Jersey Water says that consistently high levels of water quality and customer service, combined with a drive to deliver operational efficiencies, have led to a solid year of operational performance and a strengthening financial position.
The utility’s annual report for October 2023 to September 2024, published today, details Jersey Water’s operational and financial results for the year. Primary achievements include continued high rates of regulatory compliance for water quality (99.98% average for the past five years); a 5.5% reduction in leakage rates; top results for customer satisfaction (83.1, compared to the UK all-sector average of 75.8); and an £820k increase in operating profit.
The company said its financial performance for the year reflects its focused efforts to manage strategic investments and operating costs against the impact of higher financing costs and inflationary increases. Turnover increased by 9% to £21 million, principally driven by the inflation-linked tariff change, while overall demand for water remained steady. This, along with various cost control measures, boosted operating profit up from £1.9 million to £2.8 million.
Despite these gains, the company’s overall profit was lower than the previous year at £943k, compared to £1.3 million in 2023, due to increased financing costs. The final dividend payment proposed for shareholders is 11.561 pence per share, representing 5% growth in total dividend for the year. Moving forward, the company’s focus will remain on improving its financial performance and profitability, while addressing critical strategic risks.
During the year, Jersey Water invested nearly £5.5 million in its capital programme, including targeted spend to reduce leakage, develop smart metering capability, replace water mains, refurbish the utility’s premises at Rue des Pres trading estate and enhance resilience of the desalination plant and other critical infrastructure. Key areas of focus also included developing the 2025 Water Resources and Drought Management Plan, which outlines how the company plans to address the Island’s forecast water scarcity challenge, and determining the treatment processes necessary to ensure continued compliance with evolving water quality regulations relating to PFAS. Both initiatives have the potential to require significant investment in the coming years, as Jersey Water seeks to address these strategic issues for the Island.
Heather MacCallum, Chair of Jersey Water, commented:
“While 2024 has been a year of steady progress and delivery for Jersey Water, we remain focused on strengthening our performance for the longer-term. Our commitment to delivering high levels of service and water quality for our customers remains at the heart of everything we do. Equally, it is critical that we make strategic investments to enhance our water supply infrastructure and services for the future. We are confident that, by adopting a balanced approach to both our operations and our resources, Jersey Water will be well-positioned for continued success in the years ahead.”
Helier Smith, Jersey Water’s Chief Executive, added:
“We are pleased by our performance this year and the improved operational efficiencies we have made to deliver value for our customers and shareholders. We do, however, recognise that we face and need to respond to specific risks to ensure that we can maintain a safe, reliable and resilient water supply that the public can continue to trust. Whether addressing Jersey’s water supply challenges for the future or tackling the water quality risks posed by environmental pollution, we remain fully committed to delivering for all our stakeholders, today and for generations to come.”
