Telecom plus Plc (The Utility Warehouse) are due to announce their interim results for the six months ended 30 September 2006 on Wednesday 13 December 2006. It has been a good year for the Company and positive results are anticipated. In September, the Utility Warehouse launched an innovative and highly competitive broadband / line rental package called Broadcall. Earlier in the year, the Company reported a return to profitability, following the outsourcing of it's energy business to nPower.
Throughout the year, financial and other press has been positive. In August, Michael Jivkov of The Independent highlighted that during the last two years Telecom
plus shares have lost 70% of their value and that following the Company's deal with npower, the Company has returned to profitability, with a dividend being announced at its full-year results in June.
A recovery is on the cards for Telecom
plus. Chris Mills, the shrewd small-cap specialist who runs Atlantic Value LLP fund, certainly thinks so. He has quietly built up a 4 per cent stake in the company. According to Michael Jivkov, KBC Peel Hunt, the group's broker, expects it to make a profit of £8.3m this year. By 2008, this should have risen to more than £10m, leaving Telecom plus trading at just 10 times earnings, and making its stock worth a punt.
The Sunday Telegraph (16 July) says that Telecom
plus, the utilities reseller, “could be worth another look”...“In February, Telecom plus outsourced its energy buying to npower, and now just does the marketing...the Company has a unique low-cost referral system for attracting new customers and has a low churn rate.
Further more,
Ludbrook Research International (LRI) recently reported that the Utility Warehouse has not reached 10% of its potential size, further reporting that the Utility Warehouse will be one of the companies to lead the Shakeout boom in the UK, with sales of more than £500 million being possible within a decade.
Labels: corporate-news
posted by Jeremy Tromans at 12/08/2006 11:11:00 PM
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