TIDMJEL
RNS Number : 5107K
Jersey Electricity PLC
21 December 2022
JERSEY ELECTRICITY plc
Financial Results Summary
Year Ended 30 September 2022
At a meeting of the Board of Directors held on 20 December 2022,
the final accounts for the year ended 30 September 2022 were
approved and have been published on our website
(www.jec.co.uk).
The financial information set out in this summary does not
constitute the statutory accounts for the year ended 30 September
2022, or 2021, but is derived from those accounts. Statutory
accounts for 2021 have been delivered to the Jersey Registrar of
Companies, and those for 2022 will be delivered in early 2023. The
auditor reported on the accounts for both years and their reports
were unmodified.
A final dividend of 10.80p on the Ordinary and 'A' Ordinary
shares in respect of the year ended 30 September 2022 was
recommended (2021: 10.20p) . Together with the interim dividend of
7.60p (2021: 7.20p) the proposed total dividend declared for the
year was 18.40p on each share (2021: 17.40p).
The final dividend will be paid on 23 March 2023 to those
shareholders registered on 17 February 2023 (not 16 February as
earlier stated). A dividend on the 5% cumulative participating
preference shares of 1.5% (2021: 1.5%) payable on 3 July 2023 was
also recommended.
The Annual General Meeting will be held on 8 March 2022 at 2.00
pm at the Powerhouse, Queen's Road, St Helier, Jersey.
M.P. Magee
Finance Director
Direct telephone number: 01534 505201
Email: mmagee@jec.co.uk
20 December 2022
The Powerhouse
PO Box 45
Queens Road
St Helier
Jersey JE4 8NY
JERSEY ELECTRICITY plc
Financial Results Summary
Year ended 30 September 2022
The Chair, Phil Austin, comments:
The turmoil that beset international energy markets in late 2021
has intensified further due to the escalating conflict between
Russia and Ukraine, leading to a previously unthinkable global
energy crisis. This has presented major new challenges to energy
companies post the pandemic, sending wholesale prices soaring and
threatening supply security throughout Europe. Jersey Electricity
is not immune to these challenges, but we have shown resilience,
returning a strong Group performance and protecting our customers
from the huge retail price rises seen elsewhere, without Government
intervention.
PERFORMANCE
Group revenue for the year at GBP117.4m was 1% lower than last
year and profit before tax was GBP10.6m against GBP19.1m in 2021.
If the non-cash upside from the revaluation of investment
properties is excluded in both years, the underlying year-on-year
profit before tax is GBP9.6m against GBP13.0m in 2021, a fall of
26%. This year's financial performance reflects the effects of
COVID-19 post the pandemic. Coupled with a mild winter, a return to
more normal patterns of work and behaviour has reduced demand, with
both unit volume sales in Energy, and Retail revenues, down on last
year as electricity consumption and Powerhouse product sales
returned to historical levels. The Board has recommended a final
dividend for the year of 10.80p, a 6% rise on the previous year,
payable on 23 March 2023. Our target return on assets continues to
be 6%-7% over the long term and was 4.2% this year, but 6.2% on a
rolling five-year basis.
ENERGY MARKETS
Elsewhere, the scale of the energy crisis has prompted
Governments across Europe to intervene, each in their own way, to
mitigate the impact of the rising prices on their citizens. In the
UK, such Government intervention averted a proposed 80%
year-on-year increase in energy prices in October when Ofgem was
due to raise the regulated price cap to GBP3,549. The new Energy
Price Guarantee now limits this cap to GBP2,500 a year until April
2023 when the cap will be increased to GBP3,000, prompting a
further 20% price rise.
Although our hedging and risk mitigation policies have so far
sheltered Jersey customers from such material price increases, we
are not immune to these market forces. We therefore implemented a
4% tariff rise from 1 January 2022 and a further 5% increase from 1
July 2022, at which time we announced a further 5% tariff increase
effective from 1 January 2023 to give our customers some degree of
certainty for the coming winter period.
CLIMATE CHANGE
Despite the current challenges presented by the global energy
crisis, climate change remains the biggest challenge we all face.
We remain optimistic about the future, however, and the
opportunities a net-zero Jersey will bring. Our low-carbon,
Smart-enabled grid provides a strong platform to support the
Government of Jersey's net-zero 2050 carbon ambitions. In addition,
increased digitalisation of our systems is enabling us to map
scenarios and calculate the investment needed in the network.
Publication of the Government's Carbon Neutral Roadmap in May gives
us confidence to make these investments and ensure we are
well-placed to meet future challenges.
In April 2022, the UK became the first G20 country to introduce
legislation making it mandatory for large businesses to disclose
climate-related financial information in line with the Taskforce on
Climate-related Financial Disclosures (TCFD) recommendations.
Jersey Electricity supports these recommendations and is working
towards full compliance.
ENERGY SECURITY
Although last year's French fishing dispute, which raised
questions about energy sovereignty and the security of imported
power supplies, has been resolved, the global energy crisis has
kept us focused on the issue. To mitigate the supply security
threats the energy crisis is causing in Europe, from where we
imported 95% of our power this year, we have modelled various
scenarios and evaluated our mitigations for technical failures to
the submarine cables and other disruptions to supply. We have also
established contingency plans to implement increased local
emergency generation if required.
To increase energy sovereignty longer term, we are reviewing our
energy sourcing strategies, with more detailed investigations into
the viability of offshore wind generation which has fallen
significantly in cost.
IN CONCLUSION
I would like to thank our entire 'JE family' for their hard
work, commitment and dedication this past year which has presented
renewed challenges post COVID-19. I am immensely proud of what we
have achieved together and the progress we have made on the course
we have set. I also thank my fellow Board members for their hard
work and commitment, and our shareholders for their support. I
remain confident the Company and its people can take advantage of
the opportunities the future holds and meet the challenges it will
demand of us all.
Financial Highlights 2022 2021
Revenue GBP117.4m GBP118.6m
Profit before tax GBP10.6m GBP19.1m
Earnings per share 27.17p 52.73p
Dividend paid per share 17.80p 16.90p
Final proposed dividend per share 10.80p 10.20p
Net cash GBP17.4m GBP13.1m
----------------------------------- ------------ -----------
Group revenue for the year to 30 September 2022 at GBP117.4m was
1% lower than in the previous financial year. Energy revenues at
GBP89.7m were marginally lower than the GBP89.8m achieved in 2021.
Lower unit sales of electricity were linked to a milder winter and
the positive uplift from increased home working, due to COVID-19,
in the previous year. This was offset by a 4% tariff rise from
January 2022 and a 5% rise from 1 July 2022. Revenue in the
Powerhouse retail business decreased 6% from GBP19.8m in 2021 to
GBP18.7m. Revenue in the Property business at GBP2.3m was at the
same level as last year. Revenue from JEBS, our building services
business, remained at the same level as 2021 at GBP3.4m. Revenue in
our other businesses at GBP3.3m, was in line with the prior
year.
Cost of sales at GBP77.2m was GBP3.1m higher than last year with
an increase in wholesale electricity prices offset by the lower
revenue level in our Powerhouse Retail business.
Operating expenses at GBP29.3m were GBP0.7m lower than last
year. The fall is largely due to GBP1.8m incurred in the previous
financial year for a non-cash ex-gratia award for pensions in
service, in our defined benefits pension offset by the increased
spend in systems and people, associated with the de-carbonisation
vision for the Island.
Profit before tax for the year to 30 September 2022 was GBP10.6m
against GBP19.1m in 2021. However, if the non-cash upside from
revaluation of investment properties is excluded in both years the
underlying year on-year profit before tax was GBP9.6m in 2022
against GBP13.0m in 2021, a decrease of 26%.
Profit in our Energy business, at GBP7.5m, was below the
GBP10.7m achieved in 2021, largely due to lower unit sales volumes.
Our target return on assets employed continues to be in the 6%-7%
range over the longer-term and was 4.2% in 2022 against 5.9% in
2021, but 6.2% on a rolling 5-year basis. Unit sales volumes
decreased by 4% from 639m to 613m kilowatt hours, due to milder
than normal weather, combined with the previous year having
benefited from home-working linked to the pandemic. In the
financial year we imported 95.3% of our requirements from France
(2021: 95.2%) and generated 0.3% of our electricity on-Island from
our solar and diesel plant (2021: 0.4%). The remaining 4.4% (2021:
4.4%) of our electricity was purchased from the local Energy from
Waste plant. A customer tariff rise of 4% was instigated on 1
January 2022 and a subsequent 5% increase took place in July 2022
and notice was given that a further 5% rise would take place on 1
January 2023.
The GBP1.4m profit in our Property division, excluding the
impact of investment property revaluation, was at the same level as
last year. Our investment property portfolio moved up in value by
GBP1.0m to GBP28.8m, based on advice from our external consultants,
who review the position annually. This increase compared to GBP6.1m
in the 2020/21 financial year was due primarily to a restructuring
of the lease arrangement for our largest tenant, whereby the
existing break clause was moved to a later date, post commercial
discussions, which materially moved the valuation upwards. The
increase in this financial year was due to continued buoyant market
conditions in the residential sector.
Our Powerhouse retail business saw profits fall 23% from GBP1.5m
to GBP1.2m. However, this is in the context that in the previous
financial year profits rose by 30% by when COVID-19 continued to
influence the behaviours, and spending patterns of local customers,
for example, due to less travel taking place over that year.
JEBS, our building services unit, produced a profit of GBP0.3m,
being marginally ahead of 2021.
Our other business units (Jersey Energy, Jendev, Jersey Deep
Freeze and fibre optic lease rentals) produced profits of GBP0.5m
being GBP0.1m lower than last year.
The net interest cost in 2022 was GBP1.3m being GBP0.1m lower
than 2021 due to a higher level of interest received on deposits.
The taxation charge at GBP2.1m was lower than the previous year,
due to lower profits.
Group basic and diluted earnings per share , at 27.17p, compared
to 52.73p in 2021 due to decreased profitability.
Dividends paid in the year, net of tax, rose by 5%, from 16.90p
in 2021 to 17.80p in 2022. The proposed final dividend for this
year is 10.80p, a 6% rise on the previous year. Dividend cover, at
1.6 times, was lower than the comparable 3.1 times in 2021 due
mainly to the large non-cash increase in the revaluation of
investment properties in 2021.
Net cash flows from operating activities at GBP21.2m was GBP1.2m
lower than in 2021. Investing activities, at GBP11.1m was GBP1.9m
higher than GBP9.2m last year. Dividends paid were GBP5.5m compared
to GBP5.3m in 2021. The resultant position was that net cash at the
year-end was GBP17.4m, being GBP30.0m of borrowings offset by
GBP47.4m of cash and cash equivalents, which was GBP4.3m more than
last year.
Consolidated Income Statement 2022 2021
For the year ended 30 September 2022 GBP000 GBP000
Revenue 117,421 118,608
Cost of sales (77,242) (74,159)
--------- ---------
Gross Profit 40,179 44,449
Revaluation of investment properties 1,020 6,055
Operating expenses (29,293) (29,991)
--------- ---------
Group operating profit 11,906 20,513
Finance income 218 112
Finance costs (1,523) (1,540)
Profit from operations before taxation 10,601 19,085
Taxation (2,135) (2,794)
--------- ---------
Profit from operations after taxation 8,466 16,291
========= =========
Attributable to:
Owners of the Company 8,326 16,155
Non-controlling interests 140 136
--------- ---------
8,466 16,291
========= =========
Earnings per share
- basic and diluted 27.17p 52.73p
Consolidated Statement of Comprehensive 2022 2021
Income
GBP000 GBP000
Profit for the year 8,466 16,291
Items that will not be reclassified subsequently
to profit or loss:
Actuarial gain on defined benefit scheme 8,976 14,803
Income tax relating to items not reclassified (1,795) (2,961)
-------- --------
7,181 11,842
Items that may be reclassified subsequently
to profit or loss:
Fair value gain/(loss) on cash flow hedges 4,815 (3,116)
Income tax relating to items that may be
reclassified (963) 623
-------- --------
3,852 (2,493)
Total comprehensive income for the year 19,499 25,640
Attributable to:
Owners of the Company 19,359 25,504
Non-controlling interests 140 136
-------- --------
19,499 25,640
Consolidated Balance Sheet as at 30 September 2022
2022 2021
GBP 000 GBP 000
NON-CURRENT ASSETS
Intangible assets 967 933
Property,plant and equipment 216,235 216,550
Right of use assets 3,280 3,113
Investment properties 28,830 27,810
Trade and other receivables 300 308
Retirement benefit asset 26,434 18,761
Derivative financial instruments 2,640 108
Other investments 5 5
------------------ -----------------
Total non-current assets 278,691 267,588
--------------------------------------- ------------------ -----------------
CURRENT ASSETS
-------------------------------------- ------------------ -----------------
Inventories 7,173 6,909
Trade and other receivables 19,934 18,000
Derivative financial instruments 483 -
Cash and cash equivalents 47,397 43,136
Total current assets 74,987 68,045
------------------ -----------------
Total assets 353,678 335,633
--------------------------------------- ------------------ -----------------
LIABILITIES
-------------------------------------- ------------------ -----------------
Trade and other payables 21,043 18,373
Current tax liabilites 2,088 3,020
Lease liabilities 69 72
Derivative financial instruments 330 1,256
Total current liabilities 23,530 22,721
------------------ -----------------
NET CURRENT ASSETS 51,457 45,324
---------------------------------------
NON-CURRENT LIABILITIES
-------------------------------------- ------------------ -----------------
Trade and other payables 25,162 24,006
Lease liabilities 3,251 3,035
Derivative financial instruments - 874
Financial liabilities - preference
shares 235 235
Borrowings 30,000 30,000
Deferred tax liabilities 32,126 29,321
Total non-current liabilities 90,774 87,471
------------------ -----------------
Total liabilities 114,304 110,192
------------------ -----------------
Net assets 239,374 225,441
--------------------------------------- ------------------ -----------------
EQUITY
-------------------------------------- ------------------ -----------------
Share capital 1,532 1,532
Revaluation reserve 5,270 5,270
ESOP reserve (38) (79)
Other reserves 2,234 (1,618)
Retained earnings 230,232 220,178
Equity attributable to owners of the
company 239,230 225,283
Non-controlling interests 144 158
------------------ -----------------
Total equity 239,374 205,039
--------------------------------------- ------------------ -----------------
Consolidated Statement of Changes in Equity for the year ended
30 September 2022
Share Revaluation ESOP *Other Retained Total
capital reserve reserve reserves earnings
GBP GBP GBP GBP
000 GBP 000 000 000 000 GBP 000
At 1 October 2021 1,532 5,270 (79) (1,618) 220,178 225,283
Total recognised income
and expense for the year - - - - 8,326 8,326
Amortisation of employee
share option scheme - - 41 - - 41
Movement on hedges (net
of tax) - - - 3,852 - 3,852
Actuarial gain on defined
benefit scheme (net of
tax) - - - - 7,181 7,181
Equity dividends - - - - (5,453) (5,453)
At 30 September 2022 1,532 5,270 (38) 2,234 230,232 239,230
======== ================== =========== ========== ============= ========
At 1 October 2020 1,532 5,270 (120) 875 197,359 204,916
Total recognised income
and expense for the year - - - - 16,155 16,155
Amortisation of employee
share option scheme - - 41 - - 41
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 - - - - (5,178) (5,178)
At 30 September 2021 1,532 5,270 (79) (1,618) 220,178 225,283
======== ================== =========== ========== ============= ========
Consolidated Statement of Cash Flows 2022 2021
for the year ended 30 September 2022 GBP000 GBP000
CASH FLOWS FROM OPERATING ACTIVITIES
Operating profit 11,906 20,513
Depreciation and amortisation charges 11,094 10,924
Share based reward charges 41 41
Gain on revaluation of investment property (1,020) (6,055)
Pension operating charge less contributions
paid 1,303 3,357
Deemed interest income from hire purchase 50 -
arrangements
Profit on sale of property, plant and
equipment (7) (6)
--------- --------
Operating cash flows before movement in
working capital 23,367 28,774
Working capital adjustments:
Increase in inventories (257) (881)
Increase in trade and other receivables (1,926) (2,263)
Increase in trade and other payables 4,444 904
--------- --------
Net movement in working capital 2,261 (2,240)
Interest paid (1,380) (1,395)
Preference dividends paid (9) (9)
Income taxes paid (3,020) (2,742)
--------- --------
Net cash flows from operating activities 21,219 22,388
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment (11,001) (8,513)
Investment in intangible assets (319) (805)
Deposit interest received 168 112
Net proceeds from disposal of fixed assets 7 6
--------- --------
Net cash flows used in investing activities (11,145) (9,200)
CASH FLOWS FROM FINANCING ACTIVITIES
Equity dividends paid (5,453) (5,178)
Dividends paid to non-controlling interest (154) (101)
Repayment of lease liabilities (206) (297)
--------- --------
Net cash flows used in financing activities (5,813) (5,576)
Net increase in cash and cash equivalents 4,261 7,612
Cash and cash equivalents at beginning
of year 43,136 35,520
Effect of foreign exchange rates - 4
Cash and cash equivalents at end of year 47,397 43,136
Notes to the accounts
Year ended 30 September 2022
1. Basis of Preparation
The consolidated financial statements of Jersey Electricity plc,
for the year ended 30 September 2022, 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). This is consistent with the accounting policies in the 30
September 2021 annual report and accounts and the 31 March 2022
interim report.
While the financial information included in this summary
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. Full
financial statements that comply with IFRS have additionally been
published on our website; www.jec.co.uk.
Segmental information
Revenue and profit information are analysed between the business segments
as follows:
2022 2022 2022 2021 2021 2021
External Internal Total External Internal Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Revenue
Energy 89,683 100 89,783 89,780 100 89,880
Building Services 3,365 780 4,145 3,399 645 4,044
Retail 18,695 41 18,736 19,808 68 19,876
Property 2,345 639 2,984 2,304 645 2,949
Other* 3,333 625 3,958 3,317 945 4,262
--------- --------- -------- --------- --------- --------
117,421 2,185 119,606 118,608 2,403 121,011
Intergroup elimination (2,185) (2,403)
-------- --------
Revenue 117,421 118,608
-------- --------
Operating profit
Energy 7,502 10,693
Building Services 266 217
Retail 1,174 1,533
Property 1,436 1,393
Other* 508 622
-------- --------
10,886 14,458
Revaluation of investment properties 1,020 6,055
Operating profit 11,906 20,513
-------- --------
*Other segment includes the divisions of Jersey Energy and
Jendev as well as Jersey Deep Freeze Limited, the Group's sole
subsidiary.
Materially, all the Group's operations are conducted within the
Channel Islands. All transfers between divisions are on an
arms-length basis.
The revaluation of investment properties is shown separately
from Property operating profit as this income is reflected solely
by a movement in reserves.
, 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.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
FR UAUORUNUUUAA
(END) Dow Jones Newswires
December 21, 2022 08:33 ET (13:33 GMT)
Jersey Electricity (LSE:JEL)
Graphique Historique de l'Action
De Déc 2024 à Jan 2025
Jersey Electricity (LSE:JEL)
Graphique Historique de l'Action
De Jan 2024 à Jan 2025
