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 do 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 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 this episode then please subscribe for future company reviews and investor interviews.

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.