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Profits rise at Watlington Water

Profits at Watlington Water last year went up nearly $107,000 to $2.29 million compared to the $2.18 million recorded for 2015.

The annual report for the firm said total revenue amounted to $10.54 million, more than $329,000 up on the previous year's $10.21 million.

The company said demand for Watlington Water rose last year despite high rainfall, and gave the firm its most successful year since the global recession eight years ago.

A spokesman said 2016 was an “extraordinary year” with increased sales despite 2016 rainfall of 70 inches, up 15 inches on the previous year.

The improvements came from both utility and bottled water sales.

The spokesman said: “Both divisions had price increases effective midyear.

“The utility division tariffs had remained unchanged for two years prior to its adjustment, and the division also increased its number of connected customers.

“Bottled water revenue increased as the total number of units sold increased despite new competition selling three gallon product in recyclable bottles.”

Retail plumbing sales were also stronger as the company competitively priced its popular brand name products and the national economy strengthened.

The news came as Watlington Water released its report for the calendar year 2016.

The firm said previous infrastructure investment to improve on efficiencies and a concerted drive throughout the year to reduce pipeline distribution losses led to a decline in production costs, which enabled a small improvement in margins, which further contributed to the stronger results.

The spokesman added: “The company remains committed to its long-term infrastructure strengthening to improve all facets of the company and to take advantage of technology advances to enhance productivity.

“This policy has led to improvement in underlying performance as witnessed in the past year despite the adversarial environment created by the excessive rains and new competition.

“The board remains committed to sharing this success with shareholders through increasing the ratio of free cash flow to earnings that will be distributed to shareholders.”

Watlington Water: Demand went up last year, despite high rainfall. The company has reported a profit of $2.29 million for 2016

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Published May 12, 2017 at 4:34 pm (Updated May 12, 2017 at 4:34 pm)

Profits rise at Watlington Water

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