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Centrica seeks EU allies
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September 9, 1999: 11:04 a.m. ET
U.K. services company triples profit; plans to export business model
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LONDON (CNNfn) - Centrica, the U.K.-based gas and household service supplier, posted a three-fold rise in first-half net profit Thursday and announced plans to seek joint-venture partners in continental Europe.
Centrica, Britain's dominant supplier of natural gas, has broadened its business to encompass consumer finance and telecoms, and agreed in July to buy the U.K. Automobile Association -- a road assistance provider -- for $1.7 billion.
The group said net profit climbed to 177 million pounds ($286 million) from 53 million a year earlier. However, sales dipped 5.8 percent to 3.89 billion pounds as its market share in its core gas business fell to 76 percent from 85 percent. Operating profit jumped 145 percent to 279 million pounds.
Centrica (CNA) shares fell 3.5 percent to 164.5 pence after the firm warned that second-half results would be "significantly lower." The stock has outperformed the FTSE 100 by 37 percent this year and hit a record high of 175 pence Monday.
Centrica's business model seeks to leverage the customer base from its utility operations -- it also supplies electricity -- to cross-sell other services such as credit cards and insurance.
Chief executive Roy Gardner said it hoped to export the model through alliances with European utility firms, though he declined to state with whom the company was talking. 
-- from staff and wire reports
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Centrica
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