British Gas owner Centrica sheds 107,000 customers but shares rise as it sticks to guidance
Centrica has shed a further 107,000 household accounts in the last four months, but the British Gas owner said it remained on track to hit full-year targets.
Investors cheered the results this morning, with shares rising five per cent to roughly 78p.
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The gas and electricity supplier also reported an improvement in cost savings by roughly £50m.
Amid ongoing pressure from smaller fast-growing competitors, British Gas has suffered an outflow of energy supply accounts in recent years.
However, this morning the utilities giant told the City that the rate at which accounts were being lost was “significantly lower” than it was during the same period last year.
The firm is also trimming planned investment spend by £100m to £800m.
Adjusted operating cash flow is expected to be in the lower half of £1.8bn-2bn range and net debt within £3bn-3.5bn targeted range.
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“Whilst Centrica’s trading is in-line with expectations, we see today’s reassuring update as a first step forward, after several profit warnings since 2017,” said Jefferies in a research note today.
The broker added: “Encouragingly, overall in the UK, total customer accounts increased by 136K over this period, with growth in services and home solutions more than offsetting the reduction in supply accounts.”
Chief executive Iain Conn said: “Our performance has been solid so far in the second half of the year and we remain on track to achieve our full year targets for both adjusted operating cash flow and net debt.
“I am encouraged by further growth in customer accounts and the recovery of business energy supply margins in North America, while we also continue to drive material levels of efficiency and maintain capital discipline.”