Half-year Report

RNS Number : 3111Z
Jersey Electricity PLC
17 May 2019
 

  Jersey Electricity plc      

       Interim Management Report

            for the six months ended 31 March 2019

                                                                                                       

 

The Board approved at a meeting on 16 May 2019 the Interim Management Report for the six months ended 31 March 2019 and declared an interim dividend of 6.45p compared to 6.10p for 2018. The dividend will be paid on 28 June 2019 to those shareholders registered in the records of the Company at the close of business on 7 June 2019.

 

The Interim Management Report is attached and will be available to the public on the Company's website www.jec.co.uk/about-us/investor-relations/financial-figures-and-reports.

The Interim Management Report for 2019 has not been audited, or reviewed, by our external auditors nor have the results for the equivalent period in 2018. The results for the year ended 30 September 2018 were extracted from the statutory accounts. The auditor has reported on those accounts and their report was unmodified. 

 

  

M.P. Magee                                                                P.J. Routier

Finance Director                                                       Company Secretary

 

Direct telephone number : 01534 505201                 Direct telephone number : 01534 505253

Email : mmagee@jec.co.uk                                       Email : proutier@jec.co.uk

 

16 May 2019

 

 

 

The Powerhouse,

PO Box 45,

Queens Road,

St Helier,

Jersey JE4 8NY

 

 

 

 

 

 

 

Jersey Electricity plc

Unaudited Interim Management Report

for the six months to 31 March 2019

 

Financial Summary

6 months

2019

6 months

2018

Electricity Sales in kWh

356.7m

368.2m

Revenue

£59.7m

£60.5m

Profit before tax

  £9.3m

  £9.7m

Earnings per share

  23.83p

  24.93p

Final dividend paid per ordinary share

    8.80p

    8.40p

Proposed interim dividend per ordinary share

    6.45p

    6.10p

Net debt

£12.1m

£20.2m

 

Overall trading performance

Group revenue, at £59.7m, was 1% lower for the first half of 2019 compared to the same period last year mainly due to a £1.3m decrease in revenue in JEBS, our contracting and business services unit. Revenue in our Energy business was broadly similar to last year. Profit before tax at £9.3m was £0.4m less than 2018 with a fall in Energy profits associated with lower unit sales being the primary driver. Cost of sales at £36.7m was £0.8m lower than last year with the fall in JEBS revenue being the main reason and operating expenses at £13.1m were £0.5m higher driven by marginal increases in depreciation, maintenance costs and software licensing. The taxation charge in the period of £1.9m was £0.1m lower than last year due to lower profits. Earnings per share, at 23.8p, were marginally behind 24.9p in 2018 due to lower profits. Net debt on the balance sheet, which comprises borrowings less cash and cash equivalents, at 31 March 2019 was £12.1m compared to £20.2m at this time last year (and £14.3m at our last year end on 30 September 2018).     

 

Energy performance

Unit sales of electricity fell 3%, from 368m to 357m kWh, compared with last year. The recorded Maximum Demand fell by 15% from an all-time record of 178MW in March 2018 to 150MW, in December 2018. Revenues in our Energy business at £47.4m were £0.2m higher than in 2018 reflecting a £0.6m reduction due to lower unit sales offset by the 2% rise in customer tariffs from 1 June 2018. Other income received was £0.8m higher than in 2018 as we received a rebate for subsea cable repair costs incurred in 2014. Operating profit at £8.2m was £0.5m lower than in the same period last year. Gross margin was impacted by lower unit sales and increased imported electricity prices and other costs, such as manpower, were higher compared to last year. We imported 95% of our on-Island requirement from France and 5% from the Energy from Waste plant, owned by the States of Jersey. Only 0.2% (1m units) of electricity was generated in Jersey using our own plant due to the availability of our three subsea cables to France. These importation and generation levels were consistent with the same period last year.

 

Non-Energy performance

Year-on-year revenue in our Powerhouse retail business, rose by 3% to £8.1m (2018: £7.9m) and profits rose by £0.1m to £0.6m in what is a very competitive marketplace, both locally and off-island. Profit for our Property portfolio was £0.1m lower than last year, at £0.8m, due mainly to an increase in operational maintenance costs. JEBS, our contracting and business services unit, saw a £1.3m decrease in external revenue to £1.6m (as one particularly large project took place during the previous financial year) but profitability remained around break-even similar to 2018. Our remaining business units produced profits of £0.3m being at a similar level to that delivered in 2018.  

 

Investment in infrastructure

Capital expenditure was £6.4m in the first 6 months of the financial year compared to £7.1m in the same period last year. Our new West of St Helier Primary sub-station was successfully commissioned on 13 December as planned and the remaining mainly cosmetic works to the site, will be completed by summer 2019. Our rollout of smart-enabled meters continues with around 45,000 installed in customer premises as at 31 March 2019 representing around 90% of our customer base. A £4m project to install a new transformer at our La Collette site was approved at the March 2019 Board meeting and the project is expected to be completed during 2021.  

 

Forward hedging of electricity and foreign exchange, and customer tariffs

We continue with our focus on delivering secure low-carbon electricity supplies and in our goal to maintain relative stability in customer tariffs, despite volatility in both European wholesale electricity, and foreign exchange markets. Our electricity purchases are materially, albeit not fully, hedged for the period 2019-22. As these are contractually denominated in the Euro we enter into forward foreign currency contracts to reduce the volatility of our cost base and aid tariff planning. In February 2019 we announced a below inflation average rise in tariffs of 3.5%, from 1 April, largely driven by a weakening of Sterling relative to the Euro and other inflationary factors. This is only the second rise instigated in the last five years and the tariffs payable by an average customer continue to benchmark well against other jurisdictions. The 'default maximum tariff', recently introduced by Ofgem (the electricity Regulator) to cap prices payable in the UK, is set at a level that is over 30% higher than the average customer would pay in Jersey.  

 

Debt and financing

The net debt figure fell to £12.1m at 31 March 2019 compared to £20.2m at this time last year (and £14.3m at 30 September 2018). We continue to invest in necessary infrastructure in the Channel Islands and the Board is of the opinion that the Company is in a strong position to invest and fund further capital expenditure as considered appropriate.

 

Pension scheme

The defined benefit pension scheme deficit (without deduction of deferred tax) on our balance sheet at 31 March 2019 stood at £3.4m, compared to a surplus of £4.8m level at 30 September 2018 (and a deficit of £3.9m at 31 March 2018). Since the last financial year end scheme liabilities have materially increased by approximately £13m (to £144m). This increase was due to the assumed discount rate moving down from 2.9% at the last financial year-end to 2.4% at 31 March 2019 as yield curve movements have fallen in the interim period. Assets in the Scheme have risen by around £5m (to £141m).

 

The defined benefit scheme has been closed to new members since 2013. The triennial valuation of the pension scheme, as at 31 December 2018, is currently being performed by Aon, and the results will be reported in our 2019 Annual Report.  

 

Dividend

Your Board proposes to pay an interim net dividend for 2019 of 6.45p (2018: 6.10p). As stated previously we continue to aim to deliver sustained real growth each year over the medium-term. The final dividend for 2018 of 8.80p, 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 January 2019, have not materially altered in the interim period. We reported on Brexit considerations in the 2018 Annual Report and our view has not altered, since then.

 

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 contains 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.

 

 

 

 

C.J. AMBLER - Chief Executive       M.P.MAGEE - Finance Director            16 May 2019

                                                        

                                                                    

 

INVESTOR TIMETABLE FOR 2019

 

  7 June

Record date for interim ordinary dividend

28 June

Interim ordinary dividend for year ending 30 September 2019

  1 July

Payment date for preference share dividends

20 December

Preliminary announcement of full year results

 

Condensed Consolidated Income Statement (Unaudited)

 

 

 

 

Six months ended

31 March

Six months ended

31 March

 

Year ended

30 September

 

 

 

Note

 

2019

£000

 

2018

£000

 

2018

£000

 

 

 

 

 

 

 

 

Revenue

2

 

59,695

 

60,463

 

105,874

Cost of sales

 

 

(36,689)

 

(37,506)

 

(65,110)

Gross profit

 

 

23,006

 

22,957

 

40,764

Revaluation of investment properties

 

 

-

 

-

 

310

Operating expenses

 

 

(13,056)

 

(12,553)

 

(24,380)

Group operating profit

2

 

9,950

 

10,404

 

16,694

Finance income

 

 

39

 

7

 

28

Finance costs

 

 

(735)

 

(707)

 

(1,377)

Profit from operations before taxation

 

 

9,254

 

9,704

 

15,345

Taxation

3

 

(1,911)

 

(2,023)

 

(3,152)

Profit from operations after taxation

 

 

7,343

 

7,681

 

12,193

 

 

 

 

 

 

 

 

Attributable to:

 

 

 

 

 

 

 

Owners of the Company

 

 

7,302

 

7,640

 

12,115

Non-controlling interests

 

 

41

 

41

 

78

 

 

 

 

 

 

 

 

Profit for the period/year attributable to the equity holders of the parent Company

 

 

7,343

 

7,681

 

 

12,193

 

 

 

 

 

 

 

 

Earnings per share

 

 

 

 

 

 

 

   -     basic and diluted

 

 

23.83p

 

24.93p

 

39.54p

                 

 

Condensed Consolidated Statement of Comprehensive Income (Unaudited)

 

 

 

 

Six months ended

31 March

Six months ended

31 March

 

Year ended

30 September

 

 

 

2019

£000

 

2018

£000

 

2018

£000

 

 

 

 

 

 

 

 

Profit for the period/year

 

 

7,343

 

7,681

 

12,193

 

 

 

 

 

 

 

 

Items that will not be reclassified subsequently to

profit or loss:

 

 

 

 

 

 

 

Actuarial (loss)/gain on defined benefit scheme

 

 

(7,526)

 

964

 

10,166

Income tax relating to items not reclassified

 

 

1,505

 

(193)

 

(2,033)

 

 

 

(6,021)

 

771

 

8,133

 

 

 

 

 

 

 

 

Items that may be reclassified subsequently to

profit or loss:

 

 

 

 

 

 

 

Fair value loss on cash flow hedges

 

 

(5,210)

 

(3,407)

 

(4,261)

Income tax relating to items that may be reclassified

 

 

1,042

 

681

 

852

 

 

 

(4,168)

 

(2,726)

 

(3,409)

 

 

 

 

 

 

 

 

Total comprehensive income for the period/year

 

 

(2,846)

 

5,726

 

16,917

 

 

 

 

 

 

 

 

Attributable to:

 

 

 

 

 

 

 

Owners of the Company

 

 

(2,887)

 

5,685

 

16,839

Non-controlling interests

 

 

41

 

41

 

78

 

 

 

(2,846)

 

5,726

 

16,917

 

 

 

Condensed Consolidated Balance Sheet (Unaudited)

 

 

Note

 

As at 31 March

2019

£000

 

As at 31 March

2018

£000

 

As at 30 September

2018

£000

Non-current assets

 

 

 

 

 

 

 

Intangible assets

 

 

826

 

1,077

 

938

Property, plant and equipment

 

 

215,533

 

212,401

 

215,153

Investment property

 

 

20,460

 

20,150

 

20,460

Trade and other receivables

 

 

425

 

533

 

501

Retirement benefit surplus

 

 

-

 

-

 

4,751

Derivative financial instruments

6

 

-

 

593

 

682

Other investments

 

 

5

 

5

 

5

 

 

 

 

 

 

 

 

Total non-current assets

 

 

237,249

 

234,759

 

242,490

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

Inventories

 

 

7,423

 

6,618

 

7,092

Trade and other receivables

 

 

20,506

 

21,559

 

15,202

Derivative financial instruments

6

 

78

 

3,337

 

2,338

Cash and cash equivalents

 

 

17,939

 

9,767

 

15,735

 

 

 

 

 

 

 

 

Total current assets

 

 

45,946

 

41,281

 

40,367

 

 

 

 

 

 

 

 

Total assets

 

 

283,195

 

276,040

 

282,857

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trade and other payables

 

 

16,014

 

14,147

 

15,284

Derivative financial instruments

6

 

738

 

8

 

120

Current tax payable

 

 

4,047

 

2,813

 

2,299

 

 

 

 

 

 

 

 

Total current liabilities

 

 

20,799

 

16,968

 

17,703

 

Net current assets

 

 

 

25,147

 

 

24,313

 

 

22,664

 

 

 

 

 

 

 

 

Non-current liabilities

 

 

 

 

 

 

 

Trade and other payables

 

 

20,471

 

21,820

 

20,348

Retirement benefit deficit

 

 

3,375

 

3,855

 

-

Derivative financial instruments

6

 

1,739

 

257

 

89

Financial liabilities - preference shares

 

 

235

 

235

 

235

Borrowings

 

 

30,000

 

30,000

 

30,000

Deferred tax liabilities

 

 

23,369

 

23,490

 

25,753

 

 

 

 

 

 

 

 

Total non-current liabilities

 

 

79,189

 

79,657

 

76,425

 

 

 

 

 

 

 

 

Total liabilities

 

 

99,988

 

96,625

 

94,128

 

 

 

 

 

 

 

 

Net assets

 

 

183,207

 

179,415

 

188,729

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

Share capital

 

 

1,532

 

1,532

 

1,532

Revaluation reserve

 

 

5,270

 

5,270

 

5,270

ESOP reserve

 

 

-

 

(61)

 

(41)

Other reserves

 

 

(1,919)

 

2,932

 

2,249

Retained earnings  

 

 

178,252

 

169,700

 

179,666

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity attributable to owners of the Company

 

 

183,135

 

179,373

 

188,676

 

 

 

 

 

 

 

 

Non-controlling interests

 

 

72

 

42

 

53

 

 

 

 

 

 

 

 

Total equity

 

 

183,207

 

179,415

 

188,729

 

 

 

Condensed Consolidated Statement of Changes in Equity (Unaudited)

 

 

Share

Revaluation

ESOP

Other

Retained

Total

 

capital

reserve

reserves

earnings

reserves

 

£000

£000

£000

£000

£000

 At 1 October 2018

1,532

5,270

(41)

2,249

179,666

188,676

 Total recognised income and expense for the period

-

-

-

-

7,302

7,302

 Funding of employee share scheme

-

-

(22)

-

-

(22)

 Amortisation of employee share scheme

-

-

63

-

-

63

 Unrealised loss on hedges (net of tax)

-

-

-

(4,168)

-

(4,168)

 Actuarial gain on defined benefit scheme (net of tax)

-

-

-

-

(6,021)

(6,021)

 Equity dividends paid

-

-

-

-

(2,695)

(2,695)

 At 31 March 2019

1,532

5,270

-

(1,919)

178,252

183,135

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 At 1 October 2017

1,532

5,270

(84)

5,658

163,862

176,238

 Total recognised income and expense for the period

-

-

-

-

7,640

7,640

 Funding of employee share scheme

-

-

(9)

-

-

(9)

 Amortisation of employee share scheme

-

-

32

-

-

32

 Unrealised loss on hedges (net of tax)

-

-

-

(2,726)

-

(2,726)

 Actuarial gain on defined benefit scheme (net of tax)

-

-

-

-

771

771

 Equity dividends paid

-

-

-

-

(2,573)

(2,573)

 At 31 March 2018

1,532

5,270

(61)

2,932

169,700

179,373

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 At 1 October 2017

1,532

5,270

(84)

5,658

163,862

176,238

 Total recognised income and expense for the year

-

-

-

-

12,115

12,115

 Funding of employee share scheme

-

-

(9)

-

-

(9)

 Amortisation of employee share scheme

-

-

52

-

-

52

 Unrealised loss on hedges (net of tax)

-

-

-

(3,409)

-

(3,409)

 Actuarial gain on defined benefit scheme (net of tax)

-

-

-

-

8,133

8,133

 Equity dividends paid

-

-

-

-

(4,444)

(4,444)

 At 30 September 2018

1,532

5,270

(41)

2,249

179,666

188,676

 

Condensed Consolidated Cash Flow Statement (Unaudited)

 

 

 

As at 31 March

2019

£000

 

As at 31 March

2018

£000

 

As at 30 September

2018

£000

Cash flows from operating activities

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit

 

9,950

 

10,404

 

16,694

    Depreciation and amortisation charges

 

5,584

 

5,458

 

11,242

    Share-based reward charges

 

63

 

32

 

52

    Gain on revaluation of investment property

 

-

 

-

 

(310)

    Pension operating charge less contributions paid

 

460

 

654

 

1,196

    Profit on sale of fixed assets

 

-

 

-

 

(1)

 

 

 

 

 

 

 

Operating cash flows before movements in working capital

 

16,057

 

16,548

 

28,873

Working capital adjustments:

 

 

 

 

 

 

     (Increase)/decrease in inventories

 

            (331)

 

207

 

(267)

     (Increase)/decrease in trade and other receivables

 

         (5,226)

 

(5,718)

 

671

      Increase in trade and other payables

 

1,442

 

1,017

 

125

Net movement in working capital

 

(4,115)

 

(4,494)

 

529

Interest paid

 

(731)

 

(703)

 

(1,368)

Preference dividends paid

 

(4)

 

(4)

 

(9)

Income taxes paid

 

-

 

-

 

(1,045)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash flows generated from operating activities

 

11,207

 

11,347

 

26,980

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase of property, plant and equipment

 

(6,381)

 

(6,914)

 

(14,705)

Investment in intangible assets

 

(60)

 

(137)

 

(168)

Net proceeds from disposal of fixed assets

 

-

 

-

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash used in investing activities

 

(6,441)

 

(7,051)

 

(14,872)

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity dividends paid

 

(2,695)

 

(2,573)

 

(4,444)

Dividends paid to non-controlling interest

 

(22)

 

(25)

 

(51)

Deposit interest received

 

39

 

7

 

28

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash used in financing activities

 

(2,678)

 

(2,591)

 

(4,467)

 

 

 

 

 

 

 

Net increase in cash and cash equivalents

 

2,088

 

1,705

 

7,641

Cash and cash equivalents at beginning of period/year

 

15,735

 

8,076

 

8,076

Effect of foreign exchange rate changes

 

116

 

(14)

 

18

 

 

 

 

 

 

 

Net cash and cash equivalents at end of period/year

 

17,939

 

9,767

 

15,735

 

 

 

 

 

 

 

 

           

 

Notes to the Condensed Interim Accounts (Unaudited)

 

1.         Accounting policies

 

Basis of preparation

The interim financial statements for the six months ended 31 March 2019 have been prepared on the basis of the accounting policies set out in the 30 September 2018 annual report and accounts using accounting policies consistent with International Financial Reporting Standards and in accordance with International Accounting Standard 34 'Interim Financial Reporting'. There have been two changes to accounting standards during the current financial period that would be expected to impact the disclosures in these financial statements and the full year financial statements that will be prepared for 30 September 2019:

 

IFRS 9 'Financial instruments' was endorsed by the European Union (EU) and has been effective for periods on or after 1 January 2018 (1 October 2018 for the Group) and replaces IAS 39 'Financial Instruments: Recognition and Measurement'. The impact of adopting this standard does not materially change the amounts recognised in relation to existing Euro forward currency hedging arrangements employed by the Group but does simplify the requirements for measuring hedge effectiveness, and thus the eligibility conditions for hedge accounting. The Group's review of the IFRS 9 hedge accounting model concluded that whilst adoption does not change the treatment of existing hedging arrangements, the changes made do not result in any additional hedge designations either. As such, the existing hedge accounting model under IAS 39 appropriately reflects our risk management activities in the financial statements. Therefore, as permitted by IFRS 9, the Group has elected to continue to apply the hedge accounting requirements of IAS 39. This policy choice will be periodically reviewed to consider any changes in our risk management activities. Additionally, the Group has applied the exemption from the requirement to restate comparative information about classification and measurement, including impairment.

 

IFRS 15 'Revenue from contracts with customers' was endorsed by the EU and is effective for periods commencing on or after 1 January 2018 (1 October 2018 for the Group) and replaces IAS 11 'Construction contracts', IAS 18 'Revenue', IFRIC 18 'Transfers of Assets from Customers' and a number of other revenue related interpretations previously adopted by the Group. The core principle of IFRS 15 is that an entity recognises revenue that reflects the expected consideration for goods or services provided to a customer under contract, over the performance obligations they are provided, especially where bundled services are provided. Due to the nature of the Group's revenue generating transactions with customers, the impact of IFRS 15 only affects very limited activities undertaken by our Jendev division. It is therefore understood that this standard has no material impact to revenue or profits of the Group.

 

IFRS 16 'Leases' has been endorsed by the EU and will be effective for periods commencing on or after 1 January 2019 (1 October 2019 for the Group) and replaces IAS 17 'Leases' and sets out the principles for the recognition, measurement, presentation and disclosure of leases. It is anticipated that where the Group is currently lessee, around £4.0m of additional "Right of Use" assets will be capitalised with a corresponding lease liability. The amortisation of the lease liability through the income statement is currently forecast to be similar to the current rent charges and thus there is expected to be no material impact to profit.

 

The directors have a reasonable expectation that the Group (being the Company, Jersey Electricity plc and its subsidiary, Jersey Deep Freeze Ltd) 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 interim financial statements.

  

 

Notes to the Condensed Interim Accounts (Unaudited)

 

2.         Revenue and profit

 

The contributions of the various activities to Group revenue and profit are listed below:

 

           

Six months ended

31 March 2019

Six months ended

31 March 2018

 

Year ended

30 September 2018

 

 

External

Internal

Total

External

Internal

Total

External

Internal

Total

Revenue

£000

£000

£000

£000

£000

£000

£000

£000

£000

 

 

 

 

 

 

 

 

 

 

Energy

47,413

58

47,471

47,174

64

47,238

82,332

133

82,465

Building Services

1,573

478

2,051

2,865

249

3,114

4,823

876

5,699

Retail

8,123

22

8,145

7,912

17

7,929

13,571

56

13,627

Property

1,133

302

1,435

1,115

305

1,420

2,277

604

2,881

Other

1,453

437

1,890

1,397

390

1,787

2,871

909

3,780

 

59,695

1,297

60,992

60,463

1,025

61,488

105,874

2,578

108,452

Intergroup elimination

 

 

(1,297)

 

 

(1,025)

 

 

(2,578)

Revenue

 

 

59,695

 

 

60,463

 

 

105,874

 

 

 

 

 

 

 

 

 

 

Operating profit

 

 

 

 

 

 

 

 

 

Energy

 

 

8,155

 

 

8,667

 

 

13,418

Building Services

 

 

13

 

 

(13)

 

 

(245)

Retail

 

 

632

 

 

567

 

 

812

Property

 

 

837

 

 

913

 

 

1,813

Other

 

 

313

 

 

270

 

 

586

 

 

 

9,950

 

 

10,404

 

 

16,384

 

 

 

 

 

 

 

 

 

 

Revaluation of investment properties

 

 

-

 

 

-

 

 

310

 

 

 

 

 

 

 

 

 

 

Operating profit

 

 

9,950

 

 

10,404

 

 

16,694

 

Materially, all of the Group's operations are conducted within the Channel Islands. All transactions between divisions are on an arm's-length basis. The assets and liabilities of the Group are not reported on as there has been no significant movement in the values in the six months to 31 March 2019.

 

 

3.         Taxation

 

 

Six months ended

31 March

Year ended

30 September

 

2019

£000

 

 

Current income tax                  

1,748

Deferred income tax

163

Total income tax

1,911

 

For the period ended 31 March 2019 and subsequent periods, the Company is taxable at the rate applicable to utility companies in Jersey of 20% (2018: 20%). 

 

 

Notes to the Condensed Interim Accounts (Unaudited)

 

4.         Dividends paid and proposed

 

 

 Six months ended

    31 March

 

Year ended

30 September

 

2019

 

2018

 

2018

Dividends per share

 

 

 

 

 

   -     paid

8.80p

 

8.40p

 

14.50p

   -     proposed

6.45p

 

6.10p

 

8.80p

 

 

 

 

 

 

 

 

 

 

 

 

 

£000

 

£000

 

£000

Distributions to equity holders

2,695

 

 

                                                                                                           

The distribution to equity holders in respect of the final dividend for 2018 of £2,695,449 (8.80p net of tax per share) was paid on 28 March 2019.

 

The Directors have declared an interim dividend of 6.45p per share, net of tax (2018: 6.10p) for the six months ended 31 March 2019 to shareholders on the register at the close of business on 7 June 2019. This dividend was approved by the Board on 16 May 2019 and has not been included as a liability at 31 March 2019.

                       

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 consideration has also been given as to whether there have been any other events that would significantly affect the pension liabilities.

 

6.         Financial instruments

 

The Group held the following derivative contracts, classified as level 2 financial instruments at 31 March 2019. 

 

Fair value of currency hedges

 

31 March

 

30 September

 

 

2019

 

2018

 

2018

Derivative assets

 

£'000

 

£'000

 

£'000

Less than one year

 

78

 

3,337

 

2,338

Greater than one year

 

-

 

593

 

682

 

 

 

 

 

 

 

Derivative liabilities

 

 

 

 

 

 

Less than one year

 

(738)

 

(8)

 

(120)

Greater than one year

 

(1,739)

 

(257)

 

(89)

Total net (liabilities)/assets

 

(2,399)

 

3,665

 

2,811

 

                                                                                                                       

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 to readily available market prices);

 

 

Notes to the Condensed Interim Accounts (Unaudited)

 

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 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

 

Jersey Electricity plc conducts a variety of transactions with the States of Jersey and its associated entities:

 

 

 Value of    electricity  services supplied by Jersey Electricity

Value of goods  & other services supplied by Jersey Electricity 

Value of goods & services purchased by Jersey Electricity 

Amounts due to  Jersey Electricity 

Amounts due by  Jersey Electricity 

Six months ended 31 March

2019

2018

2019

2018

2019

2018

2019

2018

2019

2018

£000

£000

£000

£000

£000

£000

£000

£000

£000

£000

 

 

 

 

 

 

 

 

 

 

 

The States of Jersey and related entities

4,707

5,139

963

1,165

947

791

473

564

10

6

 

The States of Jersey is the Group's majority and controlling shareholder. Related entities include all corporatised entities that remain wholly owned by, or controlled by, the States of Jersey.


This information is provided by RNS, 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.
 
END
 
 
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