TIDMJEL
RNS Number : 2762M
Jersey Electricity PLC
20 May 2022
Jersey Electricity plc
Interim Management Report
for the six months ended 31 March 2022
This report has been replaced on 20 May 2022 in order to change
the record date for the interim ordinary dividend from 3 June 2022
to 1 June 2022 due to the original date being a public holiday in
the United Kingdom and Jersey.
The Board approved at a meeting on 18 May 2022 the Interim
Management Report for the six months ended 31 March 2022 and
declared an interim dividend of 7.60p compared to 7.20p for 2021.
The dividend will be paid on 21 June 2022 to those shareholders
registered in the records of the Company at the close of business
on 3 June 2022.
The Interim Management Report is attached and will be available
to the public on the Company's website
www.jec.co.uk/investors/figures-reports .
The Interim Management Report for 2022 has not been audited, or
reviewed, by our external auditors, nor have the results for the
equivalent period in 2021. The results for the year ended 30
September 2021 were extracted from the statutory accounts. The
auditor has reported on those accounts and their report was
unmodified.
M.P. Magee L. Floris
Finance Director Company Secretary
Direct telephone number: 01534 505201 Direct telephone number:
01534 505253
Email: mmagee@jec.co.uk Email: lfloris@jec.co.uk
18 May 2022
The Powerhouse,
PO Box 45,
Queens Road,
St Helier,
Jersey JE4 8NY
Directors' Statement
Financial Summary
6 months 6 months
2022 2021
=================================================================================================================== ==================================================================================================== ===================================================================================================
Electricity Sales in kWh 359.4m 374.9m
=================================================================================================================== ==================================================================================================== ===================================================================================================
Revenue GBP65.0m GBP67.1m
=================================================================================================================== ==================================================================================================== ===================================================================================================
Profit before tax GBP7.0m GBP10.5m
=================================================================================================================== ==================================================================================================== ===================================================================================================
Earnings per share 17.78p 27.00p
=================================================================================================================== ==================================================================================================== ===================================================================================================
Final dividend paid per 10.20p 9.70p
ordinary share
=================================================================================================================== ==================================================================================================== ===================================================================================================
Proposed interim 7.60p 7.20p
dividend per ordinary
share
=================================================================================================================== ==================================================================================================== ===================================================================================================
COVID-19 - impact on trading performance
The pandemic continued throughout the period since the end of
our last financial year but has not materially impacted our overall
trading performance even though COVID-19 cases have remained
relatively high. It has however influenced comparisons with the
same trading period in the last financial year. In our Energy
business we saw lower unit sales, and although the year-on-year
fall is due largely to milder weather, there is an element
attributable to a decrease in domestic consumption associated with
less home-working, than in the same period last year. Our Retail
business has also seen revenue fall from record levels as the
trading position has normalised with customers starting to travel
more widely resulting in spending power returning to pre-COVID
levels.
Energy - security of supply and price volatility
In our 2021 Annual Report we highlighted the escalation of
political issues between the EU and the UK on fishing rights
between Jersey and France. This tension appears to have largely
dissipated for the moment, but we maintain a watching brief as it
has potential to re-surface in the future. We saw unprecedented
volatility in energy markets in the second half of 2021 and this
has further intensified throughout 2022 with the Russian invasion
of Ukraine exacerbating uncertainty and prolonging high prices. We
continue to monitor developments on both security of supply and
volatility in energy markets. We have strong relationships with our
French partners, EDF (as supplier) and RTE (as network operator)
that span more than 35 years and the Company benefits from legal
and contractual arrangements which cover imported electricity
supplies to the end of 2027.
Hedging of electricity and foreign exchange, and customer
tariffs
We continue to focus on delivering secure, low-carbon
electricity supplies and our goal is to maintain relative stability
in customer tariffs, despite volatility in both European wholesale
electricity and foreign exchange markets. This is however extremely
challenging in the current climate. Our electricity purchases are
materially, but not fully, hedged for the period 2022-24. We also
have around one third of our expected 2025-27 requirements hedged
at largely fixed prices. As these are contractually denominated in
the Euro, we also enter into forward foreign currency contracts, on
a three-year rolling basis, to reduce the volatility on our cost
base, and to aid tariff planning. In January 2022 we implemented a
4% rise in customer tariffs.
Given the continued upward pressure on wholesale prices flowing
into costs, we have recently announced a 5% tariff increase from 1
July 2022 and an intention to implement a further 5% rise from 1
January 2023. Even with these rises, the prices payable by our
customers continue to benchmark well against other jurisdictions.
From 1 April 2022, the "default maximum tariff" applied by Ofgem
(the UK electricity regulator) to cap domestic prices payable in
the UK is set at a level that is nearly double the current average
standard domestic tariff in Jersey, and this UK default maximum
tariff is expected to materially rise again from 1 October 2022.
Other UK Islands are also implementing material rises in customer
tariffs with the Isle of Man having instigated a 15% increase on 1
April 2022 and a further 15% rise from 1 July 2022. Guernsey
Electricity has also announced that they will increase electricity
tariffs by 9% from the beginning of July 2022, subject to
regulatory approval.
Overall trading performance in the 6 months to 31 March
Group revenue, at GBP65.0m, was 3% lower for the first half of
2022 compared with GBP67.1m for the same period last year mainly
due to a fall in both Energy and Retail revenue. Profit before tax
at GBP7.0m was GBP3.5m lower than 2021 primarily due to a material
fall in profit in our Energy business. Cost of sales at GBP42.9m
was GBP1.1m higher than last year with the rise in wholesale energy
costs being the main factor. Operating expenses at GBP14.4m were
GBP0.3m higher than last year due mainly to general inflationary
pressures. The taxation charge in the period of GBP1.5m was GBP0.7m
lower than last year due to decreased profits. Earnings per share,
at 17.78p, were below 27.00p in 2021 due to lower profits. Net cash
on the balance sheet, which comprises borrowings less cash and cash
equivalents, at 31 March 2022, was GBP13.1m compared with GBP5.9m
at this time last year (and GBP13.1m of net cash at our last year
end on 30 September 2021).
Energy performance
Unit sales of electricity fell 4% from 375m to 359m kWh,
compared with the same period last year. We experienced milder
weather in the first half of this financial year, with the
temperature in all months being above the long-term average and
five months being warmer than the corresponding period in the
previous year. There was also lower domestic consumption associated
with less home-working linked to the pandemic compared with last
year. Revenue in our Energy business at GBP50.8m was GBP1.2m lower
than in 2021 with the year-on-year decrease in unit sales more than
offsetting the 4% tariff rise in January 2022. Operating profit at
GBP5.9m was GBP3.2m lower than the corresponding period last year
due to the decreased revenue and higher costs, including increased
wholesale import prices, recruitment of new employees, and other
inflationary pressures. We imported 98% of our on-island
requirement from France and 2% from the Energy from Waste plant,
owned by the Government of Jersey. Only 0.2% (less than 1m units)
of electricity was generated in Jersey using our traditional
oil-fired plant (which is run during testing regimes) and we also
saw a rising trend in our solar generation albeit still at a low
level compared with overall requirements. These importation and
generation levels were materially consistent with the same period
last year albeit the imports from the Energy from Waste plant were
around half the normal level as maintenance work was being
performed for an extended time in this period.
Non-Energy performance
Year-on-year revenue in our Powerhouse retail business, fell by
11% to GBP9.5m (2021: GBP10.7m) and profits fell by GBP0.4m to
GBP0.7m as the business returned to more normalised levels of
trading post last year's strong trading performance which was
associated with factors including a substantial proportion of
customers having more disposable income due to COVID-19 travel
restrictions. Profit from our Property portfolio at GBP0.7m was
GBP0.1m lower than last year, due to additional maintenance costs.
JEBS, our building services unit, saw external revenue rise GBP0.2m
to GBP1.8m and profitability rise to GBP0.1m from breakeven level
last year. Our remaining business units produced profits of GBP0.3m
at the same level as 2021.
Liquidity and cashflow
No net cash was generated in the period (2021: GBP0.4m) post the
continued investment in infrastructure of GBP6.0m (2021: GBP4.8m).
The net cash figure of GBP5.9m at 31 March 2021 moved to a net cash
figure of GBP13.1m at 31 March 2022 (being at the same level as 30
September 2021). Net cash consists of GBP30.0m of long-term debt
offset by cash and cash equivalents of GBP43.1m.
Pension scheme
The defined benefit pension scheme surplus (without deduction of
deferred tax) on our balance sheet at 31 March 2022 stood at
GBP22.0m, compared with a surplus of GBP18.8m at 30 September 2021
(and a surplus of GBP17.1m at 31 March 2021). Since the last
financial year end, scheme liabilities have materially decreased by
approximately GBP13m (to GBP129m). This fall was primarily due to
an increase to the discount rate assumptions from 2.1% at the last
financial year end to 2.8% at 31 March 2022 associated with a rise
in UK AA corporate bond yields in the interim. Assets in the Scheme
fell by around GBP10m (to GBP151m). The defined benefit scheme has
been closed to new members since 2013 and the next triennial
valuation of the scheme, as at 31 December 2021, is currently being
performed by Aon and the results will be reported in our 2022
Annual Report.
Dividend
Your Board proposes to pay an interim net dividend for 2022 of
7.60p (2021: 7.20p). As stated in previous years, we continue to
aim to deliver sustained real growth each year over the
medium-term. The final dividend for 2021 of 10.20p, 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 2022, have not materially altered
in the interim period. We, however, highlighted earlier in this
report, the current unprecedented volatility in energy markets.
This continues to be closely monitored by the Board as this adds
unpredictability into the price we will pay for any unhedged
elements of our future electricity costs. 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
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.
C.J. AMBLER - Chief Executive M.P. MAGEE - Finance Director
18 May 2022
Investor timetable 2022
1 June Record date for
interim ordinary
dividend
======================================================================================================================
21 June Interim ordinary dividend
for year ending
30 September 2022
======================================================================================================================
1 July Payment date for
preference
share dividends
======================================================================================================================
20 December Announcement of
full
year results
======================================================================================================================
Condensed Consolidated Income Statement (Unaudited)
Six Six months Year
months
ended ended ended
31 March 31 March 30
September
Note 2022 2021 2021
GBP000 GBP000 GBP000
Revenue
=========================================================================================================== ================================================================================================ =================================================================================================== ==================== ====================================================================================================
Cost of sales 2 64,995 67,098 118,608
Gross profit (42,859) (41,743) (74,159)
22,136 25,355 44,449
Profit on revaluation of investment
properties - - 6,055
Operating expenses (14,412) (14,108) (29,991)
Group operating 2 7,724 11,247 20,513
profit
Finance income 10 26 112
Finance costs (764) (779) (1,540)
Profit from operations before taxation 6,970 10,494 19,085
Taxation 3 (1,464) (2,162) (2,794)
Profit from operations after taxation
Attributable to: 5,506 8,332 16,291
============================================================================================================================================================================================================= =================================================================================================== ==================== ====================================================================================================
Owners of the Company 5,488 8,274 16,155
Non-controlling 58 58 136
interests
Profit for the period/year attributable
to the equity holders of the parent
Company
Earnings per share 5,506 8,332 16,291
============================================================================================================================================================================================================= =================================================================================================== ==================== ====================================================================================================
- basic and diluted 17.78p 27.00p 52.73p
Condensed Consolidated Statement of Comprehensive Income
(Unaudited)
Six Six months Year
months
ended ended ended
31 31 March 30
March September
2022 2021 2021
GBP000 GBP000 GBP000
Profit for the period/year
Items that will not be reclassified
subsequently
to profit or loss: 5,506 8,332 16,291
=============================================================================================================================== ================================================================================================= ==================== ====================================================================================================
Actuarial gain on defined benefit
scheme 3,805 10,499 14,803
Income tax relating to items not
reclassified (761) (2,100) (2,961)
Items that
may be
reclassified
subsequently
to profit or
loss: 3,044 8,399 11,842
=============================================================================================================================== ================================================================================================= ==================== ====================================================================================================
Fair value loss on cash flow hedges (118) (4,194) (3,116)
Income tax relating to items that 24 839 623
may
be reclassified
(94) (3,355) (2,493)
Total comprehensive income for the
period/year 8,456 13,376 25,640
=============================================================================================================================== ================================================================================================= ==================== ====================================================================================================
Attributable to:
=============================================================================================================================== ================================================================================================= ==================== ====================================================================================================
Owners of the Company 8,398 13,318 25,504
Non-controlling interests 58 58 136
8,456 13,376 25,640
Condensed Consolidated Balance Sheet (Unaudited)
As at As at As at
31 31 March 30
March September
Note 2022 2021 2021
GBP000 GBP000 GBP000
Non-current
assets
======================================================================================================== ================================================================================================ ================================================================================================== ==================== ====================================================================================================
Intangible assets 790 622 933
Property, plant and equipment 216,138 216,787 216,550
Right of use 3,301 2,849 3,113
assets
Investment properties 27,810 21,755 27,810
Trade and 303 300 308
other
receivables
Retirement benefit surplus 21,991 17,064 18,761
Derivative 6 79 - 108
financial
instruments
Other 5 5 5
investments
Total non-current assets
Current assets 270,417 259,382 267,588
========================================================================================================================================================================================================== ================================================================================================== ==================== ====================================================================================================
Inventories 6,907 5,561 6,909
Trade and other receivables 23,375 25,461 18,000
Cash and cash equivalents 43,110 35,882 43,136
Total current assets 73,392 66,904 68,045
Total assets
Current liabilities 343,809 326,286 335,633
========================================================================================================================================================================================================== ================================================================================================== ==================== ====================================================================================================
Trade and other payables 19,558 18,100 18,373
Lease 73 66 72
liabilities
Derivative 6 677 818 1,256
financial
instruments
Current tax 2,613 3,604 3,020
liabilities
Total current liabilities 22,921 22,588 22,721
Net current assets 50,471 44,316 45,324
========================================================================================================================================================================================================== ================================================================================================== ==================== ====================================================================================================
Non-current
liabilities
======================================================================================================== ================================================================================================ ================================================================================================== ==================== ====================================================================================================
Trade and other payables 24,762 23,701 24,006
Lease 3,247 2,847 3,035
liabilities
Retirement 575 - -
benefit
deficit
Derivative 6 1,542 2,282 874
financial
instruments
Financial 235 235 235
liabilities -
preference
shares
Borrowings 30,000 30,000 30,000
Deferred tax liabilities 30,353 28,313 29,321
Total non-current liabilities 90,139 87,378 87,471
Total liabilities 113,060 109,966 110,192
Net assets
Equity 230,749 216,320 225,441
========================================================================================================================================================================================================== ================================================================================================== ==================== ====================================================================================================
Share capital 1,532 1,532 1,532
Revaluation 5,270 5,270 5,270
reserve
ESOP reserve (58) (99) (79)
Other reserves (1,712) (2,480) (1,618)
Retained earnings 225,545 211,960 220,178
Equity attributable to the owners
of the Company 230,577 216,183 225,283
Minority 172 137 158
interest
Total equity 230,749 216,320 225,441
Condensed Consolidated Statement of Changes in Equity
(Unaudited)
Share Revaluation ESOP *Other Retained Total
Capital Reserve Reserve Reserves Earnings Reserve
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 1 October
2021 1,532 5,270 (79) (1,618) 220,178 225,283
Total - - - - 5,448 5,448
recognised
income
and expense
for the
period
Amortisation - - 21 - - 21
of employee
share scheme
Movement on - - - (94) - (94)
hedges (net
of tax)
Actuarial - - - - 3,044 3,044
gain on
defined
benefit
scheme (net
of
tax)
Equity
dividends
paid - - - - (3,125) (3,125)
As at 31 1,532 5,270 (58) (1,712) 225,545 230,577
March 2022
-------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------ --------------------------------------------------------------------------------------------------
At 1 October 1,532 5,270 (120) 875 197,359 204,916
2020 -
restated
Total - - - - 8,274 8,274
recognised
income
and expense
for the
period
Funding of - - 21 - - 21
employee
share
option scheme
Movement on
hedges (net
of tax) - - - (3,355) - (3,355)
Actuarial - - - - 8,399 8,399
gain on
defined
benefit
scheme (net
of
tax)
Equity
dividends
paid - - - - (2,972) (2,972)
As at 31 1,532 5,270 (99) (2,480) 211,060 215,283
March 2021 -
restated
-------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------ --------------------------------------------------------------------------------------------------
At 1 October 1,532 5,270 (120) 875 197,359 204,916
2020 -
restated
Total
recognised
income
and expense
for the
period - - - - 16,155 16,155
Amortisation - - 41 - - 41
of employee
share scheme
Movement on
hedges (net
of tax) - - - (2,493) - (2,493)
Actuarial gain
on defined
benefit
scheme (net
of
tax) - - - - 11,842 11,842
Equity
dividends
paid - - - - (5,178) (5,178)
At 30 1,532 5,270 (79) (1,618) 220,178 225,283
September
2021
--------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------ --------------------------------------------------------------------------------------------------
*'Other reserves' represents the foreign currency hedging
reserve.
Condensed Consolidated Cash Flow Statement (Unaudited)
Six Six months Year
months
ended ended ended
31 31 March 30
March September
2022 2021 2021
GBP000 GBP000 GBP000
Cash flows from
operating activities
=================================================================================================================== ================================================================================================== ==================== ====================================================================================================
Operating profit before
exceptional items
Adjustments to add
back/(deduct) non-cash
items and items
disclosed elsewhere on
the CFS: 7,724 11,247 20,513
=================================================================================================================== ================================================================================================== ==================== ====================================================================================================
Depreciation and
amortisation charges 5,525 5,363 10,924
Share-based reward 21 21 41
charges
(Gain)/loss on
revaluation of
investment
property - - (6,055)
Pension operating charge 462 838 3,357
less contributions
paid
(Profit)/loss on sale of (1) (4) (6)
property, plant
and equipment
Operating cash flows
before movement in
working capital
Working capital
adjustments: 13,731 17,465 28,774
=================================================================================================================== ================================================================================================== ==================== ====================================================================================================
Decrease/(increase) 2 467 (881)
in inventories
Increase in
receivables (5,370) (8,816) (2,263)
Increase in payables 3,127 1,267 904
Net movement in working
capital (2,241) (7,082) (2,240)
Interest paid (692) (709) (1,395)
Preference dividends (4) (4) (9)
paid
Income taxes paid (1,510) (1,371) (2,742)
Net cash flows from
operating activities 9,284 8,299 22,388
=================================================================================================================== ================================================================================================== ==================== ====================================================================================================
Cash flows from
investing activities
=================================================================================================================== ================================================================================================== ==================== ====================================================================================================
Purchase of property,
plant and equipment (6,041) (4,563) (8,513)
Investment in intangible - (232) (805)
assets
Deposit interest 10 26 112
received
Net proceeds from 1 4 6
disposal of fixed assets
Net cash flows used in
investing activities (6,030) (4,765) (9,200)
=================================================================================================================== ================================================================================================== ==================== ====================================================================================================
Cash flows from
financing activities
=================================================================================================================== ================================================================================================== ==================== ====================================================================================================
Equity dividends paid (3,125) (2,972) (5,178)
Dividends paid to (45) (45) (101)
non-controlling interest
Repayment of lease (103) (98) (297)
liabilities
Net cash flows used in
financing activities (3,273) (3,115) (5,576)
Net (decrease)/increase (19) 419 7,612
in cash and cash
equivalents
Cash and cash
equivalents at the
beginning
of the year 43,136 35,520 35,520
Effect of foreign (7) (57) 4
exchange rate changes
Cash and cash
equivalents at the end
of
the period 43,110 35,882 43,136
Of the GBP43.1m cash and cash equivalents at 31 March 2022,
GBP35.0m (30 September 2021: GBP35.0m) is on fixed term deposits
with an average of 45 days remaining (30 September 2021: 79
days).
1 Accounting policies
Basis of preparation
The interim accounts for the six months ended 31 March 2022 have
been prepared on the basis of the accounting policies set out in
the 30 September 2021 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
2022.
Jersey Electricity plc has considerable financial resources and,
as a consequence, 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.
Prior year adjustment
As disclosed in the 30 September 2021 annual report and in
accordance with IAS 8, GBP0.9m was written off and treated as a
prior year adjustment against the 2019 financial year. Accordingly,
the opening balances of retained earnings disclosed in the
Consolidated Statement of Changes in Equity align with the revised
opening balances shown in the 2021 annual report.
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
31 March 2022 31 March 2021 30 September 2021
External Internal Total External Internal Total External Internal Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Revenue
============================================================================================================ ==================================================================================================== ==================================================================================================== ================================================================================================= ================================================================================================= ================================================================================================= ================================================================================================== =================================================================================================== =================================================================================================== ==================================================================================================
Energy 50,782 49 50,831 51,969 51 52,020 89,780 100 89,880
Retail 9,504 21 9,525 10,725 40 10,765 3,399 645 4,044
Building Services 1,795 252 2,047 1,610 299 1,909 19,808 68 19,876
Property 1,159 320 1,479 1,133 322 1,455 2,304 645 2,949
Other* 1,755 387 2,142 1,661 425 2,086 3,317 945 4,262
64,995 1,029 66,024 67,098 1,137 68,235 118,608 2,403 121,011
Inter-segment (1,029) (1,137) (2,403)
elimination
============================================================================================================ ==================================================================================================== ==================================================================================================== ================================================================================================= ================================================================================================= ================================================================================================= ================================================================================================== =================================================================================================== =================================================================================================== ==================================================================================================
64,995 67,098 118,608
Operating profit
============================================================================================================ ==================================================================================================== ==================================================================================================== ================================================================================================= ================================================================================================= ================================================================================================= ================================================================================================== =================================================================================================== =================================================================================================== ==================================================================================================
Energy 5,943 9,154 10,693
Retail 661 1,012 217
Building Services 103 3 1,533
Property 717 783 1,393
Other* 300 295 622
Operating profit
before property
revaluation/sale 7,724 11,247 14,458
Gain on revaluation
of investment
properties - - 6,055
Operating profit 7,724 11,247 20,513
*Other segment includes Jersey Energy, Jendev (both divisions)
and Jersey Deep Freeze Limited, the Group's sole subsidiary.
Materially, all the Groups operations are conducted within the
Channel Islands. All transfers between divisions are on an arms-
length basis.
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 2021 annual report.
3 Taxation
Six Six months Year
months
ended ended ended
31 31 March 30
March September
2022 2021 2021
GBP000 GBP000 GBP000
Current
income
tax 1,431 2,233 3,020
Deferred 33 (71) (226)
income
tax
Total 1,464 2,162 2,794
income
tax
For the period ended 31 March 2022 and subsequent periods, the
Company is taxable at the rate applicable to utility companies in
Jersey of 20%. (2021: 20%).
4 Dividends paid and proposed
Six Six months Year
months
ended ended ended
31 31 March 30
March September
2022 2021 2021
Dividends per
share
======================================================================================================== ================================================================================================= =================== ====================================================================================================
Paid 10.20p 9.70p 16.90p
Proposed 7.60p 7.20p 10.20p
Distribution 3,125 2,972 5,178
to equity
holders and
by
subsidiaries
in the
period
The distribution to equity holders in respect of the final
dividend for 2021 of GBP3,125,066 (10.20p net of tax per share) was
paid on 24 March 2022.
The Directors have declared an interim dividend of 7.60p per
share, net of tax (2021: 7.20p) for the six months ended 31 March
2022 to shareholders on the register at the close of business on 3
June 2022. This dividend was approved by the Board on 18 May 2022
and has not been included as a liability at 31 March 2022.
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 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 2022.
Six Six months Year
months
ended ended ended
31 31 March 30
March September
2022 2021 2021
Fair value of currency hedges GBP000 GBP000 GBP000
Derivative assets
============================================================================================================== ================================================================================================== ==================== ====================================================================================================
Less than one year - - -
Greater than one
year
Derivative
liabilities 79 - 108
============================================================================================================== ================================================================================================== ==================== ====================================================================================================
Less than one year (677) (818) (1,256)
Greater than one (1,542) (2,282) (874)
year
Total net
assets/liabilities (2,140) (3,100) (2,022)
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 based on
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
course of ordinary business.
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END
IR PPUBGAUPPGUU
(END) Dow Jones Newswires
May 20, 2022 06:21 ET (10:21 GMT)
Jersey Electricity (LSE:JEL)
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Jersey Electricity (LSE:JEL)
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