The directors of Just Water International Limited were pleased to present the cash flow and financial results for the six months ended 31 December 2017, which presented a very pleasing picture, including some information as follows.
On 22 December 2017 the Group entered into an agreement to acquire 51% of the shares in HomeTech Limited effective 1st January 2018. HomeTech Limited is a New Zealand business that transforms homes and workplaces into better living and working spaces.
Regarding Just Water’s further outlook, the summer has been very advantageous for any companies selling beverages, this being the best summer for several years. For Just Water, this has resulted in increased sales, which will flow through to the year-end performance.
Since the Board was appointed in January 2015, Tony Falkenstein has been serving shareholders as both Chairman and CEO. In the circumstances, the Board considered that this was the most appropriate structure. As heralded at the Annual Meeting the directors have decided that a new director would be appointed, with a view to that person becoming Chairman at the next Annual Meeting. Discussions with candidates are currently taking place, with a view to appointing a new director before June 2018.
As at 31 December 2017 there was in excess of $76 million in expected future rental income stream, which is not recognised, in the 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.
The share buyback programme for a 12-month period from 22nd February 2017 to 16th February 2018 has concluded. The directors have decided not to rollover this program at this time. This will be reviewed on a regular basis and the shareholders updated accordingly.
The directors would like to thank the team for their commitment to achieving continuous improvement and striving to provide the highest level of service to their customers. The Company was a finalist in the IBM Best Workplace Survey, and won the Most Improved Award for performance over the previous year.