Centrica

Ticker CNA

Today's data summary

Market closed
% change
+0.37%
Price Pence
70.00
Change
+0.26
As of 23:13 19 Oct 2019
Market cap. Pound sterling
4,072.91 million
As of 23:12 19 Oct 2019

Latest updates

UK stocks tick lower

The FTSE 100 is trading 0.20% lower at 7,411.02.

Whitbread remains the biggest faller with its share price down 4.5% at £42.63.

British Gas-owner Centrica is now leading the FTSE 100 risers, up 2.1% at 75.02p.

FTSE 250 is down 0.24% at 19,922.73

Centrica shares off 17%

london skyline
Getty Images

With just the last 30 minutes or so of trading left in London on Tuesday, miner Fresnillo and British Gas-owner Centrica are battling it out to register the biggest losses of any FTSE 100 share today.

Fresnillo is off 16% while Centrica has plunged to 21 year lows, down 17%.

In the FTSE 250, CYBG is still the biggest loser, down 11% after the owner of Virgin Money and Clydesdale and Yorkshire banks issued results. Metro Bank, having a torrid time of late on the stock market, is down 7% at 370p and on course for what appears to be a record low.

Market update: Centrica off 15%, IAG falls

plane wing with Lufthansa
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Results from German airline Lufthansa showing a 25% fall in second quarter profits to €754m (£690m) are being cited as the cause of a fall in the share price of British Airways-owned International Airline Group.

IAG's shares are the third the biggest faller in the FTSE 100, losing 3%.

The biggest faller of the day, though, is Centrica. Its shares are off 15% after its results.

Miner Fresnillo is the second biggest faller. It is down 11% after it posted first half profits of $70.9m (£58m), compared with $229.3m a year ago.

The FTSE 100 is 7 points higher at 7,694, led by BP.

Centrica union: It's not just the price cap

centrica
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Justin Bowden, National Secretary of the GMB union, says Centrica's chief executive Ian Conn is leaving after a "litany of past management failures" compounded by the energy price cap.

“The havoc the [price] cap continues to wreak on British jobs across the UK’s traditional energy supply businesses and the unusually warm weather and outages in the nuclear business have not helped, but they are only a small part of the story; the real reasons for Centrica’s demise are a series of poor management decisions and an arrogant refusal to face up in time to the changing world of competition.

“Blessed with a loyal workforce, a top class brand and the biggest customer base in the country it now needs the right leadership and a properly implemented strategic vision.”

Centrica rocked by changing market dynamics

Dominic O'Connell

Business Presenter, BBC Radio 4 Today programme

gas ring
Getty Images

Investors love companies with big market shares in industries where competitors find it hard to secure a foothold – and a decade ago that was Centrica.

Through British Gas it had a one-fifth share of the British household energy market, where competition was limited, and a fast-growing business in America.

A previous flourishing of competition among energy retailers had been killed off when wholesale prices had risen quickly.

But those market dynamics have now been tipped on their head.

New technology and new government regulations have made it much easier for people to change their supplier, and generating power has proved to be a marginal and often loss-making game.

Ian Conn arrived just as this new reality was dawning, and there were much greater headwinds awaiting.

Theresa May’s cap on energy prices has cut about £300m off its annual retail profits, and nimble competitors have eaten away at its cosy retail dominance.

Mr Conn has raced to try and keep up, but those once loyal shareholders have always been ahead of him. The share price was north of 300p when he joined – now it is just 81p.

Before his departure he has made the final big steps in the step away from capital-intensive power-generation assets, putting both the nuclear power and oil and gas interests up for sale.

It will be up to his successor to convince markets that this strategy is the right one.

Unions urge vote against 'obscene' pay at Centrica

Iain Conn
BBC

Iain Conn, chief executive of Centrica, which owns British Gas, received a 44% rise in his pay last year to £2.4m.

The pay package is being described as "obscene" by the GMB union which has written to major institutional investor to urge them vote against the company's pay at next month's annual general meeting.

Justin Bowden, GMB national secretary, said: “Ordinary Centrica workers are not being offered 4% pay rises, never mind 44%.

“The resulting loss of confidence since the announcement of Iain Conn’s planned rise runs right through the company from top to bottom.

“From call centre staff earning 1/120th of the CEO’s pay, to the very highest levels of management are utterly demoralised by the poor judgement and lack of leadership.

“It is a classic boardroom case of ‘do as I say, not as I do’."

The GMB said it has 15,000 members in Centrica, many of whom are themselves shareholders.

The AGM is on 19 May.

Union calls out Centrica over boss pay rise

British Gas van
Getty Images

Trade union Unison has called on British Gas employees to use their votes to prevent Centrica boss Iain Conn from being given a £2.4m pay package at a general meeting in May.

British Gas owner Centrica has so far axed 2,000 jobs at the firm.

“This obscene pay rise shows a total lack of empathy for the situation of employees who are struggling to make ends meet or who may soon be losing their jobs," said Unison's national officer for energy Matt Lay.

“It’s impossible to defend when there are cutbacks throughout the company. Staff should make a stand at the forthcoming AGM.

“At a time when the company is struggling financially and staff face an uncertain future it simply cannot be right that the man at the top is enjoying such a huge pay and bonus extravaganza. We ask him to show some leadership by refusing to take this pay rise.”