JWI
13/03/2014 15:53
HALFYR
REL: 1553 HRS Just Water International Limited
HALFYR: JWI: JWI - Just Water International Limited Half Year Results
First-half 2014 announcement
Just Water International Limited presents its unaudited half-year results for
the six months to 31 December 2013.
Consolidated Income Statement
Current Previous corresponding
half-year half-year
(unaudited) (unaudited)
Consolidated $'000 $'000 % Change
Total Revenue 13,502 13,808 (2.2%)
EBITDA 3,652 3,439 6.2%
EBIT 1,792 1,434 25.0%
Net Profit after tax 1,064 630 68.9%
The directors and management are satisfied with the profitability result for
the first six months of the year which includes a realised exchange gain of
$0.249 million compared to a gain of $0.018 million in the corresponding
period last year. The fundamental business issues remain with very
competitive market places in both New Zealand and Australia and deep price
discounting from competitors. Management continues to work on measures to
combat this and improve the value proposition to its customers on both sides
of the Tasman. Ongoing productivity improvements have resulted in further
cost reduction during the period. Total debt remained almost the same during
the period notwithstanding the New Zealand water delivery fleet was upgraded
at a cost of $1.119 million and the acquisition of the business assets of
Aquaman Australia Pty Limited for $0.364 million.
New Zealand
Current Previous corresponding
half-year half-year
(unaudited) (unaudited)
New Zealand $'000 $'000 % Change
Total Revenue 9,047 9,119 (0.8%)
EBITDA 2,650 2,452 8.1%
EBIT 1,282 932 37.6%
Net Profit after tax 529 327 61.8%
(Net of elimination entries)
Total revenue for New Zealand was slightly down on the corresponding period
last year and reflects the ongoing competitive pressures in the market place.
Total revenue included a realised exchange gain of $0.249 million during the
six months (December 2012 $0.018 million) as a result of a favourable
conversion of an Australian dollar loan to New Zealand dollars.
The Company's three bottling plants achieved an outstanding average of 99.8%
in the annual audit by the Australasian Bottled Water Institute (ABWI),
assuring customers that water from our plants is bottled under the strictest
quality standards. No other '15 litre bottle' bottling plants in New Zealand
comply with these standards.
Australia
Australia (New Zealand dollars)
Current Previous corresponding
half-year half-year
(unaudited) (unaudited)
NZD$'000 NZD$'000 % Change
Total Revenue 4,455 4,689 (5.0%)
EBITDA 1,002 987 1.5%
EBIT 510 502 1.6%
Net Profit after tax 535 303 76.6%
(Net of elimination entries)
The Australian result has been heavily influenced by the strengthening of the
New Zealand dollar against the Australian dollar during the period. The
conversion rate for the corresponding period last year was 0.7856 compared to
0.8819 for the current half year. If the exchange rate effect is eliminated
then the Company's Australian operations achieved a 6.7% increase in revenue
and a pleasing 14.2% increase in EBIT. This has been calculated as follows:
Australia (Australian dollars)
Current Previous corresponding
half-year half-year
(unaudited) (unaudited)
AUD$'000 AUD$'000 % Change
Total Revenue 3,929 3,684 6.7%
EBITDA 884 775 14.1%
EBIT 450 394 14.2%
Net Profit after tax 472 238 98.3%
The recent acquisitions in Australia of Pure Rain Water Purification Systems
and the business assets of Aquaman Australia Pty Limited have both been
successfully integrated into the Company's existing operations, increasing
the Company's customer base in Australia. The directors continue to review
opportunities for acquisitions of a similar nature.
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 2013 and 31
December 2012 are unaudited. The comparative information for the year ended
30 June 2013 is audited.
Debt facilities:
The Company has complied with all bank covenants at 31 December 2013.
Total net debt at 31 December 2013 was $16.003 million (December 2012:
$17.325 million, 30 June 2013 $15,954 million). Total net debt has slightly
increased by $0.049 million over the past six months after the complete
replacement of the New Zealand delivery fleet for $1.119 million and the
Aquaman Australia acquisition in Australia totaling $0.364 million. Debt
repayment will continue in the current period. The Company had an unutilised
funding facility of $2.95 million at 31 December 2013 (December 2012: $3.2
million) after requesting voluntary reductions during the six months of $1.6
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 2013 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 remain challenging in both countries. Debt
reduction remains a 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:
The directors wish to thank the staff for their efforts over the last 6
months.
For further information, contact
Ian Ormiston, CEO +64 9 583 2788
Eldon Roberts, CFO +64 9 583 2713
Tony Falkenstein, Director +64 21 950 856
End CA:00248176 For:JWI Type:HALFYR Time:2014-03-13 15:53:56
