Bookmark this site | Set as homepage | What's It All About? | Call: 0800 458 0623 | Further information

Telecom plus business opportunity Home | Company | Market | Services | Income | Support | Options | Register | FAQ's  

UW Distributor testimonials

telecom_plus_3
Jeremy Tromans, Utility Warehouse Authorised Distributor

After just three years of very part-time effort, we have been delighted with the results...equity share options, a free Mini One car, numerous cash rewards, a fast growing residual income and two all expenses paid luxury holidays. Without any reservations, we can testify to this being an effective and highly rewarding business opportunity. Should you wish to know more, please register for further information or contact me on 0800 458 0623.

Jeremy Tromans, Birmingham
(Business owner)


Recent news items

telecom_plus_3

Have you written your bucket list?
Which energy supplier? (Which? 04/09)
No free lunch on Christmas Day
New Senior Marketing Director - Wes Linden
Happy Easter
Marketing Directors - Shannon Griffin / Peter Heyd...
Stay the course
New Marketing Director - Tristan Lee
Avoiding the gloom boom
Security of success - Ed Ludbrook


XML & RSS feeds

telecom_plus_3

Utility Warehouse news - rss feedUtility Warehouse articles and news posted on these pages are also available via RSS.

Blog archives

telecom_plus_3

June 2003
November 2003
December 2004
January 2005
March 2005
April 2005
June 2005
August 2005
September 2005
October 2005
December 2005
January 2006
February 2006
March 2006
April 2006
May 2006
June 2006
July 2006
August 2006
September 2006
October 2006
November 2006
December 2006
January 2007
February 2007
April 2007
May 2007
June 2007
August 2007
September 2007
July 2008
August 2008
September 2008
October 2008
November 2008
December 2008
January 2009
March 2009
April 2009
May 2009
June 2009

Video / eBook overview

telecom_plus_3
What's it all about - telecom plus / utility warehouse business overview

A video overview of the business via distributor & customer stories, along with a flavour of the extensive distributor benefits. Watch video

Telecom plus / Utility Warehouse eBook - What does success mean to you

Overviewing the Telecom plus business and network marketing, with details of the payment plan, distributor testimonials, service information, market overview and details of the Company's training. Download eBook


Utility Warehouse / Telecom plus News

These Utility Warehouse / Telecom plus news pages feature the latest Utility Warehouse news and press items, along with a distributor perspective on the ongoing development of the Telecom plus (Utility Warehouse) business. Should you wish to know more about The Utility Warehouse (Telecom plus Plc) and the Company's business opportunity, please call on 0800 458 0623 or register for further information by email.

Telecom plus today put tech stock mania firmly behind it as its shares soared to an all-time high. The discount telecoms, gas and electricity provider more than met expectations for the year to March. The shares may, however, be due a breather after a giddying run, argues Magnus Grimond.

It will come as no surprise to those new to Telcom plus that shares in this "virtual" supplier of telephone, gas and electricity services hit a low of 64.5p in the autumn of 2001. The technology bubble had just burst and few needed to look beyond the company's name to see that this was just another telecoms failure in the making.

Anyone who had taken the trouble to look a little further would have seen that this was a very different animal than the blue sky no-hopers that populated the stock market at the turn of the millennium. Indeed, by not splurging millions sinking pointless cables into streets up and down the country, Telecom plus has made a virtue of its "virtuality". Without the burden of lighting its own "dark fibres", the company is able to take advantage of the rock bottom prices generated by the huge surplus of telecoms and, to a lesser extent, electricity capacity in the UK.

By allowing its customers to take advantage of this surplus, it claims to be able to offer some of the lowest-priced telecoms and the lowest-priced electricity and gas in Britain. And because chief executive Charles Wigoder has already made one fortune in a similar business - founding and selling Peoples Phone to Vodafone for £77m - he knows the value of software.

This means that Widgoder and the team he took over to Telecom plus from Peoples Phone in 1998 have sliced costs to the bone by running all the company's operations on one system. This allows functions like billing and customer service to be combined however many services a customer takes. This is not the case, says Wigoder, at Centrica, a major rival. Here brands like British Gas, British Gas Electricity and One.Tel duplicate overheads with each service offered.

The third unusual feature of Telecom plus is the way it sells its wares. Unlike Peoples Phone, there is no chain of shops, rather a team of 10,000 independent "distributors" earn commission selling the company's products. This may be just a housewife telling her friends up to a few who make being a salesman for Telecom plus into a full-time job from which they can earn thousands of pounds a month.

And the results speak for themselves. Losses reduced steadily as turnover ratcheted up in the company's early years. The 12 months to March 2001 saw maiden profits of £2.51m on turnover of £28.1m - 21 times the level of just three years before. Inevitably, that level of growth could not be maintained, but the group has still been able to announce a phenomenal 78% rise in 2002-2003 turnover to £58m today. That was good for a 38% rise in pre-tax profits to £5.59m, feeding through to basic earnings per share up 26% at 6.8p.

One final unusual attribute of Telecom plus, particularly stark on the day that Cable & Wireless has announced it is abandoning any payment to shareholders for a year, is that this is one telecoms group that pays a substantial dividend. At 5.75p, the total tally for the last 12 months was ahead of expectations and represents a 28% improvement on the year before.

The main beneficiary of this largesse will be Wigoder himself, who is the largest shareholder with a 28% stake. Another investor who will be celebrating is Nigel Wray, the celebrated company backer and share dealer, who has 4.8%.

According to Wigoder, organic growth has rarely been higher. The subscriber base is up 40% on the year to 134,000, well ahead of the half-year forecast and a "significant improvement" on the previous year. Then the company was still running with a telecoms-only service for the first six months. Now around half the customer base also takes a second service from Telecom plus, mostly mobile telephony, but around 15% buy gas or electricity.

The increasing contribution from these lower margin services, plus the maiden contribution from Telecommunications Management (TML), acquired during the year, served to dilute returns on sales. Gross margins dropped from 37.4% to 31.5%, but Wigoder points out that people tend to spend double the amount on either gas or electricity that they do on using the telephone. Thus the absolute annual contribution from an individual customer may still end up being similar.

In the mean time, the growing economies of scale being created by Telecom plus were reflected in operating margins which remained broadly flat at 11.2% during the last year.

Working capital remains reasonable for a fast-growing company. With few fixed assets, there is little depreciation, so operating cash flow is roughly eqivalent to operating profit. Debtors have risen, but this reflects the business customers that came aboard with TML, which tend to be tardier in paying bills. Net cash fell by £3.67m to £5.68m, less than the £5.6m cost of the TML acquisition and another investment.

The company's broker, KBC Peel Hunt, has substantially jacked up its forecasts in the light of these figures. It is now looking for £8.6m before tax, followed by £10.8m, feeding through to earnings per share of 9.6p and 12.1p. That puts Telecom plus on a rolling forward multiple of 21, with the shares jumping 11p to an all-time high of 215p today.

Originally tipped at 117.5p in our subscription-only Hemscott Analyst e-mail newsletter, we were perhaps a little premature selling the shares at 193.5p last month. On fundamental grounds, they look a tad undervalued, but may be due a breather after such a good run. Hold.

Share prices can go down as well as up. The past is not necessarily a guide to future performance and the marketability of some shares can make them difficult to sell.

posted by Jeremy Tromans at 6/04/2003 11:48:00 PM

biz_opp_dot

Disclaimer

The statements and opinions in the material contained on this web site are those of the individual contributors or advertisers, as indicated. The Publisher has used reasonable care and skill in compiling the content of this web site. However, the Publisher and the Editors make no warranty as to the accuracy or completeness of any information on this web site and accept no responsibility or liability for any inaccuracy or errors and omissions, or for any damage or injury to persons or property arising out of the accessing or use of any files, software and other materials, instructions, methods or ideas contained on this web site. Any third party Web sites which may be accessed through this Web site are the sole responsibility of the third party who is posting the Web site.

The Publisher makes no warranty as to the accuracy of any information on third party web sites and accepts no liability for any errors and omissions or for any damage or injury to persons or property arising out of the use or operation of any materials, instructions, methods or ideas contained on such web sites. Should you require any further information please contact us.


Utility Warehouse Authorised Distributor

The Utility Warehouse (Telecom plus) offers a lucrative career option, which unlike traditional careers, avails anyone the opportunity to generate an unlimited and secure residual income.
Join Utility Warehouse today!

Request further information

telecom_plus_3

E-mail


First name


Surname


Contact number


Postcode:


Telecom plus quick links

telecom_plus_3

Join Utility Warehouse Join the Utility Warehouse
Read Utility Warehouse success stories Distributor success stories
Listen to Utility Warehouse overview Company audio overview
Watch Utility Warehouse video Business video overview
Read Utility Warehouse eBook eBook business overview
Register for further information Register for further info
More about the Company's residential services Utility Warehouse services
More about the Company's business services Business utilities / services
Other Utility Warehouse links Other Telecom plus links
Utility Warehouse / Telecom plus news Utility Warehouse news

Contact | Links | Add URL | Directory | Privacy | Legal | Spam | Approved Site | Success Stories | Utility Warehouse News | RSS | Sitemap

The Utility Warehouse Discount Club offers savings on essential business and residential utility services. You may not have heard of The Utility Warehouse (Telecom plus) as the Company does not advertise and grows through word-of-mouth recommendation . The Utility Warehouse is so confident in the savings they offer and the customer service they provide that there is no minimum contract term on most of their services, so customers can cancel at any time simply by giving 30 days notice and returning the supplied equipment. The Utility Warehouse save their customers money on home phone, mobile phone, gas, electricity and internet bills and membership of the Utility Warehouse Discount Club costs just £1.76 a month, no matter how many services taken. When signing up for a service with the The Utility Warehouse, customers will automatically become a member of the Utility Warehouse Discount Club. Furthermore, as a network marketing business opportunity, The Utility Warehouse (Telecom plus) is often called the UK's best kept financial secret.

© Copyright Net Media Marketing. All Rights Reserved