23rd Jun 2015 06:44
LONDON (Alliance News) - Multi-utility provider Telecom Plus PLC Tuesday reiterated its guidance for its current year, as it posted a rise in pretax profit for its recently ended financial year driven by the continued take up of its services.
For the year to end-March the company posted a pretax profit of GBP42.0 million, up from GBP34.7 million a year before, on revenue of GBP729.2 million, up from GBP659.7 million.
On an adjusted basis, excluding share incentive scheme charges and amortisation on its energy supply arrangements with RWE nPower PLC, Telecom Plus posted a pretax profit of GBP52.2 million.
This was in line with a profit warning the company gave in April, when it had said its profit would be hit by energy price cuts it made in the fourth quarter as a result of warm weather and a writedown related to higher levels of leakage and theft in its gas distribution network than it had previously anticipated.
Growth was driven by take up of services it provides through its Utility Warehouse brand, which reached 2.09 million by the end of the year, compared to 1.88 million a year before. 58,753 customers now take up all five of its offered services - gas, electricity, home phone, mobile and broadband - compared to 40,544 a year before.
Telecom Plus proposed a final dividend of 21 pence, taking its total dividend for the year to 40 pence, increased from 35 pence a year before
The company continues to expect adjusted pretax profit of between GBP54 million and 58 million for its current financial year, and said "in the absence of unforeseen circumstances" it intends to increase the dividend by 15% to 46 pence per share.
"Looking forward we are confident that we will deliver record revenues, profits, and earnings per share for the current year," said Chief Executive Officer Andrew Lindsay in a statement.
The company also highlighted the current Competition and Markets Authority review into the domestic energy market, the initial findings of which are expected shortly.
"We wholly support the pressure that the Secretary of State is applying to the 'Big 6' energy suppliers to pass their lower wholesale costs onto the majority of their customers, by reducing their standard variable tariffs. Furthermore, we encourage the Competition and Markets Authority to be bold in addressing the fundamentally unfair and increasingly prevalent practices in the energy markets that are clearly detrimental to the majority of UK consumers," Lindsay said in a statement.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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