Centrica reassures market over accounting

British utilities group Centrica today moved to quash market concerns about its accounting today, issuing a statement saying …

British utilities group Centrica today moved to quash market concerns about its accounting today, issuing a statement saying its policies were "entirely appropriate".

The group, which has seen its share price fall amid rumours about irregularities, said it "has noted recent market speculation and dismisses any such speculation as being without foundation".

The group found itself on the receiving end of accounting worries amid concerns about British power suppliers with US exposure.

The slide was also on the back of the general slump in stock markets, as well as a decision by a Texan energy regulator to delay electricity price increases.

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Shares in the group slid nearly 20 per cent over the last week - from 199 pence at the close of business on Monday July 8th to 161 pence yesterday.

But Centrica said today: "The board is confident that Centrica's accounting policies and their application together with its financial and risk management controls are entirely appropriate for its businesses."

It said it had no plans to curtail its energy trading activities in Britain, continental Europe or North America, and was confident of their continuing contribution to group results.

And it said the Texan decision was "not unexpected and will not material affect Centrica's growth ambitions in North America".

Centrica continued that it had no plans to raise cash by issuing shares. "Finally, the board confirms that it is confident that the company's track record of meeting market expectations will continue," it said.

PA