Telecom Plus has reached a record pre-tax profit of £126.3m, increasing by 8.1% in the year to 31 March.

The FTSE 250-listed multi-utility services provider also saw its customer numbers increase by 15% to a record 1.16 million. This included around 25,000 fixed-line and broadband customers acquired from TalkTalk.

Telecom Plus’ group revenue dropped by 9.8% to £1.83bn, which it said was impacted by the Ofgem energy price cap.

Despite this, its adjusted earnings per share increased by 9.4% to 119.2 pence.

Chief executive officer at Telecom Plus, Stuart Burnett, said: "Now into our fourth consecutive year of delivering double digit percentage customer growth, we are making rapid progress towards our medium-term target of supplying subscription-style essential household services to two million customers and beyond.

"During what seems likely to be a challenging period for the global economy, we are fortunate that our business model makes us largely immune to any changes in trade tariffs, interest rates, economic growth, or business confidence. Indeed, such environments have historically been positive for us, with increasing numbers of people seeking additional income sources and ways to reduce their household bills."

Looking ahead, Telecom Plus has anticipated its customer growth to increase by around 15% in the 2026 financial year, with its pre-tax profit set to reach between £132m and £138m.

It added that it also has continued confidence in growing the business to over two million customers in the medium term.

However, despite the results, shares in Telecom Plus dropped by over 4.5% following the announcement.

Investment director at AJ Bell, Russ Mould, stated that the multi-utility firm can look back on the 12 months to March "with satisfaction".

He concluded: "The share price seems less interested, but it does stand near its highest mark since early 2023 and the stock already trades on a premium valuation relative to the wider UK market, so that may the reason why, rather than any concerns about the underlying business.

"Consensus analysts’ forecasts for a dividend north of 100 pence per share for the year to March 2026 put the stock on a forward dividend yield of 5%, which may be enough to keep income-seekers interested.

"Value-hunters may be less enthused by the forward price-to-earnings multiple of around 17 times, as this represents a premium of around a fifth relative to the wider UK equity market, which currently trades on around 14 times. In this respect, Telecom Plus’ virtues feel well-known, although if earnings continue to increase in line with their current trajectory, then the stock has the potential to grow into that multiple over time and reward patient, long-term investors."

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