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No bad news is good news for Centrica

Losses in UK energy supply customers have continued, but at a slower rate
November 22, 2019

Centrica (CNA) continued to drop energy supply customers in the third quarter, losing a further 107,000 accounts. The rate of decline slowed, but broker Jefferies calculates the annual ‘churn rate’ only improved from 2.9 per cent in the first half to 2.8 per cent. With growth in services and home solutions, overall UK customer accounts have increased. Together with higher North American margins and accelerated cost efficiencies, this helped offset ongoing nuclear power station outages.

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The group has maintained its full year guidance with adjusted earnings weighted towards the second half. Adjusted operating cash flow is expected to be at the lower end of the £1.8-2.0bn target range with net debt between £3.0-3.5bn. Capital investment will be £100m less than anticipated.