Centrica expands into the US with new energy trading office

Centrica (CNA) is stepping up its international ambitions with the opening of its first US office in New York, marking a major move into the North American gas optimisation market. This follows its initial foray into US power trading in 2024 and forms part of a broader strategy to build an integrated gas, power, and certificates optimisation business in the region.

Chris O’Shea, Centrica’s CEO, said the move underscores the company’s commitment to energy security, affordability and decarbonisation in global markets. Managing Director Cassim Mangerah added that the expansion into the US was the “next step” in delivering both commercial growth and support for the global energy transition.

Diageo eyes asset sales and $500m cost-cutting drive

Diageo (DGE) is preparing for significant changes to its portfolio as it responds to weaker alcohol demand and growing investor pressure. The drinks giant has announced a $500m cost-saving programme and signalled that asset disposals will go “above and beyond” the minor brand sales seen in recent years.

Net sales rose 2.9% to $4.4bn in the first quarter, driven in part by a 5.9% rise in US sales, as distributors front-ran tariff risks. Still, the company recently abandoned its mid-term growth target of 5–7%, reflecting broader uncertainty and tariff pressures, although the expected annual impact of US duties was trimmed from $200m to $150m.

Diageo aims to generate $3bn in sustainable annual free cash flow from 2026, up from $2.6bn last year. The company also plans to reduce leverage to within its 2.5–3x EBITDA target range by 2028, after ending 2024 at the upper limit.

Indivior to delist from London – What it means for investors

Indivior has announced plans to cancel its secondary listing on the London Stock Exchange, effective 25 July, while maintaining its primary listing on Nasdaq. The move reflects the company’s desire to streamline costs and better align with the reality of its business: over 80% of Indivior’s revenue now comes from the US, and about 75% of its trading volume already takes place on the Nasdaq.

Despite these longer-term strategic challenges, the shares have seen a boost recently. Investor sentiment has improved following stabilising expectations around 2025 guidance and a stronger showing from its US business in recent weeks. While the delisting may narrow access for UK investors, it doesn’t fundamentally alter the business case we initially backed – a highly specialised pharmaceutical firm operating in a crucial area of public health.

Our Position

We continue to monitor the situation closely and will update clients when we believe the time is right to close the position. The delisting is a logistical shift, not a reason to panic but it does underscore the importance of keeping an eye on the next set of financials and pipeline developments.

Kingfisher: Seasonal tailwinds and UK strength push sales higher

Kingfisher’s Q1 update delivered a solid start to the year, helped along by a burst of sunshine in the UK and rising trade customer momentum. Group sales rose by 2.2% on a constant currency basis to £3.3bn, with like-for-like sales up 1.8% or 2.7% once calendar effects are stripped out.

Elsewhere, results were more mixed. France posted a 3.2% decline in LFL sales, but management highlighted sequential improvement, especially at Brico Dépôt where kitchen ranges and loyalty initiatives supported stabilisation. In Poland, sales slipped amid consumer caution tied to regional geopolitical factors.

E-commerce remained a bright spot, up 9.3% year-on-year, and now accounts for a fifth of Group sales. Management also flagged encouraging growth in ‘big-ticket’ items and ongoing progress with store conversions and trade-focused upgrades across the estate.

Guidance for the full year was reiterated, with adjusted profit before tax still seen in the £480m–£540m range and free cash flow expected between £420m–£480m. The tone was measured but confident, with CEO Thierry Garnier highlighting market share gains across all key geographies and a strong order book heading into Q2.