Telecom Plus cashes in on need for budget gas and electricity

BUDGET utility supplier Telecom Plus yesterday said its full-year profit had risen by 13 per cent as cash-conscious households flocked to the company’s services.

Telecom Plus, which trades as Utility Warehouse, saw sales rise 27.6 per cent to £601.5m in the year to April, helped by a larger customer base and higher average spending per customer.

The company, which provides gas, electricity, fixed line telephone and broadband internet services, said pre-tax profit was £34.6m, and that it signed up 46,000 extra customers in the year to reach a base of 461,000. Just as significantly, its average revenue per user rose 14 per cent to £1,363 as customers took more of its budget services, and it saw fewer users depart, which cut down on costs.

The company does not advertise, and operates entirely online, which allows it to offer utilities at much lower rates than big-name providers.

“The quality of our customer base has continued to improve, with over 55 per cent of new members applying for at least four core services during the year,” chief executive Andrew Lindsay said. “This has resulted in lower churn, lower bad debts and higher average revenue per customer.”