Telecom Plus PLC (LSE:TEP) said profits in the year just ended were ahead of expectations even though revenues dipped as gas prices returned to normal after the spike following the start of the invasion of Ukraine.
The Utilities Warehouse owner reported adjusted profits of £116.9 million (2023: £96.2m) and pre-tax profits of £100.5 million in the year to March 2024, up 17.6% on the previous year’s £85.5 million.
Revenues dropped to £2.04 billion from £2.4 billion with earnings up 3.8% at 89.8p.
Telecom Plus, which through Utilities Warehouse supplies energy, broadband, mobile and insurance, had flagged earlier that customer numbers had risen 14% and topped one million for the first time adding that the target now is to double that again to two million.
“With the business in such good health, and having passed through the 1 million customer milestone, our current rate of growth places us firmly on track to double the size of the business to two million customers over the medium term,” commented chief executive Stuart Burnett.
Looking forward, Burnett said he expects annual percentage customer growth to remain within the 10-15% range, with 12-14% organic customer growth expected during 2024-25.
Adjusted pre-tax profits this year is expected to be within a range of £124m to £128m with excess capital will be returned to shareholders through a combination of dividends and buying back shares.
The dividend for the year just ended rose 3p to 83p.
Shares were up 2.8% at 1,926p in early trades.