Lockdown restrictions drive profit dip at Telecom Plus
Telecom Plus reported an annual fall in revenue and profit this morning, as lockdown activity delayed the company’s ability to trade at pre-Covid levels.
The company, which trades as Utility Warehouse and provides mobile, gas, electricity, landline and broadband services, saw revenue of £861.2m, down from £875.8m the year before.
Its profit before tax for the financial year fell some £4m to £56.1m, down from £60.8m last year.
Telecom Plus’s chairman Charles Wigoder said with partial lockdown still in place it had taken “longer than expected” to return working at pre-Covid levels.
However, he said he expected to return to pre-pandemic business levels over the coming months as the remaining restrictions are lifted.
Wigoder said the combination of higher household savings and “unprecedented” government support had resulted in lower activity for the firm and a corresponding reduction in net growth.
CEO Andrew Lindsay added: “We are emerging from the pandemic with considerable optimism about the future: as millions prepare to return to their workplaces after prolonged periods of working from home, the alternative flexible income opportunity that we offer our partners has never held such appeal.
“We are hugely excited by the prospect of helping many more people to get on in life and achieve their goals in partnership with UW over the months and years ahead, and are investing in both our customer and partner propositions to meet the rising demand that we anticipate.”
The business is proposing a final dividend of 30p, bringing the total for the year to 57p, which will be paid to shareholders on 30 July.