Telecom Plus Regulatory News (TEP)

10 Aug 2007 07:00

Telecom Plus PLC10 August 2007 Telecom plus PLC (the "Company") Interim Management Statement In accordance with the UK Listing Authority's Disclosure and Transparency rules,Telecom plus PLC issues its first interim management statement from 1 April 2007to the date of this announcement, incorporating financial data for the quarterto 30 June 2007. Telecom plus PLC (trading as the Utility Warehouse) supplies a wide range ofessential utility services (gas, electricity, fixed line telephony, mobiletelephony and internet) to both residential and business customers. Trading during the year to date shows a continuation of the largely positivetrends we described in our Report & Accounts for the year ended 31 March 2007. While the size of our residential customer base has remained broadly stableduring the quarter, we have seen solid growth in the number of Business Clubcustomers, which has increased to 6,834 (March: 6,388). We remain encouraged bythe significant potential the Business Club offers the Company. Importantly, the rate at which new Distributors are joining our businesscontinues to increase, and we have a number of new initiatives planned for laterthis year which will enhance their ability to gather new customers. The number of services we provide continues to grow, particularly in the supplyof electricity, gas, internet and fixed line rental. The total number ofservices supplied by the Company now stands at 545,831 (March: 542,039) with theaverage number of services taken by each member of our residential club havingrisen to 2.99 (March: 2.95). These figures demonstrate the continuingeffectiveness of our club concept in encouraging customers to subscribe formultiple services. At our AGM held on 11 July 2007 we received approval from Shareholders to seekpermission from the Courts to reduce our Share Premium account and to usesurplus cash to repurchase our shares in the market. We anticipate Courtapproval will be received next month, pending which (as previously reported) wehave purchased 1,450,000 shares during July at an average cost of 180.7p. Cashflow during the quarter remained strong with our cash balance increasing by£8.0m over the period to £33.8m. We reduced our energy prices on 1 May 2007 and again on 1 July 2007, making usthe only major provider of domestic energy (with the exception of British Gaswho have traditionally been the most expensive supplier) to have reducedstandard direct debit tariffs twice this year, reflecting our commitment toproviding our customers with consistently good value. We anticipate the enhancedcompetitive position in which this places us, combined with the otherinitiatives referred to above, will result in a resumption of customer growthduring the remainder of the current year, and we remain confident of reportingsatisfactory results for the full year in due course. For further information, please contact: Telecom plus PLCCharles Wigoder / Richard HateleyTel: (020) 8955 5000 This information is provided by RNS The company news service from the London Stock Exchange