Delta 2015 annual results – improved profitability off the back of strong customer demand
The financial year ended 30 June 2015 (FY15) has seen strong demand for infrastructure specialist Delta’s core energy and environmental services.
Chief executive Grady Cameron says the company has achieved improved underlying profitability and a stronger balance sheet, building on last year’s solid performance. "We renewed or secured significant long term contracts in both electricity network maintenance and greenspace services.
"We have delivered on our strategy of providing quality service to our local government and private sector customers, underpinned by long term contracts. The company recorded a net surplus of $4.7 million in FY15 (FY14: $4.4 million).
"Total revenue was $102.5 million for FY15, an increase of 6 percent on the previous year (FY14: $96.6 million), reflecting growth in energy and environmental services provided to existing and new customers.
"Total assets increased from $56.5 million to $59.7 million during FY15, reflecting the purchase of vehicles, plant and equipment in line with customer growth. Delta’s term borrowings reduced by $3.3 million to $26.5 million during the year.
"As a member of the Dunedin City Council group of companies, Delta is committed to providing financial returns to its shareholder Dunedin City Holdings Limited. Delta returned total dividends of $2.5 million during FY15.
"Our people operate in high hazard environments, making health and safety a strategic and operational priority across the company. During FY15, we strengthened the visibility of safety leadership across the organisation and achieved a significant improvement in our safety indicators, with a 52% reduction in total recordable injuries, representing a significant reduction in harm.
"During FY15, Delta delivered a substantial uplift in capital and maintenance services for our customers. Operational highlights for the year included:
- Managed $35.4 million of capital projects on the Aurora Energy electricity network
- Installed a record 800 poles on the Aurora Energy network in Dunedin and Central Otago
- Completed $4.3 million vegetation management for improved reliability on the Aurora Energy network, clearing 34 kilometres of vegetation from near power lines
- Constructed and commissioned a new, higher-capacity substation at Lindis Crossing, Central Otago to cater for increased electricity demand
- Upgraded power supply to Ōtākou area on the Otago Peninsula for Aurora Energy, involving 27 transformers
Renewed electricity network maintenance contract with Network Tasman for a further five years totalling $40 million
- Installed 6.6 kilometres of 33-kilovolt underground cable for PowerNet
- Deployed 35,100 smart meters across New Zealand
- Won parks maintenance contract with Christchurch City Council totalling $22 million over nine years
- Established a dedicated tree services business unit to deliver existing customer work and seek new customer opportunities
- Prepared playing surfaces for International Cricket World Cup 2015 games in Dunedin.
"We thank the 570 Delta people for their dedication to the job, and for rising to the challenges set by ourselves and our customers while keeping safe," says Grady Cameron.
Delta’s 2015 annual report is available online here.