CHAMWE KAIRA
NamWater said it supplied water at an average cost of N$14,56 per cubic meter (m³) in the 2024 financial year compared (2023: N$14.51/m³).
NamWater said in its 2023/2024 integrated annual report that the slow cost increase from the previous year is a result of prudent cost management against steep inflationary pressure on the cost base.
Effective financial management practices were applied to ensure the viability of the business, the company said.
NamWater said operating expenses increased compared to the prior year, resulting in the overall profit before tax reduction of 55% from N$220,6 million in the 2023 financial year.
“The return on assets declined compared to prior financial years due to the decrease in operating profit. The total income increased in comparison to the previous year, which resulted in the operating expense to income ratio increasing to 96%,” the company said.
The solvency and liquidity of the corporation remained strong, with the current ratio increasing to 546% (2023: 509%).
“The corporation has adopted several key cost containment, reduction, and debt collection strategies that have all significantly contributed to the positive financial performance,” NamWater said.
The report said the cash generated from operations has decreased over the last few years. The company said this is due to the erosion of margins due to the corporation generating an amount of N$222 million from operations, which is a reduction from the N$274 million in the previous financial year.
The report showed that debtors’ collection period has increased over time. Total gross trade debtors stood at N$2 billion as of 31 March 2024 (2023: N$1,7 billion).
“This represents a year-on-year increase of 18%. The increase in debtors was primarily caused by the deteriorating national economic environment. The increase in overall default rates of customers led to an increase in trade debtors,” NamWater said.
Namwater chief executive officer Abraham Nehemia said in the coming financial year, the company will continue with the infrastructure projects that have been approved and are at various stages of implementation.
“We will also focus internally on the efficiencies in the company, more specifically in developing all the required policies and guidelines that will make the company efficient, whether in terms of our assets or human resource management.”
Nehemia said NamWater generates more income not just by selling water but also by saving money by reducing vehicle wastage and misuse.
“We want to be in a position where the equipment and the people are on the same level,” Nehemia said.
