Shares in Centrica (LON:CNA) closed higher yesterday, outperforming the broader London market, as the company announced that it was setting up a new global consumer division as part of a strategy overhaul. The move comes as the British Gas owner looks to focus more on its end-consumer services after years of weak profits from its energy production unit.
Centrica’s share price ended the session 0.39 percent higher at 230.00p yesterday, slightly outperforming the benchmark FTSE 100 index which closed 0.04 percent higher at 7,188.82 points. The group’s shares have gained more than 17 percent over the past year, but are down by nearly two percent in the year-to-date.
Centrica announced in a statement yesterday that it was set to form global consumer and global business divisions, further focusing itself around the residential consumer and business customer. The move also follows the departure Badar Khan, Chief Executive of Energy Supply & Services in North America, who is set to leave the company next month to take an executive role at National Grid (LON:NG).
The new division will be headed by Mark Hodges, currently Centrica’s chief executive of energy supply and services in the UK and Ireland.
“This reorganisation enables a more coherent strategy built around the end-customer and gives us the ability to ensure capability is developed globally and efficiently in support of that strategy,” Centrica’s chief executive Iain Conn, who has been looking to restructure the British Gas owner following years of weak profits, said in the statement.
The 17 analysts offering 12-month price targets for Centrica for the Financial Times have a median target of 240.00p on the stock, with a high estimate of 300.00p and a low estimate of 175.00p. As of February 4, the consensus forecast amongst 19 polled investment analysts covering the British Gas owner advises investors to hold their position in the company.