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17 Feb 2009 07:00
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17 February 2009
TelecomΒ plusΒ PLCΒ (the "Company")
Interim Management Statement
Quarter EndedΒ 31Β DecemberΒ 2008
TelecomΒ plusΒ PLC (trading as the Utility Warehouse), which supplies a wide range of utility services (gas, electricity, fixed line telephony, mobile telephony and broadband internet) to both residential and business customers, today issues its Interim Management StatementΒ to cover the periodΒ fromΒ
1 OctoberΒ 2008Β toΒ 16Β February 2009, incorporatingΒ information relating to the performance of the business forΒ its thirdΒ quarter endedΒ 31 December 2008.
Highlights
Operating Review
Trading during theΒ thirdΒ quarterΒ wasΒ exceptionallyΒ strongΒ reflecting a continuation of the positive trends which haveΒ beenΒ developingΒ over the last 18 months.Β
Turnover, profits, customer numbers, new services and new distributor recruitmentΒ haveΒ allΒ beenΒ running substantially ahead of the comparable figures at this time last year.
Customer numbers increased byΒ 19,082Β toΒ 258,840Β during the quarter, and the number of services providedΒ rose byΒ almostΒ 65,000Β toΒ 723,427Β (31Β DecemberΒ 2007:Β 568,742).Β ThisΒ clearly demonstratesΒ the increasing rate ofΒ organicΒ growthΒ since the beginning ofΒ ourΒ lastΒ financialΒ year.
NetΒ growth in number ofΒ servicesΒ providedΒ sinceΒ 1 April 2007
|
Quarter to 30/06/07 |
3,792 |
|
Quarter to 30/09/07 |
6,658 |
|
Quarter to 31/12/07 |
16,253 |
|
Quarter to 31/03/08 |
23,239 |
|
Quarter to 30/06/08 |
26,339 |
|
Quarter to 30/09/08 |
41,204 |
|
Quarter to 31/12/08 |
64,902 |
We remain committed to providing our customers with excellent customer service and consistently good value on all the services we are supplying to them.Β Β We were thereforeΒ delightedΒ to see this ethosΒ recognisedΒ byΒ Which?Β magazine, when they named usΒ as "BestΒ EnergyΒ Supplier"Β in their OctoberΒ 2008Β issue. More recently,Β in their current monthly issueΒ (February 2009),Β they awarded us aΒ "Best Buy" recommendation for our fixed telephony and broadband serviceΒ with a customer satisfaction rating ofΒ almostΒ 80%.Β
Creating Jobs
Our continuing growth is creating significant job opportunities, and we are planning toΒ more than double theΒ currentΒ number of full-time employees over the course of the nextΒ threeΒ years. During the first 9 months of the currentΒ financialΒ year, we added over 90Β staff, taking our total headcount to 387Β at the end of December.Β During the same period,Β the number of Distributors promoting our servicesΒ hasΒ increasedΒ byΒ over 4,000Β to 23,773.Β
NewΒ HeadquartersΒ OfficeΒ Building
We have startedΒ refurbishingΒ theΒ newΒ headquartersΒ officeΒ buildingΒ which we purchased onΒ 26 September 2008, andΒ anticipateΒ thatΒ the firstΒ completeΒ floor will be ready for occupationΒ by the end of next month.Β This will provide us with substantial additional space to accommodate our growing workforce.Β We have decided to name this building Network HQ.Β MFI have now vacated the two floors they were occupying,Β whichΒ will give us theΒ opportunity to sub-let this space in due course.Β
Cash Flow
Cash flow remainedΒ strong with our cash balance increasing toΒ Β£36.4Β millionΒ as at 31 December 2008
(30 September 2008:Β Β£28.9m).Β Of this increase, approximately Β£1.5 million relatedΒ toΒ aΒ repayment of VAT on the purchase of our new headquarters office buildingΒ last autumn.Β However, we expect to see a substantialΒ cash outflow duringΒ the current quarter,Β mainlyΒ due to the seasonal impact of customers paying by budget plan during what now seems likely to be an exceptionally cold winter.
OnΒ 9 February 2009Β we announced the sale of 1,500,000 ordinary shares held in treasury at a price of 315p per share, which raised approximately Β£4.7 million net of expenses. These were sold to meet strong institutional demand for our shares, and to provide additional working capital to support the record levels of organic growth currently being achieved.
New Finance Director
We are delighted to announce the appointment of Chris HoughtonΒ (30), Chartered Accountant,Β as Finance DirectorΒ and Company SecretaryΒ with immediate effect. Chris joined the Company as Head of Finance in September 2008, prior to which he wasΒ at PricewaterhouseCoopers where heΒ worked inΒ a wide range ofΒ audit and corporateΒ finance roles,Β including spending two years onΒ secondment at the Takeover Panel.Β Chris Houghton has held no directorships in publicly-quoted companies in the past five years, and TelecomΒ plusΒ PLCΒ confirms that there are no details to be disclosed under paragraphs 9.6.13 (2) - (6) of the Listing Rules.
RichardΒ Hateley, Finance Director sinceΒ DecemberΒ 2006,Β is stepping down from the board with immediate effectΒ and will be leaving the Company.
Outlook
We anticipateΒ continuing strong organicΒ growthΒ overΒ the coming months,Β driven by three principal factors:
the record numbers of new distributors whoΒ areΒ signing upΒ to promote our services;
greater activity by existing distributors (reflecting their increasing confidence in the value we provide and the quality of the customer service experience we deliver);Β and
aΒ tendencyΒ amongstΒ consumers during more difficult economic conditions to be more receptive to a suggestion of switching to a better value supplier.
We haveΒ justΒ launched aΒ viralΒ marketingΒ campaignΒ with a series of videosΒ featuring Dawn French and Jennifer Saunders. This will give our distributorsΒ a new way of promotingΒ our services,Β by sending potential customers an emailΒ whichΒ containsΒ a direct link to these videos.Β We anticipate this will provide a further boost to the record growthΒ ratesΒ nowΒ being achieved.
WeΒ remainΒ comfortableΒ with market expectations forΒ our financial performance in theΒ current year to 31Β March 2009, and with the dividend guidance we haveΒ previouslyΒ provided, subject as always to the continuing absence of any unforeseen circumstances.
FinalΒ ResultsΒ Date
OurΒ results for theΒ yearΒ endingΒ 31Β MarchΒ 2009Β are expected to be announced onΒ WednesdayΒ 20 May 2009.
Charles Wigoder, Chief Executive said:
"I am delighted to report anΒ excellentΒ trading performance duringΒ our most recentΒ quarter,Β with record levels of activity throughout the business.
"We have seen customer numbers, new services and new distributor recruitment all running substantially ahead of the comparable figures at this time last year,Β and confidently expect to see the benefits of thisΒ reflected inΒ ourΒ reportedΒ financial performanceΒ over the next few years."
For more information please contact:Β
|
TelecomΒ plusΒ PLC |
|
|
Charles Wigoder, Chief Executive |
Β 020 8955 5000 |
|
Chris Houghton, Finance Director |
|
|
SmithfieldΒ |
|
|
Reg Hoare/ Katie Hunt |
020 7360 4900 |
Information in this announcement is based upon unaudited management accounts. This announcement includes certain forward looking statements which are based on current expectations and are subject to uncertainties and risks that could cause actual results to differ materially from any expected future events or results referred to in these forward looking statements. Unless otherwise required by applicable law, regulation or accounting standard, we do not undertake any obligation to update or revise any forward looking statements, whether as a result of new information, future developments or otherwise.
About TelecomΒ plusΒ PLC:
TelecomΒ plus,Β which owns and operates the Utility Warehouse brand, is theΒ UK's only fully integrated provider of a wide range of competitively priced utility servicesΒ spanningΒ both the Communications and Energy markets.Β
Customers benefit from the convenience of a single monthly bill, consistently good value across all their utilities and exceptional levels of customer service. The Company does not advertise, relying instead on "word of mouth" recommendation by existing satisfied customers in order to grow their market share.
TelecomΒ plusΒ is listed on the London Stock Exchange (Ticker:Β TEP LN). For further information please visit: www.utilitywarehouse.co.uk.
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