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Telecom Plus - New customers 28% over broker forecast

March 2009

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:
  • 337p
Telecom Plus' trading statement for Q3 to 31 December read well and Investec's forecasts of eps of 17.6p for FY08 and 27.8p this year now seem to be erring on the low side. Demonstrating accelerating growth Telecom Plus added 19,082 customers during the quarter against 14,741 in Q2 (taking the total to 258,840 customers). According to Investec, the number of customers added was 28% ahead of its forecast. Growth is being driven by a record number of new distributors signing up to sell the service. At the same time, the newer customers generally take more than one service (telecoms, gas, electricity, internet) and the average number of services per customer has lifted further to 2.8, which will reduce customer churn. Cash at ...

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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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