Jersey Electricity

LSE: JEL

Market Cap£65m

Last Close 555p

Jersey Electricity is the monopoly supplier of electricity to the island of Jersey. It also operates businesses in retail, property and business services on the island.

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Investment summary

Jersey Electricity (JEL) has consistently delivered a 5% increase in its DPS, which we expect to continue. Its cautious approach to financial risks means its wholesale electricity market-based exposure is materially hedged until FY25, which helps maintain relative price stability for its customers. It has a strong balance sheet, with cash of £43.1m, and its grid infrastructure is well invested. Electrification of Jersey’s heating and transport systems to achieve the government’s net zero ambitions provides an opportunity for growth. Based on our detailed modelling and the government of Jersey’s (GoJ’s) consultation draft of the Carbon Neutral Roadmap, we estimate full electrification of these two areas could increase electricity demand by 454GWh pa (454m units of electricity), representing a 71% increase on the 639m units sold by JEL in FY21.

Y/E Sep
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2020A 111.7 27.5 14.7 37.6 14.8 5.5
2021A 118.6 27.2 14.8 38.8 14.3 6.4
2022E 118.1 23.6 11.0 28.4 19.5 8.0
2023E 127.4 27.9 14.9 38.4 14.5 5.3
Content on Jersey Electricity
Jersey Electricity – Updated modelling of net zero implications
Industrials | research Outlook | 4 July 2022
Jersey Electricity – Modelling of 2030 net zero implications
Industrials | research Outlook | 3 June 2021
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Share price graph
Balance sheet
Forecast net cash (£m) 5.1
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 13.3 (2.2) (7.9)
Relative* 6.1 (5.3) (10.4)
52-week high/low 627.5p/484.0p
*% relative to local index
Key management
Phil Austin Chairman
Chris Ambler CEO
Martin Magee CFO