Jersey Electricity Company

Jersey Electricity Company Dividend Analysis and Summary

• Dividend type: Final (Ordinary and ‘A’ Ordinary)
• Amount: 12.60p per share (FY24: 12.00p)
• Total FY25 dividend: 20.82p per share (interim 8.82p + final 12.60p), up ~5% YoY (FY24: 19.80p)
• Ex-dividend date: 19/02/2026 (derived from record date)
• Record date: 20/02/2026
• Payment date: 13/03/2026
• Dividend cover: 1.7x FY25 EPS of 35.90p (payout ~59%)
• Preference shares: 5% cumulative participating prefs – dividend of 1.5% payable 01/07/2026

• Progressive growth maintained: Final DPS up 5% and total DPS up ~5% aligns with the company’s steady, incremental dividend trajectory.
• Coverage acceptable but tighter: Cover at 1.7x (vs 1.9x) reflects modest EPS decline (PBT £14.2m vs £15.1m). Still reasonable for a utility-like business.
• Cash support is strong: Operating cash flow of £25.3m comfortably covers equity dividends paid of £6.38m (~4.0x cash cover).
• Balance sheet headroom: Net cash of £8.7m (cash £38.7m, borrowings £30m) provides flexibility, though net cash fell due to elevated capex.
• Return profile stable: Energy business ROA at 6.4% on a five-year rolling basis is within the 6–7% target range, underpinning medium-term dividend capacity.
• Capital allocation: Significant reinvestment continues (FY25 capex ~£30.3m; multi-year programmes of £120m “Big Upgrade” and £30m resilience). The 5% DPS growth appears calibrated to balance shareholder returns with infrastructure needs.