Telecom Plus (TEP)

Sector:

Telecom Operators

Index:

FTSE 250

1,196.00p
   
  • Change Today:
    -4.00p
  • 52 Week High: 1,528.00
  • 52 Week Low: 1,130.00
  • Currency: UK Pounds
  • Shares Issued: 78.43m
  • Volume: 61,889
  • Market Cap: £938.04m
  • RiskGrade: 150

Telecom Plus' profits climb on customer growth

By Duncan Ferris

Date: Tuesday 18 Jun 2019

LONDON (ShareCast) - (Sharecast News) - Telecom Plus reported annual profit growth in line with expectations on Tuesday as more customers opted to sign up with the multi-utility provider.
Profit before tax came in at £43.0m, 4.9% higher than the year before, as revenue increased by 1.5% to £804.4m.

This growth came as customer numbers for the year advanced by 4.0% to 635,039 and service numbers advanced by 8.2% to 2,532,024, despite the energy industry being hit by the introduction of a price cap by UK regulator Ofgem on 1 January.

However, average revenue per member fell by 2% to £1,245 after a reduction in fourth quarter revenues due to the price cap, lower energy consumption during a particularly warm winter, and steadily declining landline call spend.

Andrew Lindsay, chief executive of Telecom Plus, said: "In an environment in which record numbers of households are switching energy suppliers, our churn rate has fallen, reflecting the improving quality of our customer base; over 26% of our members now take all their core utilities from us and this important metric continues to increase steadily each month."

The FTSE 250-traded company's board hiked its final dividend by 1p to 27p per share, leading to a total dividend increase of 4% to 52p, as the company also committed to raising its total dividend to 57p per share for the current year "in the absence of unforeseen circumstances".

The combination of a higher quality customer base, improved commercial terms from wholesale partners, growing benefits from the smart meter roll-out programme, and an initial contribution from the extra customers we added over the past 12 months, means adjusted profits before tax for the current year is expected to be between £60m and £65m.

Analysts from Peel Hunt said the utilities provider's results were in line with their expectations, adding that current year trading is so far consistent with the anticipated full-year outlook of 5% customer growth and 10% services growth.

"This has been achieved despite the widening of the price gap between the price cap and teaser tariffs since April, which will close again in October when the next price cap adjustment takes effect. Telecom Plus continues to have great visibility and the prospect of stronger customer growth bodes well for long-term performance and dividend growth," said analysts.

Telecom Plus' shares were up 2.05% at 1,492.00p at 0816 BST.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Telecom Plus Market Data

Currency UK Pounds
Share Price 1,196.00p
Change Today -4.00p
% Change -0.33 %
52 Week High 1,528.00
52 Week Low 1,130.00
Volume 61,889
Shares Issued 78.43m
Market Cap £938.04m
RiskGrade 150

Telecom Plus Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
87.38% below the market average87.38% below the market average87.38% below the market average87.38% below the market average87.38% below the market average
60% below the sector average60% below the sector average60% below the sector average60% below the sector average60% below the sector average
Price Trend
8.66% below the market average8.66% below the market average8.66% below the market average8.66% below the market average8.66% below the market average
20.00% above the sector average20.00% above the sector average20.00% above the sector average20.00% above the sector average20.00% above the sector average
Income
44.15% above the market average44.15% above the market average44.15% above the market average44.15% above the market average44.15% above the market average
Sector averageSector averageSector averageSector averageSector average
Growth
52.03% below the market average52.03% below the market average52.03% below the market average52.03% below the market average52.03% below the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average

What The Brokers Say

Strong Buy 3
Buy 0
Neutral 1
Sell 0
Strong Sell 0
Total 4
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Telecom Plus Dividends

  Latest Previous
  Final Interim
Ex-Div 11-Jul-19 29-Nov-18
Paid 02-Aug-19 14-Dec-18
Amount 27.00p 25.00p

Trades for 18-Oct-2019

Time Volume / Share Price
16:35 1,435 @ 1,196.00p
16:35 40,367 @ 1,196.00p
16:29 118 @ 1,194.00p
16:29 202 @ 1,196.00p
16:29 78 @ 1,196.00p

Telecom Plus Key Personnel

CEO Andrew Lindsay
CFO Nick Schoenfeld

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