THE Island’s water utility, Jersey Water, increased profit last year from £2.
million to £2.
million.
A recovery in reservoir levels meant that there was no need to operate the desalination plant, with water levels for the whole of last year above the ten-year average.
Turnover rose by 3.
%, to £12.
million, following a 5.
% increase in water supply charges and a 3.
% tariff increase.
Sales from customers with meters were up on the previous year, following the lifting of water restrictions, and additional income was generated from non-metered households who owned up to using a hosepipe and paid the extra charge of £46.
0.
Shareholders have been told to expect a ’significantly increased’ return on their investment, following the States decision earlier this month not to approve a takeover bid from Jersey Electricity.
David Norman, the chairman of Jersey Water, said that now the period of uncertainty was over, the board had decided to put in place a progressive results-based dividend policy.
Announcing the annual results yesterday, Mr Norman said: ‘Due to the significant investment that the company has made extending and improving the water supply infrastructure for the benefit of our customers and the Island, our shareholders have received little or no return on their substantial investment in the company for many years.
The board intends to distribute dividends equal to one third of normal operating cash flows, with a total equity dividend for 2004 of £1 million.
The States of Jersey own 73.
% of the equity shares in issue, with the remainder owned by companies and Jersey residents.
Disposals of property assets last year totalled £520,469, including Le Morier Farm.
Capital expenditure of £2.
million was £0.
below budget due to ‘timing differences’ and cost savings – significantly lower than the £6.
million spent in 2003.
During the year the new distribution system served by the Les Platons reservoir was completed, the Val de la Mare pumping system replaced, and around seven kilometres of water mains extensions connected 812 new dwellings.
Expenditure went up by 2.
%, but the cost of dealing with the ‘unexpected’ bid from Jersey Electricity was more than offset by the savings from not running the desalination plant.
In terms of water quality, 99.
% of treated water complied with the limits set out in the new amendment to the Water Law.
But the board says is it is ‘disappointed’ with the discovery of cyanazine pollution – a substance used in daffodil production – at Grands Vaux at the end of last year, which resulted in the reservoir being emptied.
The source is still under investigation.
The company’s annual general meeting will be held at the Jersey Museum on 20 May at 9 am.
Article posted on 27th April, 2005 - 12.00am
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