Telecom Plus Plc (LON:TEP) is the UK’s only integrated platform for subscription-style essential household services. It has announced the results of its review of initiatives to maximise long-term shareholder value, building on its leading position in multiservice customers.
● New five-year plan launched today to double our number of high-quality, multiservice customers from c.500k to more than 1 million by FY31.
● The plan builds on our differentiated business model and will require c.£55m per annum of P&L investment across the following four pillars:
○ Optimising our multiservice proposition, through targeted multiservice price investment, a market-leading cross-sell capability, building-out insurance into our fourth core service, and the relaunch of our small business offering
○ Scaling the Partner sales channel to increase multiservice customer acquisition
○ Building a nationally recognised and trusted consumer brand
○ Developing a best-in-class digital experience, underpinned by rapid AI adoption, with market-leading cost to serve.
● Increasing both the number and proportion of multiservice customers – who have market-leading lifetimes and generate higher annual contributions – will result in higher quality, compounding earnings.
● In FY31, the plan is expected to deliver:
○ Adjusted profit before tax of c.£175m, with earnings per share growing faster than total customer growth and return on capital employed above 30%
○ Shareholder distributions of c.£100m, representing around 80% of adjusted profit after tax, with at least 50% of the distribution by way of dividends
○ Net debt / adjusted EBITDA of around 1.0x.
● Adjusted FY27 profit before tax is expected to be in the range of £80m – £90m, reflecting the plan’s first year of investment.
● We have seen very positive results from various early-stage trials over recent months, including stronger multiservice growth and increased Partner activity, giving us high levels of confidence in delivery of the plan. We will report progress against the key operating and financial metrics underpinning the plan at each half-year and full-year results announcement.
Stuart Burnett, CEO, said:
“Telecom Plus has built a unique business, helping households by putting all their household bills – energy, mobile, broadband, insurance, on one platform in a multiservice package, saving them time and money. Over the last 30 years we have built a network of 80,000 Partners who introduce this multiservice offering to new customers, typically their friends, family and members of their local community. These multiservice customers are the strongest driver of long-term value, staying with us for longer and generating higher returns, and this model has now delivered five consecutive years of record results and more than 1.4 million customers.
“Today we are detailing how we will be building on our leading position in multiservice customers by investing behind the proven strengths of our model, as well as outlining some of the encouraging results from our trial initiatives already underway.
“Successful delivery of the plan will more than double our multiservice customer base to over 1 million customers by FY31, enhance the quality and resilience of our earnings and result in attractive long-term returns for shareholders.”
There will be a presentation for analysts and investors today to discuss this strategy update at 9.00am, accessible via https://brrmedia.news/TEP_FY_2026
The presentation of our FY26 results has been recorded and is available online at https://www.telecomplus.co.uk/investor-information/results-reports-presentations.
