(Alliance News) - Telecom Plus PLC on Tuesday reported a fall in interim profit amid higher costs, but remained upbeat about the second half with recent trading setting new records.
Telecom Plus shares were up 9.1% to 1,413.40 pence each in London on Tuesday.
Telecom Plus is a London-based supplier of gas, electricity, landline, broadband and mobile services to residences and businesses.
Pretax profit in the six months to September 30 came in at GBP19.9 million, slipping 7.4% from GBP21.5 million a year ago.
A 6.3% rise in revenue to GBP371.3 million, from GBP349.4 million, was largely mitigated by a 7.3% increase in cost of sales to GBP286.3 million, while administrative expenses deepened to GBP40.6 million, up 12% from GBP36.3 million.
"The increase in revenue primarily reflects a colder spring relative to the prior year, supplemented by the impact of the greater number of services we supply and, to a lesser extent, higher energy prices. This was partially offset by lower fixed line call volumes, which returned to more typical levels as we emerged from lockdown," the company said.
Telecom Plus left its interim dividend unchanged at 27 pence per share.
Looking ahead, Telecom Plus said: "Our recent trading has set new records. With momentum and confidence building within our community of partners, and the recent paradigm shift in the retail energy market, we look forward to delivering around 10% growth in our customer base during H2, and double-digit annual percentage growth thereafter."
The rising costs of living is driving increasing numbers of new partners to join the company, it said, adding that this is an encouraging lead-indicator for future growth.
By Greg Roxburgh; gregroxburgh@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.
Telecom Plus (TEP)