More good prospects for this company; - Full-year dividend to be raised - Annual profits expected to be in line - Customers and services grow in Q3 Telecom Plus said it will increase its annual dividend by 13 per cent to 35p as the utility services provider is confident of achieving profits in line with market expectations. The company, which supplies gas, electricity, internet and mobile and fixed-line phone services, saw customers grow to 18,429 in the third quarter from 18,439 last year. The number of services provided increased to 81,429 from 55,488. In the past 12 months, the number of services provided to residential members rose by more than 300,000, representing year-on-year growth of 21%. In November, the group introduced its new Gold Bundle package with the proportion of new members taking up core services of gas, electricity, home Phone, broadband and mobile more than doubling to more than 20%. There was also an increase in the proportion of new members choosing to switch their energy services over to Telecom Plus. Opus Energy Group, in which the group has a 20% equity investment, is performing ahead of budget and is on track to deliver record turnover and profits for the current financial year. During the period the company completed the acquisition of Gas Plus Supply and Electricity Plus Supply for £218m. Activity in the distribution channel bounced back strongly during January after a traditional Christmas lull, with the number of new members joining in the month around 25% ahead of the corresponding period last year. "This uplift has been driven by a number of factors including the continuing widespread public focus on the cost of energy bills, a continuing difficult economic climate, record distributor attendance at our nationwide series of motivational seminars held each January, and a strong positive reaction by distributors to our recent promotional activity," the group said. "We are delighted that this momentum has continued into February, which augurs well for our ability to report further strong organic growth for the final quarter in due course."
10 Jan '14
RE: Telecom Plus (TEP)
Not a chartist myself, but the chance of this share dipping to 10-12 quid is zippo. With a MCAP of 1,396M and 80M shares in issue this will hover around £17-19 until the next trading update (maybe February) when it will shift up again, probably break £20 on (or in anticipation of) year end results. The Company, currently, has between 1.5 and 2% of the UK utilities market. The Company has an ever expanding, enthusiastic team of independent distributors who are amply rewarded for results, (and who therefore deliver the goods) and the CEO believes that 15% of the UK market is achievable. (less than 8% should put the Company in the FTSE100) The company has secured a 20 year energy deal which enables it to be both more competitive and more profitable (and triggered the last hike in s.p.) Lower energy prices will be announced this month. This is a long term hold and will just run and run and run.........
10 Dec '13
Telecom Plus (TEP)
Looking at all the sales and buys today and this week, the majority are sales or purchases are of 1,500 Telecom Plus PLC ordinary shares which is the minimum needed for the shareholder discount. The main sales are coming from shareholders who have just finished a 1st jan 2013 to 30th oct lock-in with a reward of 10% bill discount,, until these people sell or decide to hold, the share can go no where. With good profit to lock into the average person will take the money and spend it this Christmas. Bearing in mind the shares were £8.40 last october.. new people I see are locking in for 12 months being on average £2000 being the value of most transactions Put a piece of paper under the simplest 5 year chart and the high low is £12 pounds with the lowest fall to £10 pounds,, this means they can fall all year to £10-£12 pounds before they need to bounce https://www.utilitywarehouse.co.uk/files/terms/Shareholder%20Discount%20Plan.pdf Telecom Plus PLC Shareholder Discount Plan Terms & Conditions Members of the Utility Warehouse Discount Club who are also shareholders in Telecom Plus PLC may be eligible to benefit from special energy rates that are 10% below our standard energy tariffs together with an annual rebate of 10% of their spend on non-energy services under the Shareholder Discount Plan subject to the following: 1. Members of the Utility Warehouse Discount Club who wish to participate in the Shareholder Discount Plan must: a. hold at least 1,500 Telecom Plus PLC ordinary shares ; b. notify the Company of their holding ; c. maintain their Utility Warehouse Discount Club Account in good standing, and have a valid Direct Debit mandate in place at all times; This term relates to energy supply only: Members who meet the eligibility criteria for the Shareholder Discount Plan will benefit from the relevant Shareholder tariff from the 1st of the month after the application is approved. This term relates to telephony supplies only: Members who meet the eligibility criteria for the Shareholder Discount Plan will receive a credit on their December invoice equal to 10% of the value of all fully paid bills for Non-energy Services on their Utility Warehouse Discount Club Account for the previous twelve months membership of the Shareholder Discount Plan. The credit shall be applied as a single line credit to the member’s December bill for Non-energy Services with the description ‘‘Shareholder Discount’’. The credit applied to the member’s invoice is final and may not be disputed. 2. Members of the Utility Warehouse Discount Club for Business may not participate in the Shareholder Discount Plan. 3. Members may not participate in the Shareholder Discount Plan on more than one Utility Warehouse Discount Club Account. 4. Members may only benefit from our special shareholder rates on gas and/or electricity supplied at the main billing address. All other supply
25 Nov '13
RE: The Future
25 Nov '13
RE: The Future
It's the market cap that needs to get to £3 billion not the t/o. Current t/o is circa £700 million p.a. and current market cap is £1.3 billion so if that sort of rating was to continue it could be that a t/o of £1.7 billion could suffice (I think the City now know that UW customers are arguably the most valuable in the industry). Of course this is conjecture and dependent on profitability levels being maintained/enhanced etc.
24 Nov '13
Just sat in on a conference call with CEO Andrew Lindsey MBE (Olympic Gold Medalist, for those of you who might not know - ie a VERY committed individual, but beyond that, a very astute businessman!) This is transformational news for the business. The company is now a directly licensed, stand-alone energy supplier alongside the 'Big 6', with a guaranteed 20 year energy supply, in a deal which increases profitability and therefore competitiveness in the market place. This is fantastic news for the business. When Andrew went to the city looking for £130m through new share issue he was astounded to be offered more than £300m. This amply demonstrates the level of confidence that the institutions are showing in TEP's unique business model. There is also an absolute commitment to take this business into to FTSE100 (Required T/O c.£3billion) in the shortest possible timeframe. (I have absolutely no idea how long, but several years) That is 3x current turnover, so what price the shares at that time? :-)
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