Jersey Electricity

LN: JEL

£87.8m market cap

462p 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

Jersey Electricity’s (JEL) strong financial position and forecast cash flow should underpin 5% per year growth in the dividend per share. Although JEL faces wholesale cost rises, lower unit demand and a fluid regulatory situation, we believe that, given its strong position on pricing and service standards, it is well positioned to withstand these pressures. Our latest valuation analysis indicates increased upside potential from current levels.

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 13.4 N/A
2018A 105.9 27.9 15.3 39.5 11.7 6.0
2019E 105.9 25.8 12.8 32.9 14.0 5.6
2020E 109.2 26.8 14.0 35.9 12.9 5.3
Last updated on 15/03/2019
Industry outlook

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

Last updated on 15/03/2019
Sector
Industrials
Share price graph
Balance sheet
Forecast net debt (£m) 29
Forecast gearing ratio (%) 18
Price performance
%
1m
3m
12m
Actual (3.4) 1.1 (4.7)
Relative* (3.7) (4.9) (5.3)
52-week high/low 490.0p/451.0p
*% relative to local index
Key management
Martin Magee CFO