Telecom Plus PLC Non-Core Disposals and Related Party Transaction (9167G)
01 Abril 2022 - 12:01AM
UK Regulatory
TIDMTEP
RNS Number : 9167G
Telecom Plus PLC
01 April 2022
Telecom Plus PLC (or "the Group")
Non-Core Disposals and Related Party Transaction
Given the Group's improved customer growth since October 2021,
the Board has made the strategic decision to focus its efforts on
its core business as a fully integrated supplier of a wide range of
competitively priced utility services.
Accordingly, the Group is pleased to announce that it has today
agreed the disposals of two non-core businesses comprising (i) its
wholly owned meter operator, UW Home Services Ltd ("UWHS"), and
(ii) its 75% owned boiler installation business, comprising Glow
Green Ltd and Cofield Ltd ("Glow Green").
Neither disposal is expected to have a significant impact on
Group profits in FY22 or on an ongoing basis.
UWHS
UWHS has been sold to Lowri Beck Holdings Limited ("Lowri
Beck"), a specialist meter operator owned by the Calisen Group.
UWHS was originally set up by the Group to increase the pace of its
smart meter rollout and enable it to meet the challenging rollout
targets set by Ofgem. Since starting operations in 2018, it has
successfully installed over 400,000 meters, leading to the second
highest smart meter penetration rate in the industry.
Following this transaction, UWHS will continue to provide the
Group with meter operator services, whilst benefitting from higher
utilisation levels and increased efficiency from providing similar
services to other energy suppliers as part of the Calisen
Group.
Section 10.4.1 of the Listing Rules requires the disclosure of
the following information in relation to this transaction: (i) the
consideration for the sale of UWHS was GBP1 in cash, (ii) the value
of its gross assets in the last audited accounts of UWHS was
GBP7.6m (net liabilities of GBP5.3m), and (iii) it made a pre-tax
loss of GBP3.0m in the year to 31 March 2021.
Glow Green
The Group has also agreed to sell, subject to the necessary FCA
change of control approval, its 75% shareholding in Glow Green for
cash consideration of GBP1 to Charles Wigoder, Executive Chairman
of the Group. As previously announced, Mr Wigoder (whilst remaining
as Chairman) is moving to a non-executive role in the Group with
effect from the AGM in July.
Since acquiring Glow Green in 2018, the business has been
consistently loss-making; this has contributed to a cumulative
funding requirement of over GBP6m that will remain with Glow Green
as a debt to the Group and be repaid over time.
The Board believe that the disposal of Glow Green is in the best
interests of the Group given the significant management resource it
would otherwise require, particularly at a time when the growth
opportunities within the core business are so exciting. As a
smaller related party transaction, this disposal falls within the
requirements of section 11.1.10R of the Listing Rules and the Board
has obtained written confirmation from its sponsor that the terms
of the proposed transaction are fair and reasonable as far as the
shareholders of the Group are concerned.
For more information, please contact:
Telecom Plus PLC
Andrew Lindsay, Co-CEO 020 8955 5000
Stuart Burnett, Co-CEO
Nick Schoenfeld, CFO
Peel Hunt
Dan Webster / Andrew Clark 020 7418 8900
Numis Securities
Mark Lander / Simon Willis 020 7260 1000
MHP Communications
Reg Hoare / Catherine Chapman 020 3128 8339
About Telecom Plus PLC ("Telecom Plus"):
Telecom Plus, which owns and operates the Utility Warehouse
brand, is the UK's only fully integrated provider of a wide range
of competitively priced utility services spanning the
Communications, Energy and Insurance markets.
Customers benefit from the convenience of a single monthly
statement, consistently good value across all their utilities and
exceptional levels of service. Telecom Plus does not advertise,
relying instead on 'word of mouth' recommendation by existing
satisfied customers and Partners in order to grow its market
share.
Telecom Plus is listed on the London Stock Exchange (Ticker: TEP
LN). For further information please visit telecomplus.co.uk
LEI code: 549300QGHDX5UKE58G86
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