ENERGY giant Centrica hosted a presentation to investors on its British Gas unit and the said the meeting was described as “reassuring”.
Centrica has already put through price increases. Energy prices are a political issue, but companies such as Centrica need to make enough profit to invest in green measures, so this should not be too much of a concern for investors.
The shares have fallen substantially from their high of 345p in January to 292.5p, but this means the shares now offer a very attractive yield of 5.1% in the current year, rising to 5.5% in 2012. The shares remain a buy.
The Mail on Sunday recommended plant hire group Ashtead, a company severely hit by the financial crisis but now making solid progress.
The group announced profits in the year to April recovered to £31million and brokers forecast profits of £75million in the year to April 2012, rising to £100million the following year.
New investors may do well if they buy at current levels.