Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on CENTRICA PLC. We currently have 9 research reports from 3 professional analysts.
|03Feb17 15:30||RNS||Director/PDMR Shareholding|
|26Jan17 14:15||RNS||Director/PDMR Shareholding|
|04Jan17 15:33||RNS||Director/PDMR Shareholding|
|03Jan17 14:15||RNS||Director/PDMR Shareholding|
|09Dec16 13:00||RNS||Holding(s) in Company|
|05Dec16 13:30||RNS||Director/PDMR Shareholding|
|28Nov16 15:30||RNS||Director/PDMR Shareholding|
Frequency of research reports
Research reports on
16 Dec 16
Investors appear to have rapidly accepted the Fed's more hawkish tone as one of the inevitable costs of participating in more expansive economic policy. Its almost 'close your eyes and trust in Trump'! Confidence in Thursday's the European session, during which the Euro hit its lowest point against the US$ since the beginning of 2003, saw the zone's main indices move sharply ahead with London itself not far behind. This spilt broadly into North American trading, seeing the Dow and other main markets recapture roughly half of Wednesday's losses. The price continued to be paid, of course, through global bond markets, whose sell-off continued on Thursday having wiped out an estimated US$1 trillion of value from international government debt since 8th November. Asian markets also rallied, reversing modestly weaker openings into small gains by the close, led by the Nikkei which continues to celebrate more than a 13% fall in the Yen versus the US$ since the presidential election. Traders appeared neither surprised nor concerned by the seemingly uneventful meeting of Leaders of the European Union in which the various institutions and national governments began to argue over their individual responsibilities during forthcoming Brexit negotiations, although the principal findings amply demonstrated just how complex the issues actually are the extended period required to reach agreement. One point of accord was found, however, regarding the new security threat posed by Trump's call for the Continent to shoulder a greater responsibility for its own military and defence duties, resulting in approval for forward planning to increase spend in these areas. Meanwhile, Greece's refusal to back down in its escalating conflict with creditors, as judges on Thursday approved annual bonuses for poorer pensioners and tax relief for the Aegean Islands that have received refugees, sparked angry exchanges with Germany and highlighted again the extent of policy disagreement between member states. Today is expected to see rather lacklustre trading in London, as investors await macro releases including the CBI Industrial Trends Survey and Bank of England Quarterly Bulletin; the Eurozone is due to publish its Harmonised CPI figures, while the EU is due to provide Housing Starts before the Fed's Jeffrey Lacker speaks. Corporates due to provide earnings or trading updates include Bilby (BILB.L), MySQUAR (MYSQ.L), Trinity Mirror (TNI.L) and United Carpets (UCG.L). The FTSE-100 is seen moving 5 points either side of unchanged in opening trade this morning.
Trading upgrade provides a guidance uplift
15 Dec 16
Centrica has published its Q3 16 trading update, raising its guidance expectations for 2016 with operating cash flows now expected in the £2.4-2.6bn range (+20%) rather than the £2bn earlier. Moreover, due to the gas assets’ better performance, benefits from the cost-cutting programme, and a strong performance in energy marketing and trading, the group expects the full-year EPS to be around 16.5p, whereas the market estimates something close to 15.4p (+7.1%). Nonetheless, the new expectations imply that EPS is expected to decrease by 4% yoy, although this is less than previously expected (-10.5%), which represents a substantial improvement.
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.
20 Feb 17
Hayward Tyler Group* (HAYT): Trading update and financial position (CORP) | Petra Diamonds (PDL): Interim results (BUY) | Gemfields* (GEM): Interim results (CORP) | Premaitha Health* (NIPT): Middle East momentum (CORP) | Sound Energy (SOU): Acquisition update and TE-8 well spud (HOLD) | Proactis* (PHD): Interim trading on track (CORP) | 7digital* (7DIG): Automotive contract win (CORP)
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
21 Feb 17
Lighthouse Group* (LGT): Middle Britain growth (CORP) | Utilitywise* (UTW): Double-digit sales growth (CORP) | Trakm8* (TRAK): Earnings expectations cut again (CORP) | dotDigital* (DOTC): Myriad growth opportunities (CORP) | Artilium* (ARTA): Five-year Telenet deal secured and prepaid (CORP) | Netcall* (NET): Cloud investment pays off (CORP)
Emerging from the clouds
16 Feb 17
Rolls-Royce’s underlying performance in FY16 was ahead of both its own and market expectations. Media focus on the non-cash £4.4bn headline FX loss is missing what looks to be the basis for optimism. As the civil model starts to move from investment in engines for the A350 and A330neo into the aftermarket delivery phase over the remainder of the decade, we think cash flow is likely to improve, particularly if supported by an eventual recovery in Marine.
N+1 Singer - Small-cap quantitative research - New quality style screen + 11 quality focus stocks
09 Feb 17
We introduce our fourth and final style screen representing “quality”. This screens for stocks with the best combination of high returns on capital/equity, EBIT margins and operating cash-flow conversion rates. These criteria should help us monitor how strong underlying returns translate into share price performance over time and under varying market conditions. The screen selects the “best” 25 stocks from our universe of just over 500 stocks and, as usual, we focus on a shorter list of stocks we cover or otherwise know and believe to be particularly interesting. We provide brief investment summaries on these focus stocks on pages 4 – 9. We will monitor performance and refresh the screen in approximately 3-4 months time.
Share & share alike
14 Feb 17
The rally in the last fortnight, highlighted in the table, reflects a continued flow of positive updates and economic news. The FTSE 250, Small cap and Fledgling indices have reached record highs. We are in the lull ahead of results for those companies with a December year end, a welter of economic data regarding the UK economy, the State of the Union address in the US on 28 February and the UK Budget on Wednesday 8 March. We will learn at that stage the latest forecasts from the Office of Budget Responsibility. As highlighted previously, the reaction to corporate updates will continue to set the tone.