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Jersey Electricity (JEL)

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Thursday 19 May, 2005

Jersey Electricity

Interim Results

Jersey Electricity Company Limited
19 May 2005

                         The Jersey Electricity Company

                   Preliminary announcement of Interim Results

                     for the six months ended 31 March 2005



At a meeting of the Board of Directors held on 18 May 2005, the Board approved
the Interim Accounts for the Group for the six months ended 31 March 2005 and
declared an interim dividend of  50p gross (40p net of tax) compared to 45p
gross (36p net) in 2004 on the Ordinary and 'A' Ordinary shares. The dividend
will be paid on 26 August 2005 to those shareholders registered in the books of
the Company on 12 August 2005.



The Interim Accounts for 2005 have not been audited nor have the results for the
equivalent period in 2004. The results for the year ended 30 September 2004 have
been extracted from the statutory accounts for that period which had an
unqualified audit option.



P.J. Routier

Company Secretary



Direct telephone number : 01534 505253

Direct fax number : 01534 505515

Email : proutier@jec.co.uk



19 May 2005







The Powerhouse,

PO Box 45,

Queens Road,

St Helier,

Jersey JE4 8NY


                              Directors' Statement


Financial Summary                                    6 months             6 months              % rise
                                                       2005                 2004
Electricity Sales -kWh (000)                         338,465              334,099                 1%
Turnover                                              £31.2m               £30.9m                 1%
Profit before tax                                     £5.6m                £4.7m*                21%
Earnings per share                                    £2.84                £2.26*                26%
Gross dividend per ordinary share                      50p                  45p                  11%


* pre-exceptional costs



Group profit before exceptional costs was 21% higher in the first half of 2005,
compared with the same period last year, despite profit growth of only 5% in our
core electricity business, which remained affected by increased costs and our
decisions in recent years to freeze electricity tariffs.  We increased our
electricity prices on 1 January 2005 for the first time in four years and this
combined with continuing growth in electricity sales, offset some increases in
the cost of imported electricity caused by the weakness of Sterling against the
Euro. Our customers continue to be sheltered from dramatically rising wholesale
prices in the European electricity market and on average pay 15% less than
Continental electricity users as a result of our ostensibly fixed price, three
year contract for imported power, which expires later this year.



Power importation increased slightly to represent 97% of our requirements during
the half-year. Our indigenous power generating plant provided the balance of the
electricity which we supplied and in addition to its principal role as emergency
standby capacity, it enabled us to make modest but unprecedented gains, from the
occasional trading of power in the French electricity market.



Profits from our property portfolio remained unchanged at £0.6m reflecting its
relatively mature status.  Our Building Services business produced a £0.1m
profit in the six month period being at a similar level to last year. Our
Electrical Retailing business remained affected by the difficult trading
conditions which prevail in this sector with year-on-year turnover down 2% but
profits were maintained at a similar level to 2004 at £0.1m.



Start-up losses at our joint venture data centre company Foreshore Limited fell
30% to £0.2m on sales up by 65% to £1.1m in the half-year. Losses in our
associate telecoms business Newtel were zero this year, compared to losses of
£0.4m last year, as our investment was written off in the last financial year
and in October 2004 we exited from our marginally loss-making telephone
equipment business, JET. Our IT consultancy Jendev, improved profits in the
period and our consultancy Jersey Energy, continues to remain profitable. Our
continental telecommunications network provided a new income stream from the
leasing of fibre optic cables to local telecom operators.



The cash in bank rose from £2.9m to £7.3m during the last six months, with
operating cash produced from trading activity offset by £2.4m of capital
expenditure and £0.9m of dividends.



Looking ahead, the most strategically significant issue facing the Company
remains the renegotiation of its European power importation contract which
expires on 1 December 2005. As indicated in our last Annual Report, we will be
exposed to market prices which are presently more than 35% higher than those we
currently enjoy. Negotiations with suppliers are continuing and our risk
mitigation strategies are being refined with the assistance of energy market
specialists.



It will be necessary to pass through to customers, those increased costs which
we cannot absorb and we anticipate that whilst our core electricity business
will remain impacted by cost pressures, good cash flow and strengthening Group
profitability, will enable satisfactory dividend returns for the foreseeable
future. Your Board proposes to pay an interim gross dividend of 50p (2004: 45p)
on the Ordinary and 'A' Ordinary Shares payable on 26 August 2005.



D.R. MALTWOOD - Chairman                 M.J.LISTON - Chief Executive
              19 May 2005





                     THE JERSEY ELECTRICITY COMPANY LIMITED
                      Consolidated Profit and Loss Account


                                                           6 months ended      6 months ended      12 months ended
                                                            31 March 2005       31 March 2004    30 September 2004
                                                Notes               £ 000               £ 000                £ 000
Turnover:
Group and share of joint venture                  2                31,161              30,915               57,684
Less: Share of joint venture turnover                               (572)               (347)                (771)

Group turnover                                                     30,589              30,568               56,913

Cost of sales                                                    (17,268)            (17,613)             (32,039)

Gross profit                                                       13,321              12,955               24,874
Net operating expenses                                            (7,627)             (7,529)             (16,808)


Group operating profit                                              5,694               5,426                8,066
Share of operating loss in joint venture                            (173)               (247)                (517)
Share of associate's operating loss                                     -               (417)                (417)

                                                                        
Exceptional item - impairment of investment                             -             (1,521)              (1,545)

Profit on ordinary activities before interest     2                 5,521               3,241                5,587
and taxation

Net interest                                                          122                (90)                (101)

Profit on ordinary activities before taxation                       5,643               3,151                5,486

Tax on profit on ordinary activities                              (1,273)             (1,191)              (1,759)

Profit on ordinary activities after taxation                        4,370               1,960                3,727

Minority interest                                                    (16)                (14)                 (42)

Profit on ordinary activities after taxation                        4,354               1,946                3,685
and minority interest

Dividends paid and proposed                                         (613)               (552)              (1,418)

Retained profit for the Group and share in                          3,741               1,394                2,267
joint venture

Earnings per ordinary share (basic and diluted)                     £2.84               £1.27                £2.40

Earnings per ordinary share (basic and diluted)
excluding exceptional items                                         £2.84               £2.26                £3.41











                     THE JERSEY ELECTRICITY COMPANY LIMITED

                           Consolidated Balance Sheet





                                                 31 March 2005         31 March 2004          30 September 2004

                                                £ 000     £ 000       £ 000       £ 000       £ 000       £ 000
Fixed assets
Intangible fixed assets                                       -                     121                     100
Tangible fixed assets                                   124,667                 119,049                 126,183
Investments:
Shares                                                        5                       5                       5
Joint venture share of gross assets               685                   503                     542
Joint venture share of gross liabilities            -                  (81)                   (120)
Net share of joint venture assets                           685                     422                     422

                                                        125,357                 119,597                 126,710

Current assets                                 26,880                19,897                  21,948

Current liabilities                           (8,472)              (12,315)                (10,678)

Net current assets                                       18,408                   7,582                  11,270

Total assets less current liabilities                   143,765                 127,179                 137,980


Creditors falling due after more than one    (13,274)
year
                                                                    (1,698)                (11,387)
Pensions and similar obligations                (462)                 (538)                   (487)
Deferred taxation                            (11,528)              (11,049)                (11,346)

Less non-current liabilities                           (25,264)                (13,285)                (23,220)


                                                        118,501                 113,894                 114,760

Capital and reserves

Called up share capital                                   1,767                   1,767                   1,767
Reserves - equity                                       116,686                 112,043                 112,949

Shareholders' funds                                     118,453                 113,810                 114,716

Equity - minority interest                                   48                      84                      44
                                                        118,501                 113,894                 114,760






                     THE JERSEY ELECTRICITY COMPANY LIMITED
                        
                        Consolidated Cash Flow Statement



                                                                    6 months ended    6 months ended    12 months ended
                                                                     31 March 2005     31 March 2004   30 September 2004
                                                                           £000              £ 000          £ 000
Reconciliation of operating profit to net cash inflow from
operating activities

Group operating profit                                                    5,694              5,426          8,066
Depreciation and amortisation charges                                     3,798              3,697          7,793
(Increase)/decrease in stocks and work in progress                        (171)                100            377
(Increase)/decrease in debtors                                            (308)                234           (24)
(Decrease) /increase in creditors                                       (1,001)            (1,744)          1,077


Net cash inflow from operating activities                                 8,012              7,713         17,289

Net interest                                                                122               (90)          (101)
Taxation                                                                      -                  -          (336)
Capital expenditure                                                     (2,370)            (3,791)        (6,524)
Other investments                                                         (438)            (1,245)        (1,685)
Dividends paid                                                            (874)              (617)        (1,243)


Increase in cash                                                          4,452              1,970          7,400

Reconciliation of net cashflow


Change in cash                                                            4,452              1,970         7,400
Net funds/(debt) at beginning of period                                   2,890            (4,510)       (4,510)


Net funds/(debt) at end of period                                         7,342            (2,540)          2,890






                     THE JERSEY ELECTRICITY COMPANY LIMITED

                       Notes to the Financial Statements

                       for the period ended 31 March 2005



1.      Basis of preparation



The unaudited interim accounts have been prepared on the basis of the accounting
policies set out in the Notes to the Financial Statements for the Group for the 
year ended 30 September 2004.



2.      Turnover and profit



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

                                       Turnover                              Profit/(loss)
                                                                       before interest and tax
                                       £ 000        £ 000        £ 000        £ 000           £ 000        £ 000
                                 6 months to  6 months to  12 months to 6 months to     6 months to  12 months to
                           Notes 31 Mar 2005  31 Mar 2004  30 Sept 2004 31 Mar 2005     31 Mar 2004  30 Sept 2004
Energy                                24,602       24,103       43,232        4,837           4,625        6,549
Building Services                      1,174        1,217        3,712           57             127          154
Retail Appliance Sales                 2,953        3,026        5,351           70             114          106
Property                               1,032          996        2,010          558             548        1,107
Others                                 1,400        1,573        3,379          (1)           (652)        (784)

                                      31,161       30,915       57,684        5,521           4,762        7,132
Exceptional item:             3                                     

Impairment of
investment in
associate                                                                         -         (1,521)      (1,545)



                                                                              5,521           3,241        5,230



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 Group's material operations are conducted within the Channel Islands
area.



3.         Exceptional item - Impairment of investment in associate


In the last financial year the exceptional item in the 6 months to 31 March 2004
and the 12 months to 30 September 2004 related to the write-down of the Group
investment in our associate Newtel Holdings Limited.




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