Telecom Plus PLC (LSE:TEP) shares stand near all-time highs as the failure of numerous energy suppliers has driven ever more households to its Utility Warehouse platform.
The FTSE 250 group, which also offers broadband, mobile and insurance, and has a smart meter business, a fledgling boiler installation operation, and saves on marketing by making its sales by 'Partners' and word of mouth, last year enjoyed customers flocking its way thanks to the collapses of bulb, ampower, igloo, Hub Energy and many more, as well as discounts if they purchase a bundle of services.
At the end March, Telecom Plus boasted 729,000 customers were taking 2.27mln services between them, of which energy represented just over half, while customer additions were running at an annualised rate of 20% by the end of the last fiscal year.
Co-chief executive Andrew Lindsay laid out some bullish goals for fiscal 2023, including customer growth of at least 20% to around 875,000, which implies 146,000 adds, as part of a five-year goal to add 1mln new customers.
Adjusted pre-tax profits of at least £75mln are targeted, versus £61.9mln in its last full year.
A dividend per share of at least 65p, up from 57p in 2022, though analysts are forecasting 75p.
"Analysts and shareholders will also look to customer churn and bad debts," said Russ Mould at AJ Bell. "Churn plunged in 2022, from its usual run rate of 12-15% down to 9% in the first half and just 3% in the second, as the failure of rival energy suppliers and energy price chaos limited the incentive to move, while bad debts stayed stable at around 1.2% of sales, at a cost of just under £12mln."