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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 14.3 N/A
2017A 102.3 25.5 13.5 34.6 13.4 6.0
2018E 104.1 26.4 13.6 34.8 13.3 5.6
2019E 107.5 26.7 13.8 35.3 13.1 5.3

Last updated on 19/07/2018

Latest research

Investment summary

JEL's interim results indicated that it is well placed to meet our FY18 forecasts. Operating profit rose by 9.3%, to £10.4m (from £9.5m), mainly due to a strong performance from the dominant Energy business, which increased operating profits from £7.7m, to £8.7m. The rise in core business profitability was achieved thanks to a 2% increase in units sold, offset, in part, by higher energy purchase costs (due to foreign exchange movements). Net debt fell further during H1, to £20.2m (£21.9m at 30 September 2017), helped by the higher profits and reduced capex. The DPS was increased by 5%, in line with our FY18 forecasts. We believe that the outlook for H2 appears favourable and increased tariffs (+2% from June) and the seasonal reduction in receivables should contribute to the continued downward trend in net debt. Our forecasts remain unchanged.

Last updated on 27/07/2018

Industry outlook

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

Last updated on 27/07/2018

Key management

Martin Magee, CFO

Company address

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