REG - Jersey Electricity - Half-year Report
05/06/2025 17:30
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RNS Number : 6898L Jersey Electricity PLC 05 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
(http://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 (mailto: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 1(st) October 2024 to 31(st) 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
1(st) 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)
Six months ended Year ended
Note
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 Year ended
31-Mar
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)
As at 31 March As at 30 September
Note
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 liabilites 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) - - - - 740 740
Equity dividends paid 4 - - - - (6,067) (6,067)
As at 30 September 2024 1,532 5,270 (35) (3,241) 241,391 244,917
*'Other reserves represent the foreign currency hedging reserve.
Condensed Consolidated Cash Flow Statement (Unaudited)
Six months ended 30 March Year ended 30 September
2025 2024 2024
£ 000's £ 000's £ 000's
Cash flows from operating activities
Operating profit before exceptional items 10,258 9,937 14,369
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 0 - -
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 0 (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 0 - (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 0 (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 3,872 936 4,808
Building Services 1,709 27 1,736 2,136 294 2,430 17,767 110 17,877
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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