Telecom Plus, which supplies a wide range of utility services, has said that half-yearly results will be firmly ahead of the corresponding figures for last year, and it remains on target to meet market expectations for the full year.
The momentum the firm saw developing in the previous quarter has continued, with organic growth significantly ahead of the level achieved in the corresponding period last year.
Overall customer numbers increased during the first quarter by 10,917, representing an increase of almost 50% on the same period last year and the number of services provided rose by 53,316.
Try 6 free issues of MoneyWeek today
Get unparalleled financial insight, analysis and expert opinion you can profit from.
Start your trial
Sign up for MoneyWeek’s free twice-daily newsletter.
Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
The average number of services taken by residential Club customers grew from 3.63 to 3.68 during the period.
Latest Videos FromMoneyWeek
"Within our residential Club, the annualised growth in the number of new services supplied during the quarter of 17% is particularly pleasing, as it was achieved notwithstanding a number of significant distractions," the firm said.
"These included Easter, the Diamond Jubilee, Euro 2012, and a promotional incentive which saw almost 200 of our best performing distributors visiting the USA for a week's holiday at the end of April."
"In June, we launched a range of new mobile tariffs, primarily to make our offering more attractive to customers who want a data bundle with their Smart Phone. These changes have been well received by our distribution channel, and we have already seen an encouraging increase in the proportion of new customers taking our mobile service as part of their multi-utility bundle over the last few weeks."
Cash flow has remained within the firm's expectations, with positive cash generation of almost £4.0m during the period, resulting in a net cash balance of £4.7m as at June 30th.
Telecom is expecting an increase in retail energy prices in autumn, albeit probably by less than they rose last year, after a number of the 'Big 6' energy suppliers have drawn attention recently to the upward cost pressures they are facing.
The company added: "The macro-economic climate remains highly favourable for our business model, with consumers receptive to learning both how they can reduce their outgoings by switching to a new utility supplier, and/or build a secure and reliable part-time income by promoting our services as a distributor.
"Confidence within our distribution channel has never been higher, and we are encouraged by the improved productivity we are starting to see from new distributors following the introduction of a new coaching programme in January this year. As a result, we anticipate further strong organic growth over the coming months."
However, it wasn't all good news as Finncap cuts its rating on the stock to 'hold', pushing the share price lower by 3.68% to 838p by 09:03.
NR
