Jersey Electricity

LN: JEL

£83.4m market cap

439p last close

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.

Investment summary

The H1 results from JEL were broadly in line with our forecasts for FY19. As expected, after record unit sales in FY18, H119 unit sales declined (-3%). Despite the reduction in volumes, revenues in the core Energy business rose £0.2m thanks to a tariff increase with effect from June 2018. Overall, however, Energy business profits declined by £0.5m, as rising costs (particularly imported energy from France) depressed profits. The Energy business dictated the overall trend for the business which suffered a £0.4m reduction in profits. The interim DPS rose by 5.7% (Edison FY19e +5%) and net debt fell by a further £2.2m, to £12.1m. JEL’s financial position remains strong, it continues to offer relatively cheap power and high standards of service to its customers and remains well placed to deliver further returns for its shareholders.

Y/E Sep
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (fd) (p)
P/E (x)
P/CF (x)
2017A 102.1 25.4 13.5 34.6 12.7 N/A
2018A 105.9 27.9 15.3 39.5 11.1 5.7
2019E 105.9 25.8 12.8 32.9 13.3 5.3
2020E 109.2 26.8 14.0 35.9 12.2 5.1
Last updated on 19/09/2019
Industry outlook

Supplying secure, affordable and sustainable electricity, JEL is well positioned to withstand any changes to its regulatory regime.

Last updated on 19/09/2019
Sector
Industrials
Share price graph
Balance sheet
Forecast net debt (£m) 29
Forecast gearing ratio (%) 18
Price performance
%
1m
3m
12m
Actual 2.3 (3.9) (10.0)
Relative* (0.4) (4.0) (9.8)
52-week high/low 488.0p/429.0p
*% relative to local index
Key management
Martin Magee CFO