We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Jersey Electricity Plc | LSE:JEL | London | Ordinary Share | JE00B43SP147 | 'A'ORD 5P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 450.00 | 440.00 | 460.00 | 450.00 | 450.00 | 450.00 | 1,410 | 08:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Electric Services | 125.08M | 11.28M | 0.3681 | 12.22 | 137.88M |
TIDMJEL
RNS Number : 1195Y
Jersey Electricity PLC
13 May 2016
Jersey Electricity plc
Interim Management Report
for the six months ended 31 March 2016
The Board approved at a meeting on 12 May 2016 the Interim Management Report for the six months ended 31 March 2016 and declared an interim dividend of 5.50p compared to 5.25p for 2015. The dividend will be paid on 30 June 2016 to those shareholders registered in the records of the Company on 3 June 2016.
The Interim Management Report is attached and will be available to the public on the Company's website www.jec.co.uk/about-us/investor-relations/financial-figures-and-reports.
The Interim Management Report for 2016 has not been audited or reviewed by our external auditors nor have the results for the equivalent period in 2015. The results for the year ended 30 September 2015 have been extracted from the statutory accounts which had an unqualified audit opinion.
M.P. Magee P.J. Routier Finance Director Company Secretary Direct telephone number : 01534 505201 Direct telephone number : 01534 505253 Email : mmagee@jec.co.uk Email : proutier@jec.co.uk
13 May 2016
The Powerhouse,
PO Box 45,
Queens Road,
St Helier,
Jersey JE4 8NY
Jersey Electricity plc
Unaudited Interim Management Report
for the six months to 31 March 2016
Financial Summary 6 months 6 months 2016 2015 --------------------------- --------- --------- Electricity Sales in kWh (000) 351,942 357,362 Revenue GBP57.0m GBP55.8m Profit before tax GBP 7.9m GBP 8.0m Profit in Energy business GBP 6.9m GBP 7.4m Earnings per share 20.65p 20.75p Final dividend paid per ordinary share 7.60p 7.20p Proposed interim dividend per ordinary share 5.50p 5.25p Net debt GBP21.1m GBP21.9m
Overall trading performance
Group revenue, at GBP57.0m, was 2% higher for the first half year of 2016 than the same period in 2015 with this rise coming from increased activity in the non-Energy business units. Profit before tax was GBP7.9m being marginally behind the equivalent period last year and remains at a level commensurate with a sustainable rate of return typical for a regulated utility and at a quantum needed to maintain our continued investment in infrastructure. Cost of sales increased by GBP0.9m to GBP36.6m due mainly to additional costs in the non-Energy business units associated with the aforementioned rise in revenue. Operating expenses at GBP11.9m were GBP0.4m above last year with an increase in depreciation charges and pension costs being the primary drivers. Earnings per share fell to 20.65p from 20.75p in 2015. Net debt on the balance sheet at 31 March 2016 was GBP21.1m (2015: GBP21.9m) but will rise in the second half driven by our continued investment in infrastructure assets in our Energy business.
Energy Division
Unit sales of electricity fell by 1.5%, from 357m to 352m kWh, compared with the same period in the prior year. Mild weather, compared with long-term average temperatures, was experienced in the first half of this financial year, resulting in a reduced use of electricity primarily in the heating of residential properties. Revenues in our Energy Division at GBP45.5m remained at the same level as 2015 because although unit sales were lower the level of activity in ad-hoc rechargeable work was much higher. Operating profit in Energy at GBP6.9m was GBP0.5m lower than in the same period last year with lower unit sales, higher depreciation, increased maintenance and higher IAS19 pension costs being the reasons. We imported 90% of our on-Island requirement from France (2015: 94%) and generated 4% of our electricity in Jersey (2015: 2%). Additional training for power station staff was the main reason for the higher level of generation/lower level of importation between 2016 and the previous year. The remaining 6% (2015: 4%) of our electricity came from the Energy from Waste plant, owned by the States of Jersey.
Investment in infrastructure
Capital expenditure was GBP11.5m in the first 6 months of the financial year. The main area of spend was for the N1 subsea cable which is currently being manufactured in Italy and is expected to be laid between Jersey and France later in 2016 and be commissioned by early 2017. The previous EDF1 cable which it replaces was successfully removed from the seabed during Spring 2016. N1 is a joint project between Jersey Electricity and Guernsey Electricity with a budgeted cost of around GBP40m and we are pleased with the progress made to date in terms of both timing and cost. We are also continuing with the preparation of the site for our new West of St Helier Primary sub-station which has an estimated cost of GBP17m and is planned to be commissioned in 2018.
Non-Energy performance
Year-on-year revenue in our retailing business, Powerhouse.je, rose by 9% post the restructuring of this business unit in recent years to GBP6.4m (2015: GBP5.9m) and encouragingly profitability improved to GBP0.4m from GBP0.3m in what is a competitive marketplace, both locally and off-island. Revenue rose by GBP0.1m to GBP1.3m for our Property portfolio and profit rose to GBP0.9m (2015: GBP0.8m) due to improved rental yield. JEBS, our contracting and business services unit, saw a GBP0.5m increase in revenue to GBP3.1m and moved from a breakeven position in 2015 to a profit of GBP0.1m despite it being a challenge to recruit new skilled staff in a tight local market. Our remaining business units were on target and produced profits of GBP0.3m being at the same overall level as in 2015.
Forward hedging of electricity and foreign exchange and customer tariffs
Our goal, through use of our power purchase contract and associated hedging policies, continues to be the delivery of competitive and stable customer tariffs, along with secure low-carbon electricity supplies whilst maintaining an appropriate, fair return for our shareholders. Our electricity purchases are materially hedged for the period 2016-19. As these are contractually denominated in the Euro we enter into foreign currency contracts to eliminate a large percentage of exposure to aid tariff planning. We have seen significant volatility in foreign exchange in the last six months against the Euro largely associated with the impending UK vote as to whether to remain within the EU, which is why we seek to largely eliminate exposure. This has resulted in a fair value increase of GBP5.6m (net of tax) as shown in the Condensed Consolidated Statement of Comprehensive Income, and a resultant rise in our balance sheet net assets, whereas last year we saw a movement in the opposite direction.
Debt and financing
The net debt figure, as expected, rose to GBP21.1m at 31 March 2016 compared to GBP17.5m at the last year end and we have additional bank facilities in place to fund our continued forecast investment spend. It is the aim of the Board that Jersey Electricity continues to maintain a prudent level of debt in the context of our overall balance sheet, which remains strong.
Dividend
Your Board proposes to pay an interim net dividend for 2016 of 5.50p (2015: 5.25p). We continue to aim to deliver sustained real growth each year over the medium-term. The final dividend for 2015 of 7.60p, paid in late March in respect of the last financial year, was an increase of 6% on the previous year.
Risk and outlook
The principal risks and uncertainties identified in our last Annual Report have not materially altered in the interim period. However as mentioned previously in the text above the potential exit of the UK from the EU has created recent volatility in foreign exchange markets. If the vote on 23 June results in a planned exit it is likely that such volatility would continue and may influence our longer-term tariff planning strategy (albeit we are largely hedged in the short-term).
Your Board is satisfied that Jersey Electricity plc has sufficient resources to continue in operation for the foreseeable future, a period of not less than 12 months from the date of this report. Accordingly, we continue to adopt the going concern basis in preparing the condensed financial statements.
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 contains 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.
C.J. AMBLER - Chief Executive M.P.MAGEE - Finance Director 13 May 2016
INVESTOR TIMETABLE FOR 2016
3 June Record date for interim ordinary dividend 30 June Interim ordinary dividend for year ending 30 September 2016 1 July Payment date for preference share dividends 14 December Preliminary announcement of full year results
Condensed Consolidated Income Statement (Unaudited)
Six months Six months Year ended ended ended 30 September 31 March 31 March 2016 2015 2015 Note GBP000 GBP000 GBP000 Revenue 2 57,036 55,840 100,479 Cost of sales (36,610) (35,705) (64,604) Gross profit 20,426 20,135 35,875 Revaluation of investment properties - - (45) Operating expenses (11,851) (11,408) (21,931) ----------- --------------- -------------- Group operating profit before exceptional items 8,575 8,727 13,899 Exceptional items - RTE outage compensation - - 479 - reversal of EDF1 related provision - - 310 Group operating profit 2 8,575 8,727 14,688 Finance income 19 15 36 Finance expense (668) (786) (1,555) Profit from operations before taxation 7,926 7,956 13,169 Taxation 3 (1,573) (1,583) (2,397) ----------- --------------- -------------- Profit from operations after taxation 6,353 6,373 10,772 Attributable to: Owners of the Company 6,326 6,357 10,725 Non-controlling interests 27 16 47 ----------- --------------- -------------- Profit for the period/year attributable to the equity holders of the parent Company 6,353 6,373 10,772 ----------- --------------- -------------- Earnings per share - basic and diluted 20.65 20.75 35.00 Dividends per share - paid 4 7.60 7.20 12.45 - proposed 4 5.50 5.25 7.60
Condensed Consolidated Statement of Comprehensive Income (Unaudited)
Six months Six months Year ended ended ended 30 September 31 March 31 March 2016 2015 2015 GBP000 GBP000 GBP000 Profit for the period/year 6,353 6,373 10,772 Items that will not be reclassified subsequently to profit or loss: Actuarial gain/(loss) on defined benefit scheme 1,595 1,329 (5,706) Income tax relating to items not reclassified (319) (266) 1,141 1,276 1,063 (4,565) Items that may be reclassified subsequently to profit or loss: Fair value gain/(loss) on cash flow hedges 6,979 (5,486) (874) Income tax relating to items that may be reclassified (1,396) 1,097 175 ----------- ----------- -------------- 5,583 (4,389) (699) Total comprehensive income for the period/year 13,212 3,047 5,508 Attributable to: Owners of the Company 13,185 3,031 5,461 Non-controlling interests 27 16 47 ----------- ----------- -------------- 13,212 3,047 5,508 ----------- ----------- --------------
Condensed Consolidated Statement of Changes in Equity (Unaudited)
Share Revaluation ESOP Other Retained capital reserve reserve reserves earnings Total GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 At 1 October 2015 1,532 5,270 (97) (4,214) 145,223 147,714 Total recognised income and expense for the period - - - - 6,326 6,326 Additional shares for employee share scheme - - (114) - - (114) Amortisation of employee share scheme - - 20 - - 20 Unrealised gain on hedges (net of tax) - - - 5,583 - 5,583 Actuarial gain on defined benefit scheme (net of tax) - - - - 1,276 1,276 Equity dividends paid - - - - (2,329) (2,329) ------- ----------- ------- -------- -------- ------- At 31 March 2016 1,532 5,270 (191) 1,369 150,496 158,476 ------- ----------- ------- -------- -------- ------- At 1 October 2014 1,532 5,270 (36) (3,515) 142,878 146,129 Total recognised income and expense for the period - - - - 6,357 6,357 Additional shares for employee share scheme - - (93) - - (93) Amortisation of employee share scheme - - 26 - - 26 Unrealised loss on hedges (net of tax) - - - (4,389) - (4,389) Actuarial gain on defined benefit scheme (net of tax) - - - - 1,063 1,063 Equity dividends paid - - - - (2,206) (2,206) ------- ----------- ------- -------- -------- ------- At 31 March 2015 1,532 5,270 (103) (7,904) 148,092 146,887 ------- ----------- ------- -------- -------- ------- At 1 October 2014 1,532 5,270 (36) (3,515) 142,878 146,129 Total recognised income and expense for the period - - - - 10,725 10,725 Additional shares for employee share scheme - - (112) - - (112) Amortisation of employee share scheme - - 51 - - 51 Unrealised loss on hedges (net of tax) - - - (699) - (699) Actuarial loss on defined benefit scheme (net of tax) - - - - (4,565) (4,565) Equity dividends paid - - - - (3,815) (3,815) ------- ----------- ------- -------- -------- ------- At 30 September 2015 1,532 5,270 (97) (4,214) 145,223 147,714 ------- ----------- ------- -------- -------- -------
Condensed Consolidated Balance Sheet (Unaudited)
Note As at As at As at 30 31 March 31 March September 2016 2015 2015 GBP000 GBP000 GBP000 Non-current assets Intangible assets 198 80 227 Property, plant and equipment 192,780 183,377 187,845 Investment property 20,460 20,505 20,460 Secured loan accounts 708 731 731 Other investments 5 5 5 Total non-current assets 214,151 204,698 209,268 ---------- ---------- ----------- Current assets Inventories 5,853 6,173 6,239 Trade and other receivables 19,038 19,350 14,777 Derivative financial instruments 6 4,423 - 1,194 Cash and cash equivalents 8,905 8,106 12,503 Total current assets 38,219 33,629 34,713 Total assets 252,370 238,327 243,981 ---------- ---------- ----------- Current liabilities Trade and other payables 15,620 16,113 17,597 Derivative financial instruments 6 2,564 9,733 6,314 Current tax payable 619 - 404 Total current liabilities 18,803 25,846 24,315 ---------- ---------- ----------- Net current assets 19,416 7,783 10,398 ---------- ---------- ----------- Non-current liabilities Trade and other payables 20,930 19,540 18,884 Retirement benefit deficit 5,696 193 7,291 Financial liabilities - preference shares 235 235 235 Borrowings 30,000 30,000 30,000 Deferred tax liabilities 18,185 15,603 15,529 Total non-current liabilities 75,046 65,571 71,939 ---------- ---------- ----------- Total liabilities 93,849 91,417 96,254 ---------- ---------- ----------- Net assets 158,521 146,910 147,727 ---------- ---------- ----------- Equity Share capital 1,532 1,532 1,532 Revaluation reserve 5,270 5,270 5,270 ESOP reserve (191) (103) (97) Other reserves 1,369 (7,904) (4,214) Retained earnings 150,496 148,092 145,223 ---------- ---------- ----------- Equity attributable to owners of the Company 158,476 146,887 147,714 Non-controlling interests 45 23 13 ---------- ---------- ----------- Total equity 158,521 146,910 147,727 ---------- ---------- -----------
Condensed Consolidated Cash Flow Statement (Unaudited)
Six months Six months Year ended ended ended 30 September 31 March 31 March Note 2016 2015 2015 GBP000 GBP000 GBP000 Cash flows from operating activities Operating profit before exceptional items 8,575 8,727 13,899 Depreciation and amortisation charges 4,957 4,865 9,926 Loss on revaluation of investment property - - 45 Pension operating charge less contributions paid 300 150 213 Loss on sale of fixed assets - 4 7 Operating cash flows before movements in working capital 13,832 13,746 24,090 Decrease in inventories 386 1,160 1,095 (Increase)/decrease in trade and other receivables (4,222) (3,328) 1,884 Increase/(decrease) in trade and other payables 860 (1,016) (2,604) Interest paid (654) (782) (1,548) Preference dividends paid (4) (4) (9) Cash amounts relating to exceptional items - - 479 Net cash flows generated from operating activities 10,198 9,776 23,387 --------------------------------------- ------- ----------- ----------- -------------- Cash flows from investing activities Purchase of property, plant and equipment (11,335) (9,160) (16,629) Capitalised interest paid (117) - (4) Purchase of intangible assets (6) (67) (207) Net proceeds from disposal of fixed assets - - 3 Net cash used in investing activities (11,458) (9,227) (16,837) --------------------------------------- ------- ----------- ----------- -------------- Cash flows from financing activities Equity dividends paid 4 (2,357) (2,234) (3,859) Deposit interest received 19 15 36 Net cash used in financing activities (2,338) (2,219) (3,823) --------------------------------------- ------- ----------- ----------- -------------- Net (decrease)/increase in cash and cash equivalents (3,598) (1,670) 2,727 Cash and cash equivalents at beginning of period/year 12,503 9,776 9,776 Net cash and cash equivalents at end of period/year 8,905 8,106 12,503
Notes to the Condensed Interim Accounts (Unaudited)
1. Accounting policies
Basis of preparation
The interim financial statements for the six months ended 31 March 2016 have been prepared on the basis of the accounting policies set out in the 30 September 2015 annual report and accounts using accounting policies consistent with International Financial Reporting Standards (IFRS) and in accordance with IAS 34 'Interim Financial Reporting'.
Jersey Electricity plc has considerable financial resources and, as a consequence, the directors believe that it is well placed to manage its business risks successfully. 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 interim financial statements.
2. Revenue and profit
The contributions of the various activities to Group revenue and profit are listed below:
Six months ended Six months ended Year ended 31 March 2016 31 March 2015 30 September 2015 External Internal Total External Internal Total External Internal Total Revenue GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 Energy 45,462 72 45,534 45,510 46 45,556 80,698 129 80,827 Building Services 2,772 280 3,052 2,251 289 2,540 4,148 808 4,956 Retail 6,413 20 6,433 5,891 16 5,907 11,087 40 11,127 Property 1,046 299 1,345 962 299 1,261 2,084 599 2,683 Other 1,343 393 1,736 1,226 378 1,604 2,462 777 3,239 --------- --------- -------- --------- --------- -------- --------- --------- -------- 57,036 1,064 58,100 55,840 1,028 56,868 100,479 2,353 102,832 Inter-segment elimination (1,064) (1,028) (2,353)
-------- -------- -------- 57,036 55,840 100,479 -------- -------- -------- Operating profit Energy 6,904 7,354 11,514 Building Services 116 (4) (58) Retail 411 286 334 Property 870 798 1,562 Other 274 293 592 -------- -------- -------- 8,575 8,727 13,944 Revaluation of investment properties - - (45) Exceptional items : RTE outage compensation - - 479 Impact of reversal of EDF1 related provision - - 310 Operating profit 8,575 8,727 14,688 -------- -------- --------
Materially, all of the Group's operations are conducted within the Channel Islands. All transfers between divisions are at an arm's-length basis. The assets and liabilities of the Group are not reported on as there has been no significant movement in the values in the six months to 31 March 2016.
Notes to the Condensed Interim Accounts (Unaudited)
3. Taxation Six months Year ended ended 30 September 31 March 2016 2015 2015 GBP000 GBP000 GBP000 Current income tax 215 - 404 Deferred income tax 1,358 1,583 1,993 ---------- ---------- -------------- Total income tax 1,573 1,583 2,397 ========== ========== ==============
For the period ended 31 March 2016 and subsequent periods, the Company is taxable at the rate applicable to utility companies of 20%.
4. Dividends Six months Year ended ended 31 March 30 September 2016 2015 2015 GBP000 GBP000 GBP000 Distributions to equity holders 2,329 2,206 3,815 ======== ======== ==============
The distribution to equity holders in respect of the final dividend for 2015 of GBP2,329,000 (7.60p net of tax per share) was paid on 29 March 2016.
The Directors have declared an interim dividend of 5.50p per share, net of tax (2015: 5.25p) for the six months ended 31 March 2016 to shareholders on the register at the close of business on 3 June 2016. This dividend was approved by the Board on 12 May 2016 and has not been included as a liability at 31 March 2016.
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, current market values of investments and actual investment returns applicable under IAS 19 'Employee Benefits', and consideration has also 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 2016.
Recurring fair value measurements: Six months Year Ended Ended 31 March 30 September Foreign exchange currency hedges 2016 2015 GBP000 GBP000 Derivative assets 4,423 1,194 -------- --------- Derivative liabilities (2,564) (6,314) -------- ---------
Notes to the Condensed Interim Accounts (Unaudited)
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 to 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 Company currently leases the La Collette Power Station site from its largest shareholder, the States of Jersey, for a peppercorn rent of GBP1,000 per annum. This lease was subject to a rent review as at June 2006 and the Company is in dispute with its landlord, the States of Jersey, concerning the outstanding rent review. The information usually required by IAS 37 Provisions, 'Contingent liabilities and contingent assets', is not disclosed on the grounds that it may prejudice the outcome of the dispute.
Value Value of Value of of electricity goods & goods & services other services services Amounts Amounts supplied supplied purchased due to due by by Jersey by Jersey by Jersey Jersey Jersey Electricity Electricity Electricity Electricity Electricity Six months ended 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 31 March GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 The States of Jersey 3,761 3,867 725 590 1,102 561 732 661 1 128 JT Group Limited 980 980 268 173 19 66 157 118 3 - Jersey Post Int Limited 58 49 - - 17 16 7 7 - - Jersey New Waterworks Ltd 409 417 74 47 64 55 63 63 7 -
The States of Jersey is the Group's majority and controlling shareholder. Jersey New Waterworks is majority owned and controlled by the States of Jersey. JT Group Limited and Jersey Post International Limited are both wholly owned by the States of Jersey. All transactions are undertaken at an arm's length basis.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LLFIEESIFLIR
(END) Dow Jones Newswires
May 13, 2016 02:00 ET (06:00 GMT)
1 Year Jersey Electricity Chart |
1 Month Jersey Electricity Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions