Signs of recovery for Centrica (CNA) look good after the energy group reported it expected to exceed targets set for the year. Adjusted operating cash flow is expected to be between £2.4bn and £2.6bn, ahead of the £2bn targeted at the time of the 2015 full-year results in February. Adjusted earnings per share are also expected to be 16.5p for 2016, which is below the previous year but around 7 per cent ahead of market consensus expectations.
Capital investment - including small acquisitions - should also be lower than the £1bn initially outlined, coming in at £900m. The British Gas-owner has so far reduced headcount by more than 3,000 and expects to save more than £300m in operational efficiencies, up on the £200m saved last year. Year-end net debt is also expected to be lower than June's figure of £3.8bn.
