Telecom Plus PLC
23 November 2005
Telecom plus plc ('the Company')
Trading Statement
In the preliminary results announcement dated 10 June 2005, the Company stated
that it anticipated profits for the current year would be slightly lower, due to
the continuing impact of losses within its gas supply business and increased
customer acquisition costs.
The Company continues to expect a significant increase in turnover during the
current year as both its customer base and the number of services taken by each
customer continue to grow, however over the last 2 days the wholesale price of
gas (both day-ahead as well as for the coming 4 winter months) has become
increasingly volatile and reached unprecedented highs. As a result, profits are
now expected to be substantially lower than last year.
We have recently concluded a long term working capital facility with Barclays
Bank plc, enabling us to implement a systematic hedging programme which will
progressively align our wholesale energy costs with those of our main
competitors. We continue however to purchase the majority of our gas for this
winter on a short-term basis, as the price demanded for medium term purchases
makes it commercially unattractive to hedge at present. The final outcome for
the current year therefore remains uncertain.
The Company intends to announce its interim results for the six months ended 30
September 2005 on Tuesday 13 December 2005. The Directors anticipate that the
pre-tax profits for this period will be in excess of £5m.
23 November 2005
END
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