Broker snap: Centrica gets Charles Stanley's vote

11th May 2010 10:22

Centrica has done well so far this year as British Gas continues to add more customer accounts and deliver further cost savings, keeping Charles Stanley on side.The UK energy hedge position has been addressed through the transformational acquisitions of Venture and British Energy, creating a more balanced business model with reduced earnings volatility, says analyst Tina Cook.British Gas has already delivered £200m of cost savings and is on track to exceed a further £100m, while improved customer service and greater emphasis on cross selling should help reduce customer churn. There's some general uncertainty about UK energy policy going forward given the hung parliament and unresolved leadership issue. The Lib Dems oppose new nuclear power plants.But despite rallying 26% over the past year, the shares yield an "attractive" 4.8%, another reason for Charles Stanley to retain its 'buy' recommendation.