MSE News: British Gas profits up, months after hiking prices

Former_MSE_Helen

"The owner of British Gas has revealed a £606 million profit haul only months after hiking customer tariffs..."

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British Gas profits up, months after hiking prices



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Wywth

Sid will be pleased

Nada666

Profits is a meaningless number. Profit margins are stable (and very modest). There is no story.

"Consumer Focus called for greater transparency" - journalists should practice greater honesty and numeracy too and not publish contentless scare stories.

MillicentBystander

Nonsense, in a recession businesses tend to make much smaller profits, it really is that simple (just ask the Govt about current tax receipts for proof). Even the mighty Tesco's profits are down 10% on last year (and they are in an industry where you should wish to use another supplier you simply go there without having to wait weeks for the 'switch' to go through). Like I said in the other thread, the Big 6s business is more or less guaranteed to be profitable in the sense that in an economy when people lucky enough to be in a job haven't had a pay increase in years they can simply up their prices at will in order to make their requisite £50 per household. Bish bash, job done. Easy. No incentive whatsoever to reduce their operating costs at all.

Wywth

Nada666 wrote: »

Profits is a meaningless number. Profit margins are stable (and very modest). There is no story.

I think Sid would disagree with you on that one

Consider a company that has say 100 million shares and makes say 6% profit margin.
How much do you think each share will earn the shareholder in the way of a dividend if that company's profit turnover was just £100? i.e. £6 gross profit in a year

Nada666

But the main point is is that none of the journalists' reports that I have heard or read have included any meaningful details about the shareholders' compensations. I don't disagree they are relevant but all the stories are headlining with a meaningless "11% increase in profits" with no mention of turnover.

Butterfly_Brain

Time to renationalise

KTF

Breaking news. Utility companies are not charities.

moss1

utilitys are not charitys well i think 608 million quid profit shows that l

Mr_K

Great news for my BG shares/dividends.

ashleyriot

Nada666 wrote: »

Profits is a meaningless number. Profit margins are stable (and very modest). There is no story.

"Consumer Focus called for greater transparency" - journalists should practice greater honesty and numeracy too and not publish contentless scare stories.

But the profit margin increased 11%.

If our wage margins increased by 11%, we would all be so happy.

Even if they only made a profit of £1.00 last year, now they are making £1.11 - but you and I probably only saw a 'profit' from £1.00 to £1.02.