Telecom plus quick
linksThumbs up from Investors Chronicle
June 16, 2006
by Jez Tromans
Filed under Press Articles
Just keeping followers of this subject informed, the Investors Chronicle had an informative update this month regarding progress following the £8m loss during November and December 2005. It is no secret that crippling wholesale prices dampened celebrations this year, but following an agreement with nPower, profits and dividends are expected to rebound strongly.
“Whilst gas prices were previously unhedged, an agreement with nPower earlier this year, means that Telecom plus is now far less exposed to the price surges of the wholesale gas market. With this problem solved, Telecom plus can again focus on its core business of selling utilities to a growing customer base. Whilst operating margins may be lower than previously envisaged, the nPower agreement has already had a positive impact, with the Telecom plus energy business returning to profitability during the last quarter. Telecom plus Management said that it is confident of resumed growth of dividend and full return to profitability in the New Year, also commenting that little effect has resulted from Carphone Warehouse’s recent aggressive broadband marketing. Broker KBC Peel Hunt is forecasting a dividend in 2006-07 of 2.5p, rising to 5.5p in 2007-08. Telecom plus shares look good value.”
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