Telecom Plus PLC
Half-Year Results for the Six Months ended 30 September 2011
Telecom Plus PLC (trading as the Utility Warehouse), which supplies a wide range of utility services (gas, electricity, fixed line telephony, mobile telephony and broadband internet) to both residential and business customers, announces half-year results for the six months ended 30 September 2011.
Financial highlights:
· Revenue up 10% to £161.7m (2010: £147.0m) reflecting continued organic growth
· Operating margin of 6.4% (2010: 5.3%)
· Profit before tax up 31% to £11.1m (2010: £8.5m)
· Strong underlying cash generation
· Earnings per share 12.2p (2010: 9.4p)
· Interim dividend increased to 10p per share (2010: 8p)
· Intention to pay a total dividend of 27p for the current year (2010: 22p)
Operating Highlights:
· Total services supplied up by 99,503 to 1,270,639
· Customer numbers up by 21,349 to 392,699
· Further growth in average services per residential club member to 3.53 (2010: 3.37)
· Organic growth in high quality customers gathering momentum
· Autumn sales conferences attended by over 3,500 distributors
· New generation website successfully launched
Commenting on today’s results, Andrew Lindsay, Chief Executive, said:
“We saw a consistent flow of new distributors joining the business, with customer and service numbers accelerating strongly during the second quarter. We are extremely pleased that this improvement has been broadly spread across all our major services, and with the significant increase we have seen in the proportion of new members who are applying for at least four major services to around 40%.
“Second half revenues and profits will benefit from the combined impact of a larger customer base and the seasonal nature of our business which sees most customers use around 70% of their annual energy consumption during the winter period.
“In an uncertain economic climate, our business is well positioned to deliver continuing strong organic growth in customer numbers, with rising revenues, profitability and earnings. We anticipate paying a final dividend of 17p per share making a total of 27p (2011: 22p) for the full year, and face the future with considerable confidence.”







