Analyst Views: What does Nick Luff’s move mean for Centrica and Reed Elsevier?

 
Oliver Smith
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JOHN MUSK | RBC CAPITAL MARKETS
Nick Luff is widely regarded as one of the best finance chiefs in the European utility sector. He has been responsible for the transformation of Centrica from an asset light and inefficient energy supplier to a more balanced entity. We see Nick Luff’s departure as a slight negative for Centrica.

PATRICK WELLINGTON | MORGAN STANLEY
Nick Luff would appear to be much more in the style of Reed Elsevier with more big company experience than his predecessor. Our analysts think he is top notch. Investors love him – they think he is smart, and he doesn't over-promise. I think he is very canny.

IAN WHITTAKER | LIBERUM CAPITAL
Luff is apparently well regarded, so his appointment should be seen as a positive for Reed. Of particular interest will be what Luff’s appointment means for the cash return story at Reed, which we expect to accelerate over the next 12 months. There is still further upside from a ratings perspective.

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