British Gas suffers 7% profit slide as 400,000 customer’s desert
British Gas has weathered a seven per cent fall in profits over the first half of the year following an exodus of some 400,000 customers who’ve switched supplier.
Centrica, parent company of the utilities giant, reported a UK home operating profit of £516m over the period, a figure driven south by increased competition and large numbers of customers reaching the end of fixed term contracts.
Dismissing any suggestion that Brexit may have had a hand to play in the dismal figures Centrica stated: “… the result creates general uncertainty which adds to challenges for UK businesses in all sectors, with implementation plans as yet unclear.”
British Gas also saw total revenues slip 13 per cent to £13.3bn and a double digit 12 per cent fall in operating profit to £853m.
Seeking to put a positive slant on the numbers, Centrica insisted that its residential customer base returned to growth in June as the impact of a five per cent cut in gas bills fed through.
Investors weren’t unduly concerned by the update either, with Centrica shares rising by 1.5 per cent.