TIDMJEL
RNS Number : 7703Z
Jersey Electricity PLC
17 May 2023
Jersey Electricity plc
Interim Report
for the six months ended 31
March 2023
The Board approved at a meeting on 17 May 2023 the Interim
Management Report for the six months ended 31 March 2023 and
declared an interim dividend of 8.00p compared to 7.60p for 2022.
The dividend will be paid on 20 June 2023 to those shareholders
registered in the records of the Company at the close of business
on 2 June 2023.
The Interim Management Report is attached and will be available
to the public on the Company's website www.jec.co.uk/investors
.
The Interim Management Report for 2023 has not been audited, or
reviewed, by our external auditors, nor have the results for the
equivalent period in 2022. The results for the year ended 30
September 2022 were extracted from the statutory accounts. The
auditor has reported on those accounts and their report was
unmodified.
M.P. Magee
A. Welsby
Finance Director
Company Secretary
Direct telephone number: 01534 505201
Direct telephone number: 01534 505250
Email: mmagee@jec.co.uk
Email: awelsby@jec.co.uk
17 May 2023
The Powerhouse,
PO Box 45,
Queens Road,
St Helier,
Jersey JE4 8NY
Directors' Statement
Financial Summary
6 months 6 months
2023 2022
======================================================================================================= ===================================================================================================== ===================================================================================================
Electricity
Sales in
kWh 355.7m 359.4m
======================================================================================================= ===================================================================================================== ===================================================================================================
Revenue GBP69.4m GBP65.0m
======================================================================================================= ===================================================================================================== ===================================================================================================
Profit *GBP10.3m GBP7.0m
before tax
======================================================================================================= ===================================================================================================== ===================================================================================================
Earnings per 26.23p 17.78p
share
======================================================================================================= ===================================================================================================== ===================================================================================================
Final 10.80p 10.20p
dividend
paid per
ordinary
share
======================================================================================================= ===================================================================================================== ===================================================================================================
Proposed 8.00p 7.60p
interim
dividend
per
ordinary
share
======================================================================================================= ===================================================================================================== ===================================================================================================
* The underlying profit for 2023 was GBP8.1m when the rebate
from RTE and ex-gratia award for pensions in service are excluded,
as described in the narrative below.
Energy - turmoil in markets
In our 2022 Annual Report we highlighted that the turmoil that
beset energy markets had intensified further due to the conflict
between Russia and Ukraine, and that Jersey Electricity was not
immune to those challenges. However, despite those challenges we
have shown resilience, and largely protected our customers from the
material rise in retail prices seen elsewhere, without the need for
any Government intervention/subsidy. We continue to monitor
developments on both volatility, and security of supply, in energy
markets. Europe experienced relatively benign weather over the
winter, relatively good production from the French nuclear fleet,
and much lower gas usage in the EU industrial sector which, when
combined, have resulted in healthier than expected gas storage
levels. There are however sensitivities, such as the lack of snow
and rain in the last 6 months impacting predictions for the
availability of hydro power during the remainder of this year.
This, combined with the uncertain timing of a resolution to the
Ukraine conflict, mean volatility in European energy markets looks
set to continue. We have strong relationships with our French
partners, EDF (as supplier) and RTE (as network operator) that span
nearly 40 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, price capped for the calendar years 2023
and 2024. 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 of our cost base, and to aid tariff planning.
In January 2023 we implemented a 5% rise in customer tariffs and do
not anticipate further rises during the remainder of 2023. However,
we are planning forward, and considering options for 2024 and
beyond, as we come out of our current advantageous hedged position
and are faced with higher market prices.
Even with the rises implemented to date, the tariffs payable by
our customers continue to benchmark well against other
jurisdictions. Domestic customers in Jersey currently pay around
half what equivalent customers pay in the UK for their electricity.
Other UK Islands are implementing material rises in customer
tariffs with the Isle of Man having instigated a 25% increase on 1
April 2023, and a further 25% rise from 1 July 2023. Guernsey
Electricity has also applied to raise tariffs by 14.25% from 1 July
2023, subject to regulatory approval.
Overall trading performance in the 6 months to 31 March
Group revenue, at GBP69.4m, was 6.7% higher for the first half
of 2023 compared with GBP65.0m for the same period last year mainly
due to a rise in both Energy and Retail revenue. Profit before tax
was GBP10.3m but included an unexpected receipt of GBP3.6m which
has been classified as 'Rebate of past energy costs - non-recurring
item' for disclosure purposes within gross profit in these
financial statements. This was a rebate from the French network
operator (RTE) in respect of payments made in 2022 which they were
instructed to return to us in early 2023 as part of a regulatory
decision due to volatility in the energy marketplace during 2022.
In addition, a non-cash cost of GBP1.4m for an ex-gratia award for
pensions in service was granted. If these two items were excluded
the underlying profit before tax was GBP8.1m compared to GBP7.0m in
2022. Cost of sales, excluding the rebate of past energy costs, at
GBP46.5m was GBP3.6m higher than last year with the rise in
wholesale energy costs, and increased levels of importation from
the local Energy from Waste plant, which was out of service for
much of the comparative period last year, being the main factors.
Operating expenses at GBP16.1m were GBP1.7m higher than last year
due mainly to higher non-cash pension costs and general
inflationary pressures. The taxation charge in the period of
GBP2.2m was GBP0.7m higher than last year due mainly to the
unexpected rebate from RTE. Earnings per share, at 26.23p, were
above the 17.78p in 2022 due to higher profits. Net cash on the
balance sheet, which comprises borrowings less cash and cash
equivalents, at 31 March 2023, was GBP16.8m compared with GBP13.1m
at this time last year (and GBP17.4m of net cash at our last year
end on 30 September 2022).
Energy performance
Unit sales of electricity fell marginally by 1% from 359.4m to
355.7m kWh, compared with the same period last year. Revenue in our
Energy business at GBP54.8m was GBP4.0m higher than in 2022 with
the year-on-year increase being largely attributable to a 5% tariff
rise in both July 2022 and January 2023. Operating profit,
excluding the GBP3.6m RTE rebate, and the non-cash cost of GBP1.4m
for an ex-gratia award for pensions in service, at GBP6.5m was
GBP0.6m higher than the corresponding period last year due to the
increased revenue offset by increased wholesale import prices,
higher volumes of electricity received from the local Energy from
Waste plant, recruitment of new employees, and other inflationary
pressures. We imported 96% of our on-island requirement from France
and 4% from the Energy from Waste plant, owned by the Government of
Jersey. Only 0.4% (just over 1m units) of electricity was generated
in Jersey using our traditional oil-fired plant (which is run
during testing regimes) and our solar generation. These importation
and generation levels were materially consistent with the same
period last year, albeit the imports from the Energy from Waste
plant were back to a more historical levels, as last year
maintenance work was performed for an extended time in that
period.
Non-Energy performance
Year-on-year revenue in our Powerhouse retail business,
increased by 5% to GBP10.0m (2022: GBP9.5m) but profits were
maintained at around the same level at GBP0.7m. Profit from our
Property portfolio at GBP0.8m was GBP0.1m higher than in 2022 due
to a combination of higher rental and slightly lower maintenance
costs. JEBS, our building services unit, saw external revenue fall
marginally to GBP1.7m, with profitability at a breakeven level. Our
remaining business units produced profits of GBP0.2m compared to
GBP0.3m in 2022.
Liquidity and cashflow
A net cash outflow of GBP0.6m was experienced in the period
(2022: GBP0.0m) post the continued investment in infrastructure of
GBP4.5m (2022: GBP6.0m). The net cash figure of GBP13.1m at 31
March 2022 moved to a net cash figure of GBP16.8m at 31 March 2023
(GBP17.4m at 30 September 2022). Net cash consists of cash and cash
equivalents of GBP46.8m offset by GBP30.0m of long-term debt.
Pension scheme
The defined benefit pension scheme surplus (without deduction of
deferred tax) on our balance sheet at 31 March 2023 stood at
GBP30.1m, compared with a surplus of GBP26.4m at 30 September 2022
(and a surplus of GBP22.0m at 31 March 2022). Since the last
financial year end, scheme liabilities have increased by
approximately GBP5m to GBP91m. This rise was primarily due to a
decrease of the discount rate assumptions from 5.2% at the last
financial year end to 4.7% at 31 March 2023 associated with a fall
in UK AA corporate bond yields in the interim. Assets in the Scheme
rose by around GBP8m to GBP121m. Unlike most UK schemes, the Jersey
Electricity pension scheme is not funded to pay mandatory annual
rises on retirement. The Pension Scheme Trustees asked the Company
to consider the granting of a 3% rise to pensions in service in
light of the level of the surplus and the impact of current high
levels of inflation on the pensioner community. This was agreed by
the Board in March. The capital cost of this award was GBP1.4m and
the cash will be paid by the Scheme, rather than the Company, but
generated a GBP1.4m charge against our Income Statement. This is
reflected in the half-year surplus figure of GBP30.1m. The defined
benefit scheme has been closed to new members since 2013 and the
next triennial valuation of the scheme, as at 31 December 2024,
will be carried out in 2025.
Dividends
Your Board proposes to pay an interim net dividend for 2023 of
8.0p (2022: 7.60p). As stated in previous years, we aim to deliver
sustained real growth each year over the medium-term. The final
dividend for 2022 of 10.80p, 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 December 2022, have not materially altered
in the interim period. As highlighted earlier in this report, there
is continued volatility in energy markets. This continues to be
closely monitored by the Board as it 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
(d) 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.
Investor timetable for 2023
2 June Record date for
interim
ordinary dividend
20 June Interim ordinary dividend
for year ending
30 September 2023
3 July Payment date for
preference
share dividends
20 December Announcement of
full
year results
C.J. AMBLER - Chief Executive M.P. MAGEE - Finance Director
17 May 2023
Condensed Consolidated Income Statement (Unaudited)
Six Six months Year
months
ended ended ended
31 March 31 March 30
September
Note 2023 2022 2022
GBP000 GBP000 GBP000
Revenue 2 69,378 64,995 117,421
Cost of sales (46,459) (42,859) (77,242)
Rebate of past 3,593 - -
energy costs -
non-recurring
item
==================================================================================================== ==================================================================================================== ====================================================================================================
Gross profit 26,512 22,136 40,179
==================================================================================================== ==================================================================================================== ====================================================================================================
Revaluation of investment properties - - 1,020
Operating expenses (16,146) (14,412) (29,293)
==================================================================================================== =================================================================================================== ====================================================================================================
Group operating 2 10,366 7,724 11,906
profit
==================================================================================================== ==================================================================================================== ====================================================================================================
Finance income 706 10 218
Finance costs (767) (764) (1,523)
==================================================================================================== =================================================================================================== ====================================================================================================
Profit from operations before 10,305 6,970 10,601
taxation
==================================================================================================== =================================================================================================== ====================================================================================================
Taxation 3 (2,208) (1,464) (2,135)
==================================================================================================== ==================================================================================================== ====================================================================================================
Profit from operations after 8,097 5,506 8,466
taxation
==================================================================================================== =================================================================================================== ====================================================================================================
Attributable to:
Owners of the Company 8,037 5,448 8,326
Non-controlling interests 60 58 140
==================================================================================================== =================================================================================================== ====================================================================================================
Profit for the period/year 8,097 5,506 8,466
attributable
to the equity holders of the
parent
Company
Earnings per share
==================================================================================================== =================================================================================================== ====================================================================================================
- basic and diluted 26.23p 17.78p 27.17p
Condensed Consolidated Statement of Comprehensive Income
(Unaudited)
Six Six months Year
months
ended ended ended
31 March 31 March 30
September
2023 2022 2022
GBP000 GBP000 GBP000
Profit for the
period/year
Items that will
not be
reclassified
subsequently
to profit or
loss: 8,097 5,506 8,466
Actuarial gain 4,307 3,805 8,976
on defined
benefit scheme
Income tax (861) (761) (1,795)
relating to
items not
reclassified
=================================================================================================== ================================================================================================= ====================================================================================================
3,446 3,044 7,181
Items that may
be
reclassified
subsequently
to profit or
loss:
Fair value (2,013) (118) 4,815
(loss)/gain on
cash flow
hedges
Income tax 403 24 (963)
relating to
items that may
be reclassified
=================================================================================================== ================================================================================================= ====================================================================================================
(1,610) (94) 3,852
=================================================================================================== ============================================================================================================================================================================================================= ====================================================================================================
Total 9,933 8,456 19,499
comprehensive
income for the
period/year
=================================================================================================== ================================================================================================= ====================================================================================================
Attributable to:
Owners of the 9,873 8,398 19,359
Company
Non-controlling 60 58 140
interests
=================================================================================================== ================================================================================================= ====================================================================================================
9,933 8,456 19,499
=================================================================================================== ============================================================================================================================================================================================================= ====================================================================================================
Condensed Consolidated Balance Sheet (Unaudited)
As at As at As at
31 March 31 March 30
September
Note 2023 2022 2022
GBP000 GBP000 GBP000
Non-current
assets
Intangible assets 654 790 967
Property, plant and equipment 215,329 216,138 216,235
Right of use assets 3,259 3,301 3,280
Investment properties 28,830 27,810 28,830
Trade and other receivables 300 303 300
Retirement benefit surplus 30,130 21,991 26,434
Derivative 6 916 79 2,640
financial
instruments
Other investments 5 5 5
=================================================================================================== ================================================================================================== ====================================================================================================
Total non-current assets 279,423 270,417 278,691
Current assets
Inventories 9,454 6,907 7,173
Trade and other receivables 28,035 23,375 19,934
Derivative financial 148 - 483
instruments
Cash and cash equivalents 46,795 43,110 47,397
=================================================================================================== ================================================================================================== ====================================================================================================
Total current assets 84,432 73,392 74,987
=================================================================================================== ================================================================================================== ====================================================================================================
Total assets 363,855 343,809 353,678
Current liabilities
Trade and other payables 22,799 19,558 21,043
Lease liabilities 81 73 69
Derivative 6 110 677 330
financial
instruments
Current tax liabilities 3,328 2,613 2,088
=================================================================================================== ================================================================================================== ====================================================================================================
Total current liabilities 26,318 22,921 23,530
=================================================================================================== ================================================================================================== ====================================================================================================
Net current assets 58,114 50,471 51,457
Non-current liabilities
Trade and other payables 25,390 24,762 25,162
Lease liabilities 3,212 3,247 3,251
Retirement benefit deficit - 575 -
Derivative 6 174 1,542 -
financial
instruments
Financial liabilities - 235 235 235
preference
shares
Borrowings 30,000 30,000 30,000
Deferred tax liabilities 32,508 30,353 32,126
=================================================================================================== ================================================================================================== ====================================================================================================
Total non-current liabilities 91,519 90,139 90,744
=================================================================================================== ================================================================================================== ====================================================================================================
Total liabilities 117,837 113,060 114,304
=================================================================================================== ================================================================================================== ====================================================================================================
Net assets 246,018 230,749 239,374
Equity
Share capital 1,532 1,532 1,532
Revaluation reserve 5,270 5,270 5,270
ESOP reserve (18) (58) (38)
Other reserves 624 (1,712) 2,234
Retained earnings 238,406 225,545 230,232
=================================================================================================== ================================================================================================== ====================================================================================================
Equity attributable to the 245,814 230,577 239,230
owners
of the Company
Minority interest 204 172 144
=================================================================================================== ================================================================================================== ====================================================================================================
Total equity 246,018 230,749 239,374
=================================================================================================== ================================================================================================== ====================================================================================================
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
2022 1,532 5,270 (38) 2,234 230,232 239,230
Total - - - - 8,037 8,037
recognised
income and
expense for
the period
Amortisation - - 20 - - 20
of employee
share scheme
Movement on - - - (1,610) - (1,610)
hedges (net
of
tax)
Actuarial - - - - 3,446 3,446
gain on
defined
benefit
scheme (net
of tax)
Equity
dividends - - - - (3,309) (3,309)
As at 31 1,532 5,270 (18) 624 238,406 245,814
March 2023
At 1 October 1,532 5,270 (79) (1,618) 220,178 225,283
2021
Total
recognised
income and
expense for
the period - - - - 5,448 5,448
Funding of
employee
share
option scheme - - 21 - - 21
Movement on
hedges (net
of
tax) - - - (94) - (94)
Actuarial gain
on defined
benefit
scheme (net
of tax) - - - - 3,044 3,044
Equity
dividends - - - - (3,125) (3,125)
As at 31 March
2022 1,532 5,270 (58) (1,712) 225,545 230,577
At 1 October 1,532 5,270 (79) (1,618) 220,178 225,283
2021
Total
recognised
income and
expense for
the period - - - - 8,326 8,326
Amortisation
of employee
share 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
*'Other reserves' represents the foreign currency hedging
reserve.
Condensed Consolidated Cash Flow Statement (Unaudited)
Six Six months Year
months
ended ended ended
31 March 31 March 30
September
2023 2022 2022
GBP000 GBP000 GBP000
Cash flows from
operating activities
Operating profit
Adjustments to add
back/(deduct)
non-cash
items and items
disclosed elsewhere
on
the CFS: 10,366 7,724 11,906
Depreciation and 5,741 5,525 11,904
amortisation charges
Share-based reward 20 21 41
charges
Gain on revaluation
of investment
property - - (1,020)
Pension operating 612 462 1,303
charge less
contributions
paid
Deemed interest on
hire purchase
arrangements - - 50
(Profit)/loss on sale (1) (1) (7)
of property, plant
and equipment
Operating cash flows 16,738 13,731 23,367
before movement in
working capital
Working capital
adjustments:
=================================================================================================== =================================================================================================== ====================================================================================================
(Increase)/decrease (2,281) 2 (257)
in inventories
Increase in (8,101) (5,370) (1,926)
receivables
Increase in payables 2,136 3,127 444
Net movement in (8,246) (2,241) 2,261
working capital
=================================================================================================== =================================================================================================== ====================================================================================================
Interest paid (763) (760) (1,514)
Preference dividends (4) (4) (9)
paid
Income taxes paid (1,045) (1,510) (3,020)
=================================================================================================== =================================================================================================== ====================================================================================================
Net cash flows from 6,680 9,216 21,085
operating activities
Cash flows from investing
activities
Purchase of property, (4,541) (6,041) (11,001)
plant and equipment
Investment in (68) - (319)
intangible assets
Deposit interest 706 10 168
received
Net proceeds from 1 1 7
disposal of fixed
assets
=================================================================================================== =================================================================================================== ====================================================================================================
Net cash flows used (3,902) (6,030) (11,145)
in investing
activities
Cash flows from financing
activities
Equity dividends paid (3,309) (3,125) (5,453)
Dividends paid to - (45) (154)
non-controlling
interest
Repayment of lease (72) (35) (72)
liabilities
=================================================================================================== =================================================================================================== ====================================================================================================
Net cash flows used (3,381) (3,205) (5,679)
in financing
activities
Net (603) (19) 4,261
(decrease)/increase
in cash and cash
equivalents
Cash and cash 47,397 43,136 43,136
equivalents at the
beginning
of the year
Effect of foreign 1 (7) -
exchange rate
changes
=================================================================================================== =================================================================================================== ====================================================================================================
Cash and cash 46,795 43,110 47,397
equivalents at the
end of
the period
Of the GBP46.8m cash and cash equivalents at 31 March 2023,
GBP37.0m (30 September 2022: GBP35.0m) is on fixed term deposits
with an average of 74 days remaining (30 September 2022: 45
days)
A presentational amendment has been made to "interest paid" in
operating activities and "Repayment of lease liabilities" in
financing activities. For the year ended 30 September 2022, this
has increased interest paid by GBP134,000 and made the same
decrease to repayment of lease activities. For the six months ended
31 March 2022, this has increased interest paid by GBP68,000 and
made the same decrease to repayment of lease activities.
1 Accounting policies
Basis of preparation
The interim accounts for the six months ended 31 March 2023 have
been prepared on the basis of the accounting policies set out in
the 30 September 2022 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
2023.
Jersey Electricity plc has considerable financial resources and,
consequently, 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.
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 2023 31 March 2022 30 September 2022
External Internal Total External Internal Total External Internal Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Revenue
Energy 54,833 46 54,879 50,782 49 50,831 89,683 100 89,783
Retail 9,955 35 9,990 9,504 21 9,525 3,365 780 4,145
Building Services 1,684 343 2,027 1,795 252 2,047 18,695 41 18,736
Property 1,226 320 1,546 1,159 320 1,479 2,345 639 2,984
Other* 1,680 264 1,944 1,755 387 2,142 3,333 625 3,958
69,378 1,008 70,386 64,995 1,029 66,024 117,421 2,185 119,606
Inter-segment
elimination (1,008) (1,029) (2,185)
============================================================================================================ =================================================================================================== =================================================================================================== ================================================================================================= ========= ================================================================================================= ================================================================================================ =================================================================================================== =================================================================================================== ==================================================================================================
Operating profit 69,378 64,995 117,421
Energy profit
before rebate 5,061 5,943 7,502
Rebate to cost 3,593 - -
of sales
------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------ --------------------------------------------------------------------------------------------------
Energy profit
including rebate 8,654 5,943 7,502
Retail 672 661 1,174
Building Services 27 103 266
Property 788 717 1,436
Other* 225 300 508
Operating profit
before property
revaluation/sale 10,366 7,724 10,866
Gain on
revaluation
of investment
properties - - 1,020
Operating profit 10,366 7,724 11,906
*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 arm's
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 2022 annual report.
3 Taxation
Six Six months Year
months
ended ended ended
31 31 March 30
March September
2023 2022 2022
GBP000 GBP000 GBP000
Current
income
tax 2,132 1,431 2,088
Deferred 76 33 47
income
tax
Total 2,208 1,464 2,135
income
tax
For the period ended 31 March 2023 and subsequent periods, the
Company is taxable at the rate applicable to utility companies in
Jersey of 20%. (2022: 20%).
4 Dividends paid and proposed
Six Six months Year
months
ended ended ended
31 31 March 30
March September
2023 2022 2022
Dividends per
share
======================================================================================================== ================================================================================================== ================================================================================================= ====================================================================================================
Paid 10.80p 10.20p 17.80p
Proposed 8.00p 7.60p 10.80p
Six months Six months Year
ended ended ended
31 March 31 March 30
September
2023 2022 2022
GBP000 GBP000 GBP000
Distribution 3,309 3,125 5,454
to equity
holders and
by
subsidiaries
in the
period
The distribution to equity holders in respect of the final
dividend for 2022 of GBP3,309,120 (10.20p net of tax per share) was
paid on 23 March 2023.
The Directors have declared an interim dividend of 8.00p per
share, net of tax (2022: 7.60p) for the six months ended 31 March
2023 to shareholders on the register at the close of business on 2
June 2023. This dividend was approved by the Board on 17 May 2023
and has not been included as a liability at 31 March 2023.
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.
The Pension Scheme Trustees asked the Company to consider the
granting of a 3% rise to pensions in service in light of the level
of the surplus and the impact of current high levels of inflation
on the pensioner community. This was approved by the Board in March
2023 and the capital cost of this award was GBP1.4m. The cash will
be paid by the Scheme, rather than the Company, but generated a
GBP1.4m charge against our Income Statement.
6 Financial Instruments
The Group held the following derivative contracts, classified as
level 2 financial instruments at 31 March 2023.
Six Six months Year
months
ended ended ended
31 31 March 30
March September
2023 2022 2022
Fair value of currency hedges GBP000 GBP000 GBP000
Derivative assets
============================================================================================================== ================================================================================================== =================================================================================================== ====================================================================================================
Less than one year 148 - 483
Greater than one 916 79 2,640
year
Derivative
liabilities
============================================================================================================== ================================================================================================== =================================================================================================== ====================================================================================================
Less than one year (110) (677) (330)
Greater than one (174) (1,542) -
year
Total net 780 (2,140) 2,793
assets/liabilities
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 ordinary
course of business.
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END
IR FLFVVEFIDLIV
(END) Dow Jones Newswires
May 17, 2023 09:35 ET (13:35 GMT)
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