Telecom Plus shares surge as customers snap up bargain deals
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Telecom Plus shares surged over 20 per cent this afternoon after the utility services giant hiked full-year profit guidance after posting record customer growth during the first half of the year.
The company nabbed 86,004 new customers in the six months to September, taking its total customer base to 814,684 and representing an annualised growth rate of almost 24 per cent.
The FTSE 250 firm, which trades as Utility Warehouse and offers people discounts for more signing up for services bundles across gas, electricity, mobile, broadband and insurance contracts, said it now expects full year profits will be materially ahead of current market expectations, bolstered by an improved outlook for energy affordability thanks to the recent energy cap.
“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 Andrew Lindsay, co-chief executive.
Brokers at Peel Hunt backed the stock, upping its price target to 2,600p from 1,950p.
“Telecom Plus has a compelling proposition in a very tough consumer environment. This should drive strong profit growth and attractive dividend flow,” the broker said. “The company has a c.3% share of households and so there is plenty of room for the business to be materially larger.”