JWI
27/02/2013 15:44
HALFYR
REL: 1544 HRS Just Water International Limited
HALFYR: JWI: JWI - Just Water International Limited Half Year Results
First-half 2013 announcement
Just Water International Limited presents its half-year results for the six
months to 31 December 2012.
Consolidated Income Statement
Current half-year NZ$'000; Previous corresponding half-year NZ$'000;
Up/(Down)%
Total Revenue: 13,808; 15,285; (9.7%)
EBITDA: 3,439; 4,082; (15.8%)
EBIT: 1,434; 1,735; (17.3%)
NPAT: 630; 654; (3.7%)
The reduction in net bank debt of $1.9 million over the past 6 months has
been the highlight of the period, as the Company responded to the continued
rationalisation of businesses and competitive pressures, resulting in
decreased revenue and profits.
New Zealand
Current half-year NZ$'000; Previous corresponding half-year NZ$'000;
Up/(Down)%
Total Revenue: 9,119; 10,125; (9.9%)
EBITDA: 2,452; 2,904; (15.6%)
EBIT: 931; 1,185; (21.4%)
NPAT: 326; 395; (17.5%)
The decline in revenue is disappointing, and, as stated above, indicates the
continued rationalisation of businesses and competitive pressures.
The overall base of commercial customers, for which recurring income is
received, reduced to 36,692. This is a 2.4% reduction for the six month
period, compared to 3.6% reduction for the previous period to 31 December.
The Company's three bottling plants achieved an average of 99.6% in the
annual audit by the Australasian Bottled Water Institute (ABWI), assuring
customers that water from these plants are operated under the strictest
quality standards. The auditor made the following comment in his audit: "This
is an outstanding outcome....and an indication of the professional commitment
to quality by the management and operations team... a score above 99% is
world class."
No other '15 litre bottle' bottling plants comply with these standards, which
places their customers at risk of drinking contaminated water. This is a
corporate risk that is negated by Just Waters stellar history of ABWI
certification - in the seven years we have been certified apart from our
initial audit we have consistently achieved above 95% for an "order of
excellence" pass. This standard should be upheld by all water providers -
uncertified water puts those who consume it at risk of Giardia and
Cryptosporidium and unnecessary reputational damage for the company involved.
Australia
Current half-year NZ$'000; Previous corresponding half-year NZ$'000;
Up/(Down)%
Total Revenue: 4,689; 5,160; (9.1%)
EBITDA: 987; 1,178; (16.2%)
EBIT: 502; 550; (8.7%)
NPAT: 304; 259; 17.4%
Again, the decline in revenue is disappointing; however the base of rental
assets from which recurring income is received, increased by 2.9% to 9,165
units during the last six months compared to a decrease of 0.3% in the same
corresponding period last year. There has been some decrease in pricing to
achieve this result, but it is a favourable key performance indicator for the
future.
Dividend:
As previously advised, the directors have decided there will be no dividend
in the current year.
Audit:
The financial statements for the six months ended 31 December 2012 and 31
December 2011 are unaudited. The comparative information for the year ended
30 June 2012 is audited.
Bank facilities:
The Company has complied with all bank covenants at 31 December 2012. Net
bank debt at 31 December 2012 was $16,930 million (December 2011: $20,842
million). Debt has decreased by $3.912 million over the past year, and is
expected to continue to reduce in the current period. The Company had an
unutilised funding facility of $3.2 million at 31 December 2012 (December
2011: $5.3 million) after requesting voluntary reductions during the year of
$5.5 million in order to save on-going facility fees. The Board is
comfortable that the company has funding capability for growth and exploring
further acquisitions.
Receivables:
At 31 December 2012 there continued to be in excess of $80 million future
rental income stream which is not recognised in the financial statements.
Expected future rental income streams have been calculated on the basis of
average customer life, which is in excess of 7 years. This calculation of
future receivables is used as part of the monitoring on compliance for our
bank covenants.
Summary:
Overall trading conditions continue to remain challenging in both countries.
As previously stated, debt reduction remains a high priority, although
management continue to look for new opportunities. The Company is in a sound
position and continues to strengthen its balance sheet.
Staff and shareholders:
Although the Company's revenue has not grown over recent times, the directors
acknowledge the staff for their efforts in maintaining a reasonable level of
profitability, and reduced bank debt.
The directors thank shareholders for their patience.
For further information, contact
Tony Falkenstein, CEO 021 950 856
Eldon Roberts, CFO 09 583 2713
Ian Malcolm, Director 021 456 225
End CA:00233521 For:JWI Type:HALFYR Time:2013-02-27 15:44:56
