REG - Telecom Plus PLC - Non-Core Disposals and Related Party Transaction

Telecom PlusAnnouncement

01/04/2022 07:00

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RNS Number : 9167G  Telecom Plus PLC  01 April 2022

Telecom Plus PLC (or "the Group")

Non-Core Disposals and Related Party Transaction

 

Given the Group's improved customer growth since October 2021, the Board has
made the strategic decision to focus its efforts on its core business as a
fully integrated supplier of a wide range of competitively priced utility
services.

Accordingly, the Group is pleased to announce that it has today agreed the
disposals of two non-core businesses comprising (i) its wholly owned meter
operator, UW Home Services Ltd ("UWHS"), and (ii) its 75% owned boiler
installation business, comprising Glow Green Ltd and Cofield Ltd ("Glow
Green").

Neither disposal is expected to have a significant impact on Group profits in
FY22 or on an ongoing basis.

UWHS

UWHS has been sold to Lowri Beck Holdings Limited ("Lowri Beck"), a specialist
meter operator owned by the Calisen Group. UWHS was originally set up by the
Group to increase the pace of its smart meter rollout and enable it to meet
the challenging rollout targets set by Ofgem. Since starting operations in
2018, it has successfully installed over 400,000 meters, leading to the second
highest smart meter penetration rate in the industry.

Following this transaction, UWHS will continue to provide the Group with meter
operator services, whilst benefitting from higher utilisation levels and
increased efficiency from providing similar services to other energy suppliers
as part of the Calisen Group.

Section 10.4.1 of the Listing Rules requires the disclosure of the following
information in relation to this transaction: (i) the consideration for the
sale of UWHS was £1 in cash, (ii) the value of its gross assets in the last
audited accounts of UWHS was £7.6m (net liabilities of £5.3m), and (iii) it
made a pre-tax loss of £3.0m in the year to 31 March 2021.

Glow Green

The Group has also agreed to sell, subject to the necessary FCA change of
control approval, its 75% shareholding in Glow Green for cash consideration of
£1 to Charles Wigoder, Executive Chairman of the Group. As previously
announced, Mr Wigoder (whilst remaining as Chairman) is moving to a
non-executive role in the Group with effect from the AGM in July.

Since acquiring Glow Green in 2018, the business has been consistently
loss-making; this has contributed to a cumulative funding requirement of over
£6m that will remain with Glow Green as a debt to the Group and be repaid
over time.

The Board believe that the disposal of Glow Green is in the best interests of
the Group given the significant management resource it would otherwise
require, particularly at a time when the growth opportunities within the core
business are so exciting. As a smaller related party transaction, this
disposal falls within the requirements of section 11.1.10R of the Listing
Rules and the Board has obtained written confirmation from its sponsor that
the terms of the proposed transaction are fair and reasonable as far as the
shareholders of the Group are concerned.

 

 

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 / Simon Willis
 
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 telecomplus.co.uk

LEI code: 549300QGHDX5UKE58G86

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