Just Water earnings come up dry

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DRYING UP: Just Water International has posted a full-year loss amid soft earnings.

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Just Water International, the listed water cooler supplier with operations in New Zealand and Australia, posted a full-year loss amid soft earnings as it took its Australian business off the books in preparation to sell it.

The company posted a net loss of $19.2 million in the 12 months ended June 30, compared to a net profit of $1.8 million in the previous period.

It recognised an impairment of $18.3 million from its Australian subsidiary, Clearwater Filter Systems, which it is selling, though it didn't expand on whether it had secured a buyer.

Earnings before interest, tax, depreciation and amortisation fell 34 percent to $6 million from $9.1 million.

"Although EBITDA increased in the second half of the year, and we expect this to continue in 2011, the 2010 results are unacceptable," said chairman Don McKinnon.

"Based on the actions taken already, it is expected the company will turnaround in the 2011 with a markedly improved EBITDA."

The company's New Zealand operations reported flat income growth for the period, down 1 percent from $24.1 million the year before.

However, the implementation of a new computer system weighed on results with the division reporting a net loss of $776,000 versus a profit of $3.4 million in the previous period.

Just Water's Australia income fell 8 percent to $11.5 million.

The company didn't declare a dividend, saying it will focus on debt reduction, which stands at $25.5 million for the year.

Payments aren't expected to resume in the 2011 financial year.

The shares were unchanged at 17 cents, and last traded on August 31.

The price has fallen 48 percent so far this year.

- BusinessDesk