Annual Report & Financial Statements 2015-16
Annual Report & Financial Statements 2015-16
The Annual Report & Financial Statements for Manx Utilities for 2015-16 will be laid before Tynwald on 13 December 2016.
Manx Utilities reports a surplus for the year of £1 million compared with a deficit in 2014-15 of £3 million primarily due to reduced fuel costs following falls in the market prices of natural gas. The financial statements show that Manx Utilities remains slightly ahead of the financial plan that supported the merger of Isle of Man Water & Sewerage and Manx Electricity approved by Tynwald in January 2014.
Chairman, Dr Alex Allinson MHK said, “Manx Utilities has again delivered positive results, achieving efficiency savings and high levels of service reliability, and I extend my thanks to the staff who have made this possible through their dedication to providing high quality services to customers. Changes in the international political arena, including the United Kingdom’s decision to leave the European Union, are impacting international markets for energy and currency exchange and could have negative financial impacts on Manx Utilities in the future. We will therefore continue to act in a financially responsible manner, seeking out further efficiency savings where possible, and support Treasury’s work to review the business’s financial position. At the same time we will continue to provide our customers with a reliable and efficient service”.
The revenue increase of £2 million is mainly attributable to the sale of the former Isle of Man Water & Sewerage headquarters. Inflationary increases in both water and electricity charges were offset by reductions in sewerage grant funding provided by the Treasury and reductions in electricity volume sales of 0.4%. Operating costs reduced by £2 million, due to general costs control and no maintenance work being required on sub-sea assets during the year.
The bond repayment fund (to repay the bond debt totalling £260 million) has increased to £47 million from £33 million in the previous year; however net debt has increased slightly by £3 million to £509 million under the new accounting basis.
The capital expenditure was within budget and totalled £19 million. This included further expenditure on sewerage schemes (to improve the efficiency of the Meary Veg treatment works and to construct a treatment works for the north of the Island), capitalised maintenance at Pulrose Power Station and the ongoing improvement of the electricity, water and sewerage networks.