Telecom Plus posts record FY results, lifts profit expectations

Telecom Plus - better known under its trading name Utility Warehouse - posted record full-year results on Tuesday, ahead of expectations, as it lifted its FY23 profit expectations.

In the year to the end of March, adjusted pre-tax profit rose 10.3% to £61.9m, while statutory pre-tax profit was up 8.5% to £47.2m amid solid demand. Revenue grew 12.3% to £967.4m and the full-year dividend was maintained at 57p per share.

The company, which supplies a range of utility services focussed on domestic customers, said the number of customers grew 10.8% to around 729,000. It highlighted a "notable" improvement in customer retention levels, as customers benefit from higher savings on their Utility Warehouse services.

Telecom Plus said that in the absence of unforeseen circumstances, and with growing visibility over the level of the Government price cap for the coming winter period, it now expects adjusted pre-tax profit of around £75m for FY23, ahead of current consensus market expectations.

The company pointed out that an inflationary environment is one that has historically suited its business model, as it caters for both those looking to save money on their bills, and those seeking to earn an additional income.

"Households across the country are experiencing price rises for all their essential home services - be it energy, broadband or mobile - and are increasingly focussed on managing their monthly outgoings and interested in hearing about ways to save," it said.

"The strong performance of the business over the last six months is exciting, but with the cost of living squeeze driving increased consumer demand for what we offer, and with 98 out of every 100 households across the UK using suppliers other than UW, we believe there is much further to go."