Telecom Plus grows profits as customer numbers rise

Telecom Plus, which trades as the Utility Warehouse, said on Thursday that full-year adjusted pre-tax profits from continuing operations are expected to have risen, as customer numbers increased.

For the year to the end of March 2018, pre-tax profits are seen coming in at around £54m from £53.3m the year before, in line with previous guidance.

Meanwhile, customer and service numbers grew over the course of the year to 610,739 from 607,802 and to 2,340,719 from 2,288,918, respectively, helped by the group’s low energy churn.

The company plans to pay a total dividend per share for the year just ended of 50p versus 48p the year before and said it expects adjusted pre-tax profits for FY2019 to come in between £55m and £60m.

Telecom Plus also announced the recent acquisition of a 75% shareholding in Glow Green, a supplier and installer of domestic gas boilers and warranty/care plans for £2m in cash.

Chief executive officer Andrew Linsday said: "Following a successful sales conference a few weeks ago, our focus over the coming months will be to build on the renewed confidence and engagement amongst the partner network.

"I am excited about the longer-term prospects for Glow Green, our recent acquisition. Although currently only a small business, the market for replacement boilers and their associated servicing needs are substantial; this gives us an exciting opportunity to leverage the strong relationship and brand loyalty we have established with our members, to provide them with these additional services in steadily increasing volumes over the coming years."

At 0925 BST, the shares were up 1.3% to 1,102p.