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Telecom Plus - To launch Sky-broadband-plus utility service

December 2010

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • TEP
  • Price:
  • 428p
Telecom Plus has returned to form with strong H1 results to 30 September. Pretax profit was up 45% to £8.5m on revenues up 18% to £147m. Eps went up 49% to 9.4p. Overall, then, not quite returning to the high watermark it recorded in H109 when the energy prices last peaked but clearly looking like it will blister past that this year. The factors supporting the growth were many-fold. There was an increase in the size of its customer base (roughly 600 net new customers per month to 357,300); an increase in the average number of services being provided to them (3.38 vs 3.13); and a reduced churn. Glaringly, these barnstorming results were also following a single digit REDUCTION in energy prices during the period. That means the bes ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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