Telecom Plus PLC (LSE:TEP), a provider of utility services, said a record number of households joined Utility Warehouse (UW) in the six months to 30 September and added that it now expects full-year profits to be “materially ahead of market expectations”.
The upbeat forecast sent the shares 17.61% higher to 2,030.00p in midmorning trade.
UW, which is owned by Telecom Plus, grew its customer base by over 86,000 in the first half, taking its total number of customers to 814,684.
According to a statement, this represents an annualised growth rate of almost 24%, which is consistent with the company's growth target of over 1mln in the next four to five years.
The company said its forecast that full-year profits will beat current market expectations is due to strong customer growth, a reduction in costs of multi-service discounts in the second half of the year and an improved energy affordability outlook following the recent government announcement that the average energy bill will be capped at £2,500.
“At a time when cost of living pressures continue to rise, we are uniquely positioned to offer households what they need now more than ever: savings on their essential bills and an extra income from recommending these savings to their friends and family,” said co-chief executives Andrew Lindsay and Stuart Burnett.