Telecom Plus PLC on Tuesday said its half-year profit climbed despite a fall in revenue due to the strength of its business model and improved efficiency.

Telecom Plus is a London-based provider of bundled household utility services, including energy, broadband and mobile telecommunications, and insurance under the Utility Warehouse brand.

Pretax profit increased by 9.2% in the six months to the end of September to £39.0 million from £35.7 million year-on-year.

Revenue fell by 21% to £697.8 million from £883.6 million due to lower retail energy prices.

The company raised the interim dividend by 2.8% to 37.0 pence per share from 36.0 pence last year.

Telecom Plus said it is confident of meeting full year guidance of between 12% to 14% customer growth and £124 million to £128 million of adjusted pretax profit. Adjusted pretax profit in the first half was up 5.5% to £46.1 million from £43.7 million last year.

The company noted that it is ‘firmly on track’ to increase its customer base to 2 million over the medium term, after three years of compound customer growth above 10%.

Chief Executive Stuart Burnett praised the company’s business model which he said allows ‘market-leading savings’ in a range of market conditions.

He said the increase in profit in spite of falling energy prices driving down revenue was due to ‘a combination of improved efficiency and the strength of our multiservice model’.

‘The tax rises introduced in the recent budget are expected to increase the pressures on household budgets, an environment in which the savings and earnings provided by our business model are likely to be in growing demand. We look forward to helping more and more people up and down the country as we take further strides towards doubling the business to 2 million customers and beyond,’ he concluded.

Telecom Plus shares were up 2.3% to 1,802.62 pence each in London on Tuesday morning.

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