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Jersey Electricity (JEL)

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Tuesday 17 December, 2002

Jersey Electricity

Final Results

Jersey Electricity Company Limited
17 December 2002


                         The Jersey Electricity Company

              Preliminary announcement of Annual Unaudited Results

                          Year Ended 30 September 2002


At a meeting of the Board of Directors held on 16 December 2002, the final
accounts for the Group for the year to 30 September 2002 were approved, details
of which, are attached.


A final gross dividend of 45.5 pence (36.4p net of tax) on the Ordinary and 'A'
Ordinary shares in respect of the period ended 30 September 2002 was recommended
which, together with the interim gross dividend of 37.0p (29.6p net of tax),
makes a total gross dividend for the year of 82.5p (66p net of tax) on each £1
share.


The dividend will be paid on 31 March 2003 to those shareholders registered in
the books of the Company on 7 March 2003. A dividend on the 5% cumulative
participating preference shares of 1.5% (2001 1.5%) payable on 1 July 2003 was
also recommended.


The Annual General Meeting of the Company will be held on 10 March 2003.

P.J. Routier
Company Secretary

Direct telephone number : 01534 505253

Direct fax number : 01534 505553

Email : proutier@jec.co.uk


17th December 2002


The Powerhouse,

PO Box 45,

Queens Road,

St Helier,

Jersey JE4 8NY


                     THE JERSEY ELECTRICITY COMPANY LIMITED

              Preliminary announcement of annual unaudited results
                          Year ended 30 September 2002


Key Financial Infomation                   2002           2001                        % rise/(reduction)

Turnover                                   £60.4m         £60.4m                      -

Profit before tax *                        £4.5m          £3.5m                       26%

Earnings per share *                       214p           158p                        35%

Gross Dividends per ordinary share         82.5p          75.0p                       10%

Net Dividends per ordinary share           66.0p          60.0p                       10%

Dividend cover *                           3.2 times      2.6 times                   23%

Net debt at year end                       £1.5m          £10.4m                      (86%)

* before exceptional items


Group turnover for the year to 30 September 2002 at £60.4m was at the same level
as the year ended 30 September 2001. The Energy business contributed £41.0m of
the Group turnover which was £0.8m less than last year due to a marginal
reduction in units sold compared to 2001 with milder weather being the primary
reason. Tariffs were frozen at the same level as the previous year. Turnover in
the Electrical Retailing, Contracting and Property businesses all rose in the
year. Turnover in the Other Businesses segment fell marginally due to the impact
of our associate Newtel having been consolidated as a subsidiary for seven
months in the previous year.



An exceptional item of £1.8m (before tax) has been recognised in the year to 30
September 2002 relating to the costs of manpower reductions at the La Collette
oil fired power station in Jersey where environmental considerations have led to
their displacement by electricity imported from the increasingly liberalised
European electricity market. This has been facilitated by the Company's recent
investment in increased interconnector capacity. In addition the impairment of a
3% investment in GoPro Landsteinar, an IT services company, has been recognised
as an exceptional cost of £1.1m by writing down the book value to zero.



Profit on ordinary activities before interest and exceptional costs for the year
to 30 September 2002 rose by 16% to £4.7m. Profits in the Electricity business
fell by £0.6m to £4.2m with reduced unit sales, frozen prices, increased
depreciation on new assets and higher insurance charges being the main factors.
The Electrical Retailing business doubled profits to £0.2m due mainly to the
increased level of turnover. The profitability of the Contracting business
reduced to £0.1m from £0.2m in 2001 due to pressures on margins in a very
competitive industry.  The Property division continued to grow profits to £0.9m
from £0.7m in the previous year due to higher occupancy rates. Other businesses,
mostly in their start up phase, including joint ventures and associates (before
minority interests), produced a loss of £0.7m being an improvement of £1.1m over
2001.



Profit on ordinary activities before taxation, excluding the impact of the
exceptional items, increased from £3.5m in 2001 to £4.5m for the year to 30
September 2002. The taxation charge for the year was £0.8m, net of the
exceptional tax credit of £0.4m in relation to reorganisation costs.



Group earnings per share, excluding the impact of exceptional costs rose 35% to
£2.14 compared to £1.58 in 2001. Earnings per share including the impact of the
exceptional costs were £0.49 compared to £1.58 in the previous year.



Dividends for the year rose by 10% from a gross level of 75p (60p net of tax) in
2001 to a recommended 82.5p (66p net of tax) for 2002 consistent with the aim to
deliver a sustained increase in real terms each year.  Dividend cover, excluding
exceptional costs, increased from 2.6 to 3.2 times.



Note: The financial information set out in the announcement does not constitute
the Company's statutory accounts for the years ended 30 September 2002 or 2001.
The financial information for the year ended 30 September 2001 is derived from
the statutory accounts for that year which have been delivered to the Registrar.
The auditors reported on those accounts; their report was unqualified. The
statutory accounts for the year ended 30 September 2002 will be finalised on the
basis of the financial information presented by the Directors in this
preliminary announcement and will be delivered to the Registrar following the
Company's annual general meeting.


THE JERSEY ELECTRICITY COMPANY LIMITED 
Consolidated Profit and Loss Account (unaudited) 
For the year ended 30 September 2002 
 

                                                                                                         
                                                                        Notes       2002            2001 
                                                                                    £ 000           £ 000

              TURNOVER:                                                                     (as restated)

              Group and share of joint venture                                     60,812          60,525

              Less: Share of joint venture turnover                                 (461)           (170)

              GROUP TURNOVER                                               2       60,351          60,355

              Cost of sales                                                      (37,510)        (36,607)

              Gross profit                                                         22,841          23,748

              Net operating expenses                                             (16,999)        (18,728)
                                                                                                         
              Exceptional item - redundancy costs                          3a     (1,790)               -

              Exceptional item - impairment of investments                 3b     (1,098)               -

              GROUP OPERATING PROFIT                                                2,954           5,020

              Share of operating loss in joint venture                              (661)           (700)

              Loss on disposal of subsidiary                                            -            (65)
                                                                                                         
              Share of associate's operating loss                                   (503)           (238)
                                                                                                         
              PROFIT ON ORDINARY ACTIVITIES BEFORE INTEREST PAYABLE         2       1,790           4,017
                                                                                                         
              Interest payable and similar charges                                  (217)           (485)
                                                                                                         
              PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION                         1,573           3,532
                                                                                                         
              Tax on profit on ordinary activities                                  (782)         (1,390)

              PROFIT ON ORDINARY ACTIVITIES AFTER TAXATION                            791           2,142
                                                                                                         
              Minority Interest                                                      (41)             290

              PROFIT ON ORDINARY ACTIVITIES AFTER TAXATION                                               
              AND MINORITY INTEREST                                                   750           2,432
                                                                                                         
              Dividends paid and proposed                                         (1,020)           (928)
                                                                                                         
                                                                                                         
              RETAINED (LOSS)/PROFIT FOR THE GROUP AND SHARE                                             
              IN JOINT VENTURE                                                      (270)           1,504
                                                                                                         
              EARNINGS PER ORDINARY SHARE (BASIC AND DILUTED)                       £0.49           £1.58
                                                                                                         
              EARNINGS PER ORDINARY SHARE (BASIC AND DILUTED)                                            
              EXCLUDING EXCEPTIONAL ITEMS                                           £2.14           £1.58


                                                THE JERSEY ELECTRICITY COMPANY 
                              Consolidated Statement of Total Recognised Gains and Losses (unaudited) 
                                              For the year ended 30 September 2002 
 
 
                                                                                   Notes     2002       2001  
                                                                                              £ 000      £ 000
          Profit/(loss) for the financial year:                                                               

          Group                                                                                 233      1,742

          Associate                                                                           (503)      (238)

          Unrealised loss on investment                                                           -    (1,128)

          Unrealised surplus on revaluation of plant                                             91        145

          Unrealised surplus on revaluation of investment properties                            425      3,333

          Total recognised gains relating to the period                                         246      3,854

          Prior year adjustments                                                     1        3,484   (10,263)
                                                                                                              
          Total recognised gains/(losses) since last annual report and accounts               3,730    (6,409)
 
 
                              Consolidated Note of Historical Cost Profits and Losses (unaudited) 
                                             For the year ended 30 September 2002 
 

                                                                                                  2002     2001  
                                                                                                   £ 000    £ 000

       Reported profit on ordinary activities before taxation (after minority interest)            1,532    3,822

       Difference between the historical cost depreciation charge                                                
       and the actual depreciation charge for the period calculated                                              
       on the revalued amount                                                                      1,241    1,218

       Historical cost profit on ordinary activities before taxation(after minority interest)      2,773    5,040

       Historical cost profit for the period retained after taxation,                                            
       minority interest and dividends                                                               971    2,722
 
 
                                                THE JERSEY ELECTRICITY COMPANY 
                                                   Balance Sheets (unaudited) 
                                                        30 September 2002 
 
                                                                   Group                Group    Company      Company 
                                                 Notes              2002                 2001       2002        2001  
                                                                    £ 000                £ 000      £ 000        £ 000

  FIXED ASSETS                                                                      (restated)              (restated)

  Intangible fixed assets                                             182                  223          -            -

  Tangible fixed assets                                           119,905              122,536    119,901      122,527

  Investments:                                                                                                        

  subsidiary                                                            -                    -        477          477

  other investments                                                     5                1,103      2,963        3,739

  joint venture                                                         -                    -      1,389          859

  Share of associate's net assets                                     566                  747          -            -

  Joint venture share of gross assets                     557                 501                                     

  Joint venture share of gross liabilities                (73)              (134)                                     

  Net share of joint venture assets                                   484                  367          -            -
                                                                                                                      
                                                                  121,142              124,976    124,730      127,602
  CURRENT ASSETS                                                                                                      

  Stocks and work in progress                                       2,708                2,957      2,646        2,880

  Debtors due within one year                    1                  7,982               10,649      8,227       10,684

  Debtors due after more than one year                                596                  577        720          577

  Cash at bank and in hand                                            210                   17         75            -
                                                                                                                      
                                                                   11,496               14,200     11,668       14,141
  CREDITORS                                                                                                           

  Amounts falling due within one year                              11,078               18,232     11,011       18,185
                                                                                                                      
  NET CURRENT ASSETS/(LIABILITIES)                                    418              (4,032)        657      (4,044)
                                                                                                                      
  Total assets less current liabilities                           121,560              120,944    125,387      123,558
                                                                                                                      
  CREDITORS                                                                                                           

  Amounts falling due after more than one year                        961                1,085        925        1,051
                                                                                                                      
                                                                                                                      
  PROVISIONS FOR LIABILITIES AND CHARGES                                                                              

  Pensions and similar obligations                                    484                  496        484          496

  Deferred taxation                                                11,884               11,372     11,884       11,372
                                                                                                                      
                                                                   13,329               12,953     13,293       12,919
                                                                                                                      
                                                                  108,231              107,991    112,094      110,639
                                                                                                                      
  CAPITAL AND RESERVES                                                                                                
                                                                                                                      
  Called up share capital:                                                                                            

  Equity                                                            1,532                1,532      1,532        1,532

  Non-Equity                                                          235                  235        235          235

  Reserves - Equity                                               106,402              106,156    110,327      108,872
                                                                                                                      
  SHAREHOLDERS' FUNDS                                             108,169              107,923    112,094      110,639
                                                                                                                      
  Equity - Minority Interest                                           62                   68          -            -

                                                                  108,231              107,991    112,094      110,639

 
 
                                         THE JERSEY ELECTRICITY COMPANY LIMITED 
                                      Consolidated Cash Flow Statement (unaudited) 
                                        For the year ended 30 September 2002 
 

                                                                                               
                                                                                2002       2001  
                                                                               £ 000      £ 000
  
                        RECONCILIATION OF OPERATING PROFIT TO                                  
                        NET CASH INFLOW FROM OPERATING ACTIVITIES                              

                        Group operating profit                                 2,954      5,020

                        Depreciation charges                                   7,676      7,281

                        Decrease/(increase) in stocks & work in progress         249      (651)

                        Decrease/(increase) in debtors                         2,204      (136)

                        Increase/(decrease) in creditors                       1,707      (129)

                        Impairment of investment                               1,098          -

                        NET CASH INFLOW FROM OPERATING ACTIVITIES             15,888     11,385

                        Returns on investments and servicing of finance        (217)      (485)

                        Taxation                                               (284)      (910)

                        Capital and investment expenditure                   (5,481)   (17,288)

                        Dividends paid                                         (952)      (904)

                                                                                               
                        INCREASE/(DECREASE) IN CASH                            8,954    (8,202)
                                                                                               
                        RECONCILIATION OF NET CASHFLOW                                         
                                                                                               
                        Increase/(decrease) in cash                            8,954    (8,202)

                        Net debt - start of year                            (10,440)    (2,238)

                        Net debt - end of year                               (1,486)   (10,440)
                                                                                               
                        Cash at bank and in hand                                 210         17

                        Overdraft                                            (1,696)   (10,457)

                        Net debt                                             (1,486)   (10,440)
 
 
                                          THE JERSEY ELECTRICITY COMPANY LIMITED 
                                                  Notes to the accounts 
                                             Year ended 30 September 2002 
 
 
1.     Basis of Preparation

  
The accounts have been prepared on the basis of the accounting policies set in the Group 2001 Annual Report and
Accounts with the exception that the accounts for the years to 30 September 2001 and 2002 reflects the changes in the
treatment of unbilled units of electricity supplied to match revenues with costs. The impact of this adjustment is to
increase the level of balance sheet debtors and net assets by £3,047,000 in 2002 and £3,484,000 in 2001.

 
2.     Turnover and profit

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

                                                                                                                      
                                                               Turnover                 Operating profit/(loss)       
                                                               2002     2001                           2002      2001 
  Principal activities:                                         £000     £000                           £000      £000

  Energy                                                      40,954   41,792                          4,238     4,846

  Contracting                                                  7,557    7,307                             78       228

  Retail appliance sales                                       6,467    5,654                            176        85

  Property                                                     1,845    1,410                            891       703

  Other                                                        3,528    4,192                          (705)   (1,845)

                                                              60,351   60,355                          4,678     4,017

  Exceptional item - redundancy costs                                                                (1,790)         -

  Exceptional item - impairment of investments                                                       (1,098)         -

  Profit on ordinary activities before interest payable                                                1,790     4,017


The information currently available to report the net assets of each business
class as each reportable segment is limited as each business operates as a
division of the Group and therefore in certain instances there is no reasonable
basis to allocate the Group net assets to each business class. On a geographical
basis, the Company's material operations are conducted within the Channel
Islands area.


3. Exceptional Items


 a. Redundancy costs



The 2002 exceptional item of £1,790,000 relates to the costs of manpower
reductions of La Collette power station in Jersey. The tax benefit arising from
this exceptional item is £358,000 giving a net cost for the current year of
£1,432,000.


 b. Impairment of investments


The exceptional charge of £1,098,000 relates to the write-down of the Group
investment in shares to zero in GoPro Landsteinar Ehf. following an impairment
review.


                      This information is provided by RNS
            The company news service from the London Stock Exchange