Telecom Plus Share News (TEP)

(Sharecast News) - Telecom Plus reported a 51.5% improvement in first-half revenue on Tuesday,to £562.4m, as its adjusted profit before tax increased 22.5% to £32.1m and it upgraded its full-year forecast.

The FTSE 250 telecoms operator, which trades under the Utility Warehouse brand, said its statutory profit before tax grew 46.2% year-on-year in the six months ended 30 September, to £29.1m.

It hiked its interim dividend to 34p per share, up from the 27p distribution it made at the same time last year, after a period of record growth where its annualised customer growth rate reached almost 24%.

"As the pressures on household budgets mount, we continue to offer UK families what they want - the lowest priced energy on the market, savings on their mobile, broadband and insurance bills, cashback on their daily spend, and additional earnings for recommending UW to their friends and families," said co-chief executive officer Andrew Lindsay.

"The business is growing faster than ever, at an annualised rate of almost 24%.

"With inflationary pressures showing no signs of easing, we expect demand for what we offer to remain high, supporting our progress towards our target of welcoming an additional one million customers in the next four-to-five years."

Looking ahead, Telecom Plus said its net customer growth remained at record levels, while the recruitment of 'partners' into its commission-based sales scheme was also on the up in response to the cost-of-living crisis.

The company upgraded its previous guidance, saying its now expected full-year adjusted profit before tax for the 2023 financial period of at least £95m, leading to a full-year dividend of at least 80p per share, up from 57p.

It said it remained on track to deliver one million new customers in the next four to five years.

"UW is now the only meaningful energy switching option in the UK, with the rest of the market offering customers little to no difference in price or service," added co-CEO Stuart Burnett.

"Our unique multi-service proposition enables us to provide households with energy savings of up to £125 a year below the new Energy Price Guarantee, sustainably and profitably, underpinning our long-term strong competitive position."

Burnett said the energy savings were expected to put more than £30m "back into the pockets" of UK households in the current financial year.

"With financial pressures on families due to increase over the next few years, we expect demand for the savings and earnings that we offer to continue to grow."

At 0809 GMT, shares in Telecom Plus were up 2.69% at 2,397.75p.

Reporting by Josh White for Sharecast.com.