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Manukau Water Limited’s Results Improve

MEDIA RELEASE

Manukau Water Limited’s Results Improve

Manukau City (07 October, 2008) – Manukau Water Limited has recorded a substantial improvement in its latest financial year results.

The company’s audited accounts for its financial year to June 30, 2008 show its losses narrowed significantly, during a period when it maintained the lowest water and wastewater prices in the Auckland region and supported water conservation efforts in Manukau City.

The company’s overall loss for the year to the end of June was $2 million. This is a $4.55 million improvement on a loss of $6.55 million recorded a year earlier and is $3.4 million better than budget.

Chairman James Hill said the improved performance shows Manukau Water Limited is making considerable progress on increasing value for customers by improving operational efficiency and effectiveness. This means the company has been able to offset, in part, considerable external price pressures that have been placed on the business.

“It is particularly pleasing that Manukau Water Limited’s retail water price remains the lowest in the Auckland region and our wastewater prices are also, on average, the lowest in the region,” Mr Hill said.

Mr Hill said it is also pleasing to see that water consumption in Manukau is falling. The amount of water used in the City fell on average more than 5 litres per person, per day during the financial year. That is equivalent to Manukau City using five fewer Olympic-sized swimming pools of water every week.

“This latest fall in water consumption means that since Manukau Water Limited was formed two years ago, demand for water in the City has declined nearly 5 percent. That is a great environmental outcome,” he said.

Raveen Jaduram, chief executive of Manukau Water Limited, said the improvement in the Company’s financial result is a testament to its focus on controlling costs and obtaining better and more efficient services from its providers.

“We competitively out-source many services while continuing strong management control and that has seen us achieve more cost-effective operations and is resulting in an improvement of services for our customers,” Mr Jaduram said.

Mr Jaduram said the company is particularly proud of its success in meeting water demand-management objectives.

“At the end of our second year of operation our annual water demand is the same as before we commenced operations. This is despite an increase in population and commercial growth in Manukau City. I want to thank all of our customers for helping make this happen and I encourage them to continue to eliminate any wastage of water,” he said.


Mr Hill said the company is confident it will continue to deliver similar results in the year ahead and that it will increasingly move even closer to its goal of being a world class water and wastewater company.

“We are still continuing to make major investments in essential infrastructure and to plan for growth in the City. These investments include the completion of the Kawakawa Bay wastewater treatment plant and the upgrade of the Beachlands/Maraetai wastewater plant. Both have positive environmental benefits for the community,” Mr Hill said.

“Central to everything we do is the aim of improving the service for our customers, and I believe these latest results show the real benefit of Manukau Water Limited being established as a Council Controlled Organisation,” Mr Hill said.


Manukau Water Limited

Income Statement for the year ended 30 June 2008
Actual Actual
2008 2007
$000 $000
Total income 87,956 84,597

Total operating expenditure 89,960 91,152

Operating profit/(loss) before tax (2,004) (6,555)
Taxation - -
Profit/(Loss) after tax (2,004) (6,555)

Balance Sheet as at June 30, 2008
Total current assets 23,701 17,098
Total non-current assets 949,462 954,824
Total assets 973,163 971,922
Represented by:
Total current liabilities 473,286 470,041
Total non-current liabilities 75,000 75,000
Total liabilities 548,286 545,041
Equity
Share Capital 433,436 433,436
Accumulated Loss (8,559) (6,555)
Total equity 424,877 426,881

Total equity and liabilities 973,163 971,922

About Manukau Water

Manukau Water Limited is responsible for the management of the public water distribution and wastewater collection systems for the people of Manukau. The company serves approximately 338,000 people living in an area covering 552 square kilometres. It manages infrastructure assets worth nearly $1 billion.

The company was established by its owner, Manukau City Council, as a Council Controlled Organisation (CCO).

The Company continues to be fully accountable to its shareholder through ongoing performance measures and targets.


ends

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