Telecom Plus, which trades as Utility Warehouse, has unveiled a five-year strategy aimed at more than doubling its multi-service customer base to over one million by FY31, supported by a significant investment programme designed to accelerate long-term earnings growth, but one that has spooked shareholders.

The company, best known as the UK’s only multi-utility service provider, bundling energy, broadband, mobile and insurance into a single monthly bill, plans to invest around £55m annually through the profit and loss account to achieve its target.

However, the investment phase is expected to weigh on near-term performance, with adjusted pre-tax profit forecast to fall to between £80m and £90m in FY27, compared with £132.2m reported for the latest financial year.

The outlook prompted shares to fall by around 30% in early trading as investors focused on lower short-term earnings and the scale of upfront investment.

The investment will be spread across its multiservice proposition, expanding its partner sales channel, building wider consumer brand recognition and improving its digital capabilities through increased use of AI.

The strategy includes targeted pricing initiatives, stronger cross-selling, expanding insurance as a fourth core service and relaunching its small business offering. Telecom Plus said increasing the number and proportion of multiservice customers — who typically remain with the business longer and generate higher annual contributions — would improve earnings quality and create compounding returns over time.

CEO Stuart Burnett: "Today we are detailing how we will be building on our leading position in multiservice customers by investing behind the proven strengths of our model, as well as outlining some of the encouraging results from our trial initiatives already underway.

"Successful delivery of the plan will more than double our multiservice customer base to over one million customers by FY31, enhance the quality and resilience of our earnings and result in attractive long-term returns for shareholders."

The FTSE 250 company revealed that adjusted pre-tax profit increased 4.7% to £132.2m in the past year to March, with revenues climbing 5.6% at £1.94bn. Customer numbers increased 23.3% to 1.43m, including broadband customers acquired from TalkTalk.

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