Information  X 
Enter a valid email address

Jersey Electricity (JEL)

  Print      Mail a friend

Thursday 16 December, 2004

Jersey Electricity

Final Results

Jersey Electricity Company Limited
16 December 2004


                         The Jersey Electricity Company
                   Preliminary Announcement of Annual Results
                          Year Ended 30 September 2004


At a meeting of the Board of Directors held on 15 December 2004, the final
accounts for the Group for the year to 30 September 2004 were approved, details
of which, are attached.

The financial information set out in the announcement does not constitute the
Company's statutory accounts for the years ended 30 September 2004 or 2003, but
is derived from those accounts. Statutory accounts for 2003 have been delivered
to the Jersey Registrar of Companies and those for 2004 will be delivered
following the Company's Annual General Meeting. The auditors have reported on
those accounts and their reports were unqualified.

A final gross dividend of 70p (56p net of tax) on the Ordinary and 'A' Ordinary
shares in respect of the period ended 30 September 2004 was recommended which,
together with the interim gross dividend of 45p (36p net of tax), makes a total
gross dividend for the year of £1.15 (92p net of tax)) on each £1 share.

The dividend will be paid on 31 March 2005 to those shareholders registered in
the books of the Company on 4 March 2005. A dividend on the 5% cumulative
participating preference shares of 1.5% (2003 1.5%) payable on 1 July 2005 was
also recommended.

The Annual General Meeting of the Company will be held on 7 March 2005.


P.J. Routier
Company Secretary

Direct telephone number : 01534 505253
Direct fax number : 01534 505553
Email : proutier@jec.co.uk

16 December 2004


The Powerhouse,
PO Box 45,
Queens Road,
St Helier,
Jersey JE4 8NY


THE JERSEY ELECTRICITY COMPANY LIMITED
Preliminary announcement of annual results
Year ended 30 September 2004

The Chairman, Derek Maltwood, comments :

'I am pleased to report on another year of outstanding performance by the
Company and its people.  Electricity customers benefited most demonstrably this
year from our recent diversification away from electricity produced locally from
oil.  Crude oil prices rose dramatically this year in response to political
unrest in the Middle East, strong demand from developing countries and the
impact on refinery capacity of a decade of inadequate investment.  The local
impact was a series of gas and heating oil price rises of more than 40%. By
contrast, electricity users benefited again from our pledge not to increase
tariffs until 2005, by which time they will have been unchanged for four
consecutive years.  As predicted, this commitment caused profits in our core
business to remain static at £6.5m but Group pre-tax profit, before exceptional
costs, increased by 15% to £7.0m as the performance of our other businesses
improved.'

Group turnover for the year to 30 September 2004 at £57.7m was 4% lower than the
year ended 30 September 2003. The Energy business contributed £43.2m of the
Group turnover which was £1.0m above last year due to a 2% increase in units
sold compared to 2003. During 2004 tariffs were frozen at the same level as the
previous year but will rise by 2.5% from 1 January 2005 due to the rising cost
of imported power from Europe and from the strengthening of the euro against
sterling. Turnover in the Property business rose marginally in the year to £2.0m
but fell in Building Services by £3.0m due to the decision announced last year
to withdraw from the larger projects sector and reduced by £0.4m in Retail
appliance sales due to a general trend in this sector in Jersey during the last
year. Turnover in Other Businesses rose by 8% to £3.4m with the growth in
Foreshore revenues being the main factor.

Profit on ordinary activities, before tax and exceptional costs, for the year to
30 September 2004 rose by 15% to £7.0m. Profit on ordinary activities, after
exceptional costs, rose from £5.2m in 2003 to £5.5m in 2004. Profit in the
Energy business stayed static at £6.5m with increased unit sales offset by
higher electricity import and pension costs. The Property division continued to
grow profits to £1.1m being 10% higher than last year due to higher occupancy
rates. The Retail appliance sales business maintained profits at £0.1m being at
a similar level to 2003 despite a year on year decrease of 7 % in like for like
sales. The Building Services business produced profits of £0.2m having recovered
from losses last year. Other businesses, including joint ventures and
associates, produced a loss of £0.8m against £1.2m in 2003 due to lower losses
in both our Newtel associate and Foreshore joint venture.

An exceptional item of £1.5m was recognised in our half year figures writing
down the £1.5m carrying value of our 41% equity investment and loans in Newtel,
which was going through a refinancing exercise at that point. It has
successfully secured external funding subsequently to develop the business
further and eliminated the need for ongoing financial support from Jersey
Electricity. In October 2003 a £2m agreement was signed with the dominant local
telecoms operator Jersey Telecom, to lease fibre optic cables contained within
our continental telecom network.

Interest payable was £0.1m above 2003 due to a higher average level of net debt
during the year due to the injection of £7m into the pension scheme late in the
last financial year. The cash at bank at the year end was £2.9m, due to a cash
inflow of £7.4m during the year. The taxation charge for the year was £1.8m
consistent with 2003.

Group earnings per share, excluding the impact of exceptional costs, rose 28% to
£3.41 compared to £2.66 in 2003. Earnings per share including the impact of
exceptional charges were £2.40 compared to £2.20 in the previous year.

Dividends for the year rose by 26% from a gross level of 91.0p (72.8p net of
tax) in 2003 to a proposed 115p (92p net of tax) for 2004 consistent with the
rise in earnings per share in the year. Dividend cover, excluding exceptional
costs, was sustained at 3.7 times.


                     THE JERSEY ELECTRICITY COMPANY LIMITED

                      Consolidated Profit and Loss Account
                       for the year ended 30 September 2004

                                                                      Notes            2004               2003
                                                                                      £ 000              £ 000
Turnover:
Group and share of joint venture                                         2           57,684             59,809
Less: Share of joint venture turnover                                                 (771)              (556)

Group turnover                                                                       56,913             59,253

Cost of sales                                                                      (32,039)           (34,532)

Gross profit                                                                         24,874             24,721

Net operating expenses                                                             (16,808)           (17,266)

Exceptional item - restructuring costs                                   3a               -              (886)


Group operating profit                                                                8,066              6,569

Share of operating loss in joint venture                                              (517)              (655)

Share of associate's operating loss                                                   (417)              (684)
                                                                         

Exceptional item - impairment of investment                              3b         (1,545)                  -
                                                                        
Profit on ordinary activities before interest and
taxation                                                                 2           5,587              5,230


Net interest  and similar charges                                                     (101)               (21)

Profit on ordinary activities before taxation                                         5,486              5,209

Tax on profit on ordinary activities                                                (1,759)            (1,771)

Profit on ordinary activities after taxation                                          3,727              3,438

Minority Interest                                                                      (42)               (66)
Profit on ordinary activities after taxation and                                      3,685              3,372
minority interest

Dividends paid and proposed                                                         (1,418)            (1,124)

Retained profit for the group and share in joint                                      2,267              2,248
venture

Earnings per ordinary share (basic and diluted)                                      £2.40               £2.20

Earnings per ordinary share (basic and diluted)                                      £3.41               £2.66
excluding exceptional items


                         THE JERSEY ELECTRICITY COMPANY
          Consolidated Statement of Total Recognised Gains and Losses
                      for the year ended 30 September 2004

                                                                                  2004             2003
                                                                                 £ 000            £ 000

Profit on ordinary activities after taxation and minority                       3,685             3,372
interest

Unrealised surplus on revaluation of plant                                          11               12

Unrealised (deficit)/surplus on revaluation of investment                         (18)               25
properties

Deferred tax credit on items previously recognised in the                            -            1,960
Statement of Total Recognised Gains and Losses

Total recognised gains since last annual report and accounts                     3,678            5,369


            Consolidated Note of Historical Cost Profits and Losses
                      for the year ended 30 September 2004
                                                                                           2004              2003
                                                                                          £ 000             £ 000

Profit on ordinary activities before taxation (after minority interest)                   5,444             5,143

Difference between the historical cost depreciation charge
and the actual depreciation charge for the year calculated
on the revalued amount                                                                      884             1,711

Historical cost profit on ordinary activities before taxation                             6,328             6,854
(after minority interest)

Historical cost profit for the year retained after taxation,
minority interest and dividends                                                           3,334             3,959


                         THE JERSEY ELECTRICITY COMPANY
                                 Balance Sheets
                               30 September 2004

                                                                 Group              Group     Company      Company
                                                                  2004               2003        2004         2003
                                                                 £ 000              £ 000       £ 000        £ 000
FIXED ASSETS                                                                          (as                      (as
                                                                                restated)                restated)

Intangible fixed assets                                            100                141           -            -
Tangible fixed assets                                          126,183            128,443     126,181      128,442
Investments:
                    subsidiary                                       -                  -         477          477
                    other investments                                5                  5           5        3,944
                    joint venture                                    -                  -       2,251        2,251
Share of associate's net assets                                      -                873           -            -
Joint venture share of gross assets                    542                561
Joint venture share of gross liabilities             (120)              (328)
Net share of joint venture assets                                  422                233           -            -

                                                               126,710            129,695     128,914      135,114
CURRENT ASSETS
Stocks and work in progress                                      2,584              2,961       2,500        2,885
Debtors due within one year                                      9,501              9,404       9,285        9,198
Debtors due after more than one year                             6,973              7,191       6,973        7,191
Cash at bank and in hand                                         2,890                 77       2,865           17

                                                                21,948             19,633      21,623       19,291
CREDITORS
Amounts falling due within one year                             10,678             15,990      10,647       15,932

NET CURRENT ASSETS                                              11,270              3,643      10,976        3,359

Total assets less current liabilities                          137,980            133,338     139,890      138,473

CREDITORS
Amounts falling due after more than one                         11,387              9,601      11,296        9,553
year


PROVISIONS FOR LIABILITIES AND CHARGES
Pensions and similar obligations                                   487                538         487          538
Deferred taxation                                               11,346             10,699      11,346       10,699

                                                                23,220             20,838      23,129       20,790

                                                               114,760            112,500     116,761      117,683

CAPITAL AND RESERVES

Called up share capital:
Equity                                                           1,532              1,532       1,532        1,532
Non-Equity                                                         235                235         235          235
Reserves - Equity                                              112,949            110,647     114,994      115,916

SHAREHOLDERS' FUNDS                                            114,716            112,414     116,761      117,683

Equity - Minority Interest                                          44                 86           -            -
                                                               114,760            112,500     116,761      117,683


                     THE JERSEY ELECTRICITY COMPANY LIMITED
                        Consolidated Cash Flow Statement
                      for the year ended 30 September 2004

                                                                                          2004              2003
                                                                                         £ 000             £ 000
RECONCILIATION OF OPERATING PROFIT TO
NET CASH INFLOW FROM OPERATING ACTIVITIES

Group operating profit                                                                   8,066             6,569
Depreciation and amortisation charges                                                    7,793             8,276
Decrease/(increase) in stocks & work in progress                                           377             (253)
Increase in debtors                                                                       (24)           (8,036)
Increase in creditors                                                                    1,077               892


NET CASH INFLOW FROM OPERATING ACTIVITIES                                               17,289             7,448

Returns on investments and servicing of finance                                          (101)              (21)
Taxation                                                                                 (336)             (231)
Capital and investment expenditure                                                     (8,209)           (9,047)
Dividends paid                                                                         (1,243)           (1,173)


INCREASE/(DECREASE) IN CASH                                                              7,400           (3,024)


RECONCILIATION OF NET CASHFLOW

Increase/(decrease) in cash                                                              7,400           (3,024)
Net debt - start of year                                                               (4,510)           (1,486)

Net funds/(debt) - end of year                                                           2,890           (4,510)



Cash at bank and in hand                                                                 2,890                77
Overdraft                                                                                    -           (4,587)

Net funds/(debt) - end of year                                                           2,890           (4,510)


                     THE JERSEY ELECTRICITY COMPANY LIMITED
                             Notes to the accounts
                          Year ended 30 September 2004

     
1.   Basis of Preparation

The accounts have been prepared on the basis of the accounting policies set out
in the Group 2003 Annual Report and Accounts with the only exception being the
change in the policy for treatment of capital grants and capital contributions
referred to in note 4 below.

2.      Turnover and profit

The contributions of the various activities of the Group to turnover (including
joint venture) and profit are listed below:
                                                               Turnover                   Profit/(loss)
                                                            2004      2003             2004            2003
Principal activities:                                       £000      £000             £000            £000
Energy                                                    43,232    42,244            6,549           6,536
Building Services                                          3,712     6,717              154           (414)
Retail Appliance Sales                                     5,351     5,773              106             141
Property                                                   2,010     1,964            1,107           1,008
Other                                                      3,379     3,111            (784)         (1,155)
                                                          57,684    59,809            7,132           6,116
Exceptional items:
Restructuring costs                                                                       -           (886)
Impairment of investment in associate                                               (1,545)               -
Profit on ordinary activities before interest and                                     5,587           5,230
taxation

The information currently available to report the net assets of each business
class as a 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 Group's material operations are conducted within the Channel Islands.
The Contracting business has been renamed Building Services. Income from Public
Lighting maintenance is now shown in this segment but was previously included in
the 'Other' segment.
     
3.   Exceptional Items
     
a.   Restructuring costs

The 2003 exceptional item of £886,000 relates to the redundancy costs of
manpower reductions within the Building Services business. The related tax
benefit is £177,000 giving a net cost for the prior year of £709,000.
     
b.   Impairment of investment in associate

The exceptional charge of £1,545,000 that was disclosed in the half year figures
to 31 March 2004 was for the write-down of the investment in Newtel Holdings
Limited following an impairment review. There is no related tax benefit
associated with this charge.

4.   Prior year adjustment

The Group policy for treatment of capital grants and capital contributions was
changed during the year and is now treated as deferred income and released to
the profit and loss account over the estimated operational lives of the related
assets. The previous policy was to deduct any such grants or contributions from
the total cost of the assets involved. The Directors consider that the new
policy provides a consistent treatment with that applied by UK listed
electricity utilities.


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