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Telecom Plus - Strong organic growth continues

March 2011

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:
  • 470p
The increase in retail energy prices as a result of rising wholesale gas prices is transforming the profitability of the business. So much so that this month TEP said that it expects to report full year profits ahead of forecast. The Q3 statement to 31 December showed customer numbers went up 7.6% to 309,179 on the prior year. They were also up 1.7% on Q2 even with the snow slowing progress. But Q4 has seen a dramatic spurt of growth in customer numbers, “up strongly†since January in no small part helped by the phenomenal success of its Cashback card. This is issued free to customers and is accepted by a number of leading retailers, including Sainsbury's, Argos and M&S and based on spend gives TEP’s customers a discount ...

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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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