Telecom Plus hikes dividend as it fends off Covid-19 imact

Multi-utility services provider Telecom Plus lifted its dividend and full year profits as it said the coronavirus crisis was having a limited impact on its business.

The dividend was increased 9.6% to 57p a share as pre-tax profit rose to £48.1m up from £43m last year. Revenue was up 8.9% to £875.8m.

“I am extremely pleased at how well our partners and employees have adapted to the Covid-19 environment, and the limited impact which this is having on our business,” said chief executive Andrew Lindsay on Tuesday.

“The strength of our balance sheet is in contrast to most of our competitors in the energy markets.”

The disruption caused by the UK government’s lockdown to combat the pandemic led to a small reduction in net customer base during April and May, although this had now started to reverse, gthe company said, with new partner recruitment running over 40% ahead of the same period last year.

“These trends support our current expectation for a modest recovery in customer numbers over the coming months whilst the country remains in partial lockdown, with a gentle acceleration thereafter,” it added.

Telecom Plus, which supplies electricity, landline, broadband and mobile services, said it expected current year profits to be marginally below 2020, in line with previous guidance, based on the assumption that social distancing restrictions continued to be progressively lifted and were not subsequently retightened and with a modest increase in bad debts.

“On that basis, and in the absence of unforeseen circumstances, we expect to maintain the dividend at 57p per share for the current year,” Telecom Plus said.