Jersey Electricity has 'sufficient resources' following strong year

AIM-quoted power provider Jersey Electricity turned in an improved performance across the board on Monday.

Jersey saw group revenues increase 4% to £60.5m across the first six months of its trading year, with £1m coming from a higher level of electricity unit sales and £800,000 from its Powerhouse.je retailing business, all of which led to an 8.9% jump in pre-tax profits to £9.7m.

Earnings per share rose to 24.9p from 22.9p and Jersey declared an interim dividend of 6.1p compared to 5.8p for 2017.

The firm saw the cost of sales increase 5.6% to £37.5m as a result of higher import costs in and higher sales activity at Powerhouse.je and operating expenses dip 3% to £12.6m as a result of a "general reduction in overhead costs".

Jersey posted a 31.2% year-on-year reduction in net debt to £20.2m.

Unit sales of electricity rose 2%, from 361m to 368m kWh and revenue in Jersey's retail business rose by 11% to £7.9m, pushing profits ahead 23% to £600,000.

Looking forward, Jersey said, "Your Board is satisfied that Jersey Electricity has sufficient resources to continue in operation for the foreseeable future, a period of not less than 12 months from the date of this report. Accordingly, we continue to adopt the going concern basis in preparing the condensed financial statements."

As of 1020 BST, Jersey shares had grown 1.02% to 478.86p.