|Bid||39.57 x 0|
|Ask||39.62 x 0|
|Day's range||38.37 - 39.90|
|52-week range||29.10 - 97.02|
|Beta (5Y monthly)||1.11|
|PE ratio (TTM)||N/A|
|Earnings date||24 Jul 2020|
|Forward dividend & yield||N/A (N/A)|
|Ex-dividend date||07 May 2020|
|1y target est||153.87|
(Bloomberg) -- British Gas’s more than three-decade connection to the U.K.’s blue-chip stock index looks set to come to an end after shares of parent Centrica Plc plunged by more than half this year.Analysts expect Centrica to be demoted from the FTSE 100 benchmark in a quarterly re-shuffle next week. That would represent a moment of historical significance for a stock that under different names has been ever-present in the gauge since 1986, the year that the Conservative government of Margaret Thatcher privatized British Gas through an initial public offering.The shares’ 56% slide this year has reduced the company’s market value to a level where it no longer passes the test to retain its position in the FTSE 100.“Centrica’s ejection would cap a multi-year share-price slide that dates back to a peak of almost 400 pence in 2013,” Russ Mould, investment director at brokerage AJ Bell, said in emailed commentary. The stock closed on Thursday at 39.05 pence, valuing the business at 2.3 billion pounds ($2.8 billion).According to guidelines from index provider FTSE Russell, a stock will be removed from the FTSE 100 if its market capitalization ranks 111 or below among eligible shares at the time of the re-balancing. At its current valuation, Centrica is the 140th biggest company on the FTSE All Share index. The next quarterly review will be based on June 2 closing prices and announced on June 3.The first half of 2020 has been torrid for Centrica, which suspended its dividend and paused a planned sale of North Sea oil and gas assets last month after the Covid-19 pandemic sapped energy demand and triggered a slump in crude prices. Chief Executive Officer Iain Conn stepped down in March after five years leading the group.But the share price fall dates back a lot further than that. On top of a longer-term slide in oil prices, the company has faced competition from smaller challengers like Octopus Energy and Bulb, while also being hit by a price cap by the U.K. Office of Gas and Electricity Markets. The shares are now 90% below a record high set in 2013.Tell SidBritish Gas Plc joined the FTSE 100 on Dec. 9, 1986 after a share sale that was promoted in a government television campaign urging Britons to spread word of the investment opportunity by telling “Sid,” a name that was meant to represent the general public.In 1997, the company, whose history stretches back more than 200 years, was split into separate firms, BG Plc and Centrica Plc. BG later became BG Group Plc and was bought by Royal Dutch Shell Plc in a deal announced in 2015.British Gas, under Centrica, has seen its share of the domestic market steadily decline over the past 15 years, according to Ofgem data, also losing ground to rivals like Electricite de France SA and SSE Plc.That said, a potential turnaround isn’t being ruled out by some analysts.“Following years of structural challenges faced by Centrica in the U.K. retail market, failed attempts to deliver growth in its consumer business and falling profits from its commodity-exposed units, we believe the worst is behind the company,” Citigroup analyst Jenny Ping wrote in a May 21 note.The company has sufficient liquidity to navigate volatile demand due to the pandemic, and a future simplification of the group could boost the shares, Ping wrote.A spokesman for Centrica declined to comment on the upcoming index review when reached by phone.Other stocks that might be demoted from the FTSE 100 in next week’s review include Princes and P&O cruise operator Carnival Plc, budget airline EasyJet Plc and plane-parts maker Meggitt Plc, reflecting the impact of the Covid-19 crisis on global travel demand, according to Helal Miah, an analyst at investment broker The Share Centre, who spoke by phone.That would potentially leave them vulnerable to selling by funds whose aim is to mirror the performance of the FTSE 100 -- known as tracker funds.Stocks that could be added to the benchmark gauge include cybersecurity firm Avast Plc, betting company GVC Holdings Plc and home emergency and repair services provider HomeServe Plc, Miah said.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On...
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. BAE Systems Plc Chairman Roger Carr, who campaigned to keep Britain in the European Union before the Brexit referendum, said he is optimistic the U.K. will secure trade deals with both the U.S. and EU once it quits the bloc.Speaking at the World Economic Forum in Davos, Switzerland, Carr said President Donald Trump’s positive comments about an accord with Britain augur well, and that the U.K. needs to consider its trading relations on a broader front given its changing relationship with Europe.“They’ve certainly got the backing of their president in leaning forward into the negotiations,” he said of the U.S. position in an interview with Bloomberg TV on Tuesday. “I remain cautiously optimistic that a deal of some sort can be done.” Carr said the trade talks with the EU will be challenging given the complexity of the negotiations and the year-end deadline to reach a deal -- but that Prime Minister Boris Johnson and his administration appear convinced that they can deliver an agreement on schedule.“I hear the commitment from government to get something done and I think they are making that with real enthusiasm,” he said. “There’s a lot of serious belief that something can be achieved. They want to see this behind us.”Carr has been chairman of Europe’s biggest arms manufacturer for five years and previously occupied the same role at utilities Centrica Plc and Thames Water.He said Chancellor of the Exchequer Sajid Javid’s warning that businesses will need to adjust to new rules after Brexit because the U.K. won’t align with European regulations in future represents no more than a view of what might happen.“These negotiations haven’t yet started,” he said. “It’s unlikely we’re going to have totally frictionless trade, and therefore there will be an adjustment. It’s the degree of adjustment that’s important.”Companies understand that, and are focused on navigating “what will undoubtedly be tricky waters,” he added.To contact the reporters on this story: Christopher Jasper in London at firstname.lastname@example.org;Jonathan Ferro in Davos, Switzerland at email@example.comTo contact the editors responsible for this story: Anthony Palazzo at firstname.lastname@example.org, Edward Evans, Andrew NoëlFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Investing.com -- Here is a summary of regulatory news releases from the London Stock Exchange on Thursday, 21st November.
Today we will run through one way of estimating the intrinsic value of Centrica plc (LON:CNA) by taking the expected...
Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is...