Centrica finance chief Nick Luff poached by Reed Elsevier in blow for energy giant

Centrica's well-regarded finance director Nick Luff has quit to join academic publisher Reed Elsevier in the same post, in a blow for the energy giant after a series of other high-profile departures.

The British Gas owner said Mr Luff, 46, who has held the role for seven years alongside chief executive Sam Laidlaw, would remain in post until a succesor is found but would leave the company by the end of this year at the latest.

His departure will be seen as a further setback for Centrica, at a time of intense public and political scrutiny over rising energy bills and as it struggles with difficulties across the business that forced it to issue a profits warning in November.

Mr Luff's exit follows the departure within the last year of Centrica chairman Sir Roger Carr, who has been replaced by Rick Haythornthwaite, and that of Phil Bentley, head of the British Gas division, who has been replaced by Chris Weston.

Analyst Peter Atherton at Liberum Capital said investors would now be looking for assurance from "veteran" chief executive Mr Laidlaw - who has been linked with a number of other oil and gas roles in recent years - "that he is not going to go anywhere any time soon".

He said Mr Laidlaw was expected to "move on in the next two to three years at the maximum" and "a clear succession plan" was required.

However, investors would be "horrified" if Mr Laidlaw also left before Mr Haythornthwaite and a successor for Mr Luff had settled into their roles, he said.

"It is a business that is facing some significant operational challenges as well the very significant political challenges. That requires very deft handling by an experienced management team.

"To have a completely new management team in one go, in the lead-up to the May 2015 election, would cause investors considerable concern," he said.

A spokesman for Centrica said that Mr Luff "did not want to succeed Mr Laidlaw as CEO of Centrica" and that his departure did not affect succession planning.

By contrast Mr Bentley said last February that he was quitting because he wanted to become a chief executive and that role was not available to him at Centrica. He has since become chief executive of Cable & Wireless Communications.

Centrica warned in November that its business supply arm was struggling, its gas-fired power stations were loss-making and its margins were coming under pressure in North America, meaning its earnings for 2014 would be similar to 2013 rather than anticipated growth.

Martin Brough, analyst at Deutsche Bank, said: "With growing financial and political pressure on the group, investors may see the move as a sign of difficulties ahead.

"Luff’s move may add to the sense that Centrica is a company under pressure."

The surprise announcement of Mr Luff's exit caused shares in Centrica to fall 1pc in early trading on Tuesday.

At Reed, Mr Luff will replace Duncan Palmer, who announced his intention to step down from the Anglo-Dutch media group in September last year, due to family circumstances.

Prior to Centrica Mr Luff, who has a first class degree in mathematics from Oxford University, was chief financial officer of P&O, the shipping company.

Reed, which has a dual listing, has a combined has a market cap of £19bn - roughly the same valuation as Centrica had before the Labour Party's announcement of its price freeze plan and the profit warning sent shares sliding in the autumn.

Erik Engstrom, Reed Elsevier chief executive, said: “I am pleased to have Nick join the team. His many years of experience as Finance Director of a FTSE 30 company, combined with his involvement in dual UK/US and Netherlands-based listings, make him a great fit for Reed Elsevier.”