Utility Warehouse owner Telecom Plus gains customers
Annual profits and revenue were higher.
Utility Warehouse owner Telecom Plus attracted higher numbers of customers last year, as the company said it was poised to take advantage of the “challenging” energy marketplace.
The firm, which supplies mobile and landline services as well as gas and electricity, saw revenue rise 1.5% to £804.4 million in the year to March 31.
Adjusted profit before tax was up 3.7% to £56.3 million.
The company said this was partly down to higher confidence among its “partners” – customers who recruit new sign-ups through word of mouth.
Our balance sheet remains robust, with low leverage and strong cash flow Andrew Lindsay, Telecom Plus chief executive
Chief executive Andrew Lindsay said: “Partner confidence built steadily during the course of the year; this manifested itself in higher levels of activity and an acceleration in the numbers of new partners joining the business, which in turn drove faster growth in both customer and service numbers.”
Customer numbers hit 635,039 in the period, an increase of 4% compared to slower growth of 0.5% this time last year.
Service numbers jumped by 8.2% to 2.5 million.
The company also said it was sheltered from the energy price cap through its wholesale arrangement with Npower, but that the measure had caused a “modest improvement in our competitive position”.
Mr Lindsay added that the group’s cash position put it ahead of its competitors.
“Our balance sheet remains robust, with low leverage and strong cash flow,” he said.
“In contrast to the majority of other energy suppliers, this puts us in a strong position to take advantage of a challenging retail marketplace.”
Shares in the company were up 2.22% in early trading on Tuesday.