JWI
01/09/2015 14:47
FLLYR
PRICE SENSITIVE
REL: 1447 HRS Just Water International Limited
FLLYR: JWI: Preliminary Full Year Report and Release for 30 June 2015
Just Water International Limited
Chairman and Chief Executive's review
The directors of Just Water International Limited present the full year cash
flow and profit results for the year ended 30 June 2015.
Management continues to prioritise the generation of maximum cash flow from
operations through balancing new marketing initiatives with productivity
improvements. Any opportunities which can add to the long term profitability
and cash flow with a commercially sound payback are investigated thoroughly.
Upon completion of the sale of Just Water's Australian entities the Company
had no bank debt as at 30 June 2015.
The graph below represents actual net interest bearing liabilities for the
Group.
[Refer attachment]
The following graph represents calculated interest bearing liabilities
excluding the proceeds from the sale of the Australian entities. A detailed
reconciliation is shown below the graph.
[Refer attachment]
Reconciliation of calculated interest bearing liabilities excluding proceeds
from the sale of the Australian entities as at 30 June 2015.
Actual Net Bank Balance in Funds 63
Deduct: Net funds received from sale of
Australian entities (10,874)
Calculated interest bearing liabilities
as per graph above (10,811)
Dividends:
As previously advised, there is no intent to pay a dividend until calculated
interest bearing liabilities is repaid using surplus funds generated from
operations.
The directors will review this decision on a regular basis
Results:
Continuing Operations
Current Previous
full-year full-year %
$'000 $'000 change
Operating Revenue 16,537 17,352 (5%)
EBITDA 4,043 4,861 (17%)
Depreciation & Amortisation (2,243) (2,569) 13%
EBIT 1,800 2,292 (21%)
Interest (702) (968) 27%
Net profit before tax 1,098 1,324 (17%)
The current year result includes restructuring costs incurred in the first
half of the year of $191,000. The previous year's results included an
exchange gain of $262,000.
Sale of Australian Entities:
On May 1st 2015, the directors advised shareholders that they had sold Just
Water's subsidiary, Clearwater Filter Systems Pty Ltd to Waterlogic Pty Ltd,
an Australian Company ultimately managed by Castik Capital a German private
equity company, for NZ$10,874,000 net of disposal costs.
It had not been the directors' intention to sell the business, but the
directors felt that the offer was good, given the prospects for the
Australian economy, and that it would focus management on the major business
located in New Zealand.
De-listing from NZAX:
As advised during the takeover offer, it is intended to apply to the NZAX to
de-list the Company, and a resolution will be tabled at the Annual General
Meeting proposing to do so.
If the Company was de-listed from the NZAX, the directors would ensure shares
would continue to be tradable on another exchange such as Unlisted, or
potentially move the shareholder register to Computershare which would allow
trading on ShareMart.
ShareMart is a system developed by Computershare Investor Services Limited to
enable unlisted issuers to match buyers and sellers of their unlisted
securities.
To provide liquidity, Harvard has advised that after 20 December 2015,
provided the Company is delisted, it will make a stand in the market at a
minimum price of $0.17 cents per share, representing a 11.7% increase on its
offer price during the takeover offer. Harvard would acquire a maximum of
4.99% of the total shares on issue on a "first-in-first-served" basis. This
is the maximum Harvard can acquire without making a full takeover offer for
the Company.
There would be significant savings in cost and management time by de-listing.
Parties associated with The Harvard Group Ltd, being the majority shareholder
will not vote on this resolution.
Purchase of building to house Head Office:
After balance date, the Company purchased a building to house its Head
Office, Auckland bottling plant and distribution centre. The price was $3.3
million.
The Company will rent out the building to the vendor and intends to move in
before June 2016.
Bank Facilities and interest bearing debt:
The Company has complied with all bank covenants during the year to 30 June
2015.
Expected Future Rental Income Streams:
At 30 June 2015 there continued to be in excess of $80 million expected
future rental income stream which is not recognised in the consolidated
financial statements. Consistent with prior disclosures, expected future
rental income streams have been calculated on the basis of the last month's
rental income multiplied by the average customer life, which is in excess of
seven years.
Audit:
The Company has complied with all bank covenants during the year to 30 June
2015.
Board:
Ian Malcolm and Brendan Wood were appointed to the Board during the financial
year. In accordance with the constitution both hold office until the AGM and
both offer themselves for re-election.
Staff and Shareholders:
This has been an eventful year for both staff and shareholders, and the
directors acknowledge their patience in recognising the long term future of
the Company.
Yours sincerely
Tony Falkenstein ONZM
Chairman and Chief Executive Officer
Just Water International Limited
End CA:00269464 For:JWI Type:FLLYR Time:2015-09-01 14:47:23
