By Scott Kanowsky
Investing.com -- Shares in Telecom Plus PLC (LON:TEP) surged on Monday after the firm announced that it expects to post larger-than-expected full-year profits as high energy costs led more customers to use its discounted services.
The group, which trades under the name Utility Warehouse, said its total customer base in the six months to the end of September grew by about 24% year-on-year to 814,684. The FTSE250 company, known for offering lower prices for buying more of its products, added that this increase is consistent with its medium-term goal of adding 1M additional customers over the next four or five years.
The uptick led Telecom Plus to forecast that annual income will be "materially ahead" of current market expectations. The consensus estimate for adjusted earnings before tax for the year ending on March 31, 2023 was at £75M prior to the update.
"[W]e continue to offer outstanding value to customers taking our other core services: broadband, mobile and insurance, plus our market-leading cashback card," said co-chief executives Andrew Lindsay and Stuart Burnett in a statement.
"At a time when cost of living pressures continue to rise, we are uniquely positioned to offer households what they need now more than ever: savings on their essential bills and an extra income from recommending these savings to their friends and family."
London-listed shares in Telecom Plus had risen by more than 20% in late afternoon trading.