npower for sale

magyar

roo246 wrote: »

I work for npower in a call centre in the northeast do u think our jobs r safe or nt?

As safe as they ever are.

To be honest, depends who buys it. If it's a new entrant to the market, they'll almost certainly need to keep all the staff.

If it's one of the other big six, then they would of course probably reduce overall staff numbers, but even then they would need to have extra staff (6m customers take a lot of looking after!) and plus invariable these things take years to happen.

I certainly wouldn't even begin to worry until there is any real evidence that a deal is happening.

magyar

backfoot wrote: »

Should be a snip.

With so much negative goodwill showing on the balance sheet the bargain hunters could make a killing.:cool:

I saw your thread a while ago - looks like you and npower aren't exactly best of friends!

I actually think this would go for a good price. The retail side of the business is pretty atrocious, but it does have 6m customers - each one generating about £50 profit a year. So that's £300m profit, typically you'd expect to pay about 7x profits for a business like this, meaning it should be about £2bn for that part alone.

Then you have the generating assets, even though they are all a bit old, they're probably worth £3-4bn.

backfoot

magyar wrote: »

I saw your thread a while ago - looks like you and npower aren't exactly best of friends!

I actually think this would go for a good price. The retail side of the business is pretty atrocious, but it does have 6m customers - each one generating about £50 profit a year. So that's £300m profit, typically you'd expect to pay about 7x profits for a business like this, meaning it should be about £2bn for that part alone.

Then you have the generating assets, even though they are all a bit old, they're probably worth £3-4bn.

Indeed only based on personal experience and wide reading , I can't think of one redeeming feature.

You obviously know your numbers and I agree they don't look out of order. Negative goodwill....just an accountant's joke.

More to the point, another structural disaster in the offing as the bystanders watch it all consolidate under so called market forces. The market being flawed in this case.:(

Won't be sorry to see NPower as a brand go though or it's inept Management.As for the workers,well they must be at risk at the worst possible time. That part bad news.

magyar

backfoot wrote: »

More to the point, another structural disaster in the offing as the bystanders watch it all consolidate under so called market forces. The market being flawed in this case.:(

I'm not convinced it makes much difference if you have five companies as opposed to six. If you have true competition, you only need two companies...

Whilst I agree that my experiences of npower's customer services have been shocking I don't actually link this to the overall pricing problems in the industry. The real problem is that as you say the market is flawed.

Retail companies are actually telling the truth when they say wholesale prices are going up. However of course most of them have generating assets so that's where they make their money. And the regulator says that you cannot cross-subsidise so the customer is losing out.

furby-2003

well i work for npower and my partner works for what was e-on. not good. 2 children and a mortgage. I'm hoping this is not going to happen!

magyar

furby-2003 wrote: »

well i work for npower and my partner works for what was e-on. not good. 2 children and a mortgage. I'm hoping this is not going to happen!

What *was* E.ON? How do you mean? They still are E.ON...

As I say, I would not worry too much - this is unlikely to have an impact on jobs, and frankly the way that RWE's share price is going I'd be more worried if it *wasn't* sold.

penrhyn

I wonder what the energy supplier whose name must not be mentioned will do for gas and electric if npower is sold off?

furby-2003

magyar wrote: »

What *was* E.ON? How do you mean? They still are E.ON...

As I say, I would not worry too much - this is unlikely to have an impact on jobs, and frankly the way that RWE's share price is going I'd be more worried if it *wasn't* sold.

The part my partner works for was sold to western power recently.

magyar

furby-2003 wrote: »

The part my partner works for was sold to western power recently.

Oh yes, the PPL deal.

chanz4

penrhyn wrote: »

I wonder what the energy supplier whose name must not be mentioned will do for gas and electric if npower is sold off?

#

they are likely to fold, as it would be sold with it as an asset under npowers license