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GOOD

Jersey Electricity Reports Strong Half-Year Results with 9% Revenue Growth

Why we think this is good

Jersey Electricity has delivered a robust performance in the first half of 2025, with a 9% increase in revenue to £82.3m and a slight improvement in profit before tax to £10.5m. The company's core Energy business saw significant growth, with unit sales up 2.7% and operating profit increasing by £1.7m. While net cash has decreased due to increased capital investment, this aligns with the company's strategic investment programmes. The outlook remains positive, with electricity purchases hedged through 2025 and into 2027, providing financial stability. The company's valuation appears reasonable given its performance, and the dividend increase signals confidence in future prospects.

Key Points

  • Revenue increased 9% to £82.3m
  • Profit before tax rose slightly to £10.5m
  • Energy business unit sales up 2.7%
  • Operating profit in Energy segment increased by £1.7m
  • Net cash decreased due to increased capital investment in strategic programmes
  • Electricity purchases hedged through 2025 and into 2027
  • Interim dividend increased to 8.82p per share
  • Commissioned first utility-scale ground-mounted solar array
  • Retail prices approximately 40% lower than the UK

Summary

The utility company reported a 9% revenue increase and slight profit growth in its half-year results, driven by strong performance in its Energy business and strategic investments.

Jersey Electricity's half-year report for 2025 shows solid financial performance with revenue up 9% to £82.3m and profit before tax slightly increased to £10.5m. The Energy business saw significant growth, with unit sales up 2.7% and operating profit increasing by £1.7m. The company has invested heavily in strategic programmes, including renewable energy projects and network upgrades, which has led to a decrease in net cash. However, this is viewed as a positive long-term strategy. The company maintains a strong hedging position for electricity purchases through 2025 and into 2027, providing financial stability. The interim dividend increase to 8.82p per share reflects confidence in the company's prospects.

Key Dates

June 27, 2025
Interim ordinary dividend payment
December 16, 2025
Announcement of full year results
HALF YEAR