TIDMJEL
RNS Number : 8764Y
Jersey Electricity PLC
17 May 2021
Jersey Electricity plc
Interim Management Report
for the six months ended 31 March 2021
The Board approved at a meeting on 13 May 2021 the Interim
Management Report for the six months ended 31 March 2021 and
declared an interim dividend of 7.20p compared to 6.80p for 2020.
The dividend will be paid on 25 June 2021 to those shareholders
registered in the records of the Company at the close of business
on 4 June 2021.
The Interim Management Report is attached and will be available
to the public on the Company's website
www.jec.co.uk/investors/figures-reports .
The Interim Management Report for 2021 has not been audited, or
reviewed, by our external auditors, nor have the results for the
equivalent period in 2020. The results for the year ended 30
September 2020 were extracted from the statutory accounts. The
auditor has reported on those accounts and their report was
unmodified.
M.P. Magee L. Floris
Finance Director Company Secretary
Direct telephone number: 01534 505201 Direct telephone number:
01534 505253
Email: mmagee@jec.co.uk Email: lfloris@jec.co.uk
13 May 2021
The Powerhouse,
PO Box 45,
Queens Road,
St Helier,
Jersey JE4 8NY
Jersey Electricity plc
Unaudited Interim Management Report
for the six months to 31 March 2021
Financial Summary 6 months 6 months
2021 2020
---------------------------------------- --------- -----------
Electricity Sales in kWh 374.9m 371.4m
Revenue GBP67.1m GBP64.2m
Profit before tax GBP10.5m GBP10.0m
Earnings per share 27.00p 25.95p
Final dividend paid per ordinary
share 9.70p 9.25p
Proposed interim dividend per ordinary
share 7.20p 6.80p
Net cash/(debt) GBP5.9m GBP(2.9m)
COVID-19 - impact on trading performance
The pandemic continued throughout the period since the end of
our last financial year but did not materially impact our overall
trading performance. In our Energy business we saw lower unit sales
in the hospitality and retail sectors, due to lockdown measures but
this was more than offset by increased domestic consumption
associated with a combination of "home-working", and a colder
winter period than in the previous year. Our other business units
have not been greatly affected by the COVID-19 crisis, and as
highlighted in our 2020 Annual Report, our Retail business
continues to benefit from customers appearing to have more spending
power, due to less travel taking place. We will continue to closely
monitor the COVID-19 position as it develops, as we cannot be
complacent, but our balance sheet, with no gearing, remains
strong.
Brexit - licensing of French fishing vessels
In early May, post the balance sheet date, there was extensive
media coverage of a dispute relating to a new licensing system for
French fishing vessels in Jersey waters, introduced under the UK-EU
Trade and Cooperation Agreement (TCA). During this incident, the
French Maritime Minister made reference, within the French
Parliament, to implementing retaliatory measures, including the
possibility of cutting off electricity supplies transported to
Jersey via submarine cables. The Company consider this a political
issue to be resolved between the governments. Furthermore, we have
strong relationships with our French partners, EDF (as supplier)
and RTE (as network operator), that spans more than 35 years, and
benefits from legal and contractual arrangements which cover
imported electricity supplies to the end of 2027. Both RTE and EDF
have confirmed our existing supply arrangements are unlikely to be
impacted.
Overall trading performance in the 6 months to 31 March
Group revenue, at GBP67.1m, was 5% higher for the first half of
2020 compared to the same period last year mainly due to a rise in
both Energy and Retail revenue. Profit before tax at GBP10.5m was
GBP0.5m higher than 2020 primarily due to a rise in Property and
Retail profits. Cost of sales at GBP41.7m was GBP2.5m higher than
last year with the rise in wholesale energy costs, and additional
stock purchases associated with the increase in Retail revenue
being the main factors. Operating expenses at GBP14.1m were
marginally lower than last year. The taxation charge in the period
of GBP2.2m was GBP0.1m higher than last year due to increased
profits. Earnings per share, at 27.00p, were ahead of 25.95p in
2020 due to higher profits. Net cash on the balance sheet, which
comprises borrowings less cash and cash equivalents, at 31 March
2021, was GBP5.9m compared to GBP2.9m of net debt at this time last
year (and GBP5.5m of net cash at our last year end on 30 September
2020).
Energy performance
Unit sales of electricity rose 1% from 371m to 375m kWh,
compared with the same period last year. The mix of consumption
altered from the same period in the prior year with lower sales to
the commercial marketplace more than offset by increased domestic
consumption associated with "home-working" and colder weather than
in the previous year. Revenues in our Energy business at GBP52.0m
were GBP1.8m higher than in 2020 with the year-on-year increase in
unit sales and the 2.5% tariff rise in October 2020 being the
primary drivers. Operating profit at GBP9.2m was GBP0.1m higher
than the corresponding period last year as the increased revenue
was largely offset by higher costs including increased wholesale
import prices. We imported 96% of our on-island requirement from
France and 4% from the Energy from Waste plant, owned by the
Government of Jersey. Only 0.3% (around 1m units) of electricity
was generated in Jersey using our traditional oil-fired plant
(mainly for testing purposes) and we also saw a rising trend in our
solar generation albeit still at a relatively low level compared to
overall requirements. These importation and generation levels were
materially consistent with the same period last year.
Non-Energy performance
Year-on-year revenue in our Powerhouse retail business, rose by
12% to GBP10.7m (2020: GBP9.6m) and profits rose by GBP0.2m to
GBP1.0m with continued strong revenue growth linked to a
combination of factors including a substantial proportion of
customers having more disposable income due to an inability to
travel, resulting from COVID-19 restrictions. Profit from our
Property portfolio at GBP0.8m was GBP0.3m higher than last year, as
we had an accelerated depreciation charge for air conditioning
equipment of GBP0.4m, in our Powerhouse building, in the same
period last year. JEBS, our building services unit, saw external
revenue falling GBP0.3m to GBP1.6m and profitability at breakeven
level compared to a profit of GBP0.1m last year. Our remaining
business units produced profits of GBP0.3m being marginally behind
that delivered in 2020.
Liquidity and cashflow
Net cash generated in the period was GBP0.4m (2020: GBP2.2m)
post the continued investment in infrastructure of GBP4.8m (2020:
GBP5.1m). The net debt figure of GBP2.9m at 31 March 2020 moved to
a net cash figure of GBP5.9m at 31 March 2021 (being net cash of
GBP5.5m at 30 September 2020). Net cash consists of GBP30.0m of
long-term debt offset by cash and cash equivalents of GBP35.9m.
Forward hedging of electricity and foreign exchange, and
customer tariffs
We continue to focus on delivering secure, low-carbon
electricity supplies and our goal is to maintain relative stability
in customer tariffs, despite volatility in both European wholesale
electricity and foreign exchange markets. We are seeing a rising
trend in future wholesale prices in Europe, associated with carbon
prices reaching record levels, and we continue to monitor this
position. Our electricity purchases are materially, albeit not
fully, hedged for the period 2021-23. We also have around one third
of our expected 2024-27 liabilities hedged at known prices. As
these are contractually denominated in the Euro, we enter into
forward foreign currency contracts, on a three-year rolling basis,
to reduce the volatility of our cost base, and to aid tariff
planning. In October 2020 we implemented a 2.5% rise in customer
tariffs, largely driven by a rising trend in wholesale electricity
prices, which we had delayed from 1 April 2020, in response to the
COVID-19 crisis. The tariffs payable by an average customer
continue to benchmark well against other jurisdictions. The
'default maximum tariff', introduced by Ofgem (the UK electricity
regulator) to cap prices payable in the UK, is set at a level over
35% higher than the average standard domestic tariff in Jersey.
Pension scheme
The defined benefit pension scheme surplus (without deduction of
deferred tax) on our balance sheet at 31 March 2021 stood at
GBP17.1m, compared to a surplus of GBP7.3m at 30 September 2020
(and a surplus of GBP14.3m at 31 March 2020). Since the last
financial year end, scheme liabilities have materially decreased by
approximately GBP10m (to GBP140m). This fall was primarily due to
an increase to the discount rate assumptions from 1.6% at the last
financial year end to 2.1% at 31 March 2021 associated with a rise
in UK AA corporate bond yields in the interim. Assets in the Scheme
rose by around GBP1m (to GBP157m). The defined benefit scheme has
been closed to new members since 2013 and the next triennial
valuation of the scheme, as at 31 December 2021, will be performed
in 2022.
Valuation of investment properties
We formally revalue investment properties, using an external
valuer, once per annum to coincide with our financial year end, and
any movement is reflected in our Income Statement. The value of
such properties at 30 September 2020 was around GBP22m, compared to
the total net asset value, on our Consolidated Balance Sheet, of
around GBP206m. We have not revalued at this interim stage being
consistent with previous practice. The overall value of our
investment properties may have risen, despite uncertainties of
COVID-19, due to the restructuring of one of our commercial leases
in late March, along with current buoyancy in the residential
sector.
Dividend
Your Board proposes to pay an interim net dividend for 2021 of
7.20p (2020: 6.80p). As stated in previous years, we continue to
aim to deliver sustained real growth each year over the
medium-term. At this time, we do not expect the COVID-19 outbreak
to influence our dividend strategy, but we will continue to review
the position. The final dividend for 2020 of 9.70p, paid in late
March 2021, in respect of the last financial year, was an increase
of 5% on the previous year.
Risk and outlook
The principal risks and uncertainties identified in our last
Annual Report, issued in January 2021, have not materially altered
in the interim period. We have highlighted earlier in this report,
the current Brexit related fishing rights dispute, which will
hopefully be resolved in due course. Your Board is satisfied that
Jersey Electricity plc has sufficient resources to continue in
operation for the foreseeable future, a period of not less than 12
months from the date of approval of this report. Accordingly, we
continue to adopt the going concern basis in preparing the
condensed financial statements.
Responsibility statement
We confirm to the best of our knowledge:
(a) the condensed set of financial statements has been prepared
in accordance with IAS 34 'Interim Financial Reporting';
(b) the Interim Directors Statement includes a fair review of
the information required by the Disclosure and Transparency Rule
DTR 4.2.7R (indication of important events during the first six
months and description of principal risks and uncertainties for the
remaining six months of the year); and
(c) the Interim Directors Statement includes a fair review of
the information required by the Disclosure and Transparency Rule
DTR 4.2.8R (disclosure of related party transactions and changes
therein); and
(d) this half yearly interim report contains certain
forward-looking statements with respect to the operations,
performance and financial condition of the Group. By their nature,
these statements involve uncertainty since future events and
circumstances can cause results and developments to differ
materially from those anticipated. The forward-looking statements
reflect knowledge and information available at the date of
preparation of this half yearly financial report and the Company
undertakes no obligation to update these forward-looking
statements. Nothing in this half yearly financial report should be
construed as a profit forecast.
C.J. AMBLER - Chief Executive M.P. MAGEE - Finance Director 13 May 2021
INVESTOR TIMETABLE FOR 2021
4 June Record date for interim ordinary dividend
25 June Interim ordinary dividend for year ending 30 September
2021
1 July Payment date for preference share dividends
15 December Preliminary announcement of full year results
Condensed Consolidated Income Statement (Unaudited)
Six months ended Year
ended
31-Mar 30-Sep
2021 2020 2020
Note GBP 000 GBP GBP
000 000
Revenue 2 67,098 64,198 111,747
Cost of sales (41,743) (39,287) (69,695)
------------------- ---------------- ------------
24,
Gross profit 25,355 911 42,052
Profit on revaluation of investment
properties - - 515
Operating expenses (14,108) (14,152) (26,360)
------------------- ---------------- ------------
Group operating profit 2 11,247 10,759 16,207
Finance income 26 89 139
Finance costs (779) (806) (1,516)
Profit from operations before taxation 10,494 10,042 14,830
Taxation 3 (2,162) (2,064) (3,090)
------------------- ---------------- ------------
Profit from operations after taxation 8,332 7,978 11,740
------------------- ---------------- ------------
Attributable to:
Owners of the Company 8,274 7,953 11,624
Non-controlling interests 58 25 116
------------------- ---------------- ------------
8,332 7,978 11,740
Earnings per share
- basic and diluted 27.00p 25.95p 37.94p
Condensed Consolidated Statement of Comprehensive Income
(Unaudited)
GBP 000 GBP GBP
000 000
Profit for the period/year 8,332 7,978 11,740
Items that will not be reclassified
subsequently to profit or loss:
Actuarial gain/(loss) on defined benefit
scheme 10,499 4,503 (1,663)
Income tax relating to items not reclassified (2,100) (901) 333
------------------- ---------------- ------------
8,399 3,602 (1,330)
Items that may be reclassified subsequently
to profit or loss:
Fair value (loss)/gain on cash flow
hedges (4,194) (246) 1,290
Income tax relating to items that may
be reclassified 839 49 (258)
------------------- ---------------- ------------
(3,355) (197) 1,032
Total comprehensive income for the period/year 13,376 11,383 11,442
Attributable to:
Owners of the Company 13,318 11,358 11,326
Non-controlling interests 58 25 116
------------------- ---------------- ------------
13,376 11,383 11,442
------------------- ---------------- ------------
In 2020 the Directors made a classification change in relation
to the amortisation of deferred infrastructure charges. In order to
present the results in a consistent format, the Directors have
reclassified the prior half year reported results, increasing both
Operating expenses and Revenue by GBP221k, with no impact on Group
operating profit.
Condensed Consolidated Balance Sheet (Unaudited)
Note As at 31 As at As at 30
March 31 March September
2021 2020 2020
GBP000 GBP000 GBP000
Non-current assets
Intangible assets 622 589 479
Property, plant and equipment 216,787 216,589 217,936
Right of use assets 2,849 2,880 2,899
Investment property 21,755 21,240 21,755
Trade and other receivables 300 350 300
Retirement benefit surplus 17,064 14,320 7,315
Derivative financial instruments 6 - 514 277
Other investments 5 5 5
Total non-current assets 259,382 256,487 250,966
---------------- ---------- -----------
Current assets
Inventories 5,561 5,590 6,028
Trade and other receivables 25,461 22,658 16,645
Derivative financial instruments 6 - 100 960
Cash and cash equivalents 35,882 27,080 35,520
Total current assets 66,904 55,428 59,153
---------------- ---------- -----------
Total assets 326,286 311,915 310,119
---------------- ---------- -----------
Current liabilities
Trade and other payables 18,100 16,496 18,193
Lease liabilities 66 55 65
Derivative financial instruments 6 818 320 143
Current tax payable 3,604 3,463 2,742
Total current liabilities 22,588 20,334 21,143
---------------- ---------- -----------
Net current assets 44,316 35,094 38,010
---------------- ---------- -----------
Non-current liabilities
Trade and other payables 23,701 21,949 22,714
Lease liabilities 2,847 2,847 2,879
Derivative financial instruments 6 2,282 737 -
Financial liabilities - preference
shares 235 235 235
Borrowings 30,000 30,000 30,000
Deferred tax liabilities 28,313 27,744 27,209
Total non-current liabilities 87,378 83,512 83,037
---------------- ---------- -----------
Total liabilities 109,966 103,846 104,180
---------------- ---------- -----------
Net assets 216,320 208,069 205,939
---------------- ---------- -----------
Equity
Share capital 1,532 1,532 1,532
Revaluation reserve 5,270 5,270 5,270
ESOP reserve (99) (45) (120)
Other reserves (2,480) (354) 875
Retained earnings 211,960 201,604 198,259
---------------- ---------- -----------
Equity attributable to owners
of the Company 216,183 208,007 205,816
Non-controlling interests 137 62 123
---------------- ---------- -----------
Total equity 216,320 208,069 205,939
---------------- ---------- -----------
Condensed Consolidated Statement of Changes in Equity
(Unaudited)
Share Revaluation ESOP Other Retained Total
capital reserve reserve reserves earnings reserve
GBP GBP 000 GBP GBP 000 GBP 000 GBP 000
000 000
At 1 October 2020 1,532 5,270 (120) 875 198,259 205,816
Total recognised income
and expense for the period - - - - 8,274 8,274
Amortisation of employee
share scheme - - 21 - - 21
Unrealised loss on hedges
(net of tax) - - - (3,355) - (3,355)
Actuarial gain on defined
benefit scheme (net of tax) - - - - 8,399 8,399
Equity dividends paid - - - - (2,972) (2,972)
As at 31 March 2021 1,532 5,270 (99) (2,480) 211,960 216,183
-------- ------------ -------- --------- --------- --------
At 1 October 2019 1,532 5,270 (45) (157) 192,882 199,482
Total recognised income
and expense for the period - - - - 7,953 7,953
Unrealised loss on hedges
(net of tax) - - - (197) - (197)
Actuarial gain on defined
benefit scheme (net of tax) - - - - 3,602 3,602
Equity dividends paid - - - - (2,833) (2,833)
As at 31 March 2020 1,532 5,270 (45) (354) 201,604 208,007
-------- ------------ -------- --------- --------- --------
At 1 October 2019 1,532 5,270 (45) (157) 192,882 199,482
Total recognised income
and expense for the year - - - - 11,624 11,624
Funding of employee share
option scheme - - (78) - - (78)
Amortisation of employee
share scheme - - 3 - - 3
Unrealised gain on hedges
(net of tax) - - - 1,032 - 1,032
Actuarial loss on defined
benefit scheme (net of tax) - - - - (1,330) (1,330)
Equity dividends paid - - - - (4,917) (4,917)
As at 30 September 2020 1,532 5,270 (120) 875 198,259 205,816
-------- ------------ -------- --------- --------- --------
Condensed Consolidated Cash Flow Statement (Unaudited)
Six months ended Year
March ended
Sept.
2021 2020 2020
Cash flows from operating activities GBP GBP GBP 000
000 000
Operating profit 11,247 10,759 16,207
Adjustments to add back / (deduct) non-cash
items and items disclosed elsewhere on the
CFS:
Depreciation and amortisation charges 5,363 5,726 11,424
Share-based reward charges 21 - 3
Gain on revaluation of investment property - - (515)
Pension operating charge less contributions
paid 838 683 1,439
Profit on sale of property, plant and equipment (4) (20) (24)
--------- -------- ---------
Operating cash flows before movement in
working capital 17,465 17,148 28,534
Working capital adjustments:
Decrease/(increase) in inventories 467 428 (10)
(Increase)/decrease in receivables (8,816) (4,700) 1,433
Increase/(decrease) in payables 1,267 (686) 1,071
--------- -------- ---------
Net movement in working capital (7,082) (4,958) 2,494
Interest paid (709) (802) (1,376)
Preference dividends paid (4) (4) (9)
Income taxes paid (1,371) (1,357) (2,714)
Net cash flows from operating activities 8,299 10,027 26,929
--------- -------- ---------
Cash flows from investing activities
Purchase of property, plant and equipment (4,563) (5,021) (10,922)
Investment in intangible assets (232) (76) (337)
Deposit interest received 26 89 139
Net proceeds from disposal of fixed assets 4 25 24
Net cash flows used in investing activities (4,765) (4,983) (11,096)
--------- -------- ---------
Cash flows from financing activities
Equity dividends paid (2,972) (2,833) (4,917)
Dividends paid to non-controlling interest (45) (25) (55)
Purchase of shares for employee benefit
trust - - (78)
Repayment of lease liabilities (98) (27) (189)
Net cash flows used in financing activities (3,115) (2,885) (5,239)
--------- -------- ---------
Net increase in cash and cash equivalents 419 2,159 10,594
Cash and cash equivalents at beginning of
the period/year 35,520 24,915 24,915
Effect of foreign exchange rate changes (57) 6 11
Cash and cash equivalents at end of the
period/year 35,882 27,080 35,520
--------- -------- ---------
In 2020 the Directors made a presentational change in relation
to deposit interest received, presenting this within investing
activities, in compliance with IAS 7 "Statement of Cash Flows". In
the prior half year, deposit interest received was presented within
financing activities. In order to present the consolidated cash
flow statement in a consistent format, the Directors have
reclassified prior half year interest received of GBP89k. The
adjustment has had no impact on the half year 2020 reported net
increase in cash and cash equivalents.
Notes to the Condensed Interim Accounts (Unaudited)
1. Accounting policies
Basis of preparation
The interim financial statements for the six months ended 31
March 2021 have been prepared on the basis of the accounting
policies set out in the 30 September 2020 annual report and
accounts using accounting policies consistent with International
Financial Reporting Standards and in accordance with International
Accounting Standard 34 'Interim Financial Reporting'. There have
been no changes to accounting standards during the current
financial period that has impacted the disclosures in these
financial statements and the full year financial statements that
will be prepared for 30 September 2021.
The directors have a reasonable expectation that the Group
(being the Company, Jersey Electricity plc and its subsidiary,
Jersey Deep Freeze Ltd) has adequate resources to continue in
operational existence for the foreseeable future. Thus, they
continue to adopt the going concern basis of accounting in
preparing the interim financial statements.
2. Revenue and profit
The contributions of the various activities to Group revenue and
profit are listed below:
Six months ended Six months ended Year ended
31 March 2021 31 March 2020 30 September
2020
External Internal Total External Internal Total External Internal Total
Revenue GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Energy 51,969 51 52,020 50,138 68 50,206 85,140 122 85,262
Retail 10,725 40 10,765 9,576 35 9,611 17,825 60 17,885
Building Services 1,610 299 1,909 1,897 506 2,403 3,767 1,027 4,794
Property 1,133 322 1,455 1,137 322 1,459 2,266 645 2,911
Other 1,661 425 2,086 1,450 426 1,876 2,749 891 3,640
--------- ---------
67,098 1,137 68,235 64,198 1,357 65,555 111,747 2,745 114,492
Intergroup
elimination (1,137) (1,357) (2,745)
67,098 64,198 111,747
-------- -------- --------
Operating Profit
Energy 9,154 9,007 12,257
Retail 1,012 824 1,176
Building Services 3 106 216
Property 783 464 1,270
Other 295 358 773
-------- -------- --------
11,247 10,759 15,692
Revaluation of
investment
properties - - 515
-------- -------- --------
Operating profit 11,247 10,759 16,207
-------- -------- --------
Materially, all of the Group's operations are conducted within
the Channel Islands. All transactions between divisions are on an
arm's-length basis. The assets and liabilities of the Group are not
reported on as there has been no significant movement in the values
in the six months to 31 March 2021.
In 2020 the Directors made a classification change in relation
to the amortisation of deferred infrastructure charges. In order to
present the results in a consistent format, the Directors have
reclassified the prior half year reported results, increasing both
Operating expenses and Revenue by GBP221k within Energy, with no
impact on Group operating profit.
Notes to the Condensed Interim Accounts (Unaudited)
3 . Taxation
Six months Year ended
ended 31 March 30 September
2021 2020 2020
GBP000 GBP000 GBP000
Current income tax 2,233 2,106 2,742
Deferred income tax (71) (42) 348
-------- -------- --------------
Total income tax 2,162 2,064 3,090
-------- -------- --------------
For the period ended 31 March 2021 and subsequent periods, the
Company is taxable at the rate applicable to utility companies in
Jersey of 20% (2020: 20%).
4. Dividends paid and proposed
Six months Year ended
ended 30 September
31 March
2021 2020 2020
Dividends per share
- paid 9.70p 9.25p 16.05p
- proposed 7.20p 6.80p 9.70p
GBP000 GBP000 GBP000
Distributions to equity holders 2,972 2,833 4,917
------- ------- --------------
The distribution to equity holders in respect of the final
dividend for 2020 of GBP2,972,080 (9.70p net of tax per share) was
paid on 25 March 2021.
The Directors have declared an interim dividend of 7.20p per
share, net of tax (2020: 6.80p) for the six months ended 31 March
2021 to shareholders on the register at the close of business on 4
June 2021. This dividend was approved by the Board on 13 May 2021
and has not been included as a liability at 31 March 2021.
5. Pensions
In consultation with the independent actuaries to the scheme,
the valuation of the pension scheme assets and liabilities has been
updated to reflect current market discount rates, current market
values of investments and actual investment returns applicable
under IAS 19 'Employee Benefits', and consideration has also been
given as to whether there have been any other events that would
significantly affect the pension liabilities.
6. Financial instruments
The Group held the following derivative contracts, classified as
level 2 financial instruments at 31 March 2021.
Fair value of currency hedges 31 March 30 September
2021 2020 2020
Derivative assets GBP'000 GBP'000 GBP'000
Less than one year - 100 960
Greater than one year - 514 277
Derivative liabilities
Less than one year (818) (320) (143)
Greater than one year (2,282) (737) -
Total net (liabilities) / assets (3,100) (443) 1,094
-------- -------- -------------
Notes to the Condensed Interim Accounts (Unaudited)
All financial instruments for which fair value is recognised or
disclosed are categorised within the fair value hierarchy. This
hierarchy is based on the underlying assumptions used to determine
the fair value measurement as a whole and is categorised as
follows:
Level 1 financial instruments are those with values that are
immediately comparable to quoted (unadjusted) market prices in
active markets for identical assets or liabilities;
Level 2 financial instruments are those with values that are
determined using valuation techniques for which the basic
assumptions used to calculate fair value are directly or indirectly
observable (such as to readily available market prices);
Level 3 financial instruments are shown at values that are
determined by assumptions that are not based on observable market
data (unobservable inputs).
The derivative contracts for foreign currency shown above are
classified as level 2 financial instruments and are valued using a
discounted cash flow valuation technique. Future cash flows are
estimated based on forward exchange rates (from observable forward
exchange rates at the end of the reporting period) and contract
forward rates, discounted at a rate that reflects the credit risk
of various counterparties.
7. Related party transactions
The Government of Jersey (the "Government") treats the Company
as a strategic investment. Whilst it holds the majority voting
rights in the Company, the Government does not take the view that
the Company is under its control and as such, it is not
consolidated within the Government accounts. The Government is
understood by the Directors to have significant influence but not
control of the Company.
The Company has elected to take advantage of the disclosure
exemptions available in IAS24, paragraphs 25 and 26.
All transactions are undertaken on an arms-length basis in the
course of ordinary business.
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Jersey Electricity (LSE:JEL)
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부터 2월(2) 2024 으로 2월(2) 2025
