TIDMTEP
RNS Number : 2943V
Telecom Plus PLC
08 July 2009
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Telecom plus PLC (the "Company")
Interim Management Statement
Quarter Ended 30 June 2009
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, is issuing
its Interim Management Statement to cover the period from 1 April 2009 to 8 July
2009, incorporating information relating to the performance of the business for
its first quarter ended 30 June 2009, to coincide with its Annual General
Meeting (""AGM") being held later today.
Highlights
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*
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* Continuing strong organic growthNumber of services up by 62,220 during the quarter to 856,338 (30 June 2008: 618,320) Customer numbers increase by 21,185 during the quarter to 302,360 (30 June 2008: 225,017)Distributor numbers increase to almost 30,000 (31 March 2009: 27,051)Dividend guidance for current year 22p (2009: 17.5p), an increase of 25%
Operating Review
During the first quarter, customer numbers increased by 21,185 to 302,360 (30
June 2008:225,017), representing an increase of more than 34% compared with our
customer numbers at the same stage last year, and the number of services
provided rose by over 62,000 to 856,338 (30 June 2008: 618,320). These figures
clearly demonstrate the continuing strength of our business model and the
resilience of our distribution channel in the current difficult economic
climate, notwithstanding the impact of Easter and two May bank holiday weekends
which are traditionally relatively quiet periods for gathering new customers.
Distributor recruitment has also remained strong and continues to run
substantially ahead of the comparable figures at this time last year - this has
historically been an extremely accurate lead indicator of future new customer
numbers, and provides the directors with considerable confidence on the rate of
growth we are likely to report as we move through the remainder of the current
year. As at 30 June 2009 we had almost 30,000 distributors, a net increase of
more than 10% during the quarter.
New Headquarters Office Building
We have completed the first phase of refurbishing the new headquarters office
building which we purchased on 26 September 2008, on time and on budget. This
provides us with substantial additional space to accommodate our growing
workforce. There is however little sign of any rental demand at present for the
three floors which are currently surplus to our requirements.
Cash Flow
Underlying cash flow remains in line with management expectations. As the net
debtor balance relating to customers paying for their energy by budget plan
starts to reverse over the next few months, we anticipate that our cash balance
of GBP16.5m (31 March 2009: GBP25.4m) will improve significantly by 30 September
2009, notwithstanding the GBP8.5m cost of paying the proposed final dividend for
last year which is expected to be made on the 7 August 2009.
Outlook
We anticipate continuing strong organic growth over the coming months, driven by
the large number of new distributors who have joined the business over the last
12 months.
Whilst energy prices have fallen slightly this year, the forward wholesale price
curve suggests that future retail prices are likely to resume the upward trend
we have seen over the last few years. In addition, the impact of these higher
wholesale prices is likely to be exacerbated for most consumers by the costs
associated with the steadily increasing social, regulatory and environmental
burdens the industry is facing.
It remains our intention, in the absence of unforeseen circumstances, to
recommend a total dividend of 22p for the current year, representing an increase
of 25%.
Half Yearly Report
Our half yearly report for the six months ending 30 September 2009 is expected
to be announced on 25 November 2009.
Charles Wigoder, Chief Executive said:
"I am delighted to report a further period of strong organic growth. We have
seen customer numbers, new services and new distributor recruitment all running
substantially ahead of the comparable figures at this time last year, the
benefits of which will be reflected in our reported financial performance in due
course."
For more information please contact:
+---------------------------------------------+----------------------------+
| Telecom plus PLC | |
+---------------------------------------------+----------------------------+
| Charles Wigoder, Chief Executive | 020 8955 5000 |
+---------------------------------------------+----------------------------+
| Chris Houghton, Finance Director | |
+---------------------------------------------+----------------------------+
| | |
+---------------------------------------------+----------------------------+
| Smithfield | |
+---------------------------------------------+----------------------------+
| Reg Hoare/ Tania Wild / Will Henderson | 020 7360 4900 |
+---------------------------------------------+----------------------------+
Information in this announcement is based upon unaudited management accounts.
This announcement includes certain forward looking statements which are based on
current expectations and are subject to uncertainties and risks that could cause
actual results to differ materially from any expected future events or results
referred to in these forward looking statements. Unless otherwise required by
applicable law, regulation or accounting standard, we do not undertake any
obligation to update or revise any forward looking statements, whether as a
result of new information, future developments or otherwise.
About Telecom plus PLC:
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 both the Communications and Energy markets.
Customers benefit from the convenience of a single monthly bill, consistently
good value across all their utilities and exceptional levels of customer
service. The Company does not advertise, relying instead on "word of mouth"
recommendation by existing satisfied customers in order to grow their market
share.
Telecom plus is listed on the London Stock Exchange (Ticker: TEP LN). For
further information please visit: www.utilitywarehouse.co.uk.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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