Energy firm Centrica has taken a £196m hit after writing down the cost of disused IT systems, its preliminary results for 2006 reveal.
The company, which owns British Gas, saw profits slip 5% to £1.4bn on revenues of £16.5bn.
In a statement issued with the results, chief executive Sam Laidlaw said: “We carried out an initial review of the costs ands processes of our business. As a result we took an exceptional non-cash charge of £196m which reflects the write-down of our IT systems.”
A spokesperson said the write-down covered software that Centrica had installed to support cross-selling when the group owned internet service provider Onetel and the AA vehicle recovery service. But Centrica had since sold off its non-energy businesses. “No we focus on energy and only energy, we don’t need that any more,” he said.
In December last year, Centrica rebuilt its corporate intranet on a Microsoft SharePoint 2003 platform, replacing its previous platform built from a combination of Plumtree, Oracle, Interwoven, BEA and Webtrends technologies. The move is expected to produce £2.5m savings over the next five years.