surpluses on the disposal of property of £0.9 million. Underlying operating profit was down by 4% at £4.86 million, reflecting the challenging nature of the year in terms of water resources. The reduction was mainly as a result of the increased costs associated with running the desalination plant in the autumn and other one off reorganisation costs.
Turnover for the year increased by 1% to £14.8 million. Metered tariffs remained unchanged in 2011 for the third consecutive year and unmeasured tariffs increased by a modest 1.5%. After allowing for the desalination expenses and other one off costs mentioned above, operating expenditure remained in line with the prior year despite increases in depreciation arising from metering and other capital expenditure.
The Board of Jersey Water is proposing a final dividend on its Ordinary and ‘A’ Ordinary shares of 11.75 pence per share, bringing the total dividend for 2011 to 17.85 pence, an increase of 5% on the 2010 equivalent.
2011 was one of the Company’s busiest years for some time in respect of capital expenditure. The Company spent over £5.5 million during the year compared to £3.5 million in 2010. The main reason for the increase was the essential lining of the dam at Val de la Mare, a £1.6 million project that was achieved within budget and within the scheduled timeframe. The lining will extend the life of the dam well in to the future. The Company also undertook the renewal of 4km of water mains and installed over 3,200 meters as part of the Island wide metering programme.
Water quality supplied by the Company continued to be of a very high standard with 99.81% of samples meeting or exceeding quality parameters.
Managing Director, Howard Snowden, commented:
“We are pleased with the results for the year that were achieved against a back drop of very little rain in 2011 and a very busy year in terms of capital expenditure. Average rainfall was 13.5% below the 10 year average and in one month there was no rainfall at all. Water resources in Jersey are susceptible to the increasingly unpredictable nature of the weather and the need to minimise wasted water continues to be important as ever. We are very satisfied with the progress of our metering programme which in 2011 passed the halfway mark. More than 50% of customers now pay for water by meter and the effect of this and other water efficiency measures is clearly visible. Despite an additional 492 connections and 2011 being an extremely dry year, demand for water was 1.75% below the ten year average.”
“The Company continues to look at ways in which it can improve efficiency and reduce costs. Our work in this area has helped keep underlying operating costs in the year in line with those of 2010 despite the inevitable increase in depreciation charges that are a consequence of the substantial investment we made this year in our infrastructure. The results mean that we are able to keep tariff increases for 2012 down to just 2.5%, half of the rate of inflation, as recently announced by the Company.”
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 £4.96 million (20% (£0.8million) increase)
- Profit on sale of fixed assets – £918,000 (2010: £93,000)
- Cost of running the desalination plant in 2011 – £240,000 (2010:£Nil)
- Operating profit £4.9 million (2010:£5.1 million)
- Investment in infrastructure in 2011 – £5.5 million (2010: 3.5 million)
- 3,200 meters installed (55% of connections now metered)
- Total water supplied down by 1.5% on ten year average.
- Water quality compliance is 99.81% (2010:99.86%)
- Prices for metered water unchanged in 2011, third year running.
- Unmetered water increased by a below inflation 1.5% in 2011
- Tariffs for 2012 have increased by 2.5%, half the rate of inflation and the tenth consecutive increase that has been at or below 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).
- Jersey Water is not listed on any stock exchange and therefore has no official share price.
- A copy of the Company’s 2011 Preliminary Results is available here
For further information, please contact:
Howard Snowden
Managing Director
T: 707301