Jersey Electricity

LN: JEL

Market Cap£67.8m

Last Close 582.5p

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 and with dividend coverage above 2.0x EPS is well placed financially to produce future returns to shareholders. It has a strong balance sheet and its grid infrastructure is well invested. Electrification of Jersey’s heating and transport systems to achieve the government’s ambition of net zero carbon emissions by 2030 provides an opportunity for growth. Based on our detailed modelling, we estimate that full electrification of these two areas could increase electricity demand by 477GWh pa (or 477 million units of electricity), representing a 77% increase on the 619m units sold by JEL in FY20.

Y/E Sep
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2019A 110.7 26.2 13.4 33.7 17.3 5.7
2020A 111.7 27.5 14.7 37.6 15.5 5.7
2021E 115.4 27.9 15.0 38.4 15.2 5.8
2022E 118.2 27.8 14.8 37.9 15.4 5.9
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Share price graph
Balance sheet
Forecast net cash (£m) 10.3
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 11.5 12.0 25.3
Relative* 10.8 6.4 8.5
52-week high/low 582.5p/452.0p
*% relative to local index
Key management
Phil Austin Chairman
Chris Ambler CEO
Martin Magee CFO