Jersey Electricity — H1 strong both financially and operationally

Jersey Electricity (JEL) recently released its H125 results, reporting group revenue growth of 9% y-o-y to £82.3m (H124: £75.6m), mainly due to the performance of its energy business. PBT remained relatively flat year-on-year at £10.5m, while cost of sales and operating costs increased 12% y-o-y, reflecting continuing inflationary pressures. Net cash on the balance sheet contracted to £8.5m from £16.7m last year, driven by a rise in capital expenditure as part of JEL’s £180m five-year strategic investment plan to improve its energy network and services. We maintain our previous estimates and valuation of 708p per share.