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WE L ANNUA L REPOR T
CHAIRMAN’S
REPORT
MARGARET DEVLIN
Chairman
Overall the Group has delivered a Net Profit After Tax of $13M which
was lower than budget of $16M.The key reasons for this are a higher
share of UFF losses than predicted, and the write-off of Waikato Networks
Limited’s (WNL) share of IT development costs.
As signalled in the half year report, there has been continued pressure
on line revenue as a result of mild winter weather, lower than expected
residential sector growth, electricity efficiency and improving affordability
of alternatives such as photovoltaic power systems. It is anticipated that
this trend will continue in future years.The strategic focus of the business is
therefore revenue optimisation through existing and new opportunities, and
cost efficiency.
SAIDI was worse than target during the year as there were a large number
of storms that impacted heavily on reliability for our customers.This was
common amongst upper north island lines companies.WEL’s Lost Time
Injury (LTI) result was also worse than target due to two significant events.
Learnings from these events have been shared throughout the Company.
Health and Safety continues to be a high priority for the Company and
it is pleasing to note that site observation and near miss improvement
opportunity reporting were both better than target for the year.
PERFORMANCE
REVENUE
Group
$195M
WEL
$110M
NET PROFIT AFTER TAX
Group
$13M
WEL
$21M
Investments
($8M)
CAPITAL EXPENDITURE
$60M
DISCOUNTS PAID
$22M
SAIDI
105 minutes
HEALTH AND SAFETY
Injury related lost days
59
Near miss improvements
280 reports
Site observations completed
533
2014-15 has been a year
of change for the WEL
Group, with movements
at both Board and
Management level.
The strategic direction
of the business has
been reviewed to
ensure that the strategy
remains fit for purpose
and fit for the future.
