Centrica shares have taken a battering after the British Gas owner reported a slide in annual profits and slashed its dividend to shareholders.
The decline in its share price came during a poor session for the wider market, with the FTSE 100 Index 22.1 points lower at 6875.2 amid uncertainty over a last-minute deal between Greece and its European creditors.
Centrica shares slumped 8% following its annual results – a fall of 21.65p to 259.45p – after it said profits fell 35% to £1.75 billion following a “very difficult year” in which it lost 368,000 customer accounts.
The group said it had taken the “difficult decision” to rebase its shareholder dividend, with the full-year pay-out for 2014 set to be 21% lower at 13.5p.
BAE Systems was also under pressure after reporting a £1.5 billion drop in sales to £16.6 billion for 2014, as well as an 11% fall in underlying earnings.
Chief executive Ian King expects a return to growth this year but shares still slipped 4.25p to 517.75p. In contrast, fellow defence products firm Rolls-Royce topped the FTSE 100 risers board with a gain of 2% or 24.25p to 959.5p.