Telecom Plus shares tank by 25% on profit outlook, divi cut.
Shares in Telecom Plus plunged by a quarter on Tuesday as the utilities provider said it expected earnings next fiscal year to be lower and halved its dividend as it launched an ambitious five-year plan to more than double multi-service customer numbers to one million.
Source: Sharecast
The company, which trades as Utility Warehouse offering product bundles, reported a 4.7% rise in adjusted pre-tax profit to £132.2m in the year to March 31.
Adjusted 2026/27 profit is expected to be in the range of £80m to £90m, reflecting the plan's first year of investment with a target of £175m by 2031. The total dividend was cut to 50p from 94p.
The company, which also announced a £40 share buyback, said the new strategy “builds on our differentiated business model and will require c.£55m per annum of P&L investment.
“Increasing both the number and proportion of multiservice customers - who have market-leading lifetimes and generate higher annual contributions - will result in higher quality, compounding earnings,” it added.
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