Telecom Plus PLC (LON: TEP) – (trading as the Utility Warehouse), the UK’s only fully integrated provider of a wide range of competitively priced utility services spanning both the communications and energy markets, today announced its final results for the year ended 31 March 2019.
· Results in line with expectations
· Revenue up 1.5% to £804.4m
· Adjusted profit before tax up 3.7% to £56.3m
· Statutory profit before tax up 4.9% to £43.0m
· Adjusted EPS up 7.1% to 59.0p
· Statutory EPS up 9.5% to 42.5p
· Full year dividend up 4.0% to 52p per share
· Significantly faster growth in both customers and Partners
· Services supplied up 8.2% to over 2.5 million
· Rising customer quality, with over 26% now taking their energy, broadband and mobile services from us
· Improved energy supply arrangements successfully negotiated with npower
Andrew Lindsay, Telecom Plus PLC CEO, commented:
“Partner confidence built steadily during the course of the year; this manifested itself in higher levels of activity and an acceleration in the numbers of new Partners joining the business, which in turn drove faster growth in both customer and service numbers.
“Our balance sheet remains robust, with low leverage and strong cash flow. In contrast to the majority of other energy suppliers, this puts us in a strong position to take advantage of a challenging retail marketplace.
“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 combination of higher Partner confidence, our continuing steady growth, and improving gross margins means we expect adjusted profits before tax to increase to between £60m – £65m for FY2020, with a commensurate 10% increase in the total dividend to 57p per share.”