TIDMTEP
RNS Number : 7008P
Telecom Plus PLC
11 October 2023
Trading Update and Notice of Results
"Comfortably on track to double the size of our high quality
base"
Telecom Plus PLC (trading as Utility Warehouse or UW), which
supplies a wide range of utility services focussed on domestic
customers, today issues a trading update for the six-month period
ending 30 September 2023.
Continued double-digit annualised customer growth in a stable
market
Over 62,500 additional households switched to UW in the first 6
months of FY24, representing an annualised growth rate of over 14%.
With 949,180 households now taking their services from UW, we are
comfortably on track to double the size of our high quality base
over the medium term, and expect to pass the one million customer
milestone during the current financial year.
The number of services we supply to our customers increased by
170,698 during the period, to a total of 2,968,846, reflecting
continued strong multiservice take up amongst new customers seeking
to maximise the savings that they can make on their household
bills.
As stability has returned to the energy retail markets after two
years of 'crisis', the business is continuing to perform strongly,
demonstrating its ability to outcompete and grow rapidly in a
normalised environment: our enduring multiservice cost advantage
enables us to sustainably and profitably offer home owners some of
the lowest priced services across the energy, broadband, mobile and
insurance markets.
Deepening our long-term relationship with E . ON
We are pleased to have updated our existing long-term energy
supply contract with E.ON to ensure the sustainability of the
agreement over the remaining 10 year term (until December 2033).
This agreement underpins our ability to deliver comfortable
double-digit customer growth over the medium term by focusing on
our unique multi-service proposition, route to market and customer
management expertise. E.ON remains responsible for wholesale energy
market activities, weather-related balancing costs and seasonal
working capital movements associated with our growing energy
customer base.
The agreement has been refined so that the amount we pay to E.ON
for the wholesale services it provides is more closely matched to
the wholesale cost components in the price cap (rather than using a
proxy percentage of the total price cap). This improved approach is
more accurate, reducing risk for both parties, and means both
parties now benefit from the full price cap allowances which relate
to the activities for which they are each responsible (e.g.
customer bad debts in the case of UW). Importantly, the updated
supply contract provides us with greater flexibility, enabling us
to develop and launch a wider range of energy products - for
example a broader set of attractively priced fixed tariffs to both
the residential and small business markets. The amended contract
also provides a framework for UW to develop innovative 'time of
use' tariffs (suitable for EV charging and home generation &
storage).
Looking ahead, it is clear there will be significant
opportunities as the energy retail market evolves and continues its
transition towards net zero. Our updated energy supply agreement
will provide the capabilities and flexibility required to take full
advantage of these over time, and we therefore anticipate modestly
increasing our investment in the proposition from FY26 to further
accelerate our customer growth trajectory.
Outlook and notice of results
We reaffirm our guidance for the full year and look forward to
providing a further update with our half year results on 21
November 2023.
Stuart Burnett and Andrew Lindsay, Co-CEOs, said:
"Our disruptive model - of not simply supplying energy, telecoms
or insurance like other suppliers, but bundling those services
together and sharing the savings we make with our customers - means
we have consistently been offering the lowest priced energy in the
country for the past two years.
As a result more and more households are hearing about UW, and
choosing to switch their household services to us: we are hugely
proud to have helped a further 62,500 families to stop wasting time
and money with their existing suppliers since April.
We are delighted to have updated our existing energy supply
agreement with E . ON, ensuring its sustainability for both of us
over the next ten years, and enhancing it to enable us to innovate
more freely within the energy market and to support increasing
numbers of UK households as we transition to net zero over the
decade ahead.
We now have the platform from which we can further build on our
current strong rate of growth, and with pressure on household
budgets driving ongoing demand for savings, we look forward to
welcoming our millionth customer to UW in the coming months."
Steven Grove, Director of Energy Markets UK at E . ON, said:
"UW is a key partner for E . ON and we are delighted to have
updated our long-term contract, reducing risk and allowing both
parties to focus on the services for which they have proven
competencies . "
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 / Joshua Hughes 020 7260 1000
For investor relations:
Julian Wais
07720 999764
jwais@uw.co.uk
For media relations:
Lansons Communications LLP
Tom Baldock
07860 101715 utilitywarehouse@lansons.com
About Telecom Plus PLC ("Telecom Plus"):
Telecom Plus, which owns and operates Utility Warehouse (UW), is
the UK's leading multiservice utility provider, offering bundled
household services - energy, broadband, mobile and insurance -
through one account.
Customers benefit from the convenience of a single monthly bill,
consistently good value across all their utilities and exceptional
levels of service.
Customers sign up through a network of local UW Partners all
across the country. These Partners recommend UW's services to
friends, family and people they know by word of mouth.
Telecom Plus is listed on the London Stock Exchange (Ticker: TEP
LN). For further information please visit telecomplus.co.uk
LEI code: 549300QGHDX5UKE58G86
Cautionary statement regarding forward-looking statements
This Announcement may contain "forward-looking statements" with
respect to certain of the Company's plans and its current goals and
expectations relating to its future financial condition,
performance, strategic initiatives, objectives and results.
Forward-looking statements sometimes use words such as "aim",
"anticipate", "target", "expect", "estimate", "intend", "plan",
"goal", "believe", "seek", "may", "could", "outlook" or other words
of similar meaning. By their nature, all forward-looking statements
involve risk and uncertainty because they are based on numerous
assumptions regarding the Company's present and future business
strategies, relate to future events and depend on circumstances
which are or may be beyond the control of the Company which could
cause actual results or trends to differ materially from those made
in or suggested by the forward-looking statements in this
Announcement, including, but not limited to, domestic and global
economic business conditions; market-related risks such as
fluctuations in interest rates; the policies and actions of
governmental and regulatory authorities; the effect of competition,
inflation and deflation; the effect of legislative, fiscal, tax and
regulatory developments in the jurisdictions in which the Company
and its respective affiliates operate; the effect of volatility in
the equity, capital and credit markets on profitability and ability
to access capital and credit; a decline in credit ratings of the
Company; the effect of operational risks; an unexpected decline in
sales for the Company; any limitations of internal financial
reporting controls; and the loss of key personnel. Any
forward-looking statements made in this Announcement by or on
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and Transparency Rules, the Listing Rules or by law, the Company
undertakes no obligation to update these forward-looking statements
and will not publicly release any revisions it may make to these
forward-looking statements that may occur due to any change in its
expectations or to reflect events or circumstances after the date
of this Announcement.
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END
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