- Multi-utility business posts record adjusted profits
- Cost of living squeeze will help Telecom Plus grow, says company
- Eyes a million net new customers over next four or five years
Multi-utility Telecom Plus (TEP) beat 2022 forecasts and raised expectations for 2023 as it booked record results for the year to 31 March 2022 as underlying organic customer numbers grew.
The company, which provides gas, electricity, phone and other services to UK households under the Utility Warehouse brand, reported a 10% rise in adjusted pre-tax profit of £61.9 million from £56.1 million a year earlier.
Revenues for the period came in at £967.4 million, compared with £861.2 million a year earlier.
The company also proposed a final dividend of 30p a share, bringing the full-year dividend to 57p a share.
Yet unlike so many other companies this year, Telecom Plus is feeling optimistic about the near-term future too, despite the cost of living crisis.
RARE OPTIMISM IN FACE OF INFLATION
For the current year to March 2023, Telecom Plus sees adjusted pre-tax profit of around £75 million, above consensus expectations and an increase in the dividend to not less than 65p for the full year.
The company pointed out that an inflationary environment is one that has historically suited its business model, as it caters for both those looking to save money on their bills, and those seeking to earn an additional income.
‘Households across the country are experiencing price rises for all their essential home services - be it energy, broadband or mobile - and are increasingly focused on managing their monthly outgoings and interested in hearing about ways to save,’ the company said.
‘The strong performance of the business over the last six months is exciting, but with the cost of living squeeze driving increased consumer demand for what we offer, and with 98 out of every 100 households across the UK using suppliers other than Utility Warehouse, we believe there is much further to go.’
Telecom Plus believes it can win a million new net customers over the next four or five years thanks to switching and consumers taking several services from single suppliers. Last year it reported 10% growth in customer numbers to 729,000.
The shares rose 1.5% in morning trading to £17.94.
