Telecom Plus rings up record profits despite mild weather

Telecom Plus, which supplies utility services such as gas, electricity, fixed line and mobile phones and broadband internet to householders and businesses, reported a 55% rise in adjusted pre-tax profit to £21.3m on a 9% rise in revenue to £267.3m in the six months to 30 September. It increased its half-year dividend by 19% to 19p per share.

The group, which trades as the Utility Warehouse, attributed the higher revenue to a 14% rise in customers in the last 12 months, partly offset by the impact of lower average energy use by domestic customers in the mild weather, particularly gas.

But Telecom Plus said its new wholesale energy supply agreement with gas and electricity retailer and generator Npower protected it from any material weather-related impact on profits.

It also highlighted benefits from being one of a number of smaller independent energy suppliers with a significant short-term pricing advantage, due mainly to a combination of falling wholesale energy prices and not needing to make a full contribution towards certain social and environmental charges.

It had net additions of about 61,000 energy services and more than 55,000 communications services in the period.

The group said: "We remain confident that revenues, profits, earnings per share and dividends for the current year will all set new records, in line with our previous guidance."

Shares rose 8p or 0.6% to 1346p at 08:08 in London.