British Gas owner Centrica set to slash dividend as chief executive Iain Conn makes ‘last-chance saloon’ effort to save his reputation
British Gas owner Centrica is set to slash its dividend as chief executive Iain Conn makes a ‘last-chance saloon’ effort to save his reputation.
The move would place it alongside Vodafone and Marks & Spencer as an income stock that has cut its payout this year.
Hit hard: The energy giant’s market value has fallen from £14 billion when Conn joined to £5.3 billion
The energy giant’s market value has fallen from £14 billion when Conn joined to £5.3 billion today.
The company plans to shift from power generation to selling hi-tech services to households as part of the ‘connected home’ business, which sells smart meters and boiler insurance. It made losses of £85m last year.
The supply business lost 742,000 customers last year, suffered due to warm UK weather and has reliability problems in its co-owned fleet of nuclear power stations.
Conn will present a strategy update and half-year results to investors on July 30. A City source said Conn was in the ‘last-chance saloon’ and that ‘unless he comes up with something credible, he won’t survive’.