Telecom Plus posts record profits as customer numbers grow

In the six months to 30 September, adjusted pre-tax profit was up 1.2% to £26m on revenue of £311m, up 4% from the same period a year ago. The company lifted its interim dividend by 4.2% to 25p per share.

Customer numbers rose by 10,479 to 621,218 in the period, while total services supplied for the period grew by 86,372 to 2.43m.

Telecom Plus said growth in revenue was slightly above the increase in service numbers as the impact from higher energy prices was largely offset by a continuing drop in average energy usage due to warmer weather and the impact of energy efficiency initiatives.

Chief executive Andrew Lindsay said: "Growth during the first half of the financial year was encouraging at double the level we achieved during the corresponding period last year. We look forward to the introduction of the energy price cap at the end of 2018 which will further improve our competitive position, and the impact we expect this to have on our future growth.

"Revenues and profits are at record levels, and our balance sheet remains robust. In contrast to the majority of other energy suppliers, this puts us in a strong position now that the dynamics of the energy market have started to change in our favour."

Telecom Plus said it was on track to deliver growth in customer and service numbers that is "materially" higher on the year, with adjusted pre-tax profit for the year expected to remain in the previously guided range of between £55m and £60m.

At 1050 GMT, the shares were up 5% to 1,262p.