TIDMJEL
RNS Number : 2766Z
Jersey Electricity PLC
14 December 2017
JERSEY ELECTRICITY plc Preliminary Announcement of Annual
Results
Year Ended 30 September 2017
At a meeting of the Board of Directors held on 13 December 2017,
the final accounts for the Group for the year to 30 September 2017
were approved, details of which follow.
The financial information set out in the announcement does not
constitute the Group's statutory accounts for the year ended 30
September 2017 or 2016, but is derived from those accounts.
Statutory accounts for 2016 have been delivered to the Jersey
Registrar of Companies and those for 2017 will be delivered in
early 2018. The auditor has reported on the accounts for both years
and their reports were unmodified.
A final dividend of 8.4p on the Ordinary and 'A' Ordinary shares
in respect of the year ended 30 September 2017 was recommended
(2016: 8.0p). Together with the interim dividend of 5.8p (2016:
5.5p) the proposed total dividend declared for the year was 14.2p
on each share (2016: 13.5p).
The final dividend will be paid on 29 March 2018 to those
shareholders registered in the books of the Company on 23 February
2018. A dividend on the 5% cumulative participating preference
shares of 1.5% (2016: 1.5%) payable on 2 July 2018 was also
recommended.
The Annual General Meeting of the Company will be held on 1
March 2018.
M.P. Magee P.J. Routier
Finance Director Company Secretary
Direct telephone number : 01534 505321 Direct telephone number
:01534 505253
Email : mmagee@jec.co.uk Email : proutier@jec.co.uk
13 December 2017
The Powerhouse
PO Box 45
Queens Road
St Helier
Jersey JE4 8NY
JERSEY ELECTRICITY plc
Preliminary Announcement of Annual Results
Year ended 30 September 2017
The Chairman, Geoffrey Grime, comments:
"I am delighted to report another excellent performance from
Jersey Electricity for 2016/17. Group revenue for the year to 30
September 2017 was GBP102m and profit before tax and exceptional
items at GBP13.5m, was 2.5% higher than the GBP13.1m achieved in
2016. This was supported by strong underlying performance in the
Energy business as well as across our non-Energy businesses,
especially our retail business, Powerhouse.je, which has had
another particularly strong year. Overall, this has led to the
Group's best ever financial performance, an outcome that is good
for all stakeholders, for our ongoing investment programme and for
a sustainable electricity service. I am therefore pleased to report
a proposed final dividend for this year of 8.40p, a 5% rise on the
previous year, payable on 29 March 2018.
Our first almost full year operating with three undersea supply
cables to France has not only resulted in improved financial
performance, but has also driven exceptional supply reliability,
attractive pricing for customers and a virtually fully decarbonised
electricity system. Our tariffs remain very competitive compared
with other jurisdictions, including other islands and even the EU
and UK which benefit from significant economies of scale. In
addition, with the last tariff rise of 1.5% on 1 April 2014, Jersey
Electricity is approaching four years without an increase - a
notable achievement given the very significant rises over that
period elsewhere.
As the sole supplier of over a third of Jersey's energy
requirements, the Company has a huge responsibility to our
customers and it is one all colleagues take very seriously. I am
therefore pleased that our customer satisfaction ratings have
improved further across the four key service areas leading to an
increase in an overall rating which is independently assessed as
'excellent' when compared with other service providers."
Financial Highlights 2017 2016
Revenue GBP102.3m GBP103.4m
Profit before tax pre-exceptional
items GBP13.5m GBP13.1m
Earnings per share pre-exceptional
items 34.6p 33.3p
Dividend paid per share 13.8p 13.1p
Final proposed dividend per share 8.4p 8.0p
Net debt GBP21.9m GBP29.0m
------------------------------------ ----------- ----------
Group revenue for the year to 30 September 2017 at GBP102.3m was
1% lower than in the previous financial year. Unit sales volumes of
electricity were marginally behind last year with Energy revenues
at GBP80.5m against GBP81.2m in 2016. Turnover in Powerhouse.je,
our retail business, increased by 9% from GBP11.9m to GBP13.0m.
Revenue in the Property business rose by GBP0.1m to GBP2.2m due to
higher rental income. Revenue from JEBS, our contracting and
building services business, fell GBP1.1m from levels experienced in
2016 to GBP4.0m. Turnover in our other businesses fell GBP0.3m to
GBP2.6m.
Overall cost of sales decreased by GBP2.1m to GBP63.2m mainly
due to a reduction in import costs in our Energy business.
Operating expenses, at GBP24.4m, rose by GBP0.9m from their 2016
level with an increase in depreciation charges, post our continued
investment in infrastructure, and IAS19 pension costs being the
main drivers.
Profit before tax, pre-exceptional items, for the year to 30
September 2017, at GBP13.5m, increased by 2.5% from GBP13.1m in
2016. Profit before tax post-exceptional items, fell from GBP14.8m
last year to GBP13.5m in 2017 as we had an exceptional credit of
GBP1.7m in 2016 associated with the release of a rent accrual that
had been accumulated over many years for our La Collette Power
Station site post the settlement of a long-running rent review
which was settled by an arbiter in our favour.
Our Energy business unit sales saw volumes falling 0.6% from
625m to 621m kilowatt hours. Profits in our Energy business moved
up marginally against last year to GBP11.7m. A lower cost of sales
resulted in a higher margin but this was offset by increased
depreciation and pension costs.
In the financial year we imported 93% of our requirements from
France (2016: 92%) and generated 1% of our electricity on-island at
La Collette Power Station (2016: 3%). Additional staff training on
plant was the main reason for the higher level of generation in
2016 compared to this year. The remaining 6% of our electricity
came from the local Energy from Waste plant being marginally above
that seen in 2016. Customer tariffs have remained at the same level
over the last three years and there were no changes during 2017 and
our prices continue to remain competitive with other jurisdictions
(EU and other islands). The UK saw material increases in retail
electricity prices for their customers during 2017 with an average
rise of 14% across the 'Big 6' but our last tariff movement was an
average 1.5% increase in April 2014.
Profits in our Property division, excluding the impact of
investment property revaluation, at GBP1.6m, were at the same level
as last year with a higher rental level offset by increased
maintenance costs. Our investment property portfolio was marginally
revalued upwards this year to GBP20.2m by the external consultants
who review the position annually. Our retailing business,
Powerhouse.je, saw continued strong growth with profits moving
GBP0.3m upwards to GBP0.7m in 2017. JEBS, our contracting and
business services unit produced a profit of GBP0.1m on a par with
that achieved in 2016 in a challenging industry with high
competition for staff. Our other business units - Jersey Energy,
Jendev and Jersey Deep Freeze were GBP0.2m behind last year as
Jersey Deep Freeze had an exceptional year in 2016 which was not
repeated in 2017.
Interest paid in 2017 was GBP1.3m against GBP1.1m in 2016 with a
lower level of average debt, and a higher level of capitalisation
of interest in 2016 associated with the new N1 subsea cable, being
the primary reasons for the rise. The taxation charge at GBP2.8m
was GBP0.3m lower than 2016 due mainly to the exceptional credit
last year being a taxable item.
Group earnings per share, pre-exceptional items, rose to 34.6p
compared to 33.3p in 2016 due mainly to the increase in profits.
Earnings per share, before adjusting for exceptional items, stood
at 37.7p in 2016 whilst there were no exceptional items to adjust
for in 2017.
Dividends paid in the year, net of tax, rose by 5%, from 13.1p
in 2016 to 13.8p in 2017. The proposed final dividend for this year
is 8.4p, a 5% rise on the previous year. Dividend cover,
pre-exceptional items, at 2.5 times was at a similar level to 2016.
If exceptional items are included, dividend cover fell from 2.9
times last year to 2.5 times in this financial year.
Net cash inflow from operating activities at GBP26.5m was
GBP1.3m higher than in 2016 with an increase in profit, prior to
IAS 19 pension accounting, being the primary driver. Capital
expenditure, at GBP15.1m fell from GBP32.4m last year as most of
the cash on the N1 project was spent in 2016 in advance of the
cable being commissioned during this financial year. Net debt, at
the year-end was GBP21.9m being GBP7.1m lower than last year.
Our defined benefits pension scheme, which had an IAS 19 deficit
of GBP9.2m, net of deferred tax, at the 2016 year end decreased to
a GBP3.4m deficit as at 30 September 2017. Scheme liabilities fell
4% due to an increase in the discount rate applied, reflecting
sentiments in financial markets, and assets rose 1%, since the last
year end.
Consolidated Income Statement 2017 2016
For the year ended 30 September GBP000 GBP000
2017
Revenue 102,320 103,361
Cost of sales (63,186) (65,249)
------------------------- -------------------------
Gross Profit 39,134 38,112
Revaluation of investment properties 40 (350)
Operating expenses (24,379) (23,498)
------------------------- -------------------------
Group operating profit before
exceptional items 14,795 14,264
Exceptional item - La Collette
rent accrual reversal - 1,676
Group operating profit 14,795 15,940
Finance income 3 22
Finance costs (1,340) (1,154)
Profit from operations before
taxation 13,458 14,808
Taxation (2,834) (3,166)
------------------------- -------------------------
Profit from operations after taxation 10,624 11,642
========================= =========================
Attributable to:
Owners of the Company 10,599 11,547
Non-controlling interests 25 95
------------------------- -------------------------
10,624 11,642
========================= =========================
Earnings per share
- basic and diluted 34.59p 37.69p
Consolidated Statement of Comprehensive 2017 2016
Income
GBP
GBP 000 000
Profit for the year 10,624 11,642
Items that will not be reclassified
subsequently to profit or loss:
Actuarial gain / (loss) on defined
benefit scheme 8,859 (2,829)
Income tax relating to items not
reclassified (1,772) 566
-------- --------
7,087 (2,263)
Items that may be reclassified
subsequently to profit or loss:
Fair value (loss) / gain on cash
flow hedges (1,673) 13,865
Income tax relating to items that
may be reclassified 335 (2,773)
-------- --------
(1,388) 11,092
Total comprehensive income for
the year 16,393 20,471
Attributable to:
Owners of the Company 16,348 20,376
Non-controlling interests 25 95
-------- --------
16,373 20,471
Consolidated Balance Sheet 2017 2016
For the year ended 30 September GBP
2017 GBP 000 000
NON-CURRENT ASSETS
Intangible assets 1,110 162
Property, plant and equipment 211,921 209,168
Investment properties 20,150 20,110
Secured loans 592 683
Derivative financial instruments 2,790 5,957
Other investments 5 5
-------------------- --------
Total non-current assets 236,568 236,085
------------------------------------- -------------------- --------
CURRENT ASSETS
------------------------------------ -------------------- --------
Inventories 6,825 5,962
Trade and other receivables 15,782 16,583
Derivative financial instruments 4,454 2,788
Cash and cash equivalents 8,076 1,925
Total current assets 35,137 27,258
-------------------- --------
Total assets 271,705 263,343
------------------------------------- -------------------- --------
LIABILITIES
------------------------------------ -------------------- --------
Trade and other payables 15,885 16,084
Bank overdraft - 943
Current tax liability 1,034 420
Total current liabilities 16,919 17,447
-------------------- --------
NET CURRENT ASSETS 18,218 9,811
-------------------------------------
NON-CURRENT LIABILITIES
------------------------------------ -------------------- --------
Trade and other payables 20,177 19,600
Retirement benefit deficit 4,219 11,471
Derivative financial instruments 172 -
Financial liabilities - preference
shares 235 235
Long-term borrowings 30,000 30,000
Deferred tax liabilities 23,719 20,482
Total non-current liabilities 78,522 81,788
-------------------- --------
Total liabilities 95,441 99,235
-------------------- --------
Net assets 176,264 164,108
------------------------------------- -------------------- --------
EQUITY
------------------------------------ -------------------- --------
Share capital 1,532 1,532
Revaluation reserve 5,270 5,270
ESOP reserve (84) (155)
Other reserves 5,658 6,878
Retained earnings 163,862 150,523
-------------------- --------
Equity attributable to owners
of the Company 176,238 164,048
Non-controlling interests 26 60
-------------------- --------
Total equity 176,264 164,108
------------------------------------- -------------------- --------
Consolidated
Statement
of Changes in
Equity
for the year
ended 30 Share Revaluation ESOP Other Retained
September 2017 capital reserve reserve reserves earnings Total
GBP GBP GBP GBP GBP
000 GBP 000 000 000 000 000
At 1 October 2016 1,532 5,270 (155) 6,878 150,523 164,048
Total recognised
income
and expense for
the year - - - - 10,599 10,599
Funding of
employee share
option scheme - - (2) - - (2)
Amortisation of
employee
share option
scheme - - 73 - - 73
Unrealised gain
on hedges
(net of tax) - - - (1,388) - (1,388)
Actuarial loss on
defined
benefit scheme
(net of
tax) - - - - 7,087 7,087
Adjustment to
reserves - - - 118 (118) -
Equity dividends - - - - (4,229) (4,229)
At 30 September
2017 1,532 5,270 (84) 5,658 163,862 176,238
=================== ==================== ============== ============== ============= ========
Share Revaluation ESOP Other Retained
capital reserve reserve reserves earnings Total
GBP GBP GBP GBP GBP
000 GBP 000 000 000 000 000
At 1 October 2015 1,532 5,270 (97) (4,214) 145,223 147,714
Total recognised
income
and expense for
the year - - - 11,547 11,547
Funding of
employee share
option scheme - - (114) - - (114)
Amortisation of
employee
share option
scheme - - 56 - - 56
Unrealised loss
on hedges
(net of tax) - - - 11,092 - 11,092
Actuarial loss on
defined
benefit scheme
(net of
tax) - - - - (2,263) (2,263)
Adjustment
arising from
change in
non-controlling
interest - - - - 31 31
Equity dividends - - - - (4,015) (4,015)
------------------- -------------------- -------------- -------------- ------------- --------
At 30 September
2016 1,532 5,270 (155) 6,878 150,523 164,048
=================== ==================== ============== ============== ============= ========
Consolidated Statement of Cash
Flows 2017 2016
for the year ended 30 September
2017 GBP 000 GBP 000
CASH FLOWS FROM OPERATING ACTIVITIES
Operating profit before exceptional
items 14,795 14,264
Depreciation and amortisation
charges 10,695 10,295
Share based reward charges 73 56
(Gain) / loss on revaluation
of investment property (40) 350
Pension operating charge less
contributions paid 1,607 1,351
Profit on sale of fixed assets (4) (6)
--------- ---------
Operating cash flows before
movement in working capital 27,126 26,310
Working capital adjustments:
(Increase) / decrease in inventories (863) 277
Decrease / (increase) in trade
and other receivables 892 (1,758)
Increase in trade and other
payables 1,230 2,303
--------- ---------
Net movement in working capital 1,259 822
Interest paid (1,322) (1,148)
Capitalised interest paid (172) (374)
Preference dividends paid (9) (9)
Income taxes paid (421) (396)
--------- ---------
Net cash flows from operating
activities 26,461 25,205
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant
and equipment (14,252) (32,391)
Investment in intangible assets (836) (4)
Proceeds from part disposal
of subsidiary - 10
Net proceeds from disposal of
fixed assets 4 9
--------- ---------
Net cash flows used in investing
activities (15,084) (32,376)
CASH FLOWS FROM FINANCING ACTIVITIES
Equity dividends paid (4,229) (4,019)
Dividends paid to non-controlling
interest (59) (48)
Deposit interest received 3 22
Payment for foreign exchange
option - (250)
Proceeds of borrowings 18,000 5,500
Repayment of borrowings (18,943) (5,500)
--------- ---------
Net cash flows used in financing
activities (5,228) (4,295)
Net increase / (decrease) in
cash and cash equivalents 6,149 (11,466)
Cash and cash equivalents at
beginning of year 1,925 12,503
Effect of foreign exchange rates 2 (55)
Overdraft - 943
--------- ---------
Cash and cash equivalents at
end of year 8,076 1,925
Notes to the accounts
Year ended 30 September 2017
1. Basis of Preparation
The consolidated financial statements of Jersey Electricity plc,
for the year ended 30 September 2017, have been prepared in
accordance with International Financial Reporting Standards (IFRS)
as adopted by the European Union (EU), including International
Accounting Standards and Interpretations issued by the
International Financial Reporting Interpretations Committee
(IFRIC).
While the financial information included in this preliminary
announcement has been prepared in accordance with the appropriate
recognition and measurement criteria, this announcement does not
itself contain sufficient information to comply with IFRS. The
Group expects to publish full financial statements that comply with
IFRS in early 2018.
The Group has considerable financial resources together with a
large number of customers both corporate and individual. As a
consequence, the directors believe that the Group 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. For
this reason, they continue to adopt the going-concern basis in
preparing the financial statements.
Segmental information
Revenue and profit information are analysed between
the business segments as follows:
2017 2017 2017 2016 2016 2016
External Internal Total External Internal Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Revenue
Energy 80,480 143 80,623 81,215 144 81,359
Building Services 3,982 915 4,897 5,120 786 5,906
Retail 13,045 37 13,082 11,933 45 11,978
Property 2,187 599 2,786 2,143 599 2,742
Other 2,626 1,324 3,950 2,950 876 3,826
--------- --------- -------- --------- --------- --------
102,320 3,018 105,338 103,361 2,450 105,811
Intergroup elimination (3,018) (2,450)
-------- --------
Revenue 102,320 103,361
-------- --------
Operating profit
Energy 11,723 11,650
Building Services 131 134
Retail 731 452
Property 1,645 1,683
Other 525 695
-------- --------
14,755 14,614
Revaluation of investment
properties 40 (350)
Exceptional item - La Collette
rent accrual reversal - 1,676
Operating profit 14,795 15,940
-------- --------
This information is provided by RNS
The company news service from the London Stock Exchange
END
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