1. 14th
August 2015
Telecom Plus PLC
Company Overview and SWOT Analysis
George Wake-Walker
Fieldings Investment Management Ltd
2. Company Profile
Telecom Plus PLC (Telecom Plus), trading as The Utility Warehouse, is a provider of
utility services to both residential and business customers. The company provides
diversified utility services, including fixed and mobile telephony, gas, electricity,
cashback card services and broadband services. Telecom Plus provides its services to
over 500,000 homes and small businesses across the UK through a partnership network
of over 44,000 distributors. Telecom plus is headquartered in London, the UK.
“Telecom Plus is the UK’s only full integrated provider of a wide range of competitively
priced utility services spanning both the communications and energy markets.
Telecom Plus does not advertise, relying instead on ‘word of mouth’ recommendation
by existing satisfied Members and Partners in order to grow its market share. Members
benefit from the convenience of a single monthly statement”.
(www.utilitywarehouse.co.uk)
Board of Directors
Charles Wigoder (Exectuve Chairman)
Julian Schild (Non-Executive Deputy Chairman and Senior Independent Director)
Andrew Lindsay, MBE (Chief Executive Officer)
Nicholas Schoenfeld (Chief Financial Officer)
Melvin Lawson (Non-Executive Director)
Michael Pavia (Non-Executive Director)
3. July 2015 REFS
Price (p) 954
Market Cap £764m
Position 328th
Index FTSE Mid 250
Norm eps (pr) 58.6p
Turnover (15PA) £729m
Pretax (15PA) £42.1m
DY (pr) 4.92%
PER (pr) 16.3%
PEG (pr) 0.50%
GR (pr) 32.6%
ROCE 46.6%
Margin 4.87%
Key Fundamentals 31-Mar-11 31-Mar-12 31-Mar-13 31-Mar-14 31-Mar-15
Revenue (£ m) 418.85 471.46 601.51 659.72 729.18
Pre-Tax (£ m) 27.51 30.74 34.63 34.67 42.06
EPS 30.10p 33.80p 39.90p 48.50p 53.00p
PE 15.17 20.47 25.09 36.89 16.42
PEG 0.29 1.67 1.39 1.71 1.77
EPS Growth 52.79% 12.29% 18.05% 21.55% 9.28%
Dividend Cover 1.37 1.41 1.33 1.43 1.39
Dividend Yield 4.82% 3.47% 3.00% 1.90% 4.37%
Financial Highlights
• Revenue up 10.5% to £729.2m
• Adjusted profit before tax up 22.5% to £52.2m
• Statutory profit before tax up 21.3% to £42.1m
• Adjusted EPS up 9.3% to 53.0p
• Full year dividend up 14.3% to 40p per share
Telecom Plus PLC – Share Price Performance vs FTSE 250
5. SWOT Analysis
Strength
1. Over 40,000 independent distributors
2. Good sales team
3. The Utility Warehouse brand is the primary engine of revenue generation for
Telecom Plus
4. One of the largest independent energy suppliers in the UK with over 500,000
customers
5. Its services include Landline telephony, mobile telephony, broadband, gas,
electricity.
Weakness
1. No good international presence
2. Haven’t established themselves in the emerging economies
Opportunity
1. Expanding market and strong growth potential
2. Increase in purchases because of easy online buy options
3. Rising income levels
4. Less players currently
Threats
1. Scope for increased competition & reduced profitability
2. Increase in government regulations
3. Sluggish economy
4. Credibility issues
5. Households becoming more energy efficient
Competition
Competitors
1. Npower
2. BT Group
3. Orange
4. National Grid PLC
6. SWOT Analysis
Strength
1. Over 40,000 independent distributors
2. Good sales team
3. The Utility Warehouse brand is the primary engine of revenue generation for
Telecom Plus
4. One of the largest independent energy suppliers in the UK with over 500,000
customers
5. Its services include Landline telephony, mobile telephony, broadband, gas,
electricity.
Weakness
1. No good international presence
2. Haven’t established themselves in the emerging economies
Opportunity
1. Expanding market and strong growth potential
2. Increase in purchases because of easy online buy options
3. Rising income levels
4. Less players currently
Threats
1. Scope for increased competition & reduced profitability
2. Increase in government regulations
3. Sluggish economy
4. Credibility issues
5. Households becoming more energy efficient
Competition
Competitors
1. Npower
2. BT Group
3. Orange
4. National Grid PLC
