Energy and telecoms provider Telecom Plus (LON:TEP) reported higher annual revenue and profits but warned that industry investment would lead to higher bills.
Telecom Plus, which owns Utility Warehouse, said a 208,000 increase in the number of services taken by customers to 2.1mln had helped it drive up adjusted pre-tax profit by 22.5% to £52.2mln.
Revenue rose 10.5% to £729.2mln. The group said it had achieved the results despite an increasingly competitive market as new entrants were able to offer lower prices than established rivals which paid for energy in advance.
Revenue growth was constrained by a fall in average energy consumption in the group's domestic membership base compared with the previous year, reflecting both milder weather and energy efficiency measures by the industry in the last few years.
Telecom Plus also said it took an £11mln hit from a higher-than-expected share of industry-wide leakage in the national gas distribution network.
It proposed a final dividend of 21p against 19p a year ago, bringing the total for the year to 40p versus 35p last time.
The company said significant industry investment was needed in the next decade to renew and extend the UK distribution network, replace ageing nuclear and coal-fired generating plant, roll out smart meters and encourage take-up of energy efficiency and renewable energy.
"The costs associated with delivering these initiatives are likely to put continued upward pressure on retail energy prices in due course," the group said. But it added: "In the shorter term, we anticipate these will be more than offset by lower wholesale energy commodity prices."
Shares in Telecom Plus rose 28.5p to 849.5p around midday in London.