Key Highlights

  • Telecom Plus (LSE:TEP), which trades as Utility Warehouse, is in focus on the FTSE 250 ahead of its first-half results on 24 November 2026.
  • Multiservice customers grew at an annualised rate of more than 11% in the first half, roughly three times the FY2026 rate, to around 526,000.
  • Total organic customers rose 9.7% year-on-year to around 1.32 million, with single-service customers up at an annualised 8.5%.
  • FY2027 adjusted pre-tax profit guidance of £80 million to £90 million was reiterated, weighted around 15% to the first half.
  • Shareholder distributions will be split between dividends and an extended share buyback at current share prices.

Why Telecom Plus (LSE:TEP) Is in Focus Today

Telecom Plus (LSE:TEP), the multi-utility provider behind the Utility Warehouse brand, is in focus on 3 November 2026 as investors look ahead to its interim results on 24 November. The company's October trading update showed customer growth accelerating across the Business in the first half of its new five-year plan, and management said momentum was building across all areas.

The stock is regularly discussed by UK income investors because of its long Dividend record, but it has also become a debate about growth versus profit. In June, Telecom Plus unveiled a plan to invest heavily to more than double multiservice customers to over one million by FY2031, accepting a dip in near-term profit. The latest update suggests the Investment is beginning to pay off.

October Trading Update

In its update on 6 October covering the six months to 30 September 2026, Telecom Plus said multiservice customers, those taking more than one service, grew at an annualised rate of over 11%, ahead of its full-year target of more than 10%. Multiservice customers increased to around 526,000 from about 498,000 at the end of FY2026. Single-service organic customers grew at an annualised 8.5% to 791,000, taking total organic customers to around 1.32 million, up 9.7% year-on-year.

The growth has been driven by Partners, the self-employed local sales agents who recommend Utility Warehouse services. Monthly active Partners averaged about 4,900 in the first half, up around 15% from the second half of FY2026, and total Partners exceeded 88,000.

The Five-Year Plan

Telecom Plus (LSE:TEP) launched its new five-year plan on 23 June 2026 alongside full-year results. The plan targets more than one million multiservice customers by FY2031, supported by investment of around £55 million a year in Brand awareness, Partner incentives and customer acquisition. Building Brand Awareness is a key pillar, as Utility Warehouse has historically relied on word-of-mouth through its Partner network.

The company's model bundles energy, broadband, mobile and insurance in a single bill, with customers who take more services receiving bigger discounts. Multiservice customers are more profitable and less likely to leave, which is why growing this group is central to the strategy.

FY2026 Base and TalkTalk Customers

FY2026 was a year of strong growth, with total customers up 23%, including around 193,000 broadband customers acquired from TalkTalk in two tranches. Underlying organic growth was just over 10%. Cross-selling into the acquired TalkTalk customers has exceeded initial expectations, creating further opportunities to move them onto multiple services.

Guidance and Shareholder Returns

FY2027 adjusted pre-tax profit guidance remains £80 million to £90 million, with profits weighted around 15% to the first half and 85% to the second, reflecting the way industry costs are allocated across the year. Year-end net Debt to adjusted EBITDA is expected to be around 1.5 times. Total distributions for FY2027 are expected to be weighted towards the second half, with a 40/60 split between interim and final. At current share price levels, half would be via an extension to the buyback and half via dividends.

Leadership and Track Record

Chief Executive Stuart Burnett and Chief Financial Officer Nick Schoenfeld lead the business, which has delivered compound double-digit customer growth for several consecutive years. Telecom Plus has a long record of paying dividends, which has made it a popular holding among income investors. Its Partner-led model gives it a structural cost advantage over rivals that rely heavily on paid marketing, while its single-bill proposition helps reduce customer churn.

Key Risks

Risks include changes to UK energy regulation and the price cap, wholesale energy price volatility, competition in broadband and mobile, the cost and effectiveness of the investment plan, Partner recruitment and retention, and customer bad debt.

What Investors Are Watching Next

On 24 November, investors will focus on first-half profit relative to the 15% phasing guidance, customer growth trends, Partner activity, cost of acquisition, cash flow, net debt and the interim distribution. Commentary on the winter energy market and confirmation of the £80 million to £90 million profit range will be key for sentiment.