(JEL.L) Jersey Electricity Company Ltd Buy/Sell

Condensed Group Statement of Recognised Income and Expense (Unaudited)

Six months ended31 March Year
ended30September

£000 £000 £000
Profit for the financial 4,273 6,155 9,824

period
Actuarial (loss)/gain on (8,178) 2,283 (4,874)

defined benefit scheme (net of tax)
Fair value gain on cash flow 1,906 3,401 1,737

hedges (net of tax)
Totalrecognisedincome and (1,999) 11,839 6,687

expense for the period attributable to the equity holders of the parent company

Condensed Group Balance Sheet (Unaudited)

As at 31 March As at 30 September

Note 2009 2008 2008
£000 £000 £000

Intangible assets 84 60 86
Property, plant and equipment 119,723 112,016 115,990
Investment property 12,635 12,340 12,635
Other investments 1,907 2,102 2,037
Retirement benefit surplus - 15,506 6,702

Total non-current assets 134,349 142,024 137,450

Inventories 5,813 4,695 6,102
Trade and other receivables 14,653 13,972 9,942
Derivative financial 5,019 4,715 2,763

instruments
Short-term investments - cash 5,585 4,930 11,025

deposits
Cash and cash equivalents 6,398 10,160 5,217

Total current assets 37,468 38,472 35,049

TOTAL ASSETS 171,817 180,496 172,499

Trade and other payables 11,962 10,093 11,477
Derivative financial - - 127

instruments
Current tax payable 1,656 887 905

Total current liabilities 13,618 10,980 12,509
NET CURRENT ASSETS 23,850 27,492 22,540

Trade and other payables 14,216 13,422 13,959
Retirement benefit deficit 2,780 - -
Tax liabilities - 1,093 -
Financial liabilities - 235 235 235

preference shares
Deferred tax liabilities 11,422 15,221 12,535

Total non-current liabilities 28,653 29,971 26,729

TOTAL LIABILITIES 42,271 40,951 39,238

NET ASSETS 129,546 139,545 133,261

Share capital 1,532 1,532 1,532
Other reserves 5,019 4,220 2,556
Retained earnings 122,988 133,772 129,166

Shareholders' funds 7 129,539 139,524 133,254

Minority interest 7 21 7

TOTAL EQUITY 129,546 139,545 133,261

Condensed Group Cash Flow Statement (Unaudited)

Six months ended Year ended
31 March 30 September

Note 2009 2008 2008
£000 £000 £000

Operating profit before joint 4,955 6,248 8,835

venture
Depreciation and amortisation 3,705 3,458 6,950

charges
Revaluation of investment property - - (294)
Pension operating charge less (585) (900) (1,110)

contributions paid
Profit on sale of fixed assets - (407) (406)

Operating cash flows before 8,075 8,399 13,975

movement in working capital
Decrease/(increase) in inventories 289 (64) (1,471)
(Increase)/decrease in trade and (4,624) (2,762) 1,388

other receivables
Increase/(decrease) in trade and 1,490 (1,045) 954

other payables
Interest received 314 601 1,010
Preference dividends paid (4) (5) (9)
Income taxes paid - - (896)

Net cash flows from operating 5,540 5,124 14,951

activities

Purchase of property, plant and 5 (8,175) (5,593) (13,270)

equipment
Investment in intangible assets (8) (22) (49)
Proceeds from disposal of property - 410 413
Repayment of long-term loan 100 - 109
Short-term investments 5,440 (1,175) (7,270)

Net cash flows from investing (2,643) (6,380) (20,067)

activities

Equity dividends paid 4 (1,716) (1,197) (2,426)

Net cash flows used in financing (1,716) (1,197) (2,426)

activities
Net increase/(decrease) in cash and 1,181 (2,453) (7,542)

cash equivalents
Cash and cash equivalents at 5,217 12,613 12,613

beginning of period
Cash and cash equivalents at end of 6,398 10,160 5,071

period
Overdraft - - 146

Cash and cash equivalents at end of 6,398 10,160 5,217

period

Notes to the Condensed Interim Accounts

1. Accounting policies

Basis of preparation

The interim accounts for the six months ended 31 March 2009 have been prepared on the basis of the accounting policies set out in the 30 September 2008 annual report and accounts using accounting policies consistent with International Financial Reporting Standards (IFRS) and in accordance with IAS 34 'Interim Financial Reporting'.

2. Turnover and profit

The contributions of the various activities of the Group to turnover and profit are listed below:

31 March 2009 31 March 2008 30 September 2008
External Internal Total External Internal Total External Internal Total
Revenue £000 £000 £000 £000 £000 £000 £000 £000 £000

Energy 39,086 126 39,212 34,590 132 34,722 61,751 271 62,022
Building services 1,881 63 1,944 1,785 82 1,867 3,402 172 3,574
Retail 6,856 32 6,888 7,257 25 7,282 13,135 51 13,186
Property 898 344 1,242 826 340 1,166 1,659 678 2,337
Other 904 313 1,217 965 359 1,324 1,963 723 2,686

49,625 878 50,503 45,423 938 46,361 81,910 1,895 83,805
Inter Group elimination (878) (938) (1,895)
49,625 45,423 81,910

Operating profit
Energy 3,720 4,385 5,965
Building services 139 219 274
Retail 279 485 450
Property 620 485 953
Other 186 281 540
Operating profit before 4,944 5,855 8,182

property revaluation/sale
Revaluation of investment - - 294

properties
Profit from sale of property - 407 405
Operating profit 4,944 6,262 8,881

Other gains and losses
Interest receivable 405 554 1,086
Finance costs (5) (4) (11)
Profit from operations before 5,344 6,812 9,956

taxation
Taxation (1,071) (639) (84)
Profit from operationsafter 4,273 6,173 9,872

taxation
Minority interest - (18) (48)
Profit for the period 4,273 6,155 9,824

Materially, all the Group's operations are conducted within the Channel Islands. All transfers between divisions are at an arm's-length basis.

In terms of seasonality unit sales of electricity are consistently higher in the first half of the year.

The only material movements between 2009 and 2008 half year segmental data is the increase in revenue and decrease in profit in the Energy business. This 13% rise was a result of a 2% increase in unit sales of electricity combined with the year on year impact of a tariff rise on 1 January 2009. The decrease in profit was primarily due to an increase in the cost of imported power from 1 January 2009.

Notes to the Condensed Interim Accounts (Unaudited)

3. Income tax
Six months ended Year ended 30 September
31 March

£000 £000 £000

Current income tax (751) (511) (437)
Deferred income tax (320) (128) 353
Total income tax (1,071) (639) (84)

On 30 January 2007 the draft 'zero-ten' legislation was approved by the States of Jersey. The legislation came into effect from 1 January 2009. The effective tax rate for 2007 and 2008 was lower than in to 2006 due to the migration from a prior to current year basis but has reverted to 20% for Island utilities from 2009 onwards. This is why the tax charge has moved upwards.

4. Dividends
Six months ended Year ended
31 March 30 September

£000 £000 £000

Distributions to equity holders and by 1,716 1,197 2426

subsidiaries in the period

The distribution to equity holders in the period consisted of £ 1,715,840 (112p net of tax per share) in respect of the final dividend for 2008. No dividends were paid by subsidiaries to minority interests in the period.

The Directors have declared an interim dividend of 77p per share, net of tax (2008 - 73p) for the six months ended 31 March 2009 to shareholders on the register at the close of business on 12 June 2009. This dividend was approved by the Board on 28 May 2009 and has not been included as a liability at 31 March 2009.

5. Property, plant and equipment

During the period, Jersey Electricity spent approximately £3m on the finalisation of the £14m project to reinforce the electricity infrastructure in the west of Jersey. In addition £1m was paid as a deposit to RTE in France to secure the timing slot for the landside network build necessary as part of Normandie 3 project to deliver a third electricity interconnector between the Channel Islands and mainland Europe. Capital expenditure on other distribution reinforcement and new customer developments amounted to £2m in the last six months.

Notes to the Condensed Interim Accounts

6. 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 also to consider whether there have been any other events that would significantly affect the pension liabilities. The next triennial actuarial valuation of the defined benefits scheme is at 31 December 2009 when the relevant assumptions will be reviewed to establish the applicable future required cash contributions.

7. Reconciliation of movements in equity
Share Other Retained
capital reserves earnings Total
£000 £000 £000 £000
At 1 October 2008 1,532 2,556 129,166 133,254
Total recognised income and expense - - 4,273 4,273

for the period
Unrealised gains on hedges - 1,906 - 1,906
Actuarial loss on defined benefit - - (8,178) (8,178)

scheme
Equity dividends - - (1,716) (1,716)
As at 31 March 2009 1,532 4,462 123,545 129,539
At 1 October 2007 1,532 819 126,483 128,834
Total recognised income and expense - - 9,824 9,824

for the period
Unrealised gains on hedges - 1,737 - 1,737
Actuarial loss on defined benefit - - (4,874) (4,874)

scheme
Equity dividends - - (2,267) (2,267)
As at 30 September 2008 1,532 2,556 129,166 133,254
At 1 October 2007 1,532 819 126,483 128,834
Total recognised income and expense - - 6,155 6,155

for the period
Unrealised gains on hedges - 3,401 - 3,401
Actuarial loss on defined benefit - 2,283 2,283

scheme
Equity dividends - - (1,149) (1,149)
As at 31 March 2008 1,532 4,220 133,772 139,524

The other reserves comprise of the foreign currency reserve of £4,014,000 and a revaluation reserve of £448,000. The increase from 30 September 2008 is due to the rise in the fair value of our forward currency hedges because of the recent weakening of Sterling against the Euro.

8. Related party transactions

At the half-year end Foreshore Limited had a debtors balance of £650,000 (2008: £859,000).

During the six months to 31 March 2009 the Company made electricity sales of £245,000 (2008: £190,000) and other sales of £382,000 (2008: £232,000) to Foreshore Limited.

All the above transactions were conducted at an arm's-length basis.

This information is provided by RNS The company news service from the London Stock Exchange

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