Telecom Plus revenue, dividend up for the year

The FTSE 250 firm said its results and its final dividend were in line with expectations, as adjusted profit before tax rose 4.2% to £54.4m.

Statutory profit before tax was down, however, by 3.3% to £40.7m in the year to 31 March.

Telecom Plus’s adjusted earnings per share were up 7% to 56.7p, while its full-year dividend was announced as 15% higher at 46p per share.

“I am very pleased with the further solid progress we have made this year, despite a challenging competitive environment for supplying domestic energy; it demonstrates both the resilience of our business model and the strength of our unique route to market,” said Telecom Plus CEO Andrew Lindsay.

“Whilst many other independent energy suppliers appear to be pursuing growth at any cost, our focus is very clearly on growing our profits in a sustainable way, with a view to maximising shareholder value.”

Lindsay said the company has seen a material improvement in the quality of new members joining its “Discount Club” following the launch of its free LED replacement light bulb service in the autumn.

The benefit significantly reduces a customer’s electricity bills in perpetuity, with Lindsay asserting it is of substantially greater value than the short-term introductory discounts offered by its competitors.

“We look forward to helping tens of thousands more homes throughout the UK to reduce their electricity consumption by taking advantage of this unique benefit,” he said.

Lindsay also pointed out that the company was ranked second in the UK 2016 Customer Satisfaction Index - a position he said was in stark contrast to other utility and telecoms providers, none of whom made it into the top 30.

“The current adverse market conditions will not persist indefinitely, and we are confident that when the recent downward trend in wholesale commodity prices reverses, our growth rate will start returning towards the higher levels we have historically achieved.

“In the meantime we expect to continue to deliver further modest growth in revenues, profits, earnings per share and dividends for the current year, with adjusted pre-tax profits of between £55m and £59m,” Lindsay explained.