Announcement • 6h
Centrica plc (LSE:CNA) acquired Severn combined-cycle gas turbine power station from Calon Energy Limited for approximately £370 million. Centrica plc (LSE:CNA) acquired Severn combined-cycle gas turbine power station from Calon Energy Limited for approximately £370 million on May 7, 2026. A cash consideration of £370 million will be paid by Centrica plc. As part of consideration, £370 million is paid towards assets of Severn combined-cycle gas turbine power Centrica will fund the acquisition of Severn entirely from existing cash resources, on a cash-free, debt-free basis. Citigroup Global Markets Limited acted as financial advisor to Centrica plc. Slaughter and May and Freeths LLP acted as legal advisor to Centrica plc.
Centrica plc (LSE:CNA) completed the acquisition of Severn combined-cycle gas turbine power station from Calon Energy Limited on May 7, 2026. Upcoming Dividend • Apr 02
Upcoming dividend of UK£0.037 per share Eligible shareholders must have bought the stock before 09 April 2026. Payment date: 14 May 2026. The company is not currently making a profit and there are not enough cash flows to support it either. Trailing yield: 2.5%. Lower than top quartile of British dividend payers (5.9%). Lower than average of industry peers (3.9%). New Risk • Mar 25
New minor risk - Insider selling There has been significant insider selling in the company's shares over the past 3 months. Total value of shares sold: UK£653k This is considered a minor risk. There are several reasons why an insider may be selling, including to cover a tax obligation or pay for some other expense. However, we generally consider it a negative if insiders have been selling, especially if they do so below the current price. It implies that they considered a lower price to be reasonable. This is a weak signal, but if there is a pattern of unexplained selling, it can be a sign the insider believes the company's stock is overpriced. Note: We only include open market transactions and private dispositions of directly owned stock by individuals, not by corporations or trusts. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Cash payout ratio: 176% Minor Risk Significant insider selling over the past 3 months (UK£653k sold). Recent Insider Transactions • Mar 25
Key Executive recently sold UK£653k worth of stock On the 23rd of March, Christopher O'Shea sold around 327k shares on-market at roughly UK£2.00 per share. This transaction amounted to 4.1% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. This was Christopher's only on-market trade for the last 12 months. Reported Earnings • Feb 20
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: UK£0.015 loss per share (down from UK£0.26 profit in FY 2024). Revenue: UK£19.5b (down 2.1% from FY 2024). Net loss: UK£72.0m (down 105% from profit in FY 2024). Revenue missed analyst estimates by 2.0%. Earnings per share (EPS) were also behind analyst expectations. Revenue is forecast to grow 3.7% p.a. on average during the next 3 years, compared to a 4.9% growth forecast for the Integrated Utilities industry in Europe. Over the last 3 years on average, earnings per share has fallen by 51% per year but the company’s share price has increased by 22% per year, which means it is well ahead of earnings. Announcement • Dec 19
Centrica plc Announces Directorate and Committee Changes Centrica announced that Heidi Mottram, Non-Executive Director of Centrica plc, will step down from the Board with effect from 31 December 2025. Heidi has served on the Board since 1 January 2020 and has contributed significantly to the work of the Nominations and Remuneration Committees and as Chair of the Safety, Environment and Sustainability Committee. The Board thanks her for her valuable contribution. Centrica also announces that Amber Rudd will be appointed as Chair of the Safety, Environment and Sustainability Committee and will join the Nominations Committee, both with effect from 1 January 2026. Announcement • Nov 28
Centrica plc (LSE:CNA) and Energy Capital Partners, LLC completed the acquisition of National Grid Grain LNG Limited and Thamesport Interchange Limited from National Grid plc (LSE:NG.) Centrica plc (LSE:CNA) and Energy Capital Partners, LLC entered into a sale and purchase agreement to acquire National Grid Grain LNG Limited/Thamesport Interchange Limited from National Grid plc (LSE:NG.) for an enterprise value of £1.5 billion on August 14, 2025. A cash consideration will be paid by Centrica plc and Energy Capital Partners, LLC. The purchase of Grain LNG is for an enterprise value of £1.5 billion.
Centrica's 50% share of the equity investment of approximately £200 million will be funded from it's existing cash resources. Centrica plc and Energy Capital Partners has also secured approximately £1.1 billion of committed financing, which will be drawn at closing, to fund a portion of the enterprise value.
The transaction is conditional upon certain regulatory approvals being received, including approval under the National Security and Investment Act and certain mandatory anti-trust approvals. The completion of the transaction is expected to occur in Q4 this calendar year.
Brian O'Keeffe, Conor Hennebry and Martin Weltman Banco Santander, S.A., London Branch acted as financial advisor for Centrica plc and Energy Capital Partners, LLC. Slaughter and May acted as legal advisor for Centrica plc. Latham & Watkins LLP acted as legal advisor for Centrica plc and Energy Capital Partners, LLC. Morgan Stanley acted as financial advisor to National Grid plc. Charles Steward, Caroline Rae, Reza Dadbakhsh, Silke Goldberg, David Coulling, Veronica Roberts, Howard Murray and Tim Leaver of Herbert Smith Freehills LLP acted as legal advisor to National Grid plc (LSE:NG.)
Centrica plc (LSE:CNA) and Energy Capital Partners, LLC completed the acquisition of National Grid Grain LNG Limited and Thamesport Interchange Limited from National Grid plc (LSE:NG.) on November 28, 2025. Buy Or Sell Opportunity • Oct 31
Now 20% undervalued Over the last 90 days, the stock has risen 8.3% to UK£1.79. The fair value is estimated to be UK£2.25, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 5.5% over the last 3 years. Meanwhile, the company became loss making. Announcement • Sep 22
Centrica plc Appoints Frank Mastiaux as a Non-Executive Director, Effective 22 September 2025 Centrica announced the appointment of Frank Mastiaux as a Non-Executive Director of the Company with effect from 22 September 2025. Frank will also join the Company's Safety, Environment and Sustainability Committee (SESC). Frank is an experienced executive and board member with over three decades in the energy industry. He served as CEO of Energie Baden-Württemberg AG (EnBW) from 2012 to 2022, where he led a strategic transformation that significantly increased the company's market capitalisation and positioned it as a leader in renewable energy. Prior to that, he held senior roles at BP and E.ON, including CEO of E.ON Climate & Renewables and CEO of BP's global LPG business. Frank currently serves as Chair of Sunfire SE, a hydrogen technology company, and is an advisory board member at Boehringer Ingelheim. He was previously a Supervisory Board member at Alstom Group. He holds a PhD in Analytical Chemistry from the University of Duisburg. Upcoming Dividend • Sep 11
Upcoming dividend of UK£0.018 per share Eligible shareholders must have bought the stock before 18 September 2025. Payment date: 30 October 2025. The company is not currently making a profit and there are not enough cash flows to support it either. Trailing yield: 3.1%. Lower than top quartile of British dividend payers (5.5%). Lower than average of industry peers (5.1%). Announcement • Aug 14
Centrica plc (LSE:CNA) and Energy Capital Partners, LLC entered into a sale and purchase agreement to acquire National Grid Grain LNG Limited/Thamesport Interchange Limited from National Grid plc (LSE:NG.). Centrica plc (LSE:CNA) and Energy Capital Partners, LLC entered into a sale and purchase agreement to acquire National Grid Grain LNG Limited/Thamesport Interchange Limited from National Grid plc (LSE:NG.) on August 14, 2025. A cash consideration will be paid by Centrica plc and Energy Capital Partners, LLC. The purchase of Grain LNG is for an enterprise value of £1.5 billion.
Centrica's 50% share of the equity investment of approximately £200 million will be funded from it's existing cash resources. Centrica plc and Energy Capital Partners has also secured approximately £1.1 billion of committed financing, which will be drawn at closing, to fund a portion of the enterprise value.
The transaction is conditional upon certain regulatory approvals being received, including approval under the National Security and Investment Act and certain mandatory anti-trust approvals. The completion of the transaction is expected to occur in Q4 this calendar year.
Brian O'Keeffe, Conor Hennebry and Martin Weltman Banco Santander, S.A., London Branch acted as financial advisor for Centrica plc and Energy Capital Partners, LLC. Slaughter and May acted as legal advisor for Centrica plc. Latham & Watkins LLP acted as legal advisor for Centrica plc and Energy Capital Partners, LLC. Morgan Stanley acted as financial advisor to National Grid plc. Announcement • Jul 30
Centrica plc (LSE:CNA) acquired 16% stake in Gasrec Ltd. Centrica plc (LSE:CNA) acquired 16% stake in Gasrec Ltd. on July 30, 2025.
Centrica plc (LSE:CNA) completed the acquisition of 16% stake in Gasrec Ltd. on July 30, 2025. Reported Earnings • Jul 25
First half 2025 earnings: EPS and revenues miss analyst expectations First half 2025 results: UK£0.051 loss per share (down from UK£0.25 profit in 1H 2024). Revenue: UK£10.1b (down 4.0% from 1H 2024). Net loss: UK£251.0m (down 119% from profit in 1H 2024). Revenue missed analyst estimates by 13%. Earnings per share (EPS) were also behind analyst expectations. Revenue is expected to decline by 2.5% p.a. on average during the next 3 years, while revenues in the Integrated Utilities industry in Europe are expected to grow by 3.3%. Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has increased by 23% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Jul 25
Centrica plc Declares Interim Dividend for the First Half of 2025 Centrica plc declared interim dividend of 1.83 pence per share for the first half of 2025 (H1 2024: 1.50 pence per share). Announcement • Jul 22
Centrica plc to Report First Half, 2025 Results on Jul 24, 2025 Centrica plc announced that they will report first half, 2025 results on Jul 24, 2025 Announcement • Jul 08
Centrica plc Appoints Alessandra Pasini as A Non-Executive Director; Member of Audit and Risk Committee and Nominations Committee Centrica plc announce the appointment of Alessandra Pasini as a Non-Executive Director of the Company with immediate effect. Alessandra will also become a member of the Company's Audit and Risk Committee and Nominations Committee. Recent Insider Transactions Derivative • Jun 29
Key Executive exercised options and sold UK£1.3m worth of stock On the 23rd of June, Christopher O'Shea exercised options to acquire 771k shares at no cost and sold these for an average price of UK£1.68 per share. This trade did not impact their existing holding. For the year to December 2018, Christopher's total compensation was 20% salary and 80% other compensation. This indicates that these sales could comprise a meaningful part of their income for the year. Since September 2024, Christopher has owned 5.49m shares directly. Company insiders have collectively sold UK£3.6m more than they bought, via options and on-market transactions in the last 12 months. New Risk • Jun 25
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 8.7% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Earnings are forecast to decline by an average of 8.7% per year for the foreseeable future. High level of non-cash earnings (44% accrual ratio). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (6.7% net profit margin). Announcement • May 09
Centrica plc Approves the Final Cash Dividend Centrica plc at its AGM held on May 8, 2025, approved the final cash dividend of 3.0 pence per ordinary share. Buy Or Sell Opportunity • Apr 30
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 15% to UK£1.60. The fair value is estimated to be UK£1.33, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 7.2% over the last 3 years. Earnings per share has grown by 53%. For the next 3 years, revenue is forecast to decline by 3.0% per annum. Earnings are also forecast to decline by 8.4% per annum over the same time period. Upcoming Dividend • Apr 24
Upcoming dividend of UK£0.03 per share Eligible shareholders must have bought the stock before 01 May 2025. Payment date: 05 June 2025. Payout ratio is a comfortable 18% and this is well supported by cash flows. Trailing yield: 2.9%. Lower than top quartile of British dividend payers (6.2%). Lower than average of industry peers (5.1%). Major Estimate Revision • Mar 05
Consensus revenue estimates increase by 10% The consensus outlook for revenues in fiscal year 2025 has improved. 2025 revenue forecast increased from UK£19.8b to UK£21.8b. EPS estimate increased from UK£0.163 to UK£0.166 per share. Net income forecast to shrink 39% next year vs 1.1% growth forecast for Integrated Utilities industry in the United Kingdom . Consensus price target up from UK£1.70 to UK£1.75. Share price was steady at UK£1.47 over the past week. Major Estimate Revision • Feb 27
Consensus EPS estimates increase by 15%, revenue downgraded The consensus outlook for fiscal year 2025 has been updated. 2025 revenue forecast fell from UK£23.5b to UK£22.1b. EPS estimate rose from UK£0.141 to UK£0.163. Net income forecast to shrink 40% next year vs 4.5% growth forecast for Integrated Utilities industry in the United Kingdom . Consensus price target up from UK£1.67 to UK£1.73. Share price rose 8.6% to UK£1.48 over the past week. Announcement • Feb 22
Centrica plc Proposes Final Dividend for the Year Ended 31 December 2024, Payable on 5 June 2025 and Proposes Dividend for Full Year 2025 Centrica plc is proposing a 2024 final dividend of 3.0 pence per share for the year ended 31 December 2024, taking the full year dividend to 4.5 pence from 4.0 pence per share in 2023, with an intent to raise the 2025 dividend per share by a further 22% to 5.5 pence. The dividend will be submitted for formal approval at the Annual General Meeting to be held on 8 May 2025 and, subject to approval, will be paid on 5 June 2025 to those shareholders registered on 2 May 2025. Ex-dividend date for 2024 final dividend is 1 May 2025. Reported Earnings • Feb 21
Full year 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2024 results: EPS: UK£0.26 (down from UK£0.71 in FY 2023). Revenue: UK£19.9b (down 25% from FY 2023). Net income: UK£1.33b (down 66% from FY 2023). Profit margin: 6.7% (down from 15% in FY 2023). Revenue missed analyst estimates by 1.7%. Earnings per share (EPS) exceeded analyst estimates by 31%. Revenue is forecast to grow 2.3% p.a. on average during the next 3 years, compared to a 3.2% growth forecast for the Integrated Utilities industry in Europe. Over the last 3 years on average, earnings per share has increased by 53% per year but the company’s share price has only increased by 23% per year, which means it is significantly lagging earnings growth. Announcement • Feb 21
Centrica plc, Annual General Meeting, May 08, 2025 Centrica plc, Annual General Meeting, May 08, 2025. Announcement • Feb 20
Centrica plc to Report Fiscal Year 2024 Results on Feb 20, 2025 Centrica plc announced that they will report fiscal year 2024 results at 7:00 AM, Coordinated Universal Time on Feb 20, 2025 Announcement • Nov 15
Centrica plc Announces Board Changes, Effective 16 December 2024 On 25 July 2024, Centrica plc announced that Kevin O'Byrne, currently Senior Independent Director, would succeed Scott Wheway as Chair of the Board from 16 December 2024. The company also announced the appointment of Jo Harlow as Senior Independent Director, effective from 16 December 2024. Jo was appointed to the Centrica Board on 1 December 2023 and serves as a member of the Remuneration and Nominations Committees. Buy Or Sell Opportunity • Nov 05
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 6.2% to UK£1.16. The fair value is estimated to be UK£1.45, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 21% over the last 3 years. Earnings per share has grown by 65%. For the next 3 years, revenue is forecast to decline by 2.7% per annum. Earnings are also forecast to decline by 9.9% per annum over the same time period. Announcement • Oct 07
British Gas Owner Reportedly Mulls £1 Billion Stake in Hinkley THE owner of British Gas is exploring a potential investment in Hinkley Point C Solutions Limited as French state energy giant Electricité de France S.A. (EDF) scrambles to raise more funds for the troubled nuclear project. Centrica plc (LSE:CNA) has held discussions about a possible deal in recent months, although the talks are at an early stage, The Telegraph understands. City sources suggested the company could put at least £1 billion into the scheme, which is being built in Somerset, in exchange for a stake of 5% or more. Any deal would also likely secure Centrica a share of the plant's electricity output, at a time when energy suppliers are revisiting nuclear as a potential source of "clean" power to replace fossil fuels. It comes as EDF, which owns 68% of Hinkley, faces a reported £5 billion shortfall in funding needed to complete the scheme. As part of efforts to plug the gap, the company and the French government have lobbied for financial support from the UK Government while also seeking new private backers. An investment by Centrica would extend a long-running partnership between the British company and EDF. The FTSE 100 giant already holds a 20% share in all five of EDF's remaining UK nuclear power stations. This also entitles it to trade an equivalent share of the electricity they generate, a deal that has helped Centrica net at least £1.5 billion in profits since the 2022 surge in power prices. With all but one of the plants scheduled to close this decade, however, the company's bosses have been exploring whether to invest in new nuclear projects. Until now, Centrica's only interest was thought to be in the proposed Sizewell C plant in Suffolk. Those in talks with the Government include Centrica, Emirates Nuclear Energy Corporation (Enec), Schroders Greencoat and Amber Infrastructure Group. However, one City source said there was crossover between the Sizewell bidders and those having talks with EDF about a possible investment in Hinkley, with Centrica having expressed interest in the latter as well. Centrica is expected to back only one of the nuclear schemes, or neither, people familiar with the discussions suggested. It is seen as unlikely to invest in both. Hinkley may ultimately look more attractive to energy supplier Centrica, depending on the terms, as the plant is due to come online before Sizewell, the City source said. This is despite significant delays and cost overruns. They added: "It would be a bit weird, strategically, for Centrica executives to say we want to lock a billion pounds of shareholders' money up for 15 years before a single electron gets produced. "The more strategic transaction would be to put a billion into Hinkley, but with a very good deal from EDF." On October 4, 2024, a spokesman for Centrica declined to comment. EDF also declined to comment. Upcoming Dividend • Sep 26
Upcoming dividend of UK£0.015 per share Eligible shareholders must have bought the stock before 03 October 2024. Payment date: 14 November 2024. Payout ratio is a comfortable 20% and this is well supported by cash flows. Trailing yield: 3.5%. Lower than top quartile of British dividend payers (5.4%). Lower than average of industry peers (5.6%). Announcement • Sep 17
Centrica plc (LSE:CNA) agreed to acquire Nine 100-MW battery energy storage system (BESS) projects in Sweden from Future Generation Renewable Energy AG. Centrica plc (LSE:CNA) agreed to acquire Nine 100-MW battery energy storage system (BESS) projects in Sweden from Future Generation Renewable Energy AG on September 16, 2024. Reported Earnings • Jul 28
First half 2024 earnings released: EPS: UK£0.25 (vs UK£0.73 in 1H 2023) First half 2024 results: EPS: UK£0.25 (down from UK£0.73 in 1H 2023). Revenue: UK£10.5b (down 36% from 1H 2023). Net income: UK£1.33b (down 68% from 1H 2023). Profit margin: 13% (down from 25% in 1H 2023). Revenue is expected to decline by 2.9% p.a. on average during the next 3 years, while revenues in the Integrated Utilities industry in Europe are expected to grow by 2.6%. Over the last 3 years on average, earnings per share has increased by 65% per year but the company’s share price has only increased by 42% per year, which means it is significantly lagging earnings growth. Declared Dividend • Jul 28
First half dividend increased to UK£0.015 Dividend of UK£0.015 is 13% higher than last year. Ex-date: 3rd October 2024 Payment date: 14th November 2024 Dividend yield will be 3.2%, which is lower than the industry average of 4.5%. Sustainability & Growth Dividend is well covered by both earnings (20% earnings payout ratio) and cash flows (28% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. EPS is expected to decline by 29% over the next 3 years. However, it would need to fall by 77% to increase the payout ratio to a potentially unsustainable range. Announcement • Jul 26
Centrica plc Announces Board Changes Centrica plc announced that Scott Wheway will step down as Chair of the Company after almost nine years on the Board and five years as Chair and will not seek re-election as a Director. The Board announced that, effective 16 December 2024, Kevin O'Byrne will succeed Scott and will be appointed as Chair of the Company. Kevin has served as a Non-Executive Director of the Company since May 2019 and is currently the Company's Senior Independent Director and a member of the Nominations Committee and Audit and Risk Committee. Kevin was Chair of Centrica plc's Audit and Risk Committee from 2019 to 2023. In line with UK Corporate Governance Code recommendations, as the Senior Independent Director was a candidate for the role of Chair, non-executive director Amber Rudd led a comprehensive search process, considering both internal and external candidates. Kevin brings extensive executive and Board experience, in addition to knowledge of Centrica's operations, to the role. He has significant experience of complex financial and capital allocation decision making matters. Kevin has held CFO and CEO roles in a number of leading UK and international retailers since 2004, including Chief Financial Officer of J Sainsbury plc from 2017 to 2023. He was previously an executive director of Kingfisher plc and Dixons Retail plc. He was a non-executive director of Land Securities plc from 2008 to 2017 where he was Chair of the Audit Committee and Senior Independent Director. Kevin is currently also a non-executive director of NYSE listed International Flavors & Fragrances Inc. (IFF), a multinational market leading supplier to the food, beverage, beauty, and household and personal care sectors. At IFF he is Chair of the Governance & Corporate Responsibility Committee and sits on the Innovation and Audit Committees. Recent Insider Transactions Derivative • Jul 15
Key Executive exercised options and sold UK£2.6m worth of stock On the 12th of July, Christopher O'Shea exercised options to acquire 2m shares at no cost and sold these for an average price of UK£1.38 per share. This trade did not impact their existing holding. For the year to December 2018, Christopher's total compensation was 10% salary and 90% other compensation. This indicates that these sales could comprise a meaningful part of their income for the year. Since September 2023, Christopher's direct individual holding has increased from 601.81k shares to 3.35m. Company insiders have collectively sold UK£4.5m more than they bought, via options and on-market transactions in the last 12 months. Announcement • Jun 06
Centrica plc Approves the Final Cash Dividend Centrica plc at its AGM held on June 5, 2024, approved the final cash dividend of 2.67 pence per ordinary share. Upcoming Dividend • May 23
Upcoming dividend of UK£0.027 per share Eligible shareholders must have bought the stock before 30 May 2024. Payment date: 11 July 2024. Payout ratio is a comfortable 5.7% and this is well supported by cash flows. Trailing yield: 2.7%. Lower than top quartile of British dividend payers (5.6%). Lower than average of industry peers (5.5%). Recent Insider Transactions Derivative • May 20
Key Executive exercised options and sold UK£1.9m worth of stock On the 17th of May, Christopher O'Shea exercised options to acquire 1m shares at no cost and sold these for an average price of UK£1.44 per share. This trade did not impact their existing holding. For the year to December 2018, Christopher's total compensation was 10% salary and 90% other compensation. This indicates that these sales could comprise a meaningful part of their income for the year. Since September 2023, Christopher's direct individual holding has increased from 601.81k shares to 602.80k. Company insiders have collectively sold UK£1.9m more than they bought, via options and on-market transactions in the last 12 months. Buy Or Sell Opportunity • May 03
Now 20% overvalued Over the last 90 days, the stock has fallen 4.5% to UK£1.29. The fair value is estimated to be UK£1.07, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 33% over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to decline by 11% per annum. Earnings are also forecast to decline by 41% per annum over the same time period. Reported Earnings • Mar 27
Full year 2023 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2023 results: EPS: UK£0.71 (up from UK£0.13 loss in FY 2022). Revenue: UK£26.5b (up 11% from FY 2022). Net income: UK£3.93b (up UK£4.71b from FY 2022). Profit margin: 15% (up from net loss in FY 2022). Revenue missed analyst estimates by 2.2%. Earnings per share (EPS) exceeded analyst estimates by 134%. Revenue is forecast to decline by 11% p.a. on average during the next 3 years, while revenues in the Integrated Utilities industry in Europe are expected to remain flat. Over the last 3 years on average, earnings per share has increased by 86% per year but the company’s share price has only increased by 34% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • Feb 21
Consensus revenue estimates fall by 21% The consensus outlook for revenues in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from UK£28.8b to UK£22.7b. EPS estimate fell from UK£0.193 to UK£0.169 per share. Net income forecast to shrink 77% next year vs 7.4% growth forecast for Integrated Utilities industry in the United Kingdom . Consensus price target down from UK£1.79 to UK£1.74. Share price was steady at UK£1.33 over the past week. Major Estimate Revision • Feb 21
Consensus revenue estimates fall by 21% The consensus outlook for revenues in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from UK£28.8b to UK£22.7b. EPS estimate fell from UK£0.193 to UK£0.169 per share. Net income forecast to shrink 77% next year vs 7.4% growth forecast for Integrated Utilities industry in the United Kingdom . Consensus price target down from UK£1.79 to UK£1.74. Share price was steady at UK£1.33 over the past week. Declared Dividend • Feb 18
Final dividend increased to UK£0.027 Dividend of UK£0.027 is 34% higher than last year. Ex-date: 30th May 2024 Payment date: 11th July 2024 Dividend yield will be 2.9%, which is lower than the industry average of 4.5%. Sustainability & Growth Dividend is well covered by both earnings (6% earnings payout ratio) and cash flows (9% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. EPS is expected to decline by 83% over the next 3 years. However, it would need to fall by 94% to increase the payout ratio to a potentially unsustainable range. Reported Earnings • Feb 16
Full year 2023 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2023 results: EPS: UK£0.71 (up from UK£0.13 loss in FY 2022). Revenue: UK£26.5b (up 11% from FY 2022). Net income: UK£3.93b (up UK£4.71b from FY 2022). Profit margin: 15% (up from net loss in FY 2022). Revenue missed analyst estimates by 2.2%. Earnings per share (EPS) exceeded analyst estimates by 134%. Revenue is forecast to decline by 11% p.a. on average during the next 3 years, while revenues in the Integrated Utilities industry in Europe are expected to remain flat. Over the last 3 years on average, earnings per share has increased by 86% per year but the company’s share price has only increased by 38% per year, which means it is significantly lagging earnings growth. Announcement • Feb 14
Centrica plc to Report Fiscal Year 2023 Results on Feb 15, 2024 Centrica plc announced that they will report fiscal year 2023 results at 7:00 AM, Coordinated Universal Time on Feb 15, 2024 Announcement • Nov 23
Centrica plc Announces Management Appointments, Effective December 1, 2023 Centrica plc announced the appointment of Jo Harlow and Sue Whalley as Non-Executive Directors of the Company with effect from 1 December 2023, whereupon Jo and Sue will also become members of the Company's Remuneration Committee and Nominations Committee. Jo Harlow has more than 25 years' experience working in various senior roles, predominantly in the branded and technology sectors. Prior to her non-executive career, Jo held the position of Corporate Vice President of the Phones Business Unit at Microsoft. She previously spent 11 years at Nokia Corporation in a number of senior management roles, including Executive Vice President of Smart Devices. Jo currently serves as Non-Executive Director and Remuneration Committee Chair at InterContinental Hotels Group PLC and J Sainsbury plc, and as Senior Independent Director and Remuneration Committee Chair at Halma plc. She is also a Non-Executive Director at Chapter Zero Limited. Jo will be retiring from the Board of InterContinental Hotels Group PLC on 31 December 2023. Jo was also previously a Non-Executive Director of Ceconomy AG from 2017 to 2021. She attended Duke University in North Carolina and has a BSc in Psychology. Sue Whalley is Chief People and Performance Officer at Associated British Foods plc (ABF), having been appointed to the role in 2019. Prior to joining ABF, Sue spent 12 years at Royal Mail Group, where she held a number of executive roles including Chief Executive Officer of the Post & Parcels division and Chief Operations Officer. Prior to that, Sue was a Partner at McKinsey & Company where she spent nearly 18 years in management consultancy. Sue is a graduate of University of Cambridge and holds an MBA from Harvard Business School. Board Change • Oct 01
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Non-Executive Director Philippe Boisseau was the last director to join the board, commencing their role in 2023. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Upcoming Dividend • Sep 28
Upcoming dividend of UK£0.013 per share at 2.1% yield Eligible shareholders must have bought the stock before 05 October 2023. Payment date: 16 November 2023. Payout ratio is a comfortable 4.5% and this is well supported by cash flows. Trailing yield: 2.1%. Lower than top quartile of British dividend payers (6.3%). Lower than average of industry peers (5.8%).