WEL Networks Limited has released its Audited Financial Results for the twelve months to 31 March 2021, reporting a Net Profit after Tax attributable to shareholders of $210m up from $32m last year. Included within the Net Profit is a Gain on sale of $183m from the sale of WEL Network's 85% shareholding in UFF Holdings Limited (UFF).
The proceeds of the UFF sale were used to repay all bank borrowings and terminate associated interest swap agreements, leaving only the $150m WEL Networks subordinated bonds outstanding (maturing in August 2023).
Group Financial highlights from continuing operations (Electricity Lines Network) include:
- Revenue of $128m, $13m lower than the prior year, primarily due to price reductions in line charges. While WEL Networks is subject to Information Disclosure requirements, these price reductions were in line with a lower regulatory Return on Investment of 4.57% (down from 7.19%) being set by the Commerce Commission for regulated lines companies for 2020-2025.
- Profit after tax was $4.6m, down from $17.5m in the prior year, primarily due to a combination of lower lines revenue and costs associated with the termination of interest rate swaps relating to the repayment of all bank borrowings
As a result of the UFF Sale, the Group's Equity as at 31 March 2021 was $754m, up from $570m in the prior period. As at year end, current assets include $124m of cash and $195m in redeemable convertible preference shares, a feature of the UFF sale, which reflects $200m in deferred sale consideration due to be paid 31 March 2022.
Chair, Rob Campbell said “Following the sale of UFF, WEL Networks is in a strong financial position, which will enable us to pursue new opportunities and invest in innovative energy solutions, which includes aiming to reduce energy hardship.”
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WEL Networks Limited Chair