International utility Centrica has reported a 38% growth in turnover for 2000.
Former UK incumbent gas supplier Centrica is becoming a model for many utilities intent on ‘owning the home’. It has rapidly expanded the range of services it offers to residential customers as well as retaining a large share of its gas supply customer base – something which foreign incumbent gas supply companies will eye with interest as full deregulation approaches for more European countries.
In particular the company has been very successful at acquiring electricity customers, with customer numbers up to four million. It has raised the target for growth in this sector from six million to seven million by the end of 2002, and has set itself aggressive targets elsewhere for telecoms customers (one million by the end of 2001 from 150,000 at the end of 2000) and ten million customers in North America by 2003 from just over a million at present, as well as five million in mainland Europe. Road services membership is also at record levels.
Looking at the various divisions, highest turnover growth was in gas production and trading where gas price increases helped turnover to rise from GBP808 million to GBP2.41 billion. Organic growth in the electricity sector led to a rise of 230% to GBP792 million, while the financial services and road services operations also pushed revenues considerably higher in 2000 versus 1999 – although this was mostly due to 2000 being the first full year of operation rather than to organic growth. Nonetheless, strong growth can still be expected this year.
Overall, the investment in new areas seems to be paying off and the company has been able to fend off competition relatively successfully in the gas market. It should be able to repeat the feat it has achieved in the UK in North America – while the expansion of its telecoms operations and its Goldfish Internet bank in the UK set it apart from the rest of the pack.
