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Ajax plugged into Veridian profits

'07 was a 'resounding' year for utility

Nov 25, 2008 - 01:28 PM

By Keith Gilligan

AJAX -- Despite uncertain economic times, Veridian Corporation continues to pass on electrifying financial returns to Ajax.

The Town, one of four municipalities that owns the utility, received about $2.77 million in interest and income last year, while this year it will receive about $2.83 million, said Ralph Sutton, the vice-chairman of Veridian's board.

"I think the community should be happy with the investment Ajax has made in Veridian," Mr. Sutton said.

Ajax is a shareholder in Veridian with Pickering, Clarington and Belleville. Veridian was set up eight years ago when the four municipalities merged their hydro utilities into one.

Last year was "a resounding, solid performing year," Mr. Sutton said to Ajax council on Monday, adding the performance was based on "solid fiscal management and prudent expenditures."

Last year was also the first year a tax exemption was in place, which would have made it less costly for Veridian to buy other utilities. President and CEO Michael Angemeer said Veridian has spoken to a number of utilities about acquiring them.

The company has a plan for "50 per cent business growth by 2012," Mr. Angemeer said, adding it wants to remain in the top 10 in customer satisfaction, while ensuring service reliability and employee safety.

A survey conducted for Veridian found 95-per cent customer satisfaction, moving the company into the top 10 in Canada in terms of satisfaction, Mr. Angemeer said.

Veridian had $8.9 million in net income in 2007, Mr. Angemeer said, adding the company continues to have an A-stable credit rating, while its reliability has improved 28 per cent.

Company employees have gone more than two million hours without someone missing work due to an accident, Mr. Sutton said, adding that spans seven years.

Mayor Steve Parish, a member of Veridian's board, questioned "the rate of return and profitability. We're in tough economic times. What impact, if any, will it have on Veridian?"

The company is currently in budget discussions, noting there are "challenges," including the rate of return on equity, Mr. Angemeer said.

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