Telecom Plus (LON:TEP) (trading as the Utility Warehouse) supplies a wide range of utility services (gas, electricity, fixed telephony (calls and line rental), mobile telephony and broadband internet) to both residential and business customers. The company doesn’t advertise but instead recruits customers via an army of distributors. Full year results to 31 March were issued yesterday and appear to see the company well-positioned now for a resumption in revenue growth and EPS growth in future years after a decline this year despite impressive top-line growth.
In summary, revenue was up 33% to £369.1m (2009: £278.3m) driven by a combination of a surge in the number of customers and an improvement in the quality of the customer base. PBT was down 19% to £18.2m (2009: £22.5m) after gross margins narrowed from the ‘exceptionally favourable wholesale pricing environment’ experienced the year before. EPS was down 19% to 19.7p (2009: 24.2p). The year-end net cash balance was £2.5m (2009: £25.4m) and the final dividend was 14p per share (2009: 12.5p)…
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