Trading Update and Notice of Results

RNS Number : 4514B

Telecom Plus PLC

03 October 2022

 

3 October 2022

Telecom Plus PLC

Trading Update and Notice of Res ults

"Record number of UK households joining UW to save on their bills"

Telecom Plus PLC (trading as Utility Warehouse), which supplies a wide range of utility services focussed on domestic customers, today issues a pre-close trading update for the six-month period ending 30 September 2022.

● Organic growth accelerated during H1, with a record number of UK households joining UW to save on their bills.  Net customer additions were 86,004 (H22022: 67,980) taking the total customer base at 30 September 2022 to 814,684, representing an annualised growth rate of almost 24%, consistent with our medium-term growth target of adding 1m additional customers over the next 4 to 5 years.

● We expect full year profits will be materially ahead of current market expectations, due primarily to (i) stronger customer growth, and (ii) a reduction in the previously expected cost of multi-service discounts during H2 and an improved outlook for energy affordability, resulting from the recently announced price guarantee which will cap average energy bills at £2,500 per household for the next two years. 

Andrew Lindsay & Stuart Burnett, Co-CEOs, said:

"Our unique multi-service proposition enables us to offer households savings on their energy bill of up to £125 a year below the new energy price guarantee, sustainably and profitably, underpinning our long-term strong competitive position.

"In addition, we continue to offer outstanding value to customers taking our other core services: broadband, mobile and insurance, plus our market-leading cashback card. At a time when cost of living pressures continue to rise, we are uniquely positioned to offer households what they need now more than ever: savings on their essential bills and an extra income from recommending these savings to their friends and family.

"A further update will be provided with our half-year results, which we expect to announce on 22 November 2022."

Notes:

Prior to this update, the consensus adjusted profit before tax forecast for the year ending 31 March 2023 was £75m.

This announcement includes inside information as defined in Article 7 of the Market Abuse Regulation No. 596/2014 (as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018) and is being released on behalf of Telecom Plus PLC by David Baxter, Company Secretary.

For more information, please contact:

Telecom Plus PLC

Andrew Lindsay, Co-CEO   020 8955 5000

Stuart Burnett, Co-CEO

Nick Schoenfeld, CFO

Peel Hunt

Dan Webster / Andrew Clark   020 7418 8900

Numis Securities

Mark Lander / Joshua Hughes  020 7260 1000

MHP Communications

Reg Hoare / Catherine Chapman   020 3128 8339

About Telecom Plus PLC ("Telecom Plus"):

Telecom Plus, which owns and operates the Utility Warehouse brand, is the UK's only fully integrated provider of a wide range of competitively priced utility services spanning the Communications, Energy and Insurance markets.

Customers benefit from the convenience of a single monthly statement, consistently good value across all their utilities and exceptional levels of service. Telecom Plus does not advertise, relying instead on 'word of mouth' recommendation by existing satisfied customers and Partners in order to grow its market share.

Telecom Plus is listed on the London Stock Exchange (Ticker: TEP LN). For further information please visit www.telecomplus.co.uk

LEI code: 549300QGHDX5UKE58G86

Cautionary statement regarding forward-looking statements

This Announcement may contain "forward-looking statements" with respect to certain of the Company's plans and its current goals and expectations relating to its future financial condition, performance, strategic initiatives, objectives and results. Forward-looking statements sometimes use words such as "aim", "anticipate", "target", "expect", "estimate", "intend", "plan", "goal", "believe", "seek", "may", "could", "outlook" or other words of similar meaning.  By their nature, all forward-looking statements involve risk and uncertainty because they are based on numerous assumptions regarding the Company's present and future business strategies, relate to future events and depend on circumstances which are or may be beyond the control of the Company which could cause actual results or trends to differ materially from those made in or suggested by the forward-looking statements in this Announcement, including, but not limited to, domestic and global economic business conditions; market-related risks such as fluctuations in interest rates; the policies and actions of governmental and regulatory authorities; the effect of competition, inflation and deflation; the effect of legislative, fiscal, tax and regulatory developments in the jurisdictions in which the Company and its respective affiliates operate; the effect of volatility in the equity, capital and credit markets on profitability and ability to access capital and credit; a decline in credit ratings of the Company; the effect of operational risks; an unexpected decline in sales for the Company; any limitations of internal financial reporting controls; and the loss of key personnel.  Any forward-looking statements made in this Announcement by or on behalf of the Company speak only as of the date they are made.  Save as required by the Market Abuse Regulation, the Disclosure Guidance and Transparency Rules, the Listing Rules or by law, the Company undertakes no obligation to update these forward-looking statements and will not publicly release any revisions it may make to these forward-looking statements that may occur due to any change in its expectations or to reflect events or circumstances after the date of this Announcement.

 

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