Jersey Electricity (JEL)

Business description

Jersey Electricity is the monopoly supplier of electricity to the island of Jersey. It also operates businesses in retail, property and business services on the island.

Y/E Sep Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2015A 100.5 23.8 12.4 32.5 15.4 6.1
2016A 103.4 24.6 13.2 32.4 15.4 5.7
2017E 104.5 25.7 13.4 34.3 14.6 6.0
2018E 106.8 26.4 13.8 35.2 14.2 5.6

Last updated on 22/01/2018

Latest research

Investment summary

JEL continues to deliver attractive and stable returns to its shareholders and secure, affordable, low-carbon energy to its customers. In FY17, PBT before exceptional items rose by 2.5% to £13.5m (FY17e £13.4m), despite a c 1% decline revenues (frozen tariffs and declining volume). Due to a significant fall in capex, from £32.4m in FY16 to £15.1m in FY17, net debt reduced from £29.0m in FY16, to £21.9m in FY17 (FY17e £27m). The superior cash generation was due to a better than anticipated performance at the operating cash flow line (£26.5m vs our FY17e of £21.3m). Favourable working capital movements, lower payments to the pension fund and lower tax paid all contributed to a better than expected performance relative to our estimates. The DPS was increased by 5%, in line with our forecasts. Following the results, our forecasts remain under review.

Last updated on 02/02/2018

Industry outlook

We expect the current regulatory regime to continue, enabling JEL to earn a return of 6-7% on the asset base of the electricity business.

Last updated on 02/02/2018

Key management

Martin Magee, CFO

Company address

The Powerhouse
PO Box 45, Queen's Road
St Helier
Jersey
JE4 8NY
United Kingdom
View website