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Telecom Plus - Looks well set to enter FTSE-250 in 2004

January 2004

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.

Telecom Plus had an excellent first half to 30 September. The customer base grew by 26,000 in the period to 160,000 and the number of services supplied increased by 47% to 270,000 - an average of 1.68 services per customer.Despite its name, Telecom Plus is a virtual multi-utility and provides a range of services (telephony, internet, gas and electricity) at a discount to the prices charged by incumbent operators (now marketed as the "Utility Warehouse Discount Club"). Statutory turnover, which includes a small element from operating the distributor network, was up 46% to £37.2m. Profit before tax was up 98% to £4.9m and earnings by 62% to 5.2p.The real rate of progress is reflected in sales from Teleco ...

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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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