Jersey Electricity

LN: JEL

£60m market cap

515p 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

JEL posted strong H120 results, with PBT +7.5% to £10.0m (H119 £9.3m) and operating profit +8.1% to £10.8m (H119 £10.0m). The principal driver of the increase in operating profits was the Energy business, helped by higher tariffs (+3.5% in April 2019) and volume increases +4%. EPS, of 25.95p, was +8.9% versus H119. The interim DPS was increased by 5.4% to 6.80p. With positive cash flow in H1, net debt fell to £2.9m (£5.1m in FY19). The outlook for H2 is likely to be tougher and JEL expects there to be a reduction in revenue as the result of rescheduled rental payments (property business), lower sales in the retail division and lower volumes of electricity sold. Despite the expectation of a more challenging second half, JEL remains a highly defensive company with a strong financial position. Our forecasts remain under review.

Y/E Sep
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (fd) (p)
P/E (x)
P/CF (x)
2018A 105.9 27.9 15.3 39.5 13.0 5.8
2019A 110.3 27.7 14.8 38.4 13.4 5.7
2020E 109.2 26.8 14.0 35.9 14.3 6.3
2021E N/A N/A N/A N/A N/A N/A
Industry outlook

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

Last updated on 27/11/2020
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Sector
Industrials
Share price graph
Balance sheet
Forecast net debt (£m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 3.4 8.0 8.4
Relative* (6.9) 0.9 23.9
52-week high/low 527.5p/413.0p
*% relative to local index
Key management
Martin Magee CFO