Telecom Plus finals

TELECOMPLUSPLC


 

Trading as the Utility Warehouse, Telecom Plus PLC provides a range of services to households and small to medium sized businesses. The Company is engaged in the supply of fixed telephony, mobile telephony, gas, electricity and Internet services through independent distributors. I have a holding in my growth portfolio (epic code: TEP).

A good set of results with revenue growing 27.6% to £601.5m, profit before tax was up 12.7% to £34.6m and EPS increasing 14.5% to 38.7p. Average revenue per customer showing an increase of 14.5% to £1,363. The full year dividend was increased 14.8% to 31p per share.

They currently have a market share of around 1.5% of UK households, which is a reasonable indication of the the scale of the organic growth opportunity available to them.

I have held this investment since June 2008 and it is a good example of reward for patience, in an investment of a well run company, as the graph below shows:

 

This demonstrates that investing is not a sprint, but a long marathon, where there are times as an investor, you need the conviction to stay with a holding, despite the noise from the market.  This is not buy and forget, but buy, monitor and review.  Patience, in addition to rational and independent thought is required.