Summary
The Company continues to make good progress in the implementation of its strategy and portfolio repositioning and remains on track to achieve the 2017 targets set out at its 2016 Preliminary Results in February. However, trading conditions continue to be highly competitive and performance delivery since mid-year within the Centrica Business energy supply businesses has been disappointing.
Iain Conn, Centrica Group Chief Executive, said “Although some aspects of our delivery in the second half of 2017 have been disappointing, I remain encouraged by our progress in implementing our strategy. The balance sheet has been materially strengthened, and we continue to focus on improving our underlying performance. We have also provided a broad and definitive set of proposals this week to improve the UK energy market for customers and look forward to engaging with the Government and regulator in the coming weeks.”
In Centrica Consumer, delivery from the Group’s efficiency programme is offsetting overall gross margin decline. Energy supply accounts have fallen, but this largely reflects choices we have made to focus on customer value, while in recent weeks account holdings in UK Home Services have stabilised and growth in Connected Home continues. In Centrica Business, we have experienced significant market pressures in our North America Business retail power book, and in UK Business we are not yet seeing improved operational performance flowing through to the bottom line. We are also reflecting a one-off non-cash post-tax charge of £46m in North America Business, relating to a reassessment of the historic recognition of unbilled power revenues. In the asset businesses, the Morecambe field is back on production and Spirit Energy, Centrica’s E&P joint venture with Stadtwerke München, is on target to close before the end of the year, subject to regulatory approvals.
https://www.investegate.co.uk/centrica- ... 0000Z6352/
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