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British Gas owner Centrica adds £300m to share buyback plan amid nuke boost

2025-09-30 03:15:44 By

FTSE 100 stalwart Centrica has bolstered its share buyback initiative with an extra £300m, taking the total shares repurchased over the past two years to a staggering £1.5bn.

In a trading update today, British Gas's parent company signalled that it foresees its full-year earnings and net cash for 2024 mirroring market expectations, as reported by City AM.

Analysts project an adjusted earnings per share of 18.5p for Centrica in 2024, alongside an anticipated net cash position of £2.6bn. "The usual uncertainties remain for the balance of the year, including weather, commodity prices and asset performance," the energy firm highlighted.

Since commencing in November 2022, Centrica's ambitious share buyback plan is on track to acquire roughly 20% of its stock by September 2025.

Just last week, the company announced the extension of the operational life for four of its nuclear reactors until March 2027 – a year longer than previously planned. Nuclear output in the United Kingdom has been incrementally rising throughout 2024, registering a 2% increase since the year's start, as per analysts from Jefferies.

In another sector insight, domestic gas consumption in UK households was six per cent higher than the three-year average from September to November. Coinciding, electricity and gas prices have surged by 20-30%.

These updates surrounding its nuclear ventures contributed to a 12.7% rise in Centrica's share price over the past month. Despite this jump, the company's shares are still trailing seven per cent behind since January started.

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FirstGroup buys one of London's biggest bus operators in £90m deal

Transport heavyweight Firstgroup has made a strategic move into the London bus sector with the acquisition of one of the city's major operators. The Aberdeen-headquartered company, listed on the London Stock Exchange, announced on Tuesday that it had inked a £90m deal to acquire RATP London from its current owner, RATP Group, which is owned by the French state, as reported by City AM. The merger news, still pending approval from the French government and Transport for London (TfL), boosted Firstgroup's shares by over four percent in early trading. RATP London commands approximately 12 percent of the London bus market share. While TfL operates the majority of the bus network, other private firms such as Arriva and Go-Ahead Group also play significant roles. "This is a significant acquisition for the group that will diversify our portfolio and materially grow our earnings in the medium term," commented Graham Sutherland, CEO of Firstgroup. "It allows us to enter the London bus market at scale and will also bolster our credentials as we participate in future franchising opportunities across the UK," he further elaborated. Upon successful completion of the deal, Firstgroup will take over RATP’s 10 depots situated in Central and West London, as well as around 1,000 buses, a third of which are fully electric. RATP's workforce in London numbers 3,700, with over 80 percent being drivers. Last year, the company reported revenues of £271m. This announcement comes shortly after Firstgroup, part of the FTSE 250 index, revealed its acquisition of the open-access rail operator Grand Union Trains.

Debenhams makes first profit since Boohoo rescue despite sales halving

Debenhams, acquired by Boohoo from administration in 2021, has reported a turnaround to profitability even as revenues experienced a more than 50% reduction. In the period ending 29 February, 2024, the retailer recorded a pre-tax profit of £4.5m, contrasting sharply with a pre-tax loss of £732,000 in the previous year. Revenue declined to £39.7m from the earlier figure of £87.1m. Looking back further, Debenhams' revenue was £56.9m, alongside a pre-tax loss of £11.7m, as reported by City AM. Nonetheless, the company's gross merchandise value saw a considerable increase to £359.6m — a 65% rise — and its EBITDA also doubled, reaching £10.4m. UK sales decreased from £73.5m to £39.7m, while international revenue streams dried up, having contributed £13.5m in the preceding financial cycle. The workforce size at Debenhams also dropped significantly, falling from 115 employees to just 24 over the course of the year. The numbers detailed belong solely to DBZ Marketplace Online Ltd, operating under the Debenhams name, not to be confused with Debenhams Brands Online Ltd, which includes such labels as Burton, Dorothy Perkins, Wallis, and Oasis within the Boohoo portfolio. This newer entity, incorporated in May 2023, achieved sales totalling £138.6m and a pre-tax profit of £950,000 for the year ending on 29 February, 2024. Dan Finley, CEO of Boohoo and Debenhams, commented on the results: "Debenhams is an iconic British heritage brand. ". The company behind the revival of Debenhams has expressed optimism about its transformation into "Britain’s online department store." A spokesperson for the firm stated: "We bought it out of administration and are making great progress transforming it into Britain’s online department store." They added, "The market place model is stock-light, capital-light and highly profitable, as these results show. There is lots of opportunity ahead and we are focused on realising that for the benefit of all shareholders." The positive sentiment was further underscored by the announcement: "We have previously announced that the current year started strongly for Debenhams." These latest updates on Debenhams follow the disclosure of financial outcomes for other brands under the Boohoo umbrella towards the end of November. Notably, Prettylittlething reported a shift from a pre-tax profit of £22m to a loss of £6.5m, with revenue dropping from £634.1m to £475.8m. While Boohoo regularly reports its group results to the London Stock Exchange, detailed financial accounts for its individual brands are only made public annually via Companies House filings.

Warpaint London set to acquire Brand Architekts in a £13.9m deal

Warpaint London, the cosmetics company known for its W7 and Technic makeup brands, has today informed markets of its agreement to acquire the entire issued and to be issued share capital of beauty brand specialist Brand Architekts. The terms of the acquisition state that each shareholder will receive 48p per share, valuing Brand Architekts at approximately £13.9m on a fully diluted basis—a 100% premium over the closing price of Brand Architekts' shares as of 4 December, as reported by City AM. In addition, Warpaint London has announced plans to raise funds through a placing and retail offer, aiming to secure £14m and £1m respectively. This move is part of Warpaint London's strategy to pursue "exciting and relatively low risk" investments to enhance growth prospects in the upcoming year. Sam Bazini, CEO of Warpaint, described the acquisition as an "attractive strategic opportunity" that will complement the company's existing portfolio. "Additionally, as part of a larger group we believe applying our established supply and distribution channels and approach to Brand Architekts will improve efficiency, reduce costs and drive profitability," Bazini commented. Warpaint London announced in September that trading in 2024 had been consistent with expectations, particularly noting a strong performance in the US due to a larger Walmart order. The company also revealed it was in "talks with other large new retailers in Europe, the US and the UK with a view to stock the group’s products." In 2025, the management anticipates further growth with the introduction of W7 colour cosmetics into a significant number of new Superdrug stores, as well as a 150-store expansion of the Group’s W7 impulse offering in Tesco stores However, in October, Brand Architekts reported a drop in sales as it shifted focus to fewer, larger brands. The firm posted an underlying loss of £0.4m compared to a loss of £1.2m for 2023, while its gross profit margin rose by 1.5 per cent to 41.2 per cent. Sales for the year ending 30 June were £17m, a decrease of 15 per cent from £20.1m in 2023. Roger McDowell, chair of Brand Architects, stated that the board "recognises the certainty of value" of the cash offer, especially in an uncertain economic climate. McDowell added: "The acquisition will strengthen the enlarged business for the benefit of all our customers, employees and other stakeholders."

Thames Water CEO defends bonuses of £770,000 for executives as firm posts £190m loss

Thames Water's chief executive, Chris Weston, has been compelled to justify the payment of £770,000 in bonuses to senior executives. This comes in light of the company registering a substantial £190 million loss and witnessing a concerning 40% hike in pollution incidents within its semiannual financial results, as reported by City AM. Weston insists that to draw and retain high-calibre personnel capable of revitalising the beleaguered utility, competitive compensation is necessary, despite Ofwat, the industry regulator, recently slamming the practice of charging customers for what it deemed "undeserved bonuses." "We need to attract talent to this company," Weston asserted. "If we don’t offer competitive packages, people will not come and work at Thames." These remarks synchronized with Thames Water revealing further grim financial figures, demonstrating the difficulties it faces as it desperately seeks vital funding to avert being nationalised. The losses of the water giant soared to an alarming £189 million in the first half of its fiscal year, exacerbated by penalties from Ofwat and soaring credit losses leading to it listing extraordinary charges of over £427 million for the six months ending 30 September. At the same time, its publicised debt levels climbed to an overwhelming nearly £16 billion Whilst the company hurriedly tries to gain approval for a potential £6.5 billion rescue plan composed of new capital, borrowing, and delayed debt maturities. Earlier this year, the company issued a warning that its liquidity would only last until April 2025. However, in November, it managed to secure a financial package from creditors, pending approval by the High Court, which is expected to deliver a judgement next week. Thames Water is also actively seeking new equity investors, following commitments made to Ofwat in August after the utility's credit rating took a hit, failing to meet the regulator's standards. On Tuesday, CEO Sarah Bentley, who joined Thames Water a few months ago after tenures at British Gas and Aggreko, reported "considerable interest" from potential equity investors.

On the Beach brings back dividends and launches £25m share buyback for investors

On the Beach has initiated a £25m share buyback and promised substantial full-year dividends for investors, following a surge in demand for its package holidays to record levels in 2024. The Manchester-based company announced plans to reintroduce a final dividend of 2.1p per share, marking the first full-year payout since the pandemic affected the travel sector, as reported by City AM. This decision comes after On the Beach reported record bookings for the third consecutive year, capitalizing on the travel boom that has swept across Europe in recent years. The company's total transaction value (TTV) reached £1.2bn, a 15% year-on-year increase, alongside revenue of £128.2m, up 14%. On an adjusted basis, pre-tax profit rose by 25% to £31m. In a statement to the market, On the Beach informed investors that its forward order book had reached record levels, with winter bookings to date up by 25%. "Current trends and strategy give us confidence that summer 2025 will be significantly ahead of summer 2024," the company added. Chief Executive Shaun Morton attributed the performance to a combination of initiatives, including the company's announcement of a landmark partnership deal with its long-term budget airline partner, Ryanair. "The partnership has facilitated an improved customer journey for those booking Ryanair flights as part of an On the Beach package, whilst enabling increased operational efficiency and a greater focus on areas of strategic value." "What’s more, the agreement and significant upgrades to our technology have supported a doubling of our addressable market, following the addition of city breaks to our offering alongside planned investment in Ireland."

Sainsbury's Employees to Receive Salary Boost Following Successful Holiday Season and Market Share Gain

Even though Sainsbury's reported a fifth straight Christmas of increased grocery market share, with a nearly 4% rise in sales, its shares slightly declined on Friday morning. CEO Simon Roberts informed investors: "Taste the Difference products were included in half of the large Christmas baskets, contributing to a 16% sales increase, surpassing all main competitors." He also noted a nearly 40% increase in party food sales at Sainsbury’s and that in the critical days leading up to Christmas, over 200 bottles of sparkling drinks were sold every minute, with more than a third being from the Taste the Difference range, as City AM reported. Over the six-week holiday period, retail sales rose by 3.8% year-on-year, while total sales increased by 3.7%. However, Sainsbury’s share price fell over 2% to 256.20p on Friday morning. Richard Hunter, Head of Markets at interactive investor, observed: "share price reactions to the updates have been mixed, with some investors choosing to disregard the Christmas period's success and focus on the upcoming challenges." In its announcement, Sainsbury’s credited part of its growth to its Nectar card prices. The company also affirmed that it is on track to achieve an additional profit of at least £100m in the three years up to FY26/27. It was revealed that a quarter of UK residents visited the Argos website during the Black Friday weekend, indicating a "significant year-on-year increase". The third quarter saw the largest sales in technology. Nevertheless, the toy market was lackluster, and demand in higher-priced categories like furniture and consumer electronics remained low. The supermarket chain stated it is making "good progress towards our goal of achieving £1bn in cost savings by March 2027". Sainsbury’s has announced a 5% pay increase for retail staff this year, divided into two increments in March and August. The company believes this will "help us navigate a challenging cost environment while continuing to lead the industry in employee compensation". Both Sainsbury’s and Argos employees will see their hourly wage rise to £12.45 in March and £13.70 in London, with a further increase to £12.60 per hour in August and £13.85 in London. Roberts explained: "Our team members are essential to our Sainsbury’s plan, and we are pleased to announce a 5% pay raise for our hourly-paid staff this year, in two stages, to help manage the tough cost inflation environment." "We are committed to rewarding our team well for their service and productivity, and we will be the highest-paying UK grocer from March," he added. This follows Roberts' warning in November about the government's national insurance increase leading to higher prices for consumers, adding £140m to the supermarket’s expenses. "In the supermarket sector, where prices are key to success, staying competitive comes at a cost. For Sainsbury, the investment in

Moonpig shares tumble as card maker swings to £33m loss in first half of financial year

Moonpig has reported a loss in the first half of its financial year, as the personalised card maker's experiences business takes longer than expected to recover. The FTSE 250 company's share price fell by 12 per cent in early trading on Tuesday, despite shares remaining up by 57 per cent this year. Moonpig posted a pretax loss of £33.3m for the six months to 31 October, 2024, compared to a profit of £18.9m during the same period last year. The loss was attributed to a £56.7m goodwill impairment related to its experiences business, which partners with brands such as Slug and Lettuce, Hello Fresh and BrewDog, as reported by City AM. The firm cited "challenging trading conditions" and "trading conditions remain challenging with significant macroeconomic headwinds" impacting the unit, leading to an extended timeline for aligning experiences revenue growth with its full potential. A "transformation plan" for experiences is reportedly operationally complete and has realised over £1m in cost savings, including relocating its head office, outsourcing non-core functions and building a new leadership team. Basic earnings per share for Moonpig dropped to a negative 11.2p for the half year, compared to 4.1p a year earlier. On an adjusted basis, Moonpig’s profit came in nine per cent higher at £27.3m. The company has elevated its medium-term forecast for adjusted pre-tax earnings (EBITDA) margin to between 25 and 27 percent, up from the previous range of 25 to 26 percent, an uplift attributed to "continued growth of high-margin revenue streams such as plus subscription fees" Moonpig recorded a revenue of £158 million for the six months, marking an increase of 3.8 percent year-on-year. The postal card company, along with its Dutch counterpart Greetz which was acquired in 2018, registered approximately 200,000 new active customers during the half-year period, taking the total to 11.7 million. "Moonpig’s performance has been underpinned by robust growth in order volumes, powered by our multi-year investments in technology and innovation and the structural market shift to online," commented Nickyl Raithatha, Chief Executive of Moonpig.

Post Office anticipates record £1bn cash withdrawals in December, surpassing last year's festive season

The Post Office is forecasting a record-breaking number of personal cash withdrawals this month, expected to exceed £1bn. This prediction surpasses last year's record numbers during the festive shopping season, with December 2023 witnessing a total of £930m in cash withdrawals, as reported by City AM. The latest figures showed that a total of £916m in personal cash was withdrawn in November, marking a 1.6 per cent month-on-month decline from the previous month. Personal and business cash deposits also decreased to £1.45bn and £1.1bn respectively, down month-on-month by 2.5 per cent and seven per cent, reflecting the nationwide impact of Storm Bert. Ross Borkett, Post Office Banking Director, said this year's predictions follow trends indicating more people will "rely on cash in order to budget in the run-up to Christmas Day," He added: "We’re seeing indications that personal cash withdrawals will be greater in December than the previous year," Borkett also noted that following the disruption caused by Storm Bert last month, postmasters and their teams are ready to support small businesses who heavily rely on cash takings in the lead up to Christmas. The Post Office recorded its highest daily withdrawal for cash on 22 December 2023, with over £62m taken out over the counter just days before Christmas.

Industry Professionals Decry Cancellation of Extra Bank Holiday in 2025

A recent announcement from Number 10 has confirmed that the proposed extra bank holiday in 2025 has been cancelled. Initially, there were speculations that an additional day off would be added to commemorate the conclusion of WWII, but this has been officially declared as not happening. Leaders in the UK's hospitality industry have expressed their disappointment with the government's choice to abandon the extra bank holiday. They argue that such days are crucial for generating additional revenue in their sector. Their sentiments mirror those from 2022, advocating for the permanent inclusion of an extra bank holiday to celebrate the late Queen's Platinum Jubilee. Martin Williams, a former figure in the M Restaurants and Gaucho group, has described the decision to cancel the 2025 holiday as "missed potential." Williams stated: "The additional bank holiday would have been a vital stimulus for the hospitality sector amidst the economic challenges posed by the recent budget. Local pubs and independent eateries would have greatly benefited from it—a missed opportunity indeed." A representative from UKHospitality told City AM: "Bank holidays are peak times when people in Britain prefer to dine out or take a mini-break, which naturally leads to an increase in sales for hospitality businesses. As the industry grapples with rising costs, high-demand periods like bank holidays, Easter, and summer vacations become even more significant for driving sales." A spokesperson for the Campaign For Real Ale added: "Bank holidays are golden opportunities for the beer and pub sector. They offer an additional day of support for public houses, social clubs, and taprooms seeking to enhance their business." "The pub industry continues to face financial hurdles, including soaring energy bills and escalating costs. CAMRA’s data indicates that pub enterprises are experiencing unprecedented turnover rates and are still confronting a severe decline in the number of licensees able to maintain their operations in the UK. “Public houses are essential for community unity, offering inviting spaces for social engagement and aiding in the fight against loneliness. They remain central to our neighborhoods, and bank holidays are an excellent occasion for people to gather at their local pub to enjoy a pint with loved ones.” The economic impact of additional bank holidays is significant, with most of the private sector ceasing operations for an extra day. Studies suggest that an extra bank holiday could cost the UK economy approximately £2.4 billion. A spokesperson for Number 10 remarked: "The 80th anniversaries of VE and VJ Day will be monumental occasions for our nation, as we unite to honor the memories of those who served and the legacy they have left us. "We are dedicated to commemorating these significant national events with the appropriate respect, which is why we have allocated over £10 million for events to mark these anniversaries.”

Avanti West Coast achieves £1bn turnover despite ranking low on UK reliability charts

Despite being named one of the least reliable rail operators in Britain, Avanti West Coast's turnover exceeded £1bn last year. The train operator, a joint venture between Firstgroup and Italian rail firm Trenitalia, reported a turnover of £1.01bn for the 12 months to 31 March, 2024, an increase from £967.4m. However, Companies House filings reveal that pre-tax profit dipped from £12.8m to £12.3m over the same period. Avanti, which took over the west coast mainline from Virgin Trains in December 2019, is 70% owned by FirstGroup and 30% by Trenitalia, as reported by City AM. It operates services between London Euston and several cities including Birmingham, Liverpool, Manchester, and Glasgow. The accounts also show a dividend of £8.1m for the year, down from £11m. Passenger revenue totalled just over £1bn, up from £808.9m, with passenger numbers at 83% of pre-pandemic levels, up from 67%. Avanti West Coast returned a net payment of £21.9m to the Department for Transport (DfT) during the year, following a subsidy of £92.4m the previous year. According to the Office of Rail and Road, Avanti West Coast had the third worst reliability of all operators in Britain in the year to 31 March, 2024. In the past year, an equivalent of one in 15 trains (6.9%) were cancelled, including pre-emptive cancellations before 10pm the previous night due to crew shortages. Avanti West Coast's contract, which could last up to nine years, may be cut short by the government with just three months' notice after the initial three-year period. Meanwhile, the new Labour administration is devising a strategy to renationalise nearly all passenger rail services within five years. The plan involves transferring private train company contracts to Great British Railways, a new public body, as they expire. Avanti West Coast has expressed a 'singular focus' on service delivery. A board-approved statement read: "The company is working hard with a singular focus on delivering the service that customers expect." It also noted: "The company has reached an agreement with the relevant trade unions on the incremental use of rest day working for train drivers, which helps support operational resilience." Furthermore, the statement highlighted ongoing collaborations: "The company also continues to work with the DfT and other stakeholders on its plans to deliver long term improvements in customer experience and resilience."