Telecom Plus guides to further profit growth after record results

(Sharecast News) - Telecom Plus reported record profits in line with market expectations in the 12 months to 31 March despite a slip in revenues, and pointed to further growth in the year ahead.

The company, which provides subscription-style essential household services in the UK, said the 20% drop in the Ofgem energy price cap during the year, which averaged �1,700, led to a fall in revenues to �1.84bn from �2.04bn.

However, adjusted pre-tax profit totalled �126.3m, up 8.1% over the previous year, with guidance of �132m-138m given for FY26.

Customer numbers increased by 15% over the year to 1.16m, including 25,000 fixed-line/broadband customers transferred from TalkTalk as part of a cross-selling transaction. Excluding the TalkTalk customers, organic customer growth came in at 12.6%, in line with guidance.

Meanwhile, service numbers increased 8.4% to 3.39m, though this rate of growth should accelerate going forwards following the recent relaunch of insurance products, Telecom Plus said.

The company proposed a final dividend of 57p, up from 47p previously, taking the full-year payout to 94p, up 13% on last year.

"Our innovative multiservice platform, together with our unique word of mouth route to market, has enabled us to deliver another set of record results," said chief executive 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."