Utility Warehouse owner Telecom Plus says early momentum from its new five-year plan has pushed customer growth well ahead of target.
Telecom Plus (LSE: TEP), the owner of the Utility Warehouse brand, told investors on Monday that multiservice customer growth has accelerated to more than 2.5 times last year's pace in the opening months of its new five-year strategy, with annualised growth over the first four months of the financial year running slightly ahead of its 10% full-year target, up sharply from 3.9% a year earlier.
The trading update gave no indication of how shares reacted, but the scale of the acceleration in customer additions, alongside record activity across its self-employed Partner network, is the clear driver behind the positive tone of Monday's statement.
Telecom Plus said its Partner network, which sells its bundled energy, broadband, mobile and insurance packages, hit record levels of activity, with around 4,900 monthly active Partners and a total roster exceeding 85,000. The group has also cross-sold roughly 17,000 additional services so far this year, keeping it on track to hit a 50,000 target, while plans to launch motor insurance in the second half remain on schedule.
Chairman Charles Wigoder said the business had made an 'encouraging start' to FY27, crediting early investment in the customer proposition and strong Partner recruitment and activity for the outperformance against target. The company reiterated full-year adjusted pre-tax profit guidance of £80m to £90m, though it flagged that profits would be more weighted towards the second half than is typical.
On capital returns, Telecom Plus confirmed a 12p final dividend and said it had bought back about 2.44 million shares under its £40m buyback programme, with £20m still to be deployed. Further detail on the interim dividend and an expected extension to the buyback is due alongside half-year results in November, which should give investors a clearer read on whether the fast start can be sustained.
This report is based on Telecom Plus’s announcement and coverage by UK Investor Magazine. Company announcements can be tracked via London Stock Exchange RNS and Investegate, and the full markets calendar is worth watching for the next update.
This article is for general information only and does not constitute investment advice or a recommendation to buy or sell any security. Photo: Charanjeet Dhiman on Unsplash.
Small Cap News covers London’s junior market – AIM, small-cap and growth companies – with concise, sourced reporting on the results, deals and regulatory news that move share prices. We track the stories private investors actually need, from contract wins and drilling updates to fundraises and half-year figures, straight from the market’s own announcements.