Centrica slashes its dividend as profits dip

British Gas owner Centrica has clobbered shareholders with an “urgent” dividend cut to shore up its finances as profits fell by more than a third.

Shares plunged by as much nearly 8.5% wiping around £1bn (€1.3bn) off the value of the FTSE100 giant, as the “painful” payout announcement hit its army of 650,000 small investors.

New boss Iain Conn said costs and investment would also be slashed, sounding a warning over the challenge of keeping the lights on in the UK, and the need to explore shale gas alternatives, as the firm said it planned to close two power stations.