Financial Express (Holdings) Limited (“we”, “our”, “us” and derivatives) are committed to protecting and respecting your privacy. This Privacy Policy, together with our Terms of Use, sets out the basis on which any personal data that we collect from you, or that you provide to us, will be processed by us relating to your use of any of the below websites (“sites”).

  • FEAnalytics.com
  • FEInvest.net
  • FETransmission.com
  • Investegate.co.uk
  • Trustnet.hk
  • Trustnetoffshore.com
  • Trustnetmiddleeast.com

For the purposes of the Data Protection Act 1998, the data controller is Trustnet Limited of 2nd Floor, Golden House, 30 Great Pulteney Street, London, W1F 9NN. Our nominated representative for the purpose of this Act is Kirsty Witter.

WHAT INFORMATION DO WE COLLECT ABOUT YOU?

We collect information about you when you register with us or use any of our websites / services. Part of the registration process may include entering personal details & details of your investments.

We may collect information about your computer, including where available your operating system, browser version, domain name and IP address and details of the website that you came from, in order to improve this site.

You confirm that all information you supply is accurate.

COOKIES

In order to provide personalised services to and analyse site traffic, we may use a cookie file which is stored on your browser or the hard drive of your computer. Some of the cookies we use are essential for the sites to operate and may be used to deliver you different content, depending on the type of investor you are.

You can block cookies by activating the setting on your browser which allows you to refuse the setting of all or some cookies. However, if you use your browser settings to block all cookies (including essential cookies) you may not be able to access all or part of our sites. Unless you have adjusted your browser setting so that it will refuse cookies, our system will issue cookies as soon as you visit our sites.

HOW WE USE INFORMATION

We store and use information you provide as follows:

  • to present content effectively;
  • to provide you with information, products or services that you request from us or which may interest you, tailored to your specific interests, where you have consented to be contacted for such purposes;
  • to carry out our obligations arising from any contracts between you and us;
  • to enable you to participate in interactive features of our service, when you choose to do so;
  • to notify you about changes to our service;
  • to improve our content by tracking group information that describes the habits, usage, patterns and demographics of our customers.

We may also send you emails to provide information and keep you up to date with developments on our sites. It is our policy to have instructions on how to unsubscribe so that you will not receive any future e-mails. You can change your e-mail address at any time.

In order to provide support on the usage of our tools, our support team need access to all information provided in relation to the tool.

We will not disclose your name, email address or postal address or any data that could identify you to any third party without first receiving your permission.

However, you agree that we may disclose to any regulatory authority to which we are subject and to any investment exchange on which we may deal or to its related clearing house (or to investigators, inspectors or agents appointed by them), or to any person empowered to require such information by or under any legal enactment, any information they may request or require relating to you, or if relevant, any of your clients.

You agree that we may pass on information obtained under Money Laundering legislation as we consider necessary to comply with reporting requirements under such legislation.

ACCESS TO YOUR INFORMATION AND CORRECTION

We want to ensure that the personal information we hold about you is accurate and up to date. You may ask us to correct or remove information that is inaccurate.

You have the right under data protection legislation to access information held about you. If you wish to receive a copy of any personal information we hold, please write to us at 3rd Floor, Hollywood House, Church Street East, Woking, GU21 6HJ. Any access request may be subject to a fee of £10 to meet our costs in providing you with details of the information we hold about you.

WHERE WE STORE YOUR PERSONAL DATA

The data that we collect from you may be transferred to, and stored at, a destination outside the European Economic Area (“EEA”). It may be processed by staff operating outside the EEA who work for us or for one of our suppliers. Such staff may be engaged in, amongst other things, the provision of support services. By submitting your personal data, you agree to this transfer, storing and processing. We will take all steps reasonably necessary, including the use of encryption, to ensure that your data is treated securely and in accordance with this privacy policy.

Unfortunately, the transmission of information via the internet is not completely secure. Although we will do our best to protect your personal data, we cannot guarantee the security of your data transmitted to our sites; any transmission is at your own risk. You will not hold us responsible for any breach of security unless we have been negligent or in wilful default.

CHANGES TO OUR PRIVACY POLICY

Any changes we make to our privacy policy in the future will be posted on this page and, where appropriate, notified to you by e-mail.

OTHER WEBSITES

Our sites contain links to other websites. If you follow a link to any of these websites, please note that these websites have their own privacy policies and that we do not accept any responsibility or liability for these policies. Please check these policies before you submit any personal data to these websites.

CONTACT

If you want more information or have any questions or comments relating to our privacy policy please email publishing@financialexpress.net in the first instance.

 Information  X 
Enter a valid email address

Jersey Electricity (JEL)

  Print      Mail a friend

Friday 19 May, 2017

Jersey Electricity

Half-year Report

RNS Number : 5909F
Jersey Electricity PLC
19 May 2017
 

  Jersey Electricity plc      

       Interim Management Report

            for the six months ended 31 March 2017

                                                                                                       

 

The Board approved at a meeting on 18 May 2017 the Interim Management Report for the six months ended 31 March 2017 and declared an interim dividend of 5.80p compared to 5.50p for 2016. The dividend will be paid on 30 June 2017 to those shareholders registered in the records of the Company at the close of business on 2 June 2017.

 

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 2017 has not been audited or reviewed by our external auditors nor have the results for the equivalent period in 2016. The results for the year ended 30 September 2016 have been 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

 

19 May 2017

 

 

 

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 2017

 

Financial Summary

6 months

2017

6 months

2016

Electricity Sales in kWh (000)

361,123

351,942

Revenue

£58.0m

£57.0m

Profit before tax

£  8.9m

£  7.9m

Profit in Energy business

£  7.7m

£  6.9m

Earnings per share 

22.88p

20.65p

Final dividend paid per ordinary share

  8.00p

  7.60p

Proposed interim dividend per ordinary share

  5.80p

  5.50p

Net debt

£29.4m

£21.1m

 

Overall trading performance

Group revenue, at £58.0m, was 1.7% higher for the first half year of 2017 than the same period in 2016 with this £1.0m rise coming from a higher level of unit sales of electricity and also the overall increased activity in the non-Energy business units. Profit before tax was £8.9m being £1.0m ahead of the equivalent period last year and remains at a level commensurate with a sustainable rate of return typical for a regulated utility and at a quantum needed to maintain our continued investment in infrastructure. Cost of sales decreased by £1.1m to £35.5m mainly due to a marginal reduction in import costs in our Energy business. However operating expenses at £13.0m were £1.1m above last year with an increase in depreciation charges, post our continued investment in infrastructure, and pension costs being the primary drivers. The taxation charge in the period of £1.9m is £0.4m higher than during the same period in 2016 due to increased profits. Earnings per share rose to 22.88p from 20.65p in 2016. Net debt on the balance sheet at 31 March 2017 was £29.4m (2016: £21.1m) compared to £29.0m at our last year end on 30 September 2016.     

 

Energy performance

Unit sales of electricity rose by 2.6%, from 352m to 361m kWh, compared with last year. The average temperature was lower than in the first half of the 2016 financial year, resulting in an increased use of electricity, primarily in the heating of residential properties. Revenues in our Energy business at £46.2m rose 1.5% in 2017 because of the aforementioned higher unit sales. Operating profit in Energy at £7.7m was £0.8m higher than in the same period last year with higher revenues offset by higher depreciation and increased IAS 19 pension costs. We imported 93% of our on-Island requirement from France (2016: 90%) and 5% (2016: 6%) from the Energy from Waste plant, owned by the States of Jersey. The remaining 2% of our electricity was generated in Jersey using our own plant (2016: 4%).

 

Investment in infrastructure

Capital expenditure was £8.6m in the first 6 months of the financial year. Our third undersea supply cable to France, Normandie 1, was successfully commissioned on 1 December ahead of schedule and below budget. We now have three cables being utilised to import electricity from France and the expanded network has performed to expectations in the post-commissioning period. We continue with work on our new West of St Helier Primary sub-station which has an estimated cost of £17m, of which £7m has been expended to date, and is planned to be commissioned in late 2018. Finally, our rollout of smart-enabled meters continues with 31,000 in customer premises at 31 March 2017 representing over 60% of our customer base.        

 

Non-Energy performance

Year-on-year revenue in our retailing business, Powerhouse.je, rose by 11% to £7.1m (2016: £6.4m) and profitability marginally increased to £0.5m in what is a very competitive marketplace, both locally and off-island. Revenue and profit remained constant for our Property portfolio (profit of £0.9m). JEBS, our contracting and business services unit, saw a £0.2m decrease in overall revenue to £2.9m whilst maintaining a profit of £0.1m, on a par with 2016, in a tight local market. Our remaining business units were ahead of target on an overall basis and produced profits of £0.4m being £0.1m ahead of the same period in 2016. 

 

Forward hedging of electricity and foreign exchange and customer tariffs

We continue to focus on delivering secure low-carbon electricity supplies and stable customer tariffs. Through the use of our power purchase contract and hedging policies, this has been successfully achieved whilst maintaining an appropriate and fair return for our shareholders. Customer tariffs remain frozen at the same level as when the last tariff rise of 1.5% was instigated in April 2014. Our customers have been promised no movement in tariffs until at least 2018 despite material recent rises in other jurisdictions against whom we benchmark. Our electricity purchases are materially hedged for the period 2017-20, albeit not fully. As these are contractually denominated in the Euro we enter into foreign currency contracts to eliminate a large percentage of exposure to aid tariff planning. We have continued to see volatility in foreign exchange in the last six months against the Euro primarily associated with the UK Brexit decision, which is why we seek to largely eliminate exposure. A five year extension of the existing power importation contract with EDF was agreed during May.  This extends our importation framework to 2027 and will help maintain reliable, low-carbon imported electricity supplies for the next decade. 

 

Debt and financing

The net debt figure, as expected, rose to £29.4m at 31 March 2017 compared to £29.0m at the last year end and we anticipate that this is likely to be close to our peak funding level, subject to any unexpected operational issues, post our relatively heavy level of capital spending on undersea cables, and associated infrastructure, over recent years. It is the aim of the Board that Jersey Electricity continues to maintain a prudent level of debt in the context of our overall balance sheet, which remains strong.

 

Pension scheme

The defined benefit pension scheme deficit (without deduction of deferred tax) on our balance sheet at 31 March 2017 was £4.8m compared to £11.5m at 30 September 2016 (and a deficit of £5.7m at 31 March 2016). Since the last financial year end assets rose by around £3m (£128m to £131m) and liabilities have fallen £4m (£139m to £135m). This decrease in scheme liabilities is due to an increase in relevant AA-rated bond yields (used in the calculation) partially offset by an increase in assumed RPI inflation. Cash paid into the scheme during the six month period was £1.0m (2016: £1.0m) with the IAS 19 charge against profit being £1.8m (2016: £1.2m). The defined benefit scheme has been closed to new members since 2013.

 

Dividend

Your Board proposes to pay an interim net dividend for 2017 of 5.80p (2016: 5.50p). As stated in the past we continue to aim to deliver sustained real growth each year over the medium-term. The final dividend for 2016 of 8.00p, 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 have not materially altered in the interim period.

 

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 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            18 May 2017

                                                        

                                                                    

 

 

INVESTOR TIMETABLE FOR 2017

 

2 June

Record date for interim ordinary dividend

30 June

Interim ordinary dividend for year ending 30 September 2017

3 July

Payment date for preference share dividends

14 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


2017

£000


2016

£000


2016

£000









Revenue

2


58,004


57,036


103,361

Cost of sales



(35,507)


(36,610)


(65,249)

Gross profit



22,497


20,426


38,112

Revaluation of investment properties



-


-


(350)

Operating expenses



(12,981)


(11,851)


(23,498)

Group operating profit before exceptional item



9,516


8,575


14,264

Exceptional item - La Collette rent accrual reversal



-


-


1,676

Group operating profit

2


9,516


8,575


15,940

Finance income



1


19


22

Finance costs



(588)


(668)


(1,154)

Profit from operations before taxation



8,929


7,926


14,808

Taxation

3


(1,925)


(1,573)


(3,166)

Profit from operations after taxation



7,004


6,353


11,642









Attributable to:








Owners of the Company



7,009


6,326


11,547

Non-controlling interests



(5)


27


95









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



7,004


 

6,353


 

11,642









Earnings per share








   -     basic and diluted



22.88


20.65


37.69

 

Condensed Consolidated Statement of Comprehensive Income (Unaudited)

 




Six months ended

31 March

Six months ended

31 March

 

Year ended

30 September




2017

£000


2016

£000


2016

£000









Profit for the period/year



7,004


6,353


11,642









Items that will not be reclassified subsequently to

profit or loss:








Actuarial gain/(loss) on defined benefit scheme



7,547


1,595


(2,829)

Income tax relating to items not reclassified



(1,509)


(319)


566




6,038


1,276


(2,263)









Items that may be reclassified subsequently to profit

or loss:








Fair value (loss)/gain on cash flow hedges



(2,387)


6,979


13,865

Income tax relating to items that may be reclassified



477


(1,396)


(2,773)




(1,910)


5,583


11,092









Total comprehensive income for the period/year



11,132


13,212


20,471









Attributable to:








Owners of the Company



11,137


13,185


20,376

Non-controlling interests



(5)


27


95




11,132


13,212


20,471

 

 

Condensed Consolidated Balance Sheet (Unaudited)

 


Note


As at 31 March

2017

£000


As at 31 March

2016

£000


As at 30 September

2016

£000

Non-current assets








Intangible assets



189


198


162

Property, plant and equipment



210,597


192,780


209,168

Investment property



20,110


20,460


20,110

Trade and other receivables



622


708


683

Derivative financial instruments

6


3,807


2,281


5,957

Other investments



5


5


5









Total non-current assets



235,330


216,432


236,085









Current assets








Inventories



5,736


5,853


5,962

Trade and other receivables



20,571


19,038


16,583

Derivative financial instruments

6


2,891


1,074


2,788

Cash and cash equivalents



4,556


8,905


1,925









Total current assets



33,754


34,870


27,258









Total assets



269,084


251,302


263,343









Current liabilities
















Trade and other payables



13,058


15,620


16,084

Bank overdraft



-


-


943

Borrowings



4,000


-


-

Derivative financial instruments

6


13


1,468


-

Current tax payable



1,166


619


420









Total current liabilities



18,237


17,707


17,447

 

Net current assets



 

15,517


 

17,163


 

9,811









Non-current liabilities








Trade and other payables



20,751


20,930


19,600

Retirement benefit deficit



4,764


5,696


11,471

Derivative financial instruments

6


327


28


-

Financial liabilities - preference shares



235


235


235

Borrowings



30,000


30,000


30,000

Deferred tax liabilities



21,992


18,185


20,482









Total non-current liabilities



78,069


75,074


81,788









Total liabilities



96,306


92,781


99,235









Net assets



172,778


158,521


164,108









Equity








Share capital



1,532


1,532


1,532

Revaluation reserve



5,270


5,270


5,270

ESOP reserve



(119)


(191)


(155)

Other reserves



4,968


1,369


6,878

Retained earnings                                                      



161,119


150,496


150,523

















Equity attributable to owners of the Company



172,770


158,476


164,048









Non-controlling interests



8


45


60









Total equity



172,778


158,521


164,108

 

 

 

Condensed Consolidated Statement of Changes in Equity (Unaudited)

 


Share

Revaluation

ESOP

Other

Retained



capital

reserve

reserves

earnings

Total


£000

£000

£000

£000

£000

 At 1 October 2016

1,532

5,270

(155)

6,878

150,523

164,048

 Total recognised income and expense for the period

-

-

-

-

7,009

7,009

 Amortisation of employee share scheme

-

-

36

-

-

36

 Unrealised loss on hedges (net of tax)

-

-

-

(1,910)

-

(1,910)

 Actuarial gain on defined benefit scheme (net of tax)

-

-

-

-

6,038

6,038

 Equity dividends paid

-

-

-

-

(2,451)

(2,451)

 At 31 March 2017

1,532

5,270

(119)

4,968

161,119

172,770















 At 1 October 2015

1,532

5,270

(97)

(4,214)

145,223

147,714

 Total recognised income and expense for the period

-

-

-

-

6,326

6,326

 Additional shares for employee share scheme

-

-

(114)

-

-

(114)

 Amortisation of employee share scheme

-

-

20

-

-

20

 Unrealised gain on hedges (net of tax)

-

-

-

5,583

-

5,583

 Actuarial gain on defined benefit scheme (net of tax)

-

-

-

-

1,276

1,276

 Equity dividends paid

-

-

-

-

(2,329)

(2,329)

 At 31 March 2016

1,532

5,270

(191)

1,369

150,496

158,476















 At 1 October 2015

1,532

5,270

(97)

(4,214)

145,223

147,714

 Total recognised income and expense for the period

-

-

-

-

11,547

11,547

 Additional shares for employee share scheme

-

-

(114)

-

-

(114)

 Amortisation of employee share scheme

-

-

56

-

-

56

 Unrealised gain on hedges (net of tax)

-

-

-

11,092

-

11,092

 Actuarial loss on defined benefit scheme (net of tax)

-

-

-

-

(2,263)

(2,263)

 Adjustment arising from change in non-controlling interest

-

-

-

-

31

31

 Equity dividends paid

-

-

-

-

(4,015)

(4,015)

 At 30 September 2016

1,532

5,270

(155)

6,878

150,523

164,048



 

Condensed Consolidated Cash Flow Statement (Unaudited)

 



Six months ended

31 March


Six months ended

31 March


 

Year ended

30 September


 

 

 

2017

£000


 

2016

£000


 

2016

£000

Cash flows from operating activities














Operating profit before exceptional items


9,516


8,575


14,264

Depreciation and amortisation charges


5,151


4,957


10,295

Loss on revaluation of investment property


-


-


350

Pension operating charge less contributions paid


840


300


1,351

Loss/(profit) on sale of fixed assets


42


-


(6)








Operating cash flows before movements in working capital


15,549


13,832


26,254








Decrease in inventories


226


386


277

Increase in trade and other receivables


(3,928)


(4,222)


(1,758)

(Decrease)/increase in trade and other payables


(1,378)


860


2,359

Interest paid


(590)


(654)


(1,148)

Capitalised interest paid


(172)


(117)


(374)

Preference dividends paid


(4)


(4)


(9)

Income taxes paid


-


-


(396)















Net cash flows generated from operating activities


9,703


10,081


25,205








Cash flows from investing activities














Purchase of property, plant and equipment


(8,508)


(11,335)


(32,391)

Investment in intangible assets


(63)


(6)


(4)

Proceeds from part disposal of subsidiary


-


-


10

Net proceeds from disposal of fixed assets


3


-


9















Net cash used in investing activities


(8,568)


(11,341)


(32,376)








Cash flows from financing activities














Equity dividends paid


(2,490)


(2,357)


(4,067)

Deposit interest received


1


19


22

Payment for foreign exchange option


-


-


(250)

Repayment of borrowings


(14,000)


-


(5,500)

Proceeds of borrowings


18,000


-


5,500















Net cash from / (used in) financing activities


1,511


(2,338)


(4,295)








Net increase/(decrease) in cash and cash equivalents


2,646


(3,598)


(11,466)

Cash and cash equivalents at beginning of period/year


1,925


12,503


12,503

Effect of foreign exchange rate changes


(15)


-


(55)

Overdraft


-


-


943








Net cash and cash equivalents at end of period/year


4,556


8,905


1,925

 

 

 

 

 

 

 

Notes to the Condensed Interim Accounts (Unaudited)

 

1.         Accounting policies

 

Basis of preparation

The interim financial statements for the six months ended 31 March 2017 have been prepared on the basis of the accounting policies set out in the 30 September 2016 annual report and accounts using accounting policies consistent with International Financial Reporting Standards and in accordance with International Accounting Standards 34 'Interim Financial Reporting'.

 

The directors have a reasonable expectation that the Group 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.

 

2.         Revenue and profit

 

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

 

           

Six months ended

31 March 2017

Six months ended

31 March 2016

 

Year ended

30 September 2016

 


External

Internal

Total

External

Internal

Total

External

Internal

Total

Revenue

£000

£000

£000

£000

£000

£000

£000

£000

£000











Energy

46,150

70

46,220

45,462

72

45,534

81,215

144

81,359

Property

1,088

299

1,387

1,046

299

1,345

2,143

599

2,742

Retail

7,102

16

7,118

6,413

20

6,433

11,933

45

11,978

Building Services

2,413

472

2,885

2,772

280

3,052

5,120

786

5,906

Other

1,251

915

2,166

1,343

393

1,736

2,950

876

3,826


58,004

1,772

59,776

57,036

1,064

58,100

103,361

2,450

105,811

Intergroup elimination



(1,772)



(1,064)



(2,450)

Revenue



58,004



57,036



103,361











Operating profit










Energy



7,694



6,904



11,650

Property



870



870



1,683

Retail



460



411



452

Building Services



104



116



134

Other



388



274



695




9,516



8,575



14,614











Revaluation of investment properties



-



-



(350)











Exceptional item










La Collette rent accrual reversal



-



-



1,676











Operating profit



9,516



8,575



15,940

 

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 2017.

 

 

 

 

 

 

 

Notes to the Condensed Interim Accounts (Unaudited)

 

3.         Taxation

 

 

Six months ended          31 March


Year ended

30 September


2017

£000

 

2016

£000

 


2016

£000

 

Current income tax                  

1,166


215


420

Deferred income tax

759


1,358


2,746

Total income tax

1,925


1,573


3,166

 

For the period ended 31 March 2017 and subsequent periods, the Company is taxable at the rate applicable to utility companies in Jersey of 20% (2016: 20%). The mix between current and deferred income tax has changed following the utilisation of tax losses associated with capital allowances.

 

4.         Dividends paid and proposed

 


 Six months ended

    31 March


Year ended

30 September


2017


2016


2016

Dividends per share






   -     paid

8.00p


7.60p


13.10p

   -     proposed

5.80p


5.50p


8.00p














£000


£000


£000

Distributions to equity holders

2,451


2,329


4,015

                                                                                                           

The distribution to equity holders in respect of the final dividend for 2016 of £2,451,200 (8.00p net of tax per share) was paid on 30 March 2017.

 

The Directors have declared an interim dividend of 5.80p per share, net of tax (2016: 5.50p) for the six months ended 31 March 2017 to shareholders on the register at the close of business on 2 June 2017. This dividend was approved by the Board on 18 May 2017 and has not been included as a liability at 31 March 2017.

                       

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 2017. 

 

Fair value of currency hedges


Six months ended 31 March


Year ended 30 September



2017


2016


2016

Derivative assets


£'000


£'000


£'000

Less than one year


2,891


1,074


2,788

Greater than one year


3,807


2,281


5,957



6,698


3,355


8,745

Derivative liabilities







Less than one year


13


1,468


-

Greater than one year


327


28


-



340


1,496


-

Notes to the Condensed Interim Accounts (Unaudited)

                                                                                                                       

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);

 

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

 

The Company 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

2017

2016

2017

2016

2017

2016

2017

2016

2017

2016

£000

£000

£000

£000

£000

£000

£000

£000

£000

£000












The States of Jersey

3,803

3,761

581

725

588

1,102

616

732

99

1

JT Group Limited

996

980

177

268

83

19

50

157

-

3

Jersey Post Int Limited

52

58

9

-

30

17

4

7

-

-

Jersey New Waterworks Ltd

496

409

41

74

81

64

72

63

-

7

 

The States of Jersey is the Group's majority and controlling shareholder. JT Group Limited and Jersey Post International Limited are both wholly owned by the States of Jersey. Jersey New Waterworks is majority owned and controlled by the States of Jersey. All transactions are undertaken on an arm's length basis.


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

a d v e r t i s e m e n t