REG - Telecom Plus PLC - Year End Trading Update and Notice of Results

Telecom PlusAnnouncement

27/04/2023 07:00

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RNS Number : 6080X  Telecom Plus PLC  27 April 2023

27 April 2023

Telecom Plus PLC

Year End Trading Update and Notice of Results

 

Telecom Plus PLC (trading as Utility Warehouse and UW), the UK's only supplier
of bundled household utility services, today issues a trading update for its
financial year ending 31 March 2023.

 

Highlights

 

●    Record year of growth - almost 160,000 further households choosing
UW

●    Profits expected to be in line with expectations

●    Ongoing strong interest in our income opportunity as cost of living
pressures continue

●    Total dividend of 80p for the full year (FY22: 57p)

 

Financial

 

We expect full year adjusted pre-tax profits to be slightly above £95m, in
line with previously upgraded guidance, and confirm our intention to pay a
total dividend for the year of 80p (FY22: 57p) per share.

 

Trading

 

Our unique multiservice proposition enabled us to provide households with over
£30m of energy bill savings during the financial year.

 

We are pleased to have exceeded our full year growth targets, with Customer
numbers increasing by 157,899 (FY22: 71,269) to 886,579 and service numbers by
533,239 (FY22: 191,112) to 2,798,148.  This growth was achieved organically,
and against the ongoing headwind of the market stabilisation charge.

 

Interest in the income opportunity which we offer to UW Partners continued to
grow over the course of the year, particularly during the second half, with
Partner numbers increasing to almost 60,000.  Our recent annual 'Power Up'
conference saw strong Partner attendance,

reinforcing their high levels of confidence in the UW proposition and the
growing demand for an additional income as the cost of living continues to
rise.

 

Outlook

 

Falling wholesale prices are expected to feed through into lower energy bills
later this year, albeit remaining at elevated levels.  At the same time,
there is considerable upward pressure on household budgets, with continued
price inflation across the broadband, mobile and insurance markets.  Against
this backdrop, and with record numbers of new Partners joining UW to earn an
additional income, we have confidence in our ability to deliver another year
of double digit organic customer growth.

 

We look forward to providing a further update with our full year results for
the financial year ended 31 March 2023, which we expect to announce on 27 June
2023.

 

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

"The business has delivered an exceptional performance over the last 12
months, with record results on virtually all metrics.

"As the UK's only multiservice utility provider, UW remains uniquely
positioned to help families not only save on their household bills but also to
earn a much-needed additional income.  This gives us confidence in our
ability to deliver another year of double digit organic customer growth and to
make further progress towards our target of welcoming an additional one
million customers in the next 4-5 years."

 

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 Utility Warehouse (UW), is the UK's
leading multiservice utility provider, offering bundled household services -
energy, broadband, mobile and insurance - through one account.

Customers benefit from the convenience of a single monthly bill, consistently
good value across all their utilities and exceptional levels of service.

Customers sign up through a network of local UW Partners all across the
country. These Partners recommend UW's services to friends, family and people
they know by word of mouth.

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