Friday, 29 March 2024

Announcement

FLLYR: JWI: Preliminary Full Year Report and Release for 30 June 2016

29 Aug 2016 08:32NZX
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 2016.

Cash Flow:

Rebuilding shareholder value is our key priority. Management continues to
focus on initiatives to maximise the generation of cash flow from operations.
There have been several opportunities explored during the year, but given the
need to ensure on-going profitability and cash flow without putting undue
risk to the current fundamentally sound business there were no acquisitions
or major changes made during the year. We are pleased with the initial
response from the trial of new consumer products in China which is discussed
in further detail later in this report.

The Company generated $3.5 million surplus cash flow (2015: $2.6 million)
from operations during the year.

At 30 June 2016, the company''s net bank debt position showed a small debt of
$0.06 million. This was after the purchase of a new building during the year
for $3.3 million and refurbishment costs of about $0.4 million. The graph
below represents actual net interest bearing liabilities for the Group.

[Refer to attachment]

It is noted that net interest bearing bank debt is expected to increase in
the six months ending 31 December 2016 as the bulk of the new building
renovation and plant upgrade and moving costs will be incurred during this
period.

Consumer Products:

The Company launched two new consumer products at SIAL in Shanghai, China in
June 2016. SIAL is a major global food and beverage show, and attracted 6,500
exhibitors. Our two products, a Just Water 10 litre Cask and a bottled Manuka
Honey beverage were both judged in the top 100 products at the show, with the
Manuka Honey beverage receiving the overall show bronze award. The Company is
in discussions with parties to distribute these products throughout China but
as of the date of this report no agreements has been finalised.

Dividends:

The directors continue to believe that the ability to fund research and
development, new product ventures and pursuing suitable acquisitions is key
to providing a sound business platform for an ongoing return for shareholders
via growth. As such no dividend has been declared for the current year.

Results:

[For table refer to attachment]

The results are significantly improved as a result of further operating
efficiencies realised during the year, reduced depreciation as a result of
reduced capital expenditure over the past few years and a reduced interest
charge due to the repayment of almost all debt from the proceeds of the sale
of the Australian operations in May 2015. Despite revenue decreasing slightly
for the year (2016: decrease 1.1%; 2015: decrease 4.7% from continuing
operations) EBIT increased by $0.52 million as a result of the reasons noted
above.

Purchase of building to house Head Office:

In August 2015, the Company purchased a building to house its Head Office,
Auckland bottling plant and Distribution centre. The purchase price was $3.3
million.

The building office has been gutted and renovated into a modern and dynamic
working environment that will provide a platform to offer an enhanced
customer experience. The Auckland bottling plant has been upgraded with the
latest automation and safety equipment which is now world class. The Company
is moving into the new building in September 2016.

Bank Facilities and interest bearing debt:

The Company has complied with all bank covenants during the year to 30 June
2016.

Expected Future Rental Income Streams:

At 30 June 2016 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
2016.

Share buyback programme:

The directors announced a share buyback programme, which will continue
through to the previously announced date of 20 February 2017.

The Company will buy up to 5% of the shares currently on issue by the
Company.

Shareholders may approach the Company directly if they do wish to sell their
shareholding.

Board:

I would like to thank my fellow directors, Ian Malcolm and Brendan Wood. In
accordance with the constitution, Ian Malcolm retires by rotation and being
eligible offers himself for re-election.

Just Water Team:

The directors wish to specifically acknowledge the support and commitment of
the whole Just Water team in achieving this pleasing result for the year.

Yours sincerely,

Tony Falkenstein ONZM
Chairman and Chief Executive Officer
Just Water International Limited
End CA:00288021 For:JWI    Type:FLLYR      Time:2016-08-29 08:32:03
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