Telecom Plus PLC (LON:TEP), trading as Utility Warehouse or UW, an integrated and unique platform for subscription-style essential household services in the UK, is holding its Annual General Meeting today. At the meeting the Chairman, Charles Wigoder, will say:
“I am pleased to provide a trading update for this financial year, further to our recent Annual Results Announcement on the 24th of June.
The business is continuing to perform well in a competitive market and we are making good progress towards our medium term target of 2 million customers and beyond.
The migration of the c.95k broadband and landline customers recently acquired from TalkTalk onto our systems is on schedule. We are pleased with the results from the initial trials we have been undertaking to upgrade and cross-sell additional services to them utilising (inter alia) our network of Partners, with encouraging early conversion rates. Following these positive results, we have recently acquired a further c.120k customers from TalkTalk, on similar terms to the original cohort of c.95k customers, increasing the scope and scale of the cross-sell opportunity. These additional customers will migrate onto our systems during the second half of FY26.
Even without the cross-selling activities delivering any direct financial contribution or other benefits, both cohorts of customers are expected to deliver an IRR in excess of our post-tax WACC over the medium term, although the financial benefits in the shorter term will be largely offset by additional costs from onboarding the newly migrated customers, and incentives related to our new cross-sell activities.
We are increasingly excited about the value we can generate over time by acquiring relatively inexpensive single service customer bases, then enhancing their lifetime value by leveraging both our unique proposition and Partner channel to progressively increase the number of services we are supplying to them.
We reiterate our previous FY26 financial guidance and, as a result of the acquisition of the additional customers from TalkTalk, we now expect total customer numbers to increase by around 25%.”
