PIP009 Share Review of Telecom Plus and The Income Opportunity of Utility Warehouse

This time Maynard Paton and Roland Head discuss Telecom Plus (TEP) and the income potential of Utility Warehouse.

Telecom Plus (TEP) has a long history of increasing dividends with a forecast of a 4% yield for this year which could rise to 6% in the coming years, based on company projections.

Telecom Plus was founded in 1996 and is now an FTSE 250 company with a revenue of £967.4 million in 2022, an operating profit of £50.9 million and a market cap of 1.5 billion.

One of Telecom Plus’s subsidiaries is Utility Warehouse where they supply energy, broadband, mobile and now insurance to the general public and small businesses through a unique way of selling, known as multi-level network marketing.

This method of selling to the public has been a key part in the rise of Utility Warehouse helping them become a well-known brand which in turn has seen the share price of Telecom Plus rise from £2.00 in 2000 to over £18.00 currently, with a high of £24.00 in 2022.

As always, Maynard and Roland discuss the finer details of Telecom Plus, what the future holds for Telecom Plus and whether this method of selling utilities is a sustainable method for the next 10 to 20 years.

Timestamps:

1:11 What does Telecom Plus and Utility Warehouse do?

2:57 What is multi-level marketing, and how does Utility Warehouse use it to its advantage?

4:30 Customer numbers and services are taken out.

5:40 Share price and a long track record of paying dividends.

7:50 Past and present competition

9:38 First half of their financial year numbers March to September

11:05 New streams of income for Utility Warehouse.

13:58 Targeting an extra 1 million customers and improving services.

17:47 Will they change their sales model?

21:09 How they acquire current customers.

23:52 Charles Wigoder the founder and Chairman of Telecom Plus.

25:40 The management, AGM and protest votes.

28:03 Discussing the current valuation and dividend yield.

31:02 Closing thoughts on Telecom Plus and Utility Warehouse.

Hope you enjoy it and have a wonderful day.

Maynard & Roland.

If you like the episode, please subscribe for future company reviews and leave us a review.

Maynard, Roland & Telecom Plus Resources:

Telecom Plus Latest Results & Annual Report: https://telecomplus.co.uk/latest-results-and-annual-report

Utility Warehouse website: https://uw.co.uk/

Follow Maynard on Twitter: https://twitter.com/maynardpaton

Follow Roland on Twitter: https://twitter.com/rolandhead

Visit Maynard’s Quality UK Investment website here https://maynardpaton.com/

Visit Roland’s Dividends Investing website here: https://www.rolandhead.com/

Visit Fund Your Retirement: https://www.fundyourretirement.com/

Disclaimer: This presentation is for educational purposes only. All opinions and information are for demonstrational purposes and do not constitute investment advice. Trading and investing carries a high level of risk and are not right for everyone. If you need financial advice, consult with a regulated financial adviser in your country before making any decisions.