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30 Sep 2009 07:00
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TelecomΒ plusΒ Plc
Issue Date:Β 30Β SeptemberΒ 2009
TELECOM PLUS PLC
Pre-CloseΒ TradingΒ Statement
Telecom plus PLC (trading as the Utility Warehouse),Β whichΒ supplies a wide range of utility services (gas, electricity, fixed line telephony, mobile telephony and broadband internet) to both residential and business customers, isΒ today issuingΒ a trading updateΒ Β inΒ advance ofΒ Β itsΒ half yearΒ results for the periodΒ ending 30 September 2009.
The first half of the current financial year has seen a continuation of the strong organic growth we have been experiencingΒ recently, with customer numbers increasing at an annualised rateΒ ofΒ 25% during theΒ periodΒ to around 316,000Β (31Β MarchΒ 2009: 281,175) and service numbers increasing by aroundΒ 110,000Β toΒ more thanΒ 904,000Β (31Β MarchΒ 2009: 794,118).
SubstantialΒ numbers of new distributorsΒ continue toΒ join the businessΒ each monthΒ in searchΒ ofΒ a secure and reliable part-time income; we sawΒ a net increaseΒ in the number of distributors during the first halfΒ of almost 5,000Β bringing the totalΒ to just under 32,000Β at the end of SeptemberΒ (31Β MarchΒ 2009: 27,051).Β
To optimise the quality of our customer base,Β we tookΒ stepsΒ at the end of JulyΒ toΒ focusΒ the activity of our distributors onΒ gatheringΒ new customers who owned their homes, as this type ofΒ householdΒ has a significantly more attractive profileΒ on averageΒ (higher consumption,Β more services,Β longer lifetimeΒ and lower bad debts) than those who are living in tenanted properties.Β WeΒ alsoΒ changedΒ our training requirements,Β making it compulsory for all new distributors to attend our training courses, which give them the tools and skills they need to maximise their productivity and earnings.Β As a result,Β we saw a slowdown in the rate at which new distributors and customers were being recruited during the following 6 weeks, as our distribution channel adjusted to these changes.
On 13thΒ and 14thΒ September we held motivationalΒ salesΒ conferences in Southport andΒ Cheltenham, with aΒ record attendance ofΒ almost 3,000 distributors; we took advantage of the high turnoutΒ at these eventsΒ to launch a number of new incentives and promotions.Β Since then, we haveΒ seenΒ encouraging signsΒ thatΒ distributor activityΒ hasΒ startedΒ toΒ return towardsΒ theΒ recordΒ levels weΒ were experiencingΒ earlier in the year.
The board remain comfortable with market expectations of both earnings and dividends for the full year.
Half YearlyΒ Results Date
Half YearlyΒ results for the six months ending 30 September 2009Β willΒ be announced on Wednesday 25Β November 2009.
Commenting on current trading,Β Charles Wigoder, Chief Executive said:
"I am delighted to reportΒ a further period ofΒ strong organic growthΒ in customer, distributor and service numbersΒ during the firstΒ half of the current financialΒ year.Β The steps we have taken to tighten our training requirements and improve the mix of new customers can be expected to improve the quality of our earnings going forward, andΒ I look forward to announcingΒ ourΒ half yearlyΒ results in November."
For more information please contact:Β
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TelecomΒ plusΒ PLC |
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Charles Wigoder, Chief Executive |
020 8955 5000 |
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Chris Houghton, Finance Director |
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SmithfieldΒ |
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Tania WildΒ / Reg Hoare / Will HendersonΒ |
020 7360 4900 |
Statements made in this announcement that look forward in time or that express management's beliefs, expectations or estimates regarding future occurrences and prospects are 'forward-looking statements' within the meaning of the United States federal securities laws. These forward-looking statements reflect Telecom plus's current expectations concerning future events and actual results may differ materially from current expectations or historical results. Any such forward-looking statements are subject to various risks and uncertainties, including those set out on pagesΒ 15Β andΒ 16Β of the Report and Accounts for the year ended 31stΒ March 2009. A copy of this is available on the Company's website at www.telecomplus.co.uk/annual report.
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 services spanning 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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