Telecom Plus boosts full-year profits

Telecom Plus boosted full-year profit guidance on Monday after record" customer growth during the first half.

The company, which trades as Utility Warehouse and offers bundled services such as energy, broadband and insurance, said net customer additions were 86,004 in the first half, bringing the total customer base to 814,684 as at 30 September. Telecom Plus said the increase represented an annualised growth rate of almost 24%, fuelled by cash-strapped households seeking out cheaper bills.

In addition, the FTSE 250 said multi-service discount costs were likely to fall in the second half, and that there was an improved outlook for energy affordability following the implementation of the two-year average price cap of £2,5000 per year.

As a result, it now expects full-year profits to be "materially ahead" of current market expectations.

In June, Telecom Plus said it expected adjusted pre-tax profits to reach £75m in the 2023 full year, up around a fifth on 2022. Customer numbers were forecast to rise by 20%.

Andrew Lindsay, chief executive, said: "Our unique multi-service proposition enables us to offer households savings on their energy bills of up to £125 a year below the new energy price guarantee, sustainably and profitably.

"At a time when cost of living pressures continue to rise, we are uniquely positioned to offer households what they need now more than ever."

The FTSE 250 firm said a further update would be made at the half year results, due on 22 November.