23rd Jun 2026 08:36
(Alliance News) - Telecom Plus PLC on Tuesday posted improved annual profit and revenue, but saw its shares suffer in early trading as it guided lower adjusted earnings in financial 2027 as part of its five-year plan to grow customers and earnings.
The London-based provider of bundled household utility services, under the Utility Warehouse brand, reported GBP113.0 million in pretax profit for the financial year ended March 31, up 6.7% from GBP105.9 million a year prior.
Driving the improved earnings was a 5.6% top line gain as revenue advanced to GBP1.94 billion from GBP1.84 billion, with growth driven by higher customer numbers but offset in part by lower average energy consumption across the unseasonable warm winter period, noted the company.
Total customer numbers improved 23% to 1.4 million from 1.2 million, while the company's churn rate edged higher to 14.2% from 13.7%.
Telecom Plus declared a final dividend of 12p, down 79% from 57p a year earlier, bringing its total dividend for the year to 50p, down 47% from 94p. However, the company is proposing a further GBP40 million be allocated to share buybacks, lifting total shareholder distributions the financial year to 100p, up 6.4% from 94p.
This follows its review of its distribution policy which began back in April, which the company noted has now concluded.
On Tuesday, it said: "We confirm our intention to continue distributing at least 80% of adjusted profit after tax to shareholders. Of that, at least 50% will be by way of ordinary dividend; the balance will be allocated to share buybacks if our forward looking adjusted price to earnings ratio is below 20x in the run up to results, and if not it will be returned by way of a special dividend."
Telecom Plus, in parallel with its annual results, reported a five-year plan to double high-quality, multiservice customers to more than a million by financial 2031 from around 500,000.
The company said the plan necessitates around GBP55 million per year of annual P&L investment. In financial 2031, it expects the plan to deliver adjusted pretax profit of around GBP175 million, with earnings per share growing quicker than total customer growth and return on capital employed above 30%.
It also sees it delivering shareholder distributions of around GBP100 million, with at least 50% of the distribution through dividends, as well as net debt/adjusted earnings before interest, tax, depreciation and amortisation around 1.0x.
The company sees adjusted pretax profit in financial 2027 in the range of GBP80 million to GBP90 million, down from GBP132.2 million in financial 2026, and reflecting the plan's first year of investment.
Shares in Telecom Plus slumped 31% to 663.50 pence on Tuesday morning in London.
"Today we are detailing how we will be building on our leading position in multiservice customers by investing behind the proven strengths of our model as well as outlining some of the encouraging results from our trial initiatives already underway," said Chief Executive Stuart Burnett.
"Successful delivery of the plan will more than double our multiservice customer base to over 1 million customers by FY31, enhance the quality and resilience of our earnings and result in attractive long-term returns for shareholders."
By Christopher Ward, Alliance News reporter
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