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Ticker: JWI
Website: www.jwi.co.nz
CEO: Tony Falkenstein
Chairman: Jim McLay
Annual meeting date: October 26, 2006
Shares.net.nz comment
Just Water International Ltd was listed on the NZAX
board in June 2005 raising $8.25m for the company’s
future growth initiatives.
Since listing the company has grown its dispenser
base from 35,490 in 2004 to the current level of 56,500
comprising 40,500 in New Zealand and 18,000 in
Australia.
JWI acquired Australian business Clearwater Filter
Systems for $14 million late last year, and the
operation is already contributing to profit.
CEO Tony Falkenstein believes that: “there are
significant growth opportunities in Australia, which
will add to JWI’s profit growth”.
It would appear that the Clearwater acquisition was
fairly fully priced with an EBIT of $1m, so the company
will want to see those growth prospects coming through
over the next few years.
It is also important to recognize that the growth in
water coolers is not immediately reflected in these
earnings as many of the relevant costs are written off
at the time of the dispenser installation, while the
income is earned over the life of the rental agreement.
Growth in dispensers is forecast to track at 10-12%
over the next two years and that in the short term the
dividend payment will be 60-70% of earnings
Financial Comments
Just Water International Ltd has 70.4m shares on
issue @ $1.14 giving a market cap of $80.3m
Forecasts
2005a
2006f
2007f
Net Profit
$3.09m
$4.15m
$4.85m
PE ratio
25.1
18.6
15.9
Just Water International has built up a good record
of profit growth and is looking to expand its presence
in Australia. JWI’s share price has had a solid move
up over the past three months which has stretched pe
ratios somewhat to a point where the company is now
slightly above market averages.
HOLD.
Company comments on its latest result
The major event of the period (the half-year to
December 31) was the acquisition of Australia’s
largest point-of-use drinking water company, Clearwater
Filter Systems Pty Ltd.
JWI’s directors and management continue to focus on
unit dispenser growth as a key performance indicator
which will translate into future earnings.
CEO Tony Falkenstein said: “It is particularly
satisfying to see the local growth continue, while the
Company absorbed the acquisition of Clearwater.”
Latest financial result (half year)
Figures for the half year to December 31, 2005
(Released March 31, 2006 – figures in $NZ’000)
Recent milestones
December 2005 Just Water International
announces it has acquired 100% of the shares in
Clearwater Filter Systems (Aust) Pty Ltd, a month after
announcing its intention to purchase the business. The
purchase price is approximately A$14 million payable in
two tranches, the second of which is subject to 2006
profitability figures being attained. (Payment due in
August 2006.)
November 2005 JWI announces it has
agreed to acquire all of the shares in Clearwater Filter
Systems, the leading point-of-use water-dispenser
company in Australia. “We have been seeking an
earnings-positive opportunity since we floated the
Company, and one where we think we can add value,” JWI
chairman Jim McLay says. “Clearwater fits totally into
those objectives.”
June 2004 JWI lists on the NZAX
Market following an initial public offer of shares - the
first to be undertaken on the NZAX. The offer, which
closed over-subscribed, raised $8.25 million for the
company's future growth initiatives.
Company activities
Just Water International is a group of two New
Zealand and one Australian drinking-water businesses:
Just Water New Zealand and Aqua-Cool operate in the New
Zealand corporate and government sectors, providing
chilled drinking water through water coolers, and
Clearwater Filter Systems Pty Ltd operating in both the
similar business sectors in Australia as well as the
residential market.
Just Water New Zealand, Aqua-Cool and Clearwater
Filter Systems commenced operations in 1989. Just Water
International acquired Aqua-Cool in 2004 and Clearwater
Filter Systems in 2005.
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