British Gas owner Centrica plans overhaul with 1,300 job cuts over two years

Russ Mould, investment director at AJ Bell, said: “The volatility in energy markets is creating some headaches for Centrica although the company still allowed for a generous increase in the dividend.

“You might think the renewed spike in energy prices is untrammelled good news for the business but Centrica’s results reveal a more complicated picture.

“There were lots of moving parts in the numbers. Investment in several areas put pressure on cash flow, while a better commercial performance for its retail-facing British Gas business was balanced out by higher bad debts and spending on its transformation plans.

“Cutting headcount is often page one of the turnaround playbook and Centrica plans to cut some 1,300 jobs over the next two years. Its ability to do so is apparently bolstered by changes in customer behaviour which mean more customer contact takes place digitally.”