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Highlights

  • TEP reports 8.1% rise in adjusted pre-tax profit to GBP 126.3 million in FY25.
  • The company grows customer base by 15% YoY to over 1.16 million.
  • Telecom Plus declares full-year dividend of 94p, up 13.3% YoY from FY24.

Telecom Plus PLC (LSE:TEP), operating under the Utility Warehouse brand, provides a bundled suite of essential household services including energy, broadband, mobile, and insurance across the UK. The company leverages a unique customer acquisition model via its network of self-employed Partners, targeting value-conscious households with simplified, single-bill services.

The company has released its results for the financial year ended 31 March 2025 (FY25), reporting record profit and dividend figures. The company, known for bundling essential household services under a subscription model in the UK, highlighted steady customer growth and a stable operational performance across its divisions.

Group revenues came in at GBP 1.84 billion, a decrease from GBP 2.04 billion in the previous year. Despite the dip in revenue, Telecom Plus reported a gross profit of GBP 358.1 million, up slightly from GBP 355.2 million in FY24. Adjusted pre-tax profit increased by 8.1% YoY to GBP 126.3 million, aligning with market expectations. Statutory pre-tax profit also grew, rising 5.4% YoY to GBP 105.9 million.

Earnings per share showed similar progress, with adjusted EPS up 9.4% YoY to 119.2p, and statutory EPS climbing 7.1% YoY to 96.3p. The board has recommended a final dividend of 94p per share for FY25, reflecting a 13.3% increase compared to 83p in FY24. The company maintains a conservative net debt to adjusted EBITDA ratio of 0.8x.

Customer growth continued a strong trajectory, with total customers increasing 15% YoY to 1,163,608, including approximately 25,000 acquired from TalkTalk. Excluding this acquisition, organic growth stood at 12.6% YoY, in line with company guidance. Service numbers increased by 265,496 to 3.39 million, up from 3.13 million a year earlier.

Telecom Plus also reported a rise in its Partner base to 71,710, compared to 68,251 in FY24. The company's multi-level marketing model remains a key channel for customer acquisition, especially amid ongoing cost-of-living pressures. The group highlighted recognition from Which? as a Recommended Provider for both energy and broadband services, and a Trustpilot rating of "Excellent".

For the fiscal year 2026, Telecom Plus is targeting total customer growth of approximately 15%, inclusive of the remaining TalkTalk customer transfers under the cross-selling agreement. Organic customer growth is expected to remain in the low double digits.

The company has set adjusted pre-tax profit guidance for FY26 between GBP 132 million and GBP 138 million, reflecting continued earnings momentum. Management cited a favorable recruitment environment for new Partners and reiterated confidence in reaching its medium-term target of serving two million customers.

Chief Executive Stuart Burnett stated that the company's business model, built around bundling household services and marketing through word-of-mouth, supports consistent growth regardless of broader economic uncertainty. Burnett emphasized that economic downturns typically result in increased interest from individuals seeking to reduce bills or earn supplemental income—factors that historically support Telecom Plus’s expansion.

TEP shares were trading 1.35 % lower at GBX 2,047.08 per share as of 24 June 2024