Telecom Plus profits climb following membership growth

The multi utility supplier recorded profit before tax of £21.1m for the six months ended 30 September, 9% higher than in the same period last year, as revenue rose by 14% to £353m. The dividend was lifted 8% to 27p per share.

The increase in turnover followed a 4% jump in total customer numbers to 645,306, driven by a 4% rise in residential club members to just over 619,000.

Meanwhile, the company said its two new business initiatives, domestic boiler and smart meter installation services Glow Green and UWHS, were both enjoying strong momentum.

For the full year, Telecom Plus said it was on track to achieve growth in customer and service numbers, while it also reiterated guidance for adjusted profit before tax and dividends of £60m-£65m and 57p respectively.

Chief executive Andrew Lindsay said: "Growth during the first half of the financial year saw a continuation of the encouraging performance we achieved during the corresponding period last year, with similar increases in both customer and service numbers.

"Our competitive position has recently improved following the reduction in the energy price cap from 1 October 2019, which will help drive an acceleration in growth during H2."

Telecom Plus shares were 3.4% higher at 1,324p at 1020 GMT.