Key Performance Indicators

Group free cash flow from continuing operations (£m)⁽ⁱ⁾

Free cash flow from continuing operations is the Group’s primary measure of cash flow. It reflects the cash generation of the business after taking into account the need to continue to invest.

Free cash flow decreased by 11% reflecting the reduction in Group adjusted operating profit and an increase in taxes paid, largely related to 2022 profits. These impacts were partially offset by working capital inflows compared with outflows in 2022, with inflows in Centrica Energy as 2022 profits converted to cash more than offsetting outflows in British Gas Energy, largely related to the impact of falling commodity prices.

Group adjusted operating profit from continuing operations (£m)⁽ⁱ⁾

Group adjusted operating profit from continuing operations is one of our fundamental financial measures.

Group adjusted operating profit fell 17% predominantly reflecting decreased profit in Upstream (part of our Infrastructure business), reflecting the sale of the Spirit Energy Norway assets and the introduction of the Electricity Generator Levy and in Centrica Energy reflecting lower energy price volatility. This was partially offset by increased profit in British Gas Energy, including the recovery of costs incurred in prior periods through the default tariff cap.

Group adjusted basic earnings per share from continuing operations (EPS)⁽ⁱ⁾

EPS is a standard measure of corporate profitability. Adjusted EPS is used to measure the Group’s underlying performance against its strategic financial framework.

Group adjusted basic EPS was down 4%, reflecting the decreased operating profit, partially offset by reduced finance costs with higher interest rates resulting in increased interest income on cash held and a lower effective tax rate due to the profit mix moving away from highly taxed gas production activities, as well as a reduction in the number of shares as a result of the share buyback programme.

British Gas Services & Solutions – Services Engineer Net Promoter Score (NPS)⁽ⁱ⁾

Providing a great service is fundamental to our ability to attract and retain customers. With our focus on productivity and improved operational performance, we were able to provide a better service for customers. This led to our NPS rising by seven points.

Colleague engagement ⁽ⁱⁱⁱ⁾

Having an engaged and motivated team is key to our success because colleagues are the beating heart of our business. Through our continued focus on creating a more inclusive and supportive place to work whilst connecting colleagues with our purpose and strategy, colleague engagement improved by 0.3 points to 7.7, which is approaching top quartile performance for our sector.

Total customers (m)⁽ⁱⁱ⁾

Our business exists to serve customers, who drive our growth. Following year-on-year gains, overall customer numbers remained stable with 0% change. This broadly reflects the challenging inflationary backdrop and cost of living pressures.

Total recordable injury frequency rate (TRIFR)

Keeping colleagues and customers safe is essential to running our business responsibly. We therefore maintain a strong safety culture through preventative initiatives including manual handling, safe driving and winter readiness training. As a result, our TRIFR per 200,000 hours reduced by 25%. Incidents mainly related to slips, trips and musculoskeletal injuries.

Total greenhouse gas (GHG) emissions – 40% reduction by 2034 and net zero by 2045 (base year 2019)⁽ⁱⁱ⁾

Getting to net zero is vital for our planet, which is why we have a green-focused investment strategy. Towards this, we cut our emissions by 21% from our 2019 base year, building on the 5% reduction achieved the previous year. Further gains were mainly driven by emission reductions from our Whitegate power station as well as our gas production operations. Overall, we’ve made positive progress against our long-term goal to be a net zero business by 2045.