RNS Number : 8548L
Jersey Electricity PLC
06 June 2025
Jersey Electricity PLC
Interim Report
for the six months ended 31 March 2025
The Board approved at a meeting on 5 June 2025 the Interim Management Report for the six months ended 31 March 2025 and declared an interim dividend of 8.82p compared to 8.40p for 2023/24. The dividend will be paid on 27 June 2025 to those shareholders registered in the records of the Company at the close of business on 13 June 2025.
The Interim Management Report is attached and will be available to the public on the Company's website www.jec.co.uk/investors.
The Interim Management Report for 2025 has not been audited, or reviewed, by our external auditors, nor have the results for the equivalent period in 2024. The results for the year ended 30 September 2024 were extracted from the statutory accounts. The auditor has reported on those accounts, and their report was unmodified.
L.G. Fulton A. Welsby
Chief Financial Officer Company Secretary
Direct telephone number: 01534 505270 Direct telephone number: 01534 505250
Mobile: 07797 778688
Email: lfulton@jec.co.uk Email: awelsby@jec.co.uk
5 June 2025
The Powerhouse,
PO Box 45,
Queen's Road,
St Helier,
Jersey JE4 8NY
Directors' Statement
Jersey Electricity Plc (JE) has delivered a strong set of both operational and financial results for the period 1st October 2024 to 31st March 2025.
Operational Performance
In 2023/24, a strategic investment programme was initiated, allocating £180m over five years to improve the energy network and services. This includes three programmes of work: 'The Big Upgrade' with £120m allocated to prepare the network for net zero; a £30m Supply Security programme to enhance supply resilience; and the Long Term Green, Clean Energy initiative focused on implementing our renewables strategy, enabling customers using fossil fuel heating to switch to low carbon electric, and renewing the supply importation contract to purchase low carbon electricity from Europe.
In the first half of 2024/25, significant advancements have been made in the mobilisation and delivery of various programmes. We successfully commissioned our inaugural utility-scale ground-mounted solar array at St Clement, providing up to 4MWp of renewable energy to Jersey. The transformer replacement project at Five Oaks is approaching completion and our La Collette resilience programme is making steady progress. Additionally, we have initiated our reinforcement programme to ensure future capacity for Islanders and are developing cost-effective strategies to facilitate fuel switching for customers.
Peak Demand was 155Mw and our Customer Minutes Lost remain below 7.
Wholesale Energy Markets and Customer Tariffs
The wholesale energy market continues to improve but remains above historic levels, with the macro-economic landscape still fragile. We continue to maintain financial resilience, and our retail prices are approximately 40% lower than the UK.
Hedging of electricity and foreign exchange
Our focus remains on providing secure, low-carbon electricity and maintaining stable and competitive tariffs. In January 2025, a 7.5% tariff increase was implemented due to higher wholesale market costs and inflationary cost pressures.
Electricity purchases are fixed for the remainder of 2025, and we do not anticipate any further price increases for the remainder of the year. In addition, we are also materially hedged through to the end of 2027 adding further financial resilience and stability for our customers. With contracts denominated in Euros, forward foreign currency contracts are utilised on a rolling three-year basis to reduce cost volatility and assist in tariff planning.
Financial Performance
1st October 2024 - 31 March 2025
2025
2024
Electricity Unit Sales
365.5m
355.9m
Revenue
£82.3m
£75.6m
Profit before tax
£10.5m
£10.3m
Earnings per share
26.60p
26.15p
Final dividend paid per ordinary share
12.00p
11.40p
Proposed interim dividend per ordinary share
8.82p
8.40p
Group revenue, at £82.3m, was 9% higher for the first half of 2025 compared with £75.6m for the same period last year largely due to an increase in revenue from our Energy business. Profit before tax at £10.5m was in line with prior year (£10.3m). Cost of sales and operating costs increased by 12% year on year recognising the ongoing inflationary pressures.
Energy Performance
Electricity unit sales increased by 2.7% to 365.5 million units from 355.9 million units in the same period last year. We sourced 95.3% from France, 4.4% from Jersey's Energy from Waste plant, and 0.3% was generated locally using oil-fired and solar power. These values are consistent with the previous period.
Revenue in our Energy business at £68.2m was £7.3m higher than in 2024 with the year-on-year increase being largely attributable to a 7.5% tariff rise in January 2025 and a 2.7% increase in unit sales due to the colder than average winter period. Operating profit at £10.3m is £1.7m higher than the same period last year predominantly due to increased operating efficiencies. We anticipate our year end position to be in line with our targeted range of 6% - 7% Return on Assets (ROA), as measured on a five-year rolling basis.
Non-Energy performance
The overall economic landscape has remained challenging. The Powerhouse retail store experienced a reduction in profit of £0.4m year-on-year, attributed to inflationary cost pressures related to storage and technology investments. Conversely, our property portfolio increased by £0.2m during the period due to the occupation of commercial space at the Powerhouse site. Additionally, our other business segments collectively reported a combined loss of £0.3m, driven by ongoing technology investment and lower than anticipated sales within the period.
Liquidity and cashflow
Net cash on the balance sheet, which comprises cash and cash equivalents less borrowings, at 31 March 2025, was £8.5m compared with £16.7m at this time last year. Net cash consists of cash and cash equivalents of £38.5m offset by £30.0m of long-term debt. This decrease is predominantly due to an increase in Capital Investment expenditure incurred in the delivery our strategic investment programmes.
Pension scheme
The defined benefit pension scheme surplus (without deduction of deferred tax) on our balance sheet at 31 March 2025 stood at £29.9m, compared with a surplus of £28m on 30 September 2024.
Net of deferred tax, the pension surplus, increased by £1.6m, mainly driven by a decrease in assets by 5% over the period versus the decrease in liabilities of the scheme by 8.8%. Assets in the Scheme decreased by £6.0m in the period to £111.3m. Unlike most UK schemes, the Jersey Electricity pension scheme does not pay mandatory annual rises on retirement. No pension increases were awarded during the period.
Dividends
The Board proposes an interim net dividend of 8.82p for 2025 (2024: 8.40p). We aim for sustained real growth annually over the medium term. The final dividend for 2024 was 12.00p, a 5.3% increase from the previous year, paid in late March.
Risk and Outlook
The principal risks and uncertainties noted in our last Annual Report (published December 2024) remain unchanged.
The JE Board affirms that the business has sufficient resources to operate for at least 12 months from this report's approval date, hence we continue to prepare the condensed financial statements on a going concern basis.
Responsibility Statement
We confirm to the best of our knowledge:
(a) the condensed set of financial statements has been prepared in accordance with IAS 34 'Interim Financial Reporting'.
(b) the Interim Directors Statement includes a fair review of the information required by the Disclosure and Transparency Rule DTR 4.2.7R (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year); and
(c) the Interim Directors Statement includes a fair review of the information required by the Disclosure and Transparency Rule DTR 4.2.8R (disclosure of related party transactions and changes therein); and
(d) this half yearly interim report looks at certain forward-looking statements with respect to the operations, performance, and financial condition of the Group. By their nature, these statements involve uncertainty since future events and circumstances can cause results and developments to differ materially from those anticipated. The forward-looking statements reflect knowledge and information available at the date of preparation of this half yearly financial report and the Company undertakes no obligation to update these forward-looking statements. Nothing in this half yearly financial report should be construed as a profit forecast.
Investor timetable for 2025
13 June
Record date for interim ordinary dividend
27 June
Interim ordinary dividend for year ending 30 September 2025
1 July
Payment date for preference share dividends
16 December
Announcement of full year results
C.J. AMBLER - Chief Executive L.G. Fulton - Chief Financial Officer Director Director
5 June 2025
Condensed Consolidated Income Statement (Unaudited)
Note
Six months ended
Year ended
31-Mar
30-Sep
2025
2024
2024
£000
£000
£000
Revenue
2
82,367
75,593
135,742
Cost of sales
(54,665)
(48,606)
(83,184)
Other non-recurring income
-
-
-
Gross profit
27,702
26,987
52,558
Profit on revaluation of investment properties
(485)
-
(890)
Operating expenses
(16,959)
(17,050)
(37,299)
Group operating profit
2
10,258
9,937
14,369
Finance income
1,026
1,127
2,291
Finance costs
(793)
(765)
(1,533)
Profit from operations before taxation
10,491
10,299
15,127
Taxation
3
(2,322)
(2,208)
(3,427)
Profit from operations after taxation
8,169
8,091
11,700
Attributable to:
Owners of the Company
8,150
8,011
11,618
Non-controlling interests
19
80
82
8,169
8,091
11,700
Earnings per share
- basic and diluted
26.60
26.15
37.92
Condensed Consolidated Statement of Comprehensive Income (Unaudited)
Six months ended 31-Mar
Year ended
30-Sep
2025
2024
2024
£000
£000
£000
Profit for the period/year
8,169
8,091
11,700
Items that will not be reclassified subsequently to profit or loss:
Actuarial gain/(loss) on defined benefit scheme
1,283
2,627
925
Income tax relating to items not reclassified
(257)
(525)
(185)
1,026
2,102
740
Items that may be reclassified subsequently to profit or loss:
Fair value loss on cash flow hedges
1,428
(1,525)
(3,483)
Income tax relating to items that may be reclassified
(286)
305
697
1,142
(1,220)
(2,786)
Total comprehensive income for the period/year
10,338
8,973
9,654
Attributable to:
Owners of the Company
10,319
8,893
9,572
Non-controlling interests
19
80
82
10,338
8,973
9,654
Condensed Consolidated Balance Sheet (Unaudited)
Note
As at 31 March
As at 30 September
2025
2024
2024
NON-CURRENT ASSETS
Intangible assets
200
496
364
Property, plant and equipment
235,676
216,277
225,523
Right of use assets
5,093
3,128
4,621
Investment properties
26,240
27,615
26,725
Trade and other receivables
300
300
300
Retirement benefit surplus
29,936
28,864
27,952
Derivative financial instruments
6
70
-
-
Other investments
5
5
5
Total non-current assets
297,520
276,685
285,490
CURRENT ASSETS
Inventories
8,400
9,414
8,435
Trade and other receivables
32,795
32,457
24,902
Derivative financial instruments
6
15
-
-
Cash and cash equivalents
38,487
46,743
49,190
Total current assets
79,697
88,614
82,527
TOTAL ASSETS
377,217
365,299
368,017
CURRENT LIABILITIES
Trade and other payables
24,665
20,829
23,027
Lease liabilities
327
81
306
Derivative financial instruments
6
2,603
440
2,601
Current tax liabilities
2,517
3,473
3,413
Total current liabilities
30,112
24,823
29,347
NET CURRENT ASSETS
49,585
63,791
53,180
NON-CURRENT LIABILITIES
Trade and other payables
28,345
26,399
27,222
Lease liabilities
3,843
3,152
3,878
Derivative financial instruments
6
106
1,654
1,451
Financial liabilities - preference shares
235
235
235
Borrowings
30,000
30,000
30,000
Deferred tax liabilities
32,977
32,108
30,923
Total non-current liabilities
95,506
93,548
93,709
TOTAL LIABILITIES
125,618
118,371
123,056
NET ASSETS
251,599
246,928
244,961
EQUITY
Share capital
1,532
1,532
1,532
Revaluation reserve
5,270
5,270
5,270
ESOP reserve
(35)
(35)
(35)
Other reserves
(2,099)
(1,675)
(3,241)
Retained earnings
246,868
241,721
241,391
Equity attributable to the owners of the Company
251,536
246,813
244,917
Minority interest
63
115
44
TOTAL EQUITY
251,599
246,928
244,961
Condensed Consolidated Statement of Changes in Equity (Unaudited)
Share
Revaluation
ESOP
Other
Retained
Total
capital
reserves
reserves
reserves
earnings
reserve
£000's
£000's
£000's
£000's
£000's
£000's
At 1 October 2024
1,532
5,270
(35)
(3,241)
241,391
244,917
Total recognised income and expense for the period
-
-
-
-
8,150
8,150
Amortisation of employee share scheme
-
-
-
-
-
0
Unrealised loss on hedges (net of tax)
-
-
-
1,142
-
1,142
Actuarial gain on defined benefit scheme (net of tax)
-
-
-
-
1,026
1,026
Acquisition of additional interest in subsidiary
(23)
(23)
Equity dividends paid
4
-
-
-
(3,676)
(3,676)
As at 31 March 2025
1,532
5,270
(35)
(2,099)
246,868
251,536
At 1 October 2023
1,532
5,270
(35)
(455)
235,100
241,412
Total recognised income and expense for the period
-
-
-
-
8,011
8,011
Amortisation of employee share scheme
-
-
-
-
-
-
Unrealised loss on hedges (net of tax)
-
-
-
(1,220)
-
(1,220)
Actuarial gain on defined benefit scheme (net of tax)
-
-
-
-
2,102
2,102
Equity dividends paid
4
-
-
-
-
(3,492)
(3,492)
As at 31 March 2024
1,532
5,270
(35)
(1,675)
241,721
246,813
At 1 October 2023
1,532
5,270
(35)
455
235,100
241,412
Total recognised income and expense for the period
-
-
-
-
11,618
11,618
Amortisation of employee share scheme
-
-
-
-
-
-
Unrealised loss on hedges (net of tax)
-
-
-
(2,786)
-
(2,786)
Actuarial loss on defined benefit scheme (net of tax)
Adjustments to add back / (deduct) non-cash items and items disclosed elsewhere on the Cash Flow Statement:
Depreciation and amortisation charges
5,792
6,349
14,181
Share based reward charges
-
-
-
Loss on revaluation of investment property
485
-
890
Pension operating charge less contributions paid
(701)
692
(1,481)
Deemed interest from hire purchase agreements
126
-
201
Profit on sale of property, plant and equipment
-
(34)
1
Operating cash flows before movement in working capital
15,960
16,944
28,161
Working capital adjustments:
Increase in inventories
35
(227)
752
Increase in receivables
(8,314)
(9,473)
(1,133)
Increase / (decrease) in payables
3,691
2,574
1,130
Net movement in working capital
(4,588)
(7,126)
749
Preference dividends paid
(9)
(4)
(9)
Income taxes paid
(1,708)
(1,568)
(3,301)
Net cash flows from operating activities
9,655
8,246
25,600
Cash flows from investing activities
Purchase of property, plant and equipment
(16,602)
(5,626)
(18,036)
Investment in intangible assets
-
-
(53)
Deposit interest received
900
1,127
2,090
Net proceeds from disposal of fixed assets
82
34
34
Net cash flows used in investing activities
(15,620)
(4,465)
(15,965)
Cash flows from financing activities
Equity dividends paid
(3,676)
(3,492)
(6,067)
Acquisition of additional interest in subsidiary
(23)
-
-
Interest paid on borrowings
(784)
(761)
(1,208)
Dividends paid to non-controlling interest
-
(97)
(170)
Repayment lease liabilities
(255)
(114)
(429)
Net cash flows used in financing activities
(4,738)
(4,464)
(7,874)
Net (decrease) / increase in cash and cash equivalents
(10,703)
(683)
1,761
Cash and cash equivalents at the beginning of the year
49,190
47,429
47,429
Effect of foreign exchange rate changes
-
(3)
-
Cash and cash equivalents at the end of the period
38,487
46,743
49,190
Of the £38.5m cash and cash equivalents at 31 March 2025, £35.0m is on fixed term deposits, with an average of 53 days remaining. On 30th September 2024 this was £35.0m with an average of 93 days remaining, whilst on 31st March 2024 the figure was £35.0m with an average of 74 days remaining.
Notes to the Condensed Interim Accounts (Unaudited)
1 Accounting policies
Basis of preparation
The interim accounts for the six months ended 31 March 2025 have been prepared based on the accounting policies set out in the 30 September 2024 annual report and accounts using accounting policies consistent with International Financial Reporting Standards (IFRS) as adopted by the EU and in accordance with IAS 34 'Interim Financial Reporting'. There have been no changes to accounting standards during the current financial period that has impacted the disclosures in these financial statements and the full year financial statements that will be prepared for 30 September 2025.
Jersey Electricity Plc has considerable financial resources and, consequently, the directors believe that the Group is well placed to manage its business risks successfully despite the current uncertain economic outlook. The directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.
2 Revenue and profit
The contributions of the various activities of the Group to turnover and profit are listed below:
Six months ended
Six months ended
Year ended
2025
2024
2024
External
Internal
Total
External
Internal
Total
External
Internal
Total
Revenue
Energy
68,198
53
68,251
60,937
55
60,992
108,102
100
108,202
Retail
9,487
423
9,910
9,573
34
9,607
17,767
110
17,877
Building Services
1,709
27
1,736
2,136
294
2,430
3,872
936
4,808
Property
1,215
418
1,633
1,151
320
1,471
2,346
639
2,985
Other*
1,758
35
1,793
1,796
65
1,861
3,655
112
3,767
82,367
956
83,323
75,593
768
76,361
135,742
1,897
137,639
Inter-segment elimination
(956)
(768)
(1,897)
82,367
75,593
135,742
Operating Profit
Energy profit before rebate of past energy costs
10,278
8,519
13,020
Rebate of past energy costs
0
-
0
Energy profit including rebate
10,278
8,519
13,020
Retail
136
514
618
Building Services
(201)
128
248
Property
664
458
931
Other *
(134)
318
442
Operating profit before property revaluation/sale
10,743
9,937
15,259
Gain / (Loss) on revaluation of investment properties
(485)
-
(890)
Operating profit
10,258
9,937
14,369
*Other segment includes Jersey Energy, Jendev as well as Jersey Deep Freeze Limited, the Company's sole subsidiary.
Materially, all the Group's operations are conducted within the Channel Islands. All transfers between divisions are on an arm's length basis. Gains or losses resulting from the revaluation of investment properties is shown separately from Property operating profit.
Revenues disclosed by the business segments above are recognised both on a point in time and over time basis. The treatment of revenue recognition in accordance with IFRS 15 is detailed in the 30 September 2024 annual report.
3 Taxation
Six months ended
Six months ended
Year ended
31 March
31 March
30 September
2025
2024
2024
£000
£000
£000
Current income tax
809
1,741
3,414
Deferred income tax
1,513
467
13
Total income tax
2,322
2,208
3,427
The Company is taxable at the rate applicable to utility companies in Jersey of 20%. (2024: 20%).
4 Dividends paid and proposed
Six months ended
Six months ended
Year ended
31 March
31 March
30 September
2025
2024
2024
Dividends per share
Paid
12.00p
11.40p
19.80p
Proposed
8.82p
8.40p
12.00p
Distribution to Equity Shareholders
3,676
3,492
6,067
The distribution to equity holders in respect of the final dividend for 2024 of £3,675,852 (12.00p net of tax per share) was paid on 14 March 2025. The Directors have declared an interim dividend of 8.82p per share, net of tax (2024: 8.40p) for the six months ended 31 March 2025 to shareholders on the register at the close of business on 13 June 2025. This dividend was approved by the Board on 5 June 2025 and has not been included as a liability at 31 March 2025.
5 Pensions
In consultation with the independent actuaries to the scheme, the valuation of the pension scheme assets and liabilities has been updated to reflect current market discount rates, inflation, salary increases, pension increases, post-retirement mortality, current market values of investments and actual investment returns applicable under IAS 19 'Employee Benefits', and also consideration has been given as to whether there have been any other events that would significantly affect the pension liabilities.
6 Financial Instruments
The Group held the following derivative contracts, classified as level 2 financial instruments at 31 March 2025.
Six months ended
Six months ended
Year ended
31 March
31 March
30 September
2025
2024
2024
Fair value of currency hedges
£000
£000
£000
Derivative assets
Less than one year
15
-
-
Greater than one year
70
-
-
Derivative liabilities
Less than one year
(2,603)
(440)
(2,601)
Greater than one year
(106)
(1,654)
(1,451)
Total net assets/liabilities
(2,624)
(2,094)
(4,052)
All financial instruments for which fair value is recognised or disclosed are categorised within the fair value hierarchy. This hierarchy is based on the underlying assumptions used to determine the fair value measurement as a whole and is categorised as follows:
Level 1 - financial instruments are those with values that are immediately comparable to quoted (unadjusted) market prices in active markets for identical assets or liabilities.
Level 2 - financial instruments are those with values that are determined using valuation techniques for which the basic assumptions used to calculate fair value are directly or indirectly observable (such as readily available market prices).
Level 3 - financial instruments are shown at values that are determined by assumptions that are not based on observable market data (unobservable inputs).
The derivative contracts for foreign currency shown above are classified as level 2 financial instruments and are valued using a discounted cash flow valuation technique. Future cash flows are estimated based on forward exchange rates (from observable forward exchange rates at the end of the reporting period) and contract forward rates, discounted at a rate that reflects the credit risk of various counterparties.
7 Related Party Transactions
The Government of Jersey (the "Government") treats the Company as a strategic investment. Whilst it holds the majority voting rights in the Company, the Government does not view the Company as being under its control and as such, it is not consolidated within the Government accounts. The Government is understood by the Directors to have significant influence but not control of the Company.
The Company has elected to take advantage of the disclosure exemptions available in IAS 24, paragraphs 25 and 26. All transactions are undertaken on an arms-length basis in the ordinary course of business.
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