The boss of Centrica’s (LON:CNA) consumer division is stepping down after nearly four years with the company, the British Gas parent has said. The blue-chip group meanwhile has appointed an insider to succeed Mark Hodges who is leaving the company at the end of February.
Centrica’s share price has slipped into the red in today’s session, having given up 1.40 percent to 133.65p as of 09:49 GMT. The stock is underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.56 percent lower at 6,735.09 points. The group’s shares have lost about 3.5 percent of their value over the past year, as compared with more than a 10-percent dip in the Footsie.
Centrica’s Mark Hodges steps down
Centrica announced in a statement yesterday that after nearly four years at the company, Mark Hodges, the chief executive of its consumer business, will be leaving at the end of February to take up a new role as Chief Executive of ReAssure, Swiss Re’s closed book business which plans a stock market listing in 2019.
The British Gas owner said that Sarwjit Sambhi will become CEO, Centrica Consumer and will join the group’s board as an executive director effective from March 1. Sambhi joined the FTSE 100 group in 2001 from Booz Allen & Hamilton, and has held a number of senior positions, most recently in the Consumer division where he has been Managing Director, UK Home for nearly three years.
Analysts on British Gas parent
Credit Suisse reiterated its ‘outperform’ rating on Centrica last week, without specifying a price target on the shares. According to MarketBeat, the blue-chip group currently has a consensus ‘hold’ rating and an average price target of 155.08p.
Earlier this month, UBS lowered its stance on the British Gas owner, arguing that while the company looks set to reach the low end of its cashflow targets, if anything else goes wrong, the dividend is clearly at risk.