British Gas is planning to provide customers with free power on Saturdays in an effort to reduce demand at peaks times, the BBC reported. …read more
Source: FULL ARTICLE at Fox World News
British Gas reveals plans for free power on Saturdays
Tag Archives: British Gas
The Men Who Run Compass Group
By Tony Reading, The Motley Fool
Filed under: Investing
LONDON — Management can make all the difference to a company’s success and, thus, its share price.
The best companies are those run by talented and experienced leaders with strong vested interests in the success of the business, held in check by a board with sound financial and business acumen. Some of the worst investments to hold are those run by executives collecting fat rewards as the underlying business goes to pot.
In this series, I’m assessing the boardrooms of companies within the FTSE 100. I hope to separate the management teams that are worth following from those that are not. Today, I am looking at Compass Group , the world’s largest contract caterer.
Here are the key directors:
|
Director |
Position |
|---|---|
|
Sir Roy Gardner |
Chairman |
|
Richard Cousins |
Chief Executive |
|
Dominic Blakemore |
Finance Director |
|
Gary Green |
CEO, North America |
|
Andrew Martin |
Heavyweight
Sir Roy Gardner has been chairman since 2006. In his executive career, he rose through the finance functions of GEC to succeed Arnold Weinstock as Managing director of GEC-Marconi. He joined British Gas as finance director in 1994 to oversee the demerger of Centrica, subsequently becoming CEO of Centrica.
Regarded as a City heavyweight, his non-executive career has not been without controversy. He became chairman of “fast-growing” property services group Connaught in May 2010, only to go into administration six months later. In the world of football, he became chairman and part-owner of Plymouth Argyle in 2009, resigning the next year shortly before it entered administration.
Sir Roy recently announced he will retire next year.
Low profile
Richard Cousins has also been in post since 2006, but the CEO is a lower-profile character. He began his career in planning roles with Cadbury Schweppes and BTR, joining plasterboard maker BPB in 1990, and rising to become CEO in 2000. He took BPB into the FTSE 100, leaving for Compass when the firm was taken over by Saint-Gobain.
Compass’s shares have tripled during the tenure of the current chairman and CEO.
More accountants
A chartered accountant, Dominic Blakemore has been finance director for just 12 months. He was previously FD of Iglo Foods, which he joined from Cadbury, where he held various posts, including European Finance Director, and Group Financial Controller.
Compass’s two divisional directors are also former finance professionals. Gary Green has been with the company since 1986, initially in finance roles, joining the board in 2007.
Andrew Martin joined as finance director in 2004, having previously been FD of First Choice Holidays. His move to run Europe and Japan was part of a reshuffle on the arrival of Dominic Blakemore, to free the CEO to concentrate on developing Compass’s emerging markets business.
Compass’s senior independent director Sir James Crosby abruptly resigned this week in the wake of criticism over his stewardship of HBOS. The timing is unfortunate, with the chairman having recently announced his retirement, but the company swiftly replaced him with Sir Ian Robinson, a director since 2006, and former chairman of Ladbrokes. However, the team of five non-execs look a little thin.
I analyze
From: http://www.dailyfinance.com/2013/04/11/the-men-who-run-compass-group/
The Utility Stocks That Margaret Thatcher Gave Us
By Tony Reading, The Motley Fool
Filed under: Investing
LONDON — Baroness Thatcher will be remembered for many reforms, but one enduring legacy for investors is that she gave us the stock market we know today.
Privatization became a key plank of economic policy, and nine of the firms in the FTSE 100 are the direct descendants of state-owned companies privatized during her time as prime minister.
Thirty-five years ago, the precursors to BG , Centrica , Severn Trent , United Utilities , BP, BAE, International Consolidated Airlines, BT, and Rolls-Royce were all state-owned enterprises (in a companion piece, I have covered the five industrial and service companies). Today, they are successful blue-chip firms with a combined market capitalization of more than 200 billion.
The gas industry
British Gas, the U.K.’s monopolistic gas utility, was privatized in 1986 in the famous “Tell Sid” campaign to attract private investors.
The downstream operations were spun off as Centrica in 1997. The gas-distribution assets were demerged as Lattice Group and subsequently became part of National Grid in 2002. The remainder, British Gas‘ upstream activities, became BG Group.
Neither Centrica nor BG stuck to its existing business. Centrica has expanded upstream, and it is now the largest investor in the Cygnus North Sea gas field. A dominant market position in gas distribution has secured good returns for shareholders, and the country’s dependence on gas should boost opportunities in the future.
BG moved into, and then back out of, downstream distribution overseas. The retreat was partly to finance development of its massive discoveries in Brazil’s Santos Basin, and a significant part of the company’s value now rides on how soon and successfully it can start production. It also built a solid and successful international liquefied-natural-gas business.
The water industry
Britain’s regional water companies were privatized in 1989. (The electricity-distribution companies followed a year later, just falling outside Margaret Thatcher‘s premiership.)
Several companies have been snapped up by foreign investors keen to tap into a secure and profitable income stream. Just three listed companies remain: United Utilities in the North West, Severn Trent in the Midlands, and the FTSE 250 company Pennon.
The water companies’ fortunes ebb and flow with five-year regulatory reviews, the next of which begins in 2015 and is now being negotiated. Severn Trent has an almost unblemished dividend record; United Utilities less so.
Margaret Thatcher believed individuals should take responsibility for their own well-being. There’s no question that’s even more important today, especially when it comes to saving for retirement. That’s why The Motley Fool has created a brand-new report: “Five Shares To Retire On.” It describes five companies with healthy balance sheets, dominant market shares, and robust cash flows that could form the core of any portfolio, whether you’re saving for retirement or shorter-term goals. You can download it by clicking here — it’s free.
The article The Utility Stocks That Margaret Thatcher Gave Us originally appeared on Fool.com.
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From: http://www.dailyfinance.com/2013/04/11/the-utility-stocks-that-margaret-thatcher-gave-us/
ONS Figures Calm Fears of Triple-Dip Recession
By Sam Robson, The Motley Fool
Filed under: Investing
LONDON — The latest figures from the Office for National Statistics have revealed that February saw industrial production rise 1% against January 2013, while manufacturing output — one of the components of the index of production — almost doubled its February forecast, up 0.8% compared to the previous month’s fall of 1.9%.
This has led several economists to say the news eases fears of a triple-dip recession — feasibly a third in five years — with BNP Paribas’ David Tinsley commenting: “These apocalyptic stories of a Q1 negative (GDP) print and a triple dip are still certainly not guaranteed. If we get some growth in the service sector, we will be OK.” Further, Royal Bank of Scotland‘s Ross Walker said, “It’s hardly a dramatic recovery but it does look to be avoiding a symbolic triple dip recession.”
Energy production also comprises part of the industrial-production figure, and the colder-than-average weather that the U.K. has been seeing — including snowfall in spring — has significantly contributed to the upturn, which had previously been estimated at a 0.3% increase.
Companies that have benefited include British Gas owner Centrica , which reached an annual high last week and gained 1% in today’s trading to reach 374 pence. Increased gas usage, higher prices, and more investment in the sector have led to a strong start to the year for the likes of Centrica and BG Group . The latter also profited from today’s news, gaining a more modest 0.3%.
Indeed, with the government‘s proposed “Gas Generation Strategy,” the energy sector looks to have a healthy outlook. Interestingly, though, City super investor Neil Woodford recently sold all of Invesco Perpetual High Income fund’s holding in BG Group, yet he retains a significant holding in Centrica…
If you had invested 10,000 pounds in Woodford‘s High Income fund 10 years ago with payments reinvested, you’d have 30,000 pounds today to show for it. To help you learn from this top stock-picker, The Motley Fool has prepared a newly updated report on some of Woodford’s biggest investments. “8 Shares Held By Britain’s Super Investor” is totally free — to get your copy today, click here.
The article ONS Figures Calm Fears of Triple-Dip Recession originally appeared on Fool.com.
Sam Robson has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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Source: FULL ARTICLE at DailyFinance
The Men Who Run Bunzl
By Tony Reading, The Motley Fool
Filed under: Investing
LONDON — Management can make all the difference to a company’s success and thus its share price.
The best companies are those run by talented and experienced leaders with strong vested interests in the success of the business, held in check by a board with sound financial and business acumen. Some of the worst investments to hold are those run by executives collecting fat rewards as the underlying business goes to pot.
In this series, I’m assessing the boardrooms of companies within the FTSE 100. I hope to separate the management teams that are worth following from those that are not. Today I am looking at Bunzl , the “one-stop shop” distributor of low-value products from coffee cups to cleaning fluid.
Here are the key directors:
|
Director |
Position |
|---|---|
|
Philip Rogerson |
(non-exec) Chairman |
|
Michael Roney |
Chief Executive |
|
Brian May |
Finance Director |
|
Pat Larmon |
CEO, North America |
Philip Rogerson has been chairman since March 2010. Although he gave up one chairmanship and another non-executive position to clear his diary for the role, he remains chairman of another FTSE 100 company, Aggreko, and of FTSE 250 member Carillon.
His executive career was spent at ICI, and then British Gas where he served as finance director and as a divisional director, before overseeing the demerger of Centrica as deputy chairman.
Growth by acquisition
Michael Roney became CEO in 2005, shortly after Filtrona was spun off from the company leaving Bunzl as the distribution group it is today. He had been a non-executive since 2003, and as he stepped into the CEO role the former CEO, who had overseen Bunzl’s divestment of a swathe of businesses over a 14 year period, moved up to chairman. That would be frowned upon in today’s corporate governance climate, but makes for continuity.
An American, Roney worked for Goodyear in various roles before joining Bunzl, including being CEO of the Asian and European divisions. With Bunzl already focused on distribution, Rooney has led its growth by acquisition, rolling out specific market niches globally, with over 60 acquisitions completed. Revenues, operating profit and EPS have grown in each year under his leadership, and the shares have increased by 150%.
Company men
Brian May has been finance director for most of Roney’s tenure, taking up that role in 2006. A chartered accountant, he joined Bunzl from KPMG in 1993 and rose through the finance ranks. North American CEO Pat Larmon has also been with the company for a long period. He joined in 1990 when Bunzl took over a company he owned, and rose through the group to his current position in 2004.
Bunzl has six non-execs, with two new directors joining this year. They have credible and relevant experience with a bias toward distribution and retailing CVs. The company has a policy requiring executives holding shares worth at least their annual base salary.
I analyze management teams from five different angles to help work out a verdict. Here’s my assessment:
|
1. Reputation. Management CVs and track record. Good. |
Score 3/5 |
|
2. Performance. Success at the company. Excellent. |
Score 5/5 |
|
3. …read more Source: FULL ARTICLE at DailyFinance |
Shivering Britain Underlines Opportunities for Centrica and BG Group
By Tony Reading, The Motley Fool
Filed under: Investing
LONDON — It only took a few days of marginally unseasonable weather and some technical problems with the interconnector that pipes gas from the Continent to bring Britain close to energy rationing last month.
Gas stores were down to just two days supply and an LNG (liquefied natural gas) tanker was diverted here to avert the kind of rationing seen in third world countries.
It highlighted the U.K.’s poor gas storage facilities. But it should put some impetus behind the government‘s new “Gas Generation Strategy“.
Higher prices, more investment
It could be good news for investors, if not consumers. Higher gas prices and more investment into the sector should benefit both Centrica and BG .
Though best known for its downstream British Gas business, Centrica is the largest investor in the Cygnus gas field in the North Sea, which is due to come on-stream in 2015.
Centrica claims that its involvement in upstream activities just hedges its downstream exposure to gas prices, but most observers would reckon high gas prices are good for the company.
Storage and generation
Centrica also has substantial gas storage and gas-powered electricity generation capacity, though it’s been closing down generating plant as its ageing fleet falls foul of the government‘s green agenda.
That’s where the Gas Generation Strategy comes in. It will “consider whether there is a case for measures to encourage gas storage”. Last month’s near-miss seals that question. The strategy should ensure that there are “opportunities for investors in gas generation plant”. That should help Centrica build new more efficient plants.
What might put some action into these words is the recent appointment of Michael Fallon as Energy Minister, while retaining a dual brief as Business Minster. He is expected to put more emphasis on securing low-cost energy supplies.
Coals to Newcastle
The diversion of the tanker Zarga to Milford Haven last month illustrates the global economics of LNG. Carrying enough gas from Qatar to provide six hours’ U.K. consumption, the tanker goes wherever the price is highest. The U.K. is building more LNG import terminals — and both Centrica and BG are cashing in on the global LNG market.
BG was one of the first companies to sign a long-term LNG supply deal in the U.S., where the shale gas glut has seen LNG import terminals reconfigured as export terminals. Centrica has just signed a 20-year deal with the same exporter.
BG‘s LNG business, a third of revenues, adds stability to the big bet it’s placing on its Brazilian offshore projects. It has just signed a 20-year contract to supply India with up to $20bn-worth of gas.
Gas is a sector with a healthy outlook and I have shares in both these companies. But any portfolio should be well diversified, and have a core of solid and dependable blue-chip shares that you can buy and forget about. The Motley Fool has picked the five best shares that fit this bill.
You can read all about them in this brand-new report. Just click …read more
Source: FULL ARTICLE at DailyFinance
Are These FTSE 100 Shares Buys?
By Royston Wild, The Motley Fool
Filed under: Investing
LONDON — I have recently been evaluating the investment cases for a multitude of FTSE 100 companies.
Although Britain‘s foremost share index has risen 10% so far in 2013, I believe many London-listed stocks still have much further to run, while conversely others seem overdue for a correction. So how do the following five stocks weigh up?
BP
The fallout surrounding the 2010 Deepwater Horizon oil crisis continues to weigh heavily on industry giant BP . The company has heavily divested assets to cover the cost of the accident, the trial for which is ongoing and which BP expects final compensation to come out at $42 billion.
Although the court case currently hangs wearily over the oil giant, I believe rocketing production should propel earnings higher over the longer term. Output is set to surge higher from this year onwards at BP‘s major new projects, while maintenance-related closures at its other installations are set to slow considerably.
City analysts expect earnings per share to rise 39% in 2013 before leaping 8% in 2014. The oil leviathan currently trades on P/E ratios of 7.9 and 7.3 for this year and next, and whose excellent value for money is underlined by price/earnings to growth (PEG) projections of 0.2 and 0.9 for the same two years.
As well, BP‘s dividends are expected to remain well above the average 3.5% yield for the FTSE 100 — yields of 5.1% and 5.3% are anticipated in 2013 and 2014 correspondingly.
Centrica
I reckon Centrica is an excellent pick for income investors looking for consistent dividend growth. The energy provider boasts a progressive payout policy, and City analysts expect a 16.4 pence per share dividend to rise to 17.4 pence and 18.3 pence per share during 2013 and 2014 correspondingly.
Yields of 4.9% this year and 5.2% in 2014 are projected, and although coverage of just 1.6 times is predicted, Centrica’s position in the ultra-defensive utilities sector should protect shareholder payments.
Group revenues increased 5% last year to £24 billion, which pushed total adjusted operating profit 14% higher to £2.7 billion. Despite the ongoing furor over last October’s decision to hike household energy prices, the firm remains highly resilient and continues to add new custom.
Earnings per share are forecast to rise 2% and 8% in 2013 and 2014 respectively. And I fully expect earnings to speed up thereafter, as rising strength within the British Gas subsidiary, combined with a drive to build the group’s upstream oil businesses both in Europe and the U.S., delivers improving investor returns.
Evraz
Enduring weakness in the steel price, allied to the potential for further large production closures, makes Evraz a risky selection in my opinion.
Group crude steel production fell 5% to 16 million tonnes in 2012, the company said in January, as the impact of a vast modernization program — combined with the closure of a facility in the Czech Republic — pushed output lower. Evraz expects production to improve this year as its upgrade scheme nears completion, however.
City brokers expect …read more
Source: FULL ARTICLE at DailyFinance
Centrica ends plan to build UK nuclear plants
Centrica PLC, the owner of British Gas, is pulling out of plans to build four new nuclear power reactors in Britain, citing uncertainty over the overall cost of the project.
Centrica said in a statement Monday that pre-development costs were approaching a cap of 1 billion pounds, ($1.6 billion) and that a detailed assessment convinced the company not to proceed with the project.
The move comes four years after Centrica struck a 2.3 billion pound deal with Electricite de France SA (EDF) to take a stake in EDF‘s nuclear business in Britain.
Centrica said its 20 percent interest in the eight existing nuclear power stations in Britain is unaffected by Monday’s decision.
Source: FULL ARTICLE at Fox World News