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2 April 2013
Telecom Plus PLC
Trading Update and Notice of Results
Telecom Plus PLC (trading as the Utility Warehouse), which supplies a wide range of utility services to both residential and business customers, today issues a trading update for its financial year ending 31 March 2013.
· Confident of reporting full year profits in line with market expectations
· Strong fourth quarter for distributor, customer and service numbers
· Intention to pay a final dividend of 18p per share making a total dividend of 31p per share (2012:27p)
· Final results expected to be reported on 21 May 2013
We have seen a continuation of the positive trends referred to in our Interim Management Statement issued on 11 February 2013, and will report a seventh consecutive quarter in which our service numbers have comfortably grown by more than 50,000. In addition we have seen a strong uptick in the number of new distributors joining the business during the quarter; this is a useful lead indicator of the levels of customer and service growth we can reasonably expect to achieve over the coming months.
Over 55% of the new residential Club customers we added during the financial year as a whole have taken at least four of our core services (gas, electricity, landline, broadband and mobile). This continued improvement in the quality of our customer base is driving both higher average revenue per customer and lower churn.
Our financial performance remains in line with consensus market expectations for the year to 31 March 2013. In the absence of unforeseen circumstances, it remains our intention to recommend a final dividend of 18p per share, which would bring the total dividend for the year to 31p per share (2012: 27p).
Around 6,300 distributors booked to attend our annual sales conference which was held on the weekend of the 16/17 March. At this event we announced further simplification of our customer proposition, improvements to our online presence, and took the opportunity to share our vision of becoming the Nation's most trusted utility supplier. The enthusiastic response that these initiatives received, and the higher number of new distributors who joined during the quarter, both augur well for our future growth prospects.
Final Results Date
We expect to report our results for the year ending 31 March 2013 on Tuesday 21 May 2013.
Andrew Lindsay, Chief Executive Officer, said:
"We finished the year with strong growth in distributor, customer and service numbers. The sustained increase in the number of new distributors joining the business over the last three months is particularly encouraging, and we anticipate that this will feed through to additional customer and service growth over the coming months."
"We continue to focus on delivering consistent good value, convenience and exceptional levels of service to our members, and are confident that this is the right strategy to maximise shareholder value over the long term."
For more information please contact:
Telecom Plus PLC
Andrew Lindsay, Chief Executive 020 8955 5000
Chris Houghton, Finance Director
Richard Kauffer / Dan Webster 020 7418 8900
Nick Owen / Graeme Summers 0191 279 7412
Reg Hoare / Katie Hunt / Giles Robinson 020 3128 8100
About Telecom Plus PLC ('Telecom Plus'): www.utilitywarehouse.co.uk
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. Telecom Plus does not advertise, relying instead on 'word of mouth' recommendation by existing satisfied customers in order to grow its market share.
Telecom Plus has a wholly owned subsidiary called TML which was purchased in 2002. TML supplies predominantly fixed line telephony and broadband internet to small and medium sized business customers through a network of authorised resellers and dealers.
Telecom Plus also has a 20% shareholding in Opus Energy Group Ltd (which changed its name from Oxford Power Holdings Ltd on 28 October 2010), a successful, profitable and fast growing independent supplier of Gas and Electricity to small, medium and large business customers.
Telecom Plus is listed on the London Stock Exchange (Ticker: TEP LN). For further information please visit: www.utilitywarehouse.co.uk.
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