Why invest in Telecom Plus?
Telecom Plus is a unique UK multi-service provider with a purpose: to stop households wasting time and money on essential services. We have partnerships with leading suppliers of energy, broadband, mobile and insurance, and a high quality customer base. This leads to a high growth, predictable, capital-light and cash generative business model supporting a clear capital allocation policy of high returns through dividends supplemented by share buybacks.
1. The UK’s only multi-service provider
We have a unique award-winning customer proposition providing multiple essential services including energy, broadband, mobile and insurance to over one million UK customers under the Utility Warehouse brand. This provides consistently larger savings than peers, and simplicity through a single bill and point of service.
2. Significant growth opportunity
Our ability to offer lower prices than competitors, combined with award-winning customer service, means we are able to achieve sustainable double digit customer growth. We are the leading challenger in our markets and with a c.3% share of the UK energy market, around 1% of the broadband and mobile markets, and a nascent position in insurance, there is ample opportunity for growth.
3. Differentiated route to market
Our business model is based on a unique and hard-to replicate word-of-mouth route to market. Our Partners refer UW to their friends, family and their personal networks, attracting loyal multi-service homeowner customers which other operators find hard to reach. Customer satisfaction and loyalty gives market-leading customer lifetimes and lower bad debts. Our Partners value the opportunity to earn an additional income, providing a high quality and low cost means of customer acquisition, while fulfilling our social purpose.
4. Structural cost advantage
We have a structural cost advantage as we have multiple revenue streams but only one set of overheads, unlike our competitors. This allows us to offer the most attractive prices to our multi-service customers, permitting us to be more profitable and reinvest in the business to improve our value for money still further – reinforcing our competitive position and sustaining our superior growth rate.
5. Capital light business model
We do not own any infrastructure, as we are a virtual service provider meaning we do not need significant capital expenditure to grow. We are able to offer high quality services from the best providers, benefiting from 20 year relationships and long term contracts. Our long track record increases supplier and Partner confidence in us. Our model means we differentiate on price, simplicity and service while not taking capacity or technology risk.
6. Proven financial track record with strong returns
We generate predictable, growing earnings from the supply of essential services. We are highly cash generative due to our capital light model. Since 2021 adjusted profit before tax has had a CAGR of 22.5% and we consistently generate strong returns of above 30%. We pursue a progressive distribution policy with a total payout of 80-90% of adjusted net income via dividends, with an appropriate level of gearing.