UK's Telecom Plus shares tumble after warning on profit

Telecom Plus

Today 08:40

June 23 (Reuters) - ** Shares of UK-based Telecom Plus TEP.L fall as much as 27% at 700 pence, lowest since 2012
** Stock is the top loser on the FTSE mid cap .FTMC index
** Co says adjusted pre-tax profit for year ending March 2027 is expected to fall to between £80 mln and £90 mln($106 mln and $119 mln) down from £132.2 mln in fiscal 2026
** Says it will invest around £55 mln annually over next five years to double its high-value multi-service customer base
** Peel Hunt analysts called the plan an "aggressive reset" that is negative near-term but should deliver higher-quality long-term performance
   ** "Recent competitive dynamics in some of our core market verticals mean that we now need to make a conscious choice to invest more heavily than we had previously anticipated" - Telecom Plus chairman Charles Wigoder says
** TEP down ~2.42% this year, as of last close

($1 = 0.7552 pounds)

 (Reporting by Megha Kumari in Bengaluru)
 ((Megha.Kumari@thomsonreuters.com;))