Centrica Slashes Dividend

Fri, 20th Feb 2015

Shares in Centrica fell after the company reported falling profits, and slashed its full year dividend by 21 percent. By the close of trading, the owner of British Gas had seen its share price slip by more than 8 percent.

Overall, the trading day was lacklustre for the index, with the FTSE 100 slipping further away from its all-time high. Meanwhile, European markets rebounded as hopes resurfaced that there could be a solution found to the Greek debt talks.

On Thursday it was confirmed that Greece had asked the eurozone for an extension on its loans, and while the request was greeted favourably by the European commission there was some disagreement from the German government.

One of the best performers of the day was Sports Direct. Shares in the company rose by 0.7 percent after the retailer reported that it had seen a 7.6% rise in profits, up to 346.9 million for the 13 weeks leading up to the 25th of January. This was good news for a company that had a turbulent time last year.

The retailer added that its business in Austria had suffered from a poorer than expected winter sports season, and that the new drinks can maker, Rexam, had accepted a recent takeover bid of £4.4 billion from the US rival company Ball Corp helped to push its shares up by 4.7%. The company is the biggest maker of drinks cans in Europe, and employs around eight thousand people across 20 different countries, operating a total of 55 manufacturing sites around the world.

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