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Watlington Waterworks Issues Director's Report For The Interim Period Ending 30 June 2004
The company's performance through the first six months of this year has been better that projected with demand for our products and services having exceeded expectations. This has been aided by below average rainfall through the first half of the year. Our policy of continuing to invest in capital improvements to strengthen the company's manufacturing and distribution capabilities has resulted in operating efficiencies which have lead to lower unit production costs and this has also contributed to the improved net earnings for the first half of the year. The forecast for the remainder of this year and the first quarter of the next year is for demand for our products and services to remain strong.
The Company is continuing with its long term plans to strengthen and replace aging infrastructure. In the first half of this year 9,000 feet of pipeline originally laid in 1970 along with another section of 3,000 feet originally laid in 1930s was entirely replaced. We are now planning to build a substitute reservoir for our present 70 year old reservoir and then replace the original reservoir with a new and larger facility on the same site. This work is expected to commence this winter and continue for at least two years. This project will run concurrently with other capital projects designed to strengthen our infrastructure. It is anticipated that the company will partially finance these capital projects together with some external financing.
This is part of the Company's long term capital investment schedule to strengthen infrastructure for growth. This may lead the company in the short term to adopt a more conservative fiscal policy.
Additionally, the following summary information is extracted from the Company's Consolidated Financial Statement which is unaudited: Total revenue was $4,316,909 in 2004 up from $3,768,060 in 2003; Income attributable to shareholders was $1,080,464 in 2004 up from $719,092; Net earnings per share were $0.94 in 2004 versus $0.63 in 2003.