Telecom Plus backs outlook as hails "growing momentum" across business

Telecom Plus PLC on Tuesday said it is "confident" of meeting full-year expectations after reporting better-than-hoped growth in multiservice organic customer numbers.

In response, shares in the London-based provider of bundled household utility services climbed 3.7% to 855.29 pence each in London on Tuesday morning.

In a trading statement, the FTSE 250 listing said it has made "encouraging progress" in the six months ended September 30.

Multiservice organic customer numbers increased at an annualised rate of over 11% to 526,000 from 498,000, ahead of its 10% target for the full year and three times the rate delivered in financial 2026.

Single service organic customers grew at an annualised rate of 8.5% to 791,000 from 759,000, resulting in total organic customers increasing 9.7% on-year to around 1.3 million.

As a result, Telecom Plus reiterated guidance for adjusted pretax profit of between £80 million to £90 million for the financial year ending March 31, 2027, at best a decline of 32% from £132.2 million in financial 2026. It expects adjusted pretax profit to be weighted around 15%/85% between the first half and second half of the financial year.

The firm continues to expect year end net debt to adjusted earnings before interest, tax, depreciation and amortisation for FY27 of around 1.5 times, before reducing to around 1.0x over the course of the five-year plan, which it announced in June.

Chief Executive Stuart Burnett reported "growing momentum" across all aspects of the business.

"Multiservice customer growth has been strong, and well ahead of the level we delivered in FY26, driven by the investment we are making in our customer proposition and underpinned by record levels of activity across our Partner network," he said.

He said the firm is "confident" in meeting full year guidance for FY27 as it progresses toward a long-term goal of £175 million of adjusted pretax profit by FY31.

Telecom Plus said around £9.0 million remains to be completed of its £40 million share buyback.

It expects that the total distributions to shareholders for FY27 will remain weighted towards the second half of the financial year, with a 40%/60% split between the interim and final distributions. At current share price levels, half of this would be via an extension to the share buyback programme, and the remainder by dividend.

First half results will be released on November 24.

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