Guernsey Water Annual Report 2016

Guernsey Water 2016 Annual Report GENERAL MANAGER’S STATEMENT 04 water.gg/ annualreport2016 GENERAL MANAGER’S STATEMENT 2016 was another successful year for Guernsey Water and this is reflected in our operational and financial performance. It was a year of change for our organisation. It was also a year in which we began our capital restructure, with agreement to fund our Belle Greve sea outfalls triggering preparations for a move away from our save-to-spend financial model. Ultimately this decision will bring long term benefits for our customers, make a significant contribution to the States' financial objectives and benefit our wider community. Business Improvement Our new business plan was published in April and we’ve already made good progress with delivering the outcomes we aim to achieve for our customers. Earlier in the year we completed a reorganisation to enable us to deliver our business plan successfully. This was a difficult time for our employees as many had to deal with the uncertainty that comes with change. However, they remained unwavering in their commitment to our customers throughout. I appreciate their professionalism and thank them for working with us to make these changes. Financial Performance Revenue in 2016 was £15.7m, which was marginally down on the income we received in 2015 due to a small reduction in customers’ water usage. Despite considerable restraint during the year, operating expenses have increased by 2%, primarily due to restructuring costs. These two factors combined have reduced our surplus before depreciation to £4.9m from £5m in 2015. A significant return on our investments with States Treasury helped us achieve a post depreciation surplus of £706k. Interest received from these investments offset an operating deficit caused by increased depreciation costs associated with our water treatment strategy. This Our new business plan was published in April and we’ve already made good progress with delivering the outcomes we aim to achieve for our customers. STEPHEN LANGLOIS 2 The accounting standards applicable in the UK and Republic of Ireland (FRS102) 3 Excluding net interest receivable and grant received

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