Telecom Plus profit ticks higher, interim dividend maintained

Telecom Plus reported a small increase in first-half profit on Tuesday and maintained its dividend as it highlighted a "resilient" performance across the business.

In the six months to 30 September, adjusted pre-tax profit ticked up to £27.7m from £27.5m in 2019, with statutory pre-tax profit up 1.8% to £21.5m. Revenue edged down 1% to £349m.

Telecom Plus said the reduction in revenue mainly reflects lower prevailing energy prices and milder weather during the period. This was partially offset by higher service numbers, increased usage by some households during lockdown, and a steadily increasing proportion of customers taking fibre broadband.

The company declared an interim dividend of 27p a share, in line with last year.

Chief executive Andrew Lindsay said: "We delivered a resilient performance during the first half of the financial year, successfully adapting to the challenges created by Covid. Our competitive position improved following the reduction in the energy price cap from 1 October 2020, which has contributed to a recent marked uptick in partner activity and a return to customer growth.

"Over the last seven weeks we have seen a significant increase in the number of new partners joining the business; this is an encouraging lead-indicator for the rate of future customer growth over the coming months. We anticipate low single-digit percentage growth in customer and service numbers for the year to March, and look forward to delivering full-year adjusted profits in line with our previous guidance."

The company had previously guided for full-year adjusted pre-tax profit marginally below the record level it reported for FY20.

However, it also cautioned on Tuesday that the range of possible outcomes for the year remains wider than usual due to uncertainty about the scope and duration of lockdowns in the second half and the wide range of possible impacts they may have on both the economy in general and its business.