Telecom Plus 'comfortably on track' to double customer base

Telecom Plus, which trades as Utility Warehouse, revealed that over 62,500 additional households had switched to UW in the first half, representing an annualised growth rate of over 14%.

"With 949,180 households now taking their services from UW, we are comfortably on track to double the size of our high-quality base over the medium term, and expect to pass the one million customer milestone during the current financial year," said Telecom Plus.

The FTSE 250-listed group said the number of services it supplies to customers increased by 170,698 during the period, to a total of 2.96m, reflecting continued strong multi-service takeup amongst new customers.

"As stability has returned to the energy retail markets after two years of 'crisis', the business is continuing to perform strongly, demonstrating its ability to outcompete and grow rapidly in a normalised environment: our enduring multi-service cost advantage enables us to sustainably and profitably offer homeowners some of the lowest priced services across the energy, broadband, mobile and insurance markets," it said.

Telecom Plus added that it had updated its existing long-term energy supply contract with E.ON to ensure the sustainability of the agreement over the remaining ten-year term. TP stated the agreement underpinned its ability to deliver "comfortable double-digit customer growth over the medium-term".

As of 0945 BST, Telecom Plus shares were up 1.61% at 1,589.20p.

Reporting by Iain Gilbert at Sharecast.com