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 (fd) (p) P/E (x) P/CF (x)
2016A 103.4 24.6 14.8 32.2 14.7 N/A
2017A 102.3 25.5 13.5 34.6 13.6 6.2
2018E 104.1 26.4 13.6 34.8 13.6 5.7
2019E 107.5 26.7 13.8 35.3 13.4 5.5

Last updated on 22/03/2018

Latest research

Investment summary

JEL posted another year of stable returns in FY17. PBT before exceptional items rose by 2.5% to £13.5m. Due to the significant fall in capex, from £32.4m in FY16 to £15.1m in FY17, net debt reduced from £29.0m to £21.9m. We expect another year of stable profits and capex in FY18 and forecast a fall in net debt to £16.9m. The FY17 DPS was increased by 5% to 14.2p and we forecast further growth in the DPS of 5% pa. Over the last 12 months there has been some debate on the efficacy of the current regulatory regime, particularly in relation to the absence of indigenous renewable generation on the island. However, we believe that with sustainable (>30% imports are renewable), reliable and competitively priced electricity, JEL is well placed to adapt to regulatory changes arising from the debate. Our analysis indicates a potential share price of 546p.

Last updated on 06/04/2018

Industry outlook

Supplying secure, affordable and sustainable electricity, JEL is well positioned to withstand any changes to its regulatory regime.

Last updated on 06/04/2018

Key management

Martin Magee, CFO

Company address

The Powerhouse
PO Box 45, Queen's Road
St Helier
United Kingdom
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