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| 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 | 0.00 | 07:49:08 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Electric Services | 125.08M | 11.28M | 0.3681 | 12.22 | 137.88M |
From Apr 2019 to Apr 2024
TIDMJEL
RNS Number : 3111Z
Jersey Electricity PLC
17 May 2019
Jersey Electricity plc
Interim Management Report
for the six months ended 31 March 2019
The Board approved at a meeting on 16 May 2019 the Interim Management Report for the six months ended 31 March 2019 and declared an interim dividend of 6.45p compared to 6.10p for 2018. The dividend will be paid on 28 June 2019 to those shareholders registered in the records of the Company at the close of business on 7 June 2019.
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 2019 has not been audited, or reviewed, by our external auditors nor have the results for the equivalent period in 2018. The results for the year ended 30 September 2018 were extracted from the statutory accounts. The auditor has reported on those accounts and their report was unmodified.
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
16 May 2019
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 2019
Hot Features
Premium
Financial Summary 6 months 6 months
2019 2018
---------------------------------------- --------- ---------
Electricity Sales in kWh 356.7m 368.2m
Revenue GBP59.7m GBP60.5m
Profit before tax GBP9.3m GBP9.7m
Earnings per share 23.83p 24.93p
Final dividend paid per ordinary
share 8.80p 8.40p
Proposed interim dividend per ordinary
share 6.45p 6.10p
Net debt GBP12.1m GBP20.2m
Overall trading performance
Group revenue, at GBP59.7m, was 1% lower for the first half of 2019 compared to the same period last year mainly due to a GBP1.3m decrease in revenue in JEBS, our contracting and business services unit. Revenue in our Energy business was broadly similar to last year. Profit before tax at GBP9.3m was GBP0.4m less than 2018 with a fall in Energy profits associated with lower unit sales being the primary driver. Cost of sales at GBP36.7m was GBP0.8m lower than last year with the fall in JEBS revenue being the main reason and operating expenses at GBP13.1m were GBP0.5m higher driven by marginal increases in depreciation, maintenance costs and software licensing. The taxation charge in the period of GBP1.9m was GBP0.1m lower than last year due to lower profits. Earnings per share, at 23.8p, were marginally behind 24.9p in 2018 due to lower profits. Net debt on the balance sheet, which comprises borrowings less cash and cash equivalents, at 31 March 2019 was GBP12.1m compared to GBP20.2m at this time last year (and GBP14.3m at our last year end on 30 September 2018).
Energy performance
Unit sales of electricity fell 3%, from 368m to 357m kWh, compared with last year. The recorded Maximum Demand fell by 15% from an all-time record of 178MW in March 2018 to 150MW, in December 2018. Revenues in our Energy business at GBP47.4m were GBP0.2m higher than in 2018 reflecting a GBP0.6m reduction due to lower unit sales offset by the 2% rise in customer tariffs from 1 June 2018. Other income received was GBP0.8m higher than in 2018 as we received a rebate for subsea cable repair costs incurred in 2014. Operating profit at GBP8.2m was GBP0.5m lower than in the same period last year. Gross margin was impacted by lower unit sales and increased imported electricity prices and other costs, such as manpower, were higher compared to last year. We imported 95% of our on-Island requirement from France and 5% from the Energy from Waste plant, owned by the States of Jersey. Only 0.2% (1m units) of electricity was generated in Jersey using our own plant due to the availability of our three subsea cables to France. These importation and generation levels were consistent with the same period last year.
Non-Energy performance
Year-on-year revenue in our Powerhouse retail business, rose by 3% to GBP8.1m (2018: GBP7.9m) and profits rose by GBP0.1m to GBP0.6m in what is a very competitive marketplace, both locally and off-island. Profit for our Property portfolio was GBP0.1m lower than last year, at GBP0.8m, due mainly to an increase in operational maintenance costs. JEBS, our contracting and business services unit, saw a GBP1.3m decrease in external revenue to GBP1.6m (as one particularly large project took place during the previous financial year) but profitability remained around break-even similar to 2018. Our remaining business units produced profits of GBP0.3m being at a similar level to that delivered in 2018.
Investment in infrastructure
Capital expenditure was GBP6.4m in the first 6 months of the financial year compared to GBP7.1m in the same period last year. Our new West of St Helier Primary sub-station was successfully commissioned on 13 December as planned and the remaining mainly cosmetic works to the site, will be completed by summer 2019. Our rollout of smart-enabled meters continues with around 45,000 installed in customer premises as at 31 March 2019 representing around 90% of our customer base. A GBP4m project to install a new transformer at our La Collette site was approved at the March 2019 Board meeting and the project is expected to be completed during 2021.
Forward hedging of electricity and foreign exchange, and customer tariffs
We continue with our focus on delivering secure low-carbon electricity supplies and in our goal to maintain relative stability in customer tariffs, despite volatility in both European wholesale electricity, and foreign exchange markets. Our electricity purchases are materially, albeit not fully, hedged for the period 2019-22. As these are contractually denominated in the Euro we enter into forward foreign currency contracts to reduce the volatility of our cost base and aid tariff planning. In February 2019 we announced a below inflation average rise in tariffs of 3.5%, from 1 April, largely driven by a weakening of Sterling relative to the Euro and other inflationary factors. This is only the second rise instigated in the last five years and the tariffs payable by an average customer continue to benchmark well against other jurisdictions. The 'default maximum tariff', recently introduced by Ofgem (the electricity Regulator) to cap prices payable in the UK, is set at a level that is over 30% higher than the average customer would pay in Jersey.
Debt and financing
The net debt figure fell to GBP12.1m at 31 March 2019 compared to GBP20.2m at this time last year (and GBP14.3m at 30 September 2018). We continue to invest in necessary infrastructure in the Channel Islands and the Board is of the opinion that the Company is in a strong position to invest and fund further capital expenditure as considered appropriate.
Pension scheme
The defined benefit pension scheme deficit (without deduction of deferred tax) on our balance sheet at 31 March 2019 stood at GBP3.4m, compared to a surplus of GBP4.8m level at 30 September 2018 (and a deficit of GBP3.9m at 31 March 2018). Since the last financial year end scheme liabilities have materially increased by approximately GBP13m (to GBP144m). This increase was due to the assumed discount rate moving down from 2.9% at the last financial year-end to 2.4% at 31 March 2019 as yield curve movements have fallen in the interim period. Assets in the Scheme have risen by around GBP5m (to GBP141m).
The defined benefit scheme has been closed to new members since 2013. The triennial valuation of the pension scheme, as at 31 December 2018, is currently being performed by Aon, and the results will be reported in our 2019 Annual Report.
Dividend
Your Board proposes to pay an interim net dividend for 2019 of 6.45p (2018: 6.10p). As stated previously we continue to aim to deliver sustained real growth each year over the medium-term. The final dividend for 2018 of 8.80p, paid in late March in respect of the last financial year, was an increase of 5% on the previous year.
Risk and outlook
The principal risks and uncertainties identified in our last Annual Report, issued in January 2019, have not materially altered in the interim period. We reported on Brexit considerations in the 2018 Annual Report and our view has not altered, since then.
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 approval 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 16 May 2019
INVESTOR TIMETABLE FOR 2019
7 June Record date for interim ordinary dividend
28 June Interim ordinary dividend for year ending 30 September
2019
1 July Payment date for preference share dividends
20 December Preliminary announcement of full year results
Condensed Consolidated Income Statement (Unaudited)
Six months Six months
ended ended Year ended
31 March 31 March 30 September
2019 2018 2018
Note GBP000 GBP000 GBP000
Revenue 2 59,695 60,463 105,874
Cost of sales (36,689) (37,506) (65,110)
Gross profit 23,006 22,957 40,764
Revaluation of investment properties - - 310
Operating expenses (13,056) (12,553) (24,380)
----------- ----------- ---------------
Group operating profit 2 9,950 10,404 16,694
Finance income 39 7 28
Finance costs (735) (707) (1,377)
----------- ----------- ---------------
Profit from operations before
taxation 9,254 9,704 15,345
Taxation 3 (1,911) (2,023) (3,152)
----------- ----------- ---------------
Profit from operations after taxation 7,343 7,681 12,193
Attributable to:
Owners of the Company 7,302 7,640 12,115
Non-controlling interests 41 41 78
----------- ----------- ---------------
Profit for the period/year attributable
to the equity holders of the parent
Company 7,343 7,681 12,193
----------- ----------- ---------------
Earnings per share
- basic and diluted 23.83p 24.93p 39.54p
Condensed Consolidated Statement of Comprehensive Income (Unaudited)
Six months Six months
ended ended Year ended
31 March 31 March 30 September
2019 2018 2018
GBP000 GBP000 GBP000
Profit for the period/year 7,343 7,681 12,193
Items that will not be reclassified
subsequently to
profit or loss:
Actuarial (loss)/gain on defined
benefit scheme (7,526) 964 10,166
Income tax relating to items
not reclassified 1,505 (193) (2,033)
(6,021) 771 8,133
Items that may be reclassified
subsequently to
profit or loss:
Fair value loss on cash flow
hedges (5,210) (3,407) (4,261)
Income tax relating to items
that may be reclassified 1,042 681 852
----------- ----------- ---------------
(4,168) (2,726) (3,409)
Total comprehensive income for
the period/year (2,846) 5,726 16,917
Attributable to:
Owners of the Company (2,887) 5,685 16,839
Non-controlling interests 41 41 78
----------- ----------- ---------------
(2,846) 5,726 16,917
----------- ----------- ---------------
Condensed Consolidated Balance Sheet (Unaudited)
Note As at 31 As at As at 30
March 31 March September
2019 2018 2018
GBP000 GBP000 GBP000
Non-current assets
Intangible assets 826 1,077 938
Property, plant and equipment 215,533 212,401 215,153
Investment property 20,460 20,150 20,460
Trade and other receivables 425 533 501
Retirement benefit surplus - - 4,751
Derivative financial instruments 6 - 593 682
Other investments 5 5 5
Total non-current assets 237,249 234,759 242,490
--------- ---------- -----------
Current assets
Inventories 7,423 6,618 7,092
Trade and other receivables 20,506 21,559 15,202
Derivative financial instruments 6 78 3,337 2,338
Cash and cash equivalents 17,939 9,767 15,735
Total current assets 45,946 41,281 40,367
--------- ---------- -----------
Total assets 283,195 276,040 282,857
--------- ---------- -----------
Current liabilities
Trade and other payables 16,014 14,147 15,284
Derivative financial instruments 6 738 8 120
Current tax payable 4,047 2,813 2,299
Total current liabilities 20,799 16,968 17,703
--------- ---------- -----------
Net current assets 25,147 24,313 22,664
--------- ---------- -----------
Non-current liabilities
Trade and other payables 20,471 21,820 20,348
Retirement benefit deficit 3,375 3,855 -
Derivative financial instruments 6 1,739 257 89
Financial liabilities - preference
shares 235 235 235
Borrowings 30,000 30,000 30,000
Deferred tax liabilities 23,369 23,490 25,753
Total non-current liabilities 79,189 79,657 76,425
--------- ---------- -----------
Total liabilities 99,988 96,625 94,128
--------- ---------- -----------
Net assets 183,207 179,415 188,729
--------- ---------- -----------
Equity
Share capital 1,532 1,532 1,532
Revaluation reserve 5,270 5,270 5,270
ESOP reserve - (61) (41)
Other reserves (1,919) 2,932 2,249
Retained earnings 178,252 169,700 179,666
--------- ---------- -----------
Equity attributable to owners
of the Company 183,135 179,373 188,676
Non-controlling interests 72 42 53
--------- ---------- -----------
Total equity 183,207 179,415 188,729
--------- ---------- -----------
Condensed Consolidated Statement of Changes in Equity (Unaudited)
Share Revaluation ESOP Other Retained Total
capital reserve reserve reserves earnings reserves
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 1 October 2018 1,532 5,270 (41) 2,249 179,666 188,676
Total recognised income and expense
for the period - - - - 7,302 7,302
Funding of employee share scheme - - (22) - - (22)
Amortisation of employee share
scheme - - 63 - - 63
Unrealised loss on hedges (net
of tax) - - - (4,168) - (4,168)
Actuarial gain on defined benefit
scheme (net of tax) - - - - (6,021) (6,021)
Equity dividends paid - - - - (2,695) (2,695)
------- ----------- ------- -------- -------- --------
At 31 March 2019 1,532 5,270 - (1,919) 178,252 183,135
------- ----------- ------- -------- -------- --------
At 1 October 2017 1,532 5,270 (84) 5,658 163,862 176,238
Total recognised income and expense
for the period - - - - 7,640 7,640
Funding of employee share scheme - - (9) - - (9)
Amortisation of employee share
scheme - - 32 - - 32
Unrealised loss on hedges (net
of tax) - - - (2,726) - (2,726)
Actuarial gain on defined benefit
scheme (net of tax) - - - - 771 771
Equity dividends paid - - - - (2,573) (2,573)
------- ----------- ------- -------- -------- --------
At 31 March 2018 1,532 5,270 (61) 2,932 169,700 179,373
------- ----------- ------- -------- -------- --------
At 1 October 2017 1,532 5,270 (84) 5,658 163,862 176,238
Total recognised income and expense
for the year - - - - 12,115 12,115
Funding of employee share scheme - - (9) - - (9)
Amortisation of employee share
scheme - - 52 - - 52
Unrealised loss on hedges (net
of tax) - - - (3,409) - (3,409)
Actuarial gain on defined benefit
scheme (net of tax) - - - - 8,133 8,133
Equity dividends paid - - - - (4,444) (4,444)
------- ----------- ------- -------- -------- --------
At 30 September 2018 1,532 5,270 (41) 2,249 179,666 188,676
------- ----------- ------- -------- -------- --------
Condensed Consolidated Cash Flow Statement (Unaudited)
As at 31 As at As at 30
March 31 March September
2019 2018 2018
GBP000 GBP000 GBP000
Cash flows from operating activities
Operating profit 9,950 10,404 16,694
Depreciation and amortisation
charges 5,584 5,458 11,242
Share-based reward charges 63 32 52
Gain on revaluation of investment
property - - (310)
Pension operating charge less
contributions paid 460 654 1,196
Profit on sale of fixed assets - - (1)
Operating cash flows before movements
in working capital 16,057 16,548 28,873
Working capital adjustments:
(Increase)/decrease in inventories (331) 207 (267)
(Increase)/decrease in trade and
other receivables (5,226) (5,718) 671
Increase in trade and other payables 1,442 1,017 125
----------------- ---------- -----------
Net movement in working capital (4,115) (4,494) 529
Interest paid (731) (703) (1,368)
Preference dividends paid (4) (4) (9)
Income taxes paid - - (1,045)
Net cash flows generated from operating
activities 11,207 11,347 26,980
-------------------------------------------- ----------------- ---------- -----------
Cash flows from investing activities
Purchase of property, plant and
equipment (6,381) (6,914) (14,705)
Investment in intangible assets (60) (137) (168)
Net proceeds from disposal of fixed
assets - - 1
Net cash used in investing activities (6,441) (7,051) (14,872)
-------------------------------------------- ----------------- ---------- -----------
Cash flows from financing activities
Equity dividends paid (2,695) (2,573) (4,444)
Dividends paid to non-controlling
interest (22) (25) (51)
Deposit interest received 39 7 28
Net cash used in financing activities (2,678) (2,591) (4,467)
-------------------------------------------- ----------------- ---------- -----------
Net increase in cash and cash equivalents 2,088 1,705 7,641
Cash and cash equivalents at beginning
of period/year 15,735 8,076 8,076
Effect of foreign exchange rate
changes 116 (14) 18
Net cash and cash equivalents at
end of period/year 17,939 9,767 15,735
Notes to the Condensed Interim Accounts (Unaudited)
1. Accounting policies
Basis of preparation
The interim financial statements for the six months ended 31 March 2019 have been prepared on the basis of the accounting policies set out in the 30 September 2018 annual report and accounts using accounting policies consistent with International Financial Reporting Standards and in accordance with International Accounting Standard 34 'Interim Financial Reporting'. There have been two changes to accounting standards during the current financial period that would be expected to impact the disclosures in these financial statements and the full year financial statements that will be prepared for 30 September 2019:
IFRS 9 'Financial instruments' was endorsed by the European Union (EU) and has been effective for periods on or after 1 January 2018 (1 October 2018 for the Group) and replaces IAS 39 'Financial Instruments: Recognition and Measurement'. The impact of adopting this standard does not materially change the amounts recognised in relation to existing Euro forward currency hedging arrangements employed by the Group but does simplify the requirements for measuring hedge effectiveness, and thus the eligibility conditions for hedge accounting. The Group's review of the IFRS 9 hedge accounting model concluded that whilst adoption does not change the treatment of existing hedging arrangements, the changes made do not result in any additional hedge designations either. As such, the existing hedge accounting model under IAS 39 appropriately reflects our risk management activities in the financial statements. Therefore, as permitted by IFRS 9, the Group has elected to continue to apply the hedge accounting requirements of IAS 39. This policy choice will be periodically reviewed to consider any changes in our risk management activities. Additionally, the Group has applied the exemption from the requirement to restate comparative information about classification and measurement, including impairment.
IFRS 15 'Revenue from contracts with customers' was endorsed by the EU and is effective for periods commencing on or after 1 January 2018 (1 October 2018 for the Group) and replaces IAS 11 'Construction contracts', IAS 18 'Revenue', IFRIC 18 'Transfers of Assets from Customers' and a number of other revenue related interpretations previously adopted by the Group. The core principle of IFRS 15 is that an entity recognises revenue that reflects the expected consideration for goods or services provided to a customer under contract, over the performance obligations they are provided, especially where bundled services are provided. Due to the nature of the Group's revenue generating transactions with customers, the impact of IFRS 15 only affects very limited activities undertaken by our Jendev division. It is therefore understood that this standard has no material impact to revenue or profits of the Group.
IFRS 16 'Leases' has been endorsed by the EU and will be effective for periods commencing on or after 1 January 2019 (1 October 2019 for the Group) and replaces IAS 17 'Leases' and sets out the principles for the recognition, measurement, presentation and disclosure of leases. It is anticipated that where the Group is currently lessee, around GBP4.0m of additional "Right of Use" assets will be capitalised with a corresponding lease liability. The amortisation of the lease liability through the income statement is currently forecast to be similar to the current rent charges and thus there is expected to be no material impact to profit.
The directors have a reasonable expectation that the Group (being the Company, Jersey Electricity plc and its subsidiary, Jersey Deep Freeze Ltd) 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.
Notes to the Condensed Interim Accounts (Unaudited)
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 2019 31 March 2018 30 September 2018
External Internal Total External Internal Total External Internal Total
Revenue GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Energy 47,413 58 47,471 47,174 64 47,238 82,332 133 82,465
Building Services 1,573 478 2,051 2,865 249 3,114 4,823 876 5,699
Retail 8,123 22 8,145 7,912 17 7,929 13,571 56 13,627
Property 1,133 302 1,435 1,115 305 1,420 2,277 604 2,881
Other 1,453 437 1,890 1,397 390 1,787 2,871 909 3,780
--------- --------- -------- --------- --------- -------- --------- --------- --------
59,695 1,297 60,992 60,463 1,025 61,488 105,874 2,578 108,452
Intergroup
elimination (1,297) (1,025) (2,578)
-------- -------- --------
Revenue 59,695 60,463 105,874
-------- -------- --------
Operating profit
Energy 8,155 8,667 13,418
Building Services 13 (13) (245)
Retail 632 567 812
Property 837 913 1,813
Other 313 270 586
-------- -------- --------
9,950 10,404 16,384
Revaluation of
investment
properties - - 310
Operating profit 9,950 10,404 16,694
-------- -------- --------
Materially, all of the Group's operations are conducted within the Channel Islands. All transactions between divisions are on 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 2019.
3. Taxation
Six months Year ended
ended 30 September
31 March
2019 2018 2018
GBP000 GBP000 GBP000
Current income tax 1,748 1,771 2,299
Deferred income tax 163 252 853
-------- -------- --------------
Total income tax 1,911 2,023 3,152
======== ======== ==============
For the period ended 31 March 2019 and subsequent periods, the Company is taxable at the rate applicable to utility companies in Jersey of 20% (2018: 20%).
Notes to the Condensed Interim Accounts (Unaudited)
4. Dividends paid and proposed
Six months Year ended
ended 30 September
31 March
2019 2018 2018
Dividends per share
- paid 8.80p 8.40p 14.50p
- proposed 6.45p 6.10p 8.80p
GBP000 GBP000 GBP000
Distributions to equity holders 2,695 2,573 4,444
------- ------- --------------
The distribution to equity holders in respect of the final dividend for 2018 of GBP2,695,449 (8.80p net of tax per share) was paid on 28 March 2019.
The Directors have declared an interim dividend of 6.45p per share, net of tax (2018: 6.10p) for the six months ended 31 March 2019 to shareholders on the register at the close of business on 7 June 2019. This dividend was approved by the Board on 16 May 2019 and has not been included as a liability at 31 March 2019.
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 2019.
Fair value of currency hedges 31 March 30 September
2019 2018 2018
Derivative assets GBP'000 GBP'000 GBP'000
Less than one year 78 3,337 2,338
Greater than one year - 593 682
Derivative liabilities
Less than one year (738) (8) (120)
Greater than one year (1,739) (257) (89)
Total net (liabilities)/assets (2,399) 3,665 2,811
======== ======== =============
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);
Notes to the Condensed Interim Accounts (Unaudited)
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
Jersey Electricity plc conducts a variety of transactions with the States of Jersey and its associated entities:
Value of Value of
electricity goods & other Value of
services services goods & services
supplied supplied purchased Amounts due Amounts
by Jersey by Jersey by Jersey to Jersey due by Jersey
Electricity Electricity Electricity Electricity Electricity
Six months ended 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018
31 March
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
The States of
Jersey
and related
entities 4,707 5,139 963 1,165 947 791 473 564 10 6
The States of Jersey is the Group's majority and controlling shareholder. Related entities include all corporatised entities that remain wholly owned by, or controlled by, the States of Jersey.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
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