Telecom Plus flags record full-year customer growth

(Sharecast News) - Telecom Plus said on Tuesday that it delivered record customer growth, profits, and dividend increases in its financial year ended 31 March, with full-year guidance reiterated. The company, which trades as Utility Warehouse, reported customer numbers up 15% year-on-year to over 1.16 million, supported by strong organic growth of more than 12.5% and the acquisition of around 25,000 broadband customers from TalkTalk under a cross-sell trial partnership.

Full-year adjusted pre-tax profits were expected to be between £124m and £128m, in line with previous guidance.

The company said it anticipated raising its full-year dividend by just over 13% to 94p, reflecting continued strong cash generation and a year-end leverage ratio around 1.0 times net debt to adjusted EBITDA.

Telecom Plus also highlighted the award of Which? Recommended Provider status for both its energy and broadband services, marking a first for any UK provider.

It said its word-of-mouth marketing model and multiservice platform left it well positioned to continue delivering double-digit customer growth, with a medium-term goal to serve two million households.

The company said it would provide full-year results on 24 June 2025.

"Our innovative multiservice platform, together with our unique word of mouth route to market, has put us firmly on track to deliver another set of record results," said chief executive officer Stuart Burnett.

"Now into our fourth consecutive year of delivering double digit percentage customer growth, we are making rapid progress towards our medium term target of supplying subscription-style essential household services to two million customers and beyond."

Burnett said that, during what seemes likely to be a challenging period for the global economy, Telecom Plus was fortunate that its business model made it largely immune to any changes in trade tariffs, interest rates, economic growth, or business confidence.

"Indeed, such environments have historically been positive for us, with increasing numbers of people seeking additional income sources and ways to reduce their household bills.

"By helping households to stop wasting time and money on their essential bills, whilst supporting tens of thousands of partners to earn an additional income, we expect to continue delivering record customer numbers, profits and returns to shareholders over the years ahead."

At 0807 BST, shares in Telecom Plus were up 0.75% at 1,872p.

Reporting by Josh White for Sharecast.com.