All Washed Up

Fins ain't what they used to be as Centrica tires of life in a Goldfish bowl.

Centrica is considering chopping up its Goldfish credit card business and disconnecting its British Gas Communications division as part of a review of its operations.

The conglomerate, whose businesses span the AA, British Gas supply and a number of power stations, is expected to officially announce the review on 13 February when it presents its interim results.

Centrica, which was formed in 1997 by the break-up of the old British Gas, refused to comment. But well-placed sources revealed that Centrica's chief executive, Sir Roy Gardner, has singled out Goldfish and British Gas Communications because they don't fit in with the rest of the company's relatively steady and low-risk profile.

Simon Edrich, an analyst at Schroder Salomon Smith Barney, said: "There is a time and a place for these types of business and that might have been a couple of years' ago." He added that the City would "take such an announcement positively, given current concerns about financial services and telecoms".

Centrica's stated strategy is to create a one-stop shop for household services. But the group's diverse portfolio has led some analysts to criticise it for lacking focus.

Goldfish Bank, which operates the credit card in joint venture with Lloyds TSB, has more than a million card customers. For the six months to 30 June the business made a £17m operating loss. Because of the already overcrowded personal finance market, Goldfish is not projected to make a profit until next year.

British Gas Communications was set up as a rival to BT and claims to offer discounts on domestic telephone calls. However, the business has suffered from delays in forcing BT to open itself up further to full competition.

In the six months to 30 June the business, with 385,000 customers, produced a £26m loss.

In July 2001 Centrica bought the profitable UK arm of the One.Tel telecoms company from its bankrupt Australian parent. The business has 650,000 phone customers and 100,000 connected to the internet. It is understood that One.Tel will escape Sir Roy's business review to dial another day.