Jersey Electricity - Annual Financial Report
16/12/2025 07:30
RNS Number : 6552L Jersey Electricity PLC 16 December 2025 JERSEY ELECTRICITY Plc Financial Results Summary Year Ended 30 September 2025 At a meeting of the Board of Directors held on 15 December 2025, the final accounts for the year ended 30 September 2025 were approved and have been published on our website (www.jec.co.uk). The financial information set out in this summary does not constitute the statutory accounts for the year ended 30 September 2025, or 2024, but is derived from those accounts. Statutory accounts for 2024 have been delivered to the Jersey Registrar of Companies, and those for 2025 will be delivered in early 2026. The auditor reported on the accounts for both years and their reports were unmodified. A final dividend of 12.60p on the Ordinary and 'A' Ordinary shares in respect of the year ended 30 September 2025 was recommended (2024: 12.00p). Together with the interim dividend of 8.82p (2024: 8.40p) the total dividend declared for the year was 20.82p on each share (2024: 19.80p). The final dividend will be paid on 13 March 2026 to those shareholders registered on 20 February 2026. A dividend on the 5% cumulative participating preference shares of 1.5% (2024: 1.5%) payable on 1 July 2026 was also recommended. The Annual General Meeting will be held on 5 March 2026 at 2.00 pm at the Powerhouse, Queen's Road, St. Helier, Jersey. Chris Ambler Chief Executive Officer Enquiries: Non Owen, Company Secretary Nowen@jec.co.uk Tel: 01534 505386 15 December 2025 The Powerhouse PO Box 45 Queens Road St. Helier Jersey JE4 8NY JERSEY ELECTRICITY plc Financial Results Summary Year ended 30 September 2025 The Chair, Phil Austin, comments: Performance The Group delivered a solid performance in 2025, underpinned by disciplined management and continued investment. The easing of wholesale electricity markets provided some relief, and we welcome a period of relative stability in wholesale energy prices after several years of severe volatility. Revenue increased to £146.2m, up 8% on the prior year, driven by steady unit sales growth and the continued transition to electric heating and transport. Profit before tax was £14.2m, lower than the previous year primarily due to the revaluation of the property portfolio and a one-off past service pension liability. Our Energy business achieved a 6.4% return on assets, maintaining robust performance on a five-year rolling basis. Other divisions performed in line with expectations. We remain well positioned for the future, with a strong balance sheet, clear strategic direction and demonstrable progress against our long-term objectives. The current pricing structure continues to offer good value and stability for customers while supporting the investment required to deliver Jersey's energy transition. The Board has recommended a final dividend of 20.82p per share, an increase of 5% on the previous year, payable on 13 March 2026. This reflects our solid financial position and ongoing commitment to sustaining shareholder value, while investing at record levels in Jersey's energy future. As we look ahead, our focus remains clear: to lead Jersey's transition to a net zero future with responsibility, foresight and purpose. We are building not only an energy system, but a legacy of reliability and sustainability for our Island. Supply Security and resilience Jersey Electricity will formally adopt an enhanced Security of Supply Standard by summer 2028. Work is underway to build further security in the network, reflecting the Island's increased reliance on electricity as its primary energy source. Jersey Electricity's positive record of supply security continues with an industry-leading customer minutes lost score, although we narrowly missed our target due to planned isolations required as part of major works. Maintaining secure electricity supplies is paramount to supporting Jersey's economy and encouraging customers to switch to electric heating and transport. The £30m La Collette Resilience Programme has made significant strides, safely demolishing the 50-year-old steam turbines and associated infrastructure. The next stage is to run a tender process for new generators which would provide an additional 50 MW of on-Island fast start backup generating capacity. Setting the foundations for the electricity network of the future is driving our largest ever investment into the network, known as The Big Upgrade. This £120m investment over five years will ensure we can meet the forecasted 25% increase in peak demand to achieve the Island's net zero target, while providing customers with the flexibility to access the power they need. Our innovative use of smart metering data has enabled us to identify parts of our infrastructure that are capacity constrained and ensure we deploy capital in the most targeted and efficient way. Working with Guernsey Electricity as part of our Channel Islands Electricity Grid partnership, we're advancing the replacement of Jersey's oldest subsea cable. This project began at the end of 2024, and we have made good progress defining our technical requirements and planning for consent in both Jersey and France, and have moved well into the tendering process. Long Term Green, Clean Energy Jersey currently imports around 94% of its electricity from France through a supply contract with EDF. Our current contract expires at the end of 2027 and we are pleased to report good progress in negotiations. While there will be some structural changes to the new contract, we are confident it will provide the framework for us to continue to deliver competitively priced power and good outcomes for our customers. Meanwhile, we are well placed with our current hedged position, which remains in place until our incumbent contract expires. Our strategy to import competitively priced low-carbon power from nuclear and certified hydro-electric sources, while diversifying our energy mix with locally sourced renewable power, continues to serve the Island well. It has resulted in a market-leading average carbon intensity of distributed energy, and highlights a major advantage of electricity as the Island's predominant energy source. Customers report that pricing is one of the most important attributes of our service, and we are proud to have successfully sheltered them from significant increases over recent years, when European wholesale markets have spiked upwards. While prices elsewhere have eased, electricity is still substantially cheaper in Jersey than in many countries in Europe. Fuel switching momentum built towards the end of the financial year, as we refocused our efforts to ensure we meet customers' needs and have the right low-carbon technologies in place for the long term. Our 'heat pump first' approach combined with government incentives drove strong levels of domestic fuel switches and we saw our strongest set of heat pump sales, suggesting a shift in consumer sentiment. We continue to partner with Government to support policy outcomes and provide administration services for their Carbon Neutral Roadmap initiatives. The commercial sector has delivered particularly encouraging results - well ahead of historic performance - concluding in our most positive year in a decade for switches outside of the post-covid high. Further investment in our sustainable transport strategy has supported the adoption of electric vehicles (EV) and ensures we prepare the Evolve public charging network for future flexibility and resilience. We invested in upgrades at several strategic locations to provide more rapid charging options, and installed new ultra-rapid chargers in Gorey and St Aubin. We have also made progress with the next generation of home-charging technology. In Conclusion 2025 has been a defining year for Jersey Electricity, one that demonstrates how disciplined investment, sound management and responsible innovation can deliver resilience and progress. We have strengthened our foundations, advanced key strategic projects and maintained strong financial performance while upholding our responsibilities to customers, shareholders and the community. As we look ahead to FY26 and beyond, the Board remains confident in the Company's direction and its ability to lead Jersey's energy transition with responsibility, foresight and purpose. Financial Performance
| Financial Highlights | 2025 | 2024 |
| Revenue | £146.2m | £135.7m |
| Profit before tax | £14.2m | £15.1m |
| Earnings per share | 35.90p | 37.92p |
| Dividend paid per share | 20.82p | 19.80p |
| Final proposed dividend per share | 12.60p | 12.00p |
| Net cash | £8.7m | £19.2m |
| In Year Return on Assets | 7.4% | 7.3% |
| Return on Assets - 5 year rolling | 6.4% | 6.3% |
| Consolidated Income Statement for the year ended 30 September 2025 | 2025 £000 | 2024 £000 | |||
| Revenue | 146,196 | 135,742 | |||
| Cost of sales | (92,731) | (83,184) | |||
| Rebate of past energy costs - non recurring item | - | - | |||
| Gross profit | 53,465 | 52,558 | |||
| Movement in valuation of investment properties | (895) | (890) | |||
| Operating expenses | (38,688) | (37,299) | |||
| Group operating profit | 13,882 | 14,369 | |||
| Finance income | 1,883 | 2,291 | |||
| Finance costs | (1,575) | (1,533) | |||
| Profit from operations before taxation | 14,190 | 15,127 | |||
| Taxation | (3,126) | (3,427) | |||
| Profit from operations after taxation | 11,064 | 11,700 | |||
| Attributable to: Owners of the Company | 11,000 | 11,618 | |||
| Non-controlling interests | 64 | 82 | |||
| 11,064 | 11,700 | ||||
| Earnings per share- basic and diluted | 35.90p | 37.92p | |||
| Consolidated Statement of Comprehensive Income for the year ended 30 September 2025 | 2025 | 2024 | |||
| £000 | £000 | ||||
| Profit for the year | 11,064 | 11,700 | |||
| Items that will not be reclassified subsequently to profit or loss: Actuarial gain/loss on defined benefit scheme | 1,049 | 925 | |||
| Income tax relating to items not reclassified | (210) | (185) | |||
| 839 | 740 | ||||
| Items that may be reclassified subsequently to profit or loss: Fair value loss on cash flow hedges | 4,667 | (3,483) | |||
| Income tax relating to items that may be reclassified | (933) | 697 | |||
| 3,734 | (2,786) | ||||
| Total comprehensive income for the year | 15,637 | 9,654 | |||
| Attributable to: Owners of the Company | 15,573 | 9,572 | |||
| Non-controlling interests | 64 | 82 | |||
| 15,637 | 9,654 | ||||
| 2025 £000 | 2024 £000 | |
| Non-current assets Intangible assets | 227 | 364 |
| Property, plant and equipment | 243,398 | 225,523 |
| Right of use assets | 5,302 | 4,621 |
| Investment properties | 25,830 | 26,725 |
| Trade and other receivables | 300 | 300 |
| Retirement benefit asset | 27,262 | 27,952 |
| Derivative financial instruments | 636 | - |
| Other investments | 5 | 5 |
| Total non-current assets | 302,960 | 285,490 |
| Current assets Inventories | 7,916 | 8,435 |
| Trade and other receivables | 25,172 | 24,902 |
| Derivative financial instruments | 550 | - |
| Cash and cash equivalents | 38,690 | 49,190 |
| Total current assets | 72,328 | 82,527 |
| Total assets | 375,288 | 368,017 |
| Current Liabilities Trade and other payables | 22,207 | 23,027 |
| Current tax liabilities | 2,904 | 3,413 |
| Lease liabilities | 339 | 306 |
| Derivative financial instruments | 571 | 2,601 |
| Total current liabilities | 26,021 | 29,347 |
| Net current assets | 46,307 | 53,180 |
| Non-current liabilities Trade and other payables | 28,322 | 27,222 |
| Lease liabilities | 4,278 | 3,878 |
| Derivative financial instruments | - | 1,451 |
| Financial liabilities - preference shares | 235 | 235 |
| Borrowings | 30,000 | 30,000 |
| Deferred tax liabilities | 32,285 | 30,923 |
| Total non-current liabilities | 95,120 | 93,709 |
| Total liabilities | 121,141 | 123,056 |
| Net assets | 254,147 | 244,961 |
| Equity Share capital | 1,532 | 1,532 |
| Revaluation reserve | 5,270 | 5,270 |
| ESOP reserve | (37) | (35) |
| Other reserves | 493 | (3,241) |
| Retained earnings | 246,881 | 241,391 |
| Equity attributable to the owners of the Company | 254,109 | 244,917 |
| Non-controlling interests | 38 | 44 |
| Total equity | 254,147 | 244,961 |
| Share Capital | Revaluation reserve | ESOP reserve | Other reserves* | Retained earnings | Total | |
| £000 | £000 | £000 | £000 | £000 | £000 | |
| At 1 October 2024 | 1,532 | 5,270 | (35) | (3,241) | 241,391 | 244,917 |
| Total recognised income and expense for the year | - | - | - | - | 11,000 | 11,000 |
| Movement on share option scheme | - | - | (2) | - | - | (2) |
| Movement on hedges (net of tax) | - | - | - | 3,734 | - | 3,734 |
| Actuarial gain on defined benefit scheme (net of tax) | - | - | - | - | 839 | 839 |
| Equity dividends | - | - | - | - | (6,379) | (6,379) |
| At 30 September 2025 | 1,532 | 5,270 | (37) | 493 | 246,851 | 254,109 |
| At 1 October 2023 | 1,532 | 5,270 | (35) | (455) | 235,100 | 241,412 |
| Total recognised income and expense for the year | - | - | - | - | 11,618 | 11,618 |
| Amortisation of employee share option scheme | - | - | - | - | - | - |
| Movement on hedges (net of tax) | - | - | - | (2,786) | - | (2,786) |
| Actuarial loss on defined benefit scheme (net of tax) | - | - | - | - | 740 | 740 |
| Equity dividends | - | - | - | - | (6,067) | (6,067) |
| At 30 September 2024 | 1,532 | 5,270 | (35) | (3,241) | 241,391 | 244,917 |
| 2025 £000 | 2024 £000 | |
| Cash flows from operating activities Operating profit | 13,882 | 14,369 |
| Depreciation, amortisation and impairment charges | 11,821 | 14,181 |
| Share-based reward charges | (2) | - |
| Loss on revaluation of investment property | 895 | 890 |
| Pension operating charge less contributions paid | 1,739 | (1,481) |
| Deemed interest income from hire purchase arrangements | 244 | 201 |
| Loss/(profit) on sale of property, plant and equipment | (76) | 1 |
| Operating cash flows before movement in working capital | 28,503 | 28,161 |
| Working capital adjustments: | ||
| Decrease/(Increase) in inventories | 548 | 752 |
| Increase in trade and other receivables | (269) | (1,133) |
| Increase/(Decrease) in trade and other payables | 1,304 | 1,130 |
| Net movement in working capital | 1,583 | 749 |
| Interest paid on borrowings | (1,363) | (1,208) |
| Preference dividends paid | (9) | (9) |
| Income taxes paid | (3,415) | (3,301) |
| Net cash flows from operating activities | 25,299 | 24,392 |
| Cash flows from investing activities Purchase of property, plant and equipment | (30,280) | (18,036) |
| Investment in intangible assets | (280) | (53) |
| Deposit interest received | 1,607 | 2,090 |
| Net proceeds from disposal of fixed assets | 125 | 34 |
| Net cash flows used in investing activities | (28,828) | (15,965) |
| Cash flows from financing activities Equity dividends paid | (6,379) | (6,067) |
| Dividends paid to non-controlling interest | (70) | (170) |
| Repayment of lease liabilities | (522) | (429) |
| Net cash flows used in financing activities | (6,971) | (6,666) |
| Net increase in cash and cash equivalents | (10,500) | 1,761 |
| Cash and cash equivalents at the beginning of the year | 49,190 | 47,429 |
| Effect of foreign exchange rate changes | - | - |
| Cash and cash equivalents at the end of the year | 38,690 | 49,190 |
| 2025 | 2025 | 2025 | 2024 | 2024 | 2024 | |
| External | Internal | Total | External | Internal | Total | |
| Revenue | £000 | £000 | £000 | £000 | £000 | £000 |
| Energy - arising during the course of ordinary business | 118,383 | 99 | 118,482 | 108,102 | 100 | 108,202 |
| Building Services | 3,767 | 966 | 4,733 | 3,872 | 936 | 4,808 |
| Retail | 18,076 | 46 | 18,122 | 17,767 | 110 | 17,877 |
| Property | 2,463 | 837 | 3,300 | 2,346 | 639 | 2,985 |
| Other* | 3,507 | 54 | 3,561 | 3,655 | 112 | 3,767 |
| 146,196 | 2,002 | 148,198 | 135,742 | 1,897 | 137,639 | |
| Intergroup elimination | (2,002) | (1,897) | ||||
| Revenue | 146,196 | 135,742 | ||||
| Operating profit Energy profit before rebate of past energy costs** | 12,731 | 13,020 | ||||
| Rebate of past energy costs | - | - | ||||
| Energy profit including rebate | 12,731 | 13,020 | ||||
| Building Services | - | 248 | ||||
| Retail | 257 | 618 | ||||
| Property | 1,342 | 931 | ||||
| Other* | 447 | 442 | ||||
| 14,777 | 15,259 | |||||
| Revaluation of investment properties | (895) | (890) | ||||
| Operating profit | 13,882 | 14,369 | ||||
| Finance income | 1,883 | 2,291 | ||||
| Finance costs | (1,575) | (1,533) | ||||
| Profit from operations before taxation | 14,190 | 15,127 | ||||
| Taxation | (3,126) | (3,427) | ||||
| Profit from operations after taxation | 11,064 | 11,700 | ||||
| Attributable to: Owners of the Company Non-controlling interests | 11,000 64 | 11,618 82 | ||||
| 11,064 | 11,700 |