Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on CENTRICA PLC. We currently have 7 research reports from 3 professional analysts.
|05Dec16 01:30||RNS||Director/PDMR Shareholding|
|28Nov16 03:30||RNS||Director/PDMR Shareholding|
|02Nov16 03:15||RNS||Director/PDMR Shareholding|
|01Nov16 10:00||RNS||Block listing Interim Review|
|25Oct16 03:15||RNS||Director/PDMR Shareholding|
|18Oct16 03:15||RNS||Holding(s) in Company|
|14Oct16 05:13||PRN||Direct Energy Celebrates National Energy Awareness Month through its Induction into Children's Miracle Network Hospitals® Miracle Million Club|
Frequency of research reports
Research reports on
Strong cash flow performance is reassuring
28 Jul 16
Results fell 13% yoy to £13.38bn. However, £969m from the re-measurement of energy contracts has positively affected the reported results leading to a 31.5% yoy increase in operating profit to £1.76bn and net income to have a 9.3% yoy increase to £1.15bn, translating into an EPS of 22.2p. As a result, the company has increased the interim dividend by 1% to 3.6p. Nevertheless, on an adjusted basis the results show a different story as operating profit fell 12% yoy to £853m, net income decreased 14% yoy to £507m with EPS reaching 9.8p. Although, on an adjusted basis, operating cash flows increased by 19%yoy to £1.37bn. The strong cash flow performance in the first quarter has allowed the group to increase capex by 16% yoy to £444m which, added to the £694m capital increase performed earlier in the year, has allowed the company to have a comfortable net increase in cash of £1.28bn at the half year mark. This has allowed the company to achieve a 23% yoy decrease in net debt, to reach £3.8bn. Concerning guidance, the 2016 full-year expectation on operating cash flows above £2bn is expected to be exceeded. Moreover, as strong progress has been achieved in cost-cutting measures, as £141m has been achieved in the first half, the 2016 cost cutting target has been raised to £300m. Headcounts are expected to be reduced by around 3,000 FTEs.
Trading update: customer losses accelerate, but guidance confirmed
19 Apr 16
Centrica has published an operational update with no revenue or profit numbers but confirms its full-year objectives: adjusted operating cash flows above £2bn, capex should not exceed £1bn (in which £500m would be focused on E&P) and a £200m efficiency programme is still expected to be achieved in 2016, as part of the £750m/year cost reduction programme. Moreover, the group expects to add to the direct headcount reduction expected in 2016 of 3,000 employees, of which 800 have been already been achieved in the first three months. Nevertheless, the group continues to lose clients as its home energy supply accounts have been reduced by a further 1.5% in the first quarter (an additional 224,000 customers lost, compared to 119,000 customers lost in Q1 15). Due to this, a more aggressive strategy will be applied from Q2 16 to stop the loss of customers. The negative effect may be offset by North American home accounts (although not quantified). As previously announced, the group is to close the Killingholme power station after it has served the National Grid for 2015’s winter supplemental balancing reserve.
Panmure Research - Economics Strategy 22-02-16
22 Feb 16
Uncertainty ahead of the United Kingdom's EU referendum has begun to dampen investor appetite for UK equities. However the dislocation of UK equities from their global peers are rare occurrences with the cross-correlation (100DMA) having only dropped below 0.5 on four occasions since the turn of the millennium:Dot.com bust: April 2000Foot and Mouth crisis: February 2001London terrorist attacks: July 2005Scottish Referendum: September 2014We expect a further dislocation in the run up to the referendum on June 23. In this note we use these four recent dislocation episodes, the sensitivity of UK equity valuations with sterling, and European Union revenues to establish a risk profile for the largest UK-listed companies. Based on this framework we provide our preferred picks to navigate the coming months of political uncertainty – Table 1.
Weak top-line with good cash flow performance; exit of E&P being evaluated
19 Feb 16
Mixed results as sales reached £27.97bn, representing a 4.9% yoy decrease and falling short of expectations due to the decrease in customer accounts, and gas and electricity consumption. Operating profit finished in negative territory at -£857m due to £2.35bn of impairments and provisions, while on an adjusted basis it reached £1.38bn, which represents a 20% yoy decrease and missing forecasts. Bottom line, the group has performed better than expected due to lower financial expenses and taxes, as on an adjusted basis it has reached £863m which represents a 10% yoy decrease, but the fall is less than expected. Adjusted EPS reached 17.2p; however, on a reported basis the group booked again a net loss reaching -£747m that translates into a -14.9p EPS. Moreover, net debt was reduced by 9% yoy to £4.74bn. Adjusted operating cash flows improved by 2% yoy reaching £2,253m and the group expects to deliver 3-5% growth per annum, which is a positive. Free cash flow finished in positive territory after dividends and debt repayment. The dividend payment has been reduced by 10% yoy to 12p/share, but management expects it to steadily increase from this point forward. Guidance is focused on cash flow as lower commodity prices would continue to impact the group’s results especially the E&P and power generation business: the group expects to bring adjusted operating cash flow to £2bn in addition to a £750m/year cost efficiency programme, out of which a £200m/year reduction has already been achieved.
FY guidance confirmed, with higher operating cash flows
10 Dec 15
The group published today a trading update, reinstating its earnings objective as the decrease in prices has been offset by across the board expense reductions. The group expects full-year net financial expenses of around £300m and an effective tax rate below 30%, while it raised its expectations to achieve £2bn in operating cash flows. The group maintains its investment grade rating. A further decrease on E&P capex for 2015 and 2016 is expected with additional reductions in production cash costs. Net capex remains within previous guidance at £1.05bn. Impairment charges are expected at around the previous year's levels, driven by the impact of fair value depreciation related to Venture and UK nuclear (E&P and nuclear business). Following the conclusion of the strategic review, the group would like to discontinue the adjustment as continuing lower wholesale prices and margins would impact the carrying value of E&P and power assets. After the group’s current strategic update, a new reporting approach will be effective from 1 January 2016 and reported for the first time in 2016’s interim results, in line with the announcements expected in the FY 15 results.
Pressure from lower gas prices: asset disposal and job cuts
31 Jul 15
Despite the increase in residential consumption due to colder weather than in the previous year, the 10% decrease in household tariffs puts some pressure on margins. Revenue decreased by 2% yoy to £15.45bn, adjusted operating profit decreased by 3% yoy to £1bn. Adjusted for one offs, net income increased by 15% to £611m. Due to the decrease in operating cash flows (+11% yoy to £1.15bn) and to maintain a healthy balance sheet and cash flow, the group cut the interim dividend by 30% to 3.57p per share, this despite the 17% increase in EPS. The group is looking to reduce headcount by 4,000 (10.8% of its total workforce) with capex capped at €1bn per annum. While unchanged, full year guidance is now expected to be at the bottom end of the anticipated range.
07 Dec 16
Severfield’s (SFR’s) H117 results were well ahead of the previous year; margin performance and order book development cause us to raise our FY17 profit expectations. This combination has also proved to be a catalyst for share price outperformance following the results. Revenue growth and further margin development towards management’s stated aim of doubling FY16 PBT by 2020 can sustain further progress.
Exceptional trading continues
08 Nov 16
Keywords has announced that the strong trading in localisation and audio services has continued into H216. In particular, the Synthesis business acquired in April continues to benefit from exceptionally strong trading. Full-year results are now expected to be materially ahead of consensus and we upgrade our FY16e EPS by 13%. Erring on the side of caution, we have not changed our FY17 estimates significantly. Nevertheless, we believe the company does have a platform to sustain double-digit earnings growth, and hence medium-/long-term prospects for further share appreciation remain good.
Panmure Morning Note 02-12-16
02 Dec 16
Today James Halstead will be holding its 101st AGM. Trading during the first part of FY17 has been mixed, with some notable challenges. However, movements in FX (i.e. weak sterling) is boosting reported earnings, offsetting UK volume trends and pricing pressures. Whilst earnings are likely to be second half weighted, the picture is in-line with expectations and we are leaving our FY17 PBT estimates unchanged (£47.4m in FY17 vs £45.4m FY16).
06 Dec 16
600 Group* (SIXH): Interim results: order book showing signs of improvement (CORP) | Real Good Food* (RGD): Commodity volatility impacts numbers (CORP) | Minds + Machines* (MMX): .vip goes live in China (CORP | Imaginatik* (IMTK): Interims (CORP) | iomart* (IOM): Quality business as usual (CORP) | Fulcrum (FCRM): Upgrades continue (BUY)
02 Dec 16
On 30 September 2016, when the company announced its full year results, it reported that the UK business had seen a slow start to the year, with particular weakness in repair and renewal spending by the NHS as well as “reticence” in the education sector. However, with the UK only representing about a third of the business, this weakness was expected to be more than offset by the positive effect of a weakened sterling on its overseas business, given the benefits for competitiveness and margins.