[On :freetrade:] Centrica (CBA)

Surprised there was no thread for Centrica given the market share and name recognition of British Gas. Centrica also own energy supply businesses in the US and Ireland. They are trying to sell their stake in Spirit Energy - an oil and gas production firm, and their stake in EDF’s UK nuclear plants.

Down ~18% today after announcing a £1.1B annual loss. Largely due to write downs on the parts of the business they’re trying to sell. British Gas itself is profitable, but those are falling due to the price cap and continued (but slowed) customer losses. - https://finance.yahoo.com/quote/CNA.L?p=CNA.L

Centrica had their profits fueled by complacency for too long, essentially scamming the elderly and the vulnerable. I have enjoyed seeing them suffer.

If you are with British Gas, you should switch. Even if you are in rented accommodation, your landlord is unlikely to object. Message me and join bulb. Or join basically anyone else.

I’m so terrible… I bought a tiny amount of shares just for fun at 0.66 last year… I’m still up even after this drop!
Although I don’t expect them to turn it around, I think something drastic will need to happen for them to continue for the long term.

Anyone with any views on the recent rise??

It’s one of the various FTSE 100 stocks whose share price rose because of the optimism today.

Traders were bullish on stocks because some progress had been made in relation to a possible treatment for Covid-19 (remdesivir, again).

It’s still a business for which Covid and the oil price continue to create issues.

Working capital outflows will continue and it will have bad debt as business customers defer payments. The numbers don’t look great.

1 Like

Correct. I work there, our Business DD cancellations have increased tenfold since the lockdown, plenty of teams being redeployed to chase debt.

1 Like

Big news coming in the morning…

I used to work there, shifted to a competitor supplier just before they closed sites and made redundancies. What site do you work at? Is shell / BP taking over the Bgas arm of centrica?

Lo and behold.

https://uk.finance.yahoo.com/news/coronavirus-british-gas-centrica-jobs-5000-redundancies-hiring-staff-074057079.html

Share price is 4% down this morning. These news can help it turn around and go up though.

I’m based in the midlands - doesn’t look like we’re being bought out. 5,000 job cuts, including 18 of the 42 senior leaders that run the entire business (not sure if that part is in the news).

Very true - the business has slowly been streamlining itself for a number of years. Parts of it are very bloated, and the amount of red tape to get anything done thats worthwhile is crazy.

One of the reasons in the video conference this morning - ‘to ensure we stop spending most of our time doing business with other colleagues, and spend more time doing business with our customers’ - think this is a very fair point.

1 Like

Every company I’ve been with, I’ve always thought this. Sometimes, when bored at some meeting with senior staff that I’m mandated to attend, I do a quick mental calculation of the salaries in the room of how much the meeting is actually costing, and it’s always astronomical.