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Telecom Plus - Massive upgrade to forecasts

January 2008

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:
  • 192p
The shares reacted positively to H1 results  to 30 September.Turnover grew a modest 4% to £71.1m but pretax profit grew by 15% to£6.4m and earnings similarly to 6.6p. Net cash balance also balloonedby £11m in H1 to £36.8m despite spending £3.8m on buybacks and afurther £4.1m on dividends. Customer numbers were constant at 213,000 residential and businessusers but what drove growth was the number of products per customerwhich reached 2.4 against 2.1 in H106. This has risen again since theperiod end helped by Telecom Plus' annual sales conference in Octoberwhen it unveiled a number of changes which is going to acceleratecustomer gathering. This includes a "free laptop" deal for those takingbroadband and also a "Community ...

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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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