04 March 2023
By Maynard Paton
I have recorded another podcast with my good friend Roland Head. This time we talked about Telecom Plus, the FTSE 250 reseller of utilities that appears to be a beneficiary of higher energy bills. We discussed the group’s appealing growth record, upbeat future prospects, unusual marketing approach and dividend income potential:
We cover:
- Introducing Telecom Plus, its Utility Warehouse business and the unusual advertising through ‘partners’.
- Multi-level marketing, ‘pyramid’ partner recruitment and selling multiple services to customers face-to-face.
- The 12-bagger share price performance and 14% annual dividend growth.
- Energy hedging, revenue per customer, disappearing competition and a discounted supply deal.
- Half-year results showing revenue and profit up c50% with customer numbers up 24%.
- High energy bills, attracting one million new customers and the chance of energy prices falling.
- OFGEM, customer service, the need for extra staff and the impact on profit margins.
- Utility Warehouse’s PR and partners enjoying a freebie Maldives holiday.
- Steve Critchley’s 390,000 Utility Warehouse customers and his sales tactics in the dry cleaners.
- Founder Charles Wigoder selling shares at the £24 top.
- AGM protest votes on pay and proposed shareholder meetings on Zoom only.
- The 4%-plus yield and the prospect of higher income during the next few years.
- Signing up as a Utility Warehouse customer and anecdotal price comparisons.
- Our concluding thoughts on the business, future growth and valuation.
Extra links:
- [SharePad] Screening For My Next Long-Term Winner: TELECOM PLUS
- Steve Critchley interview
- Utility Warehouse website
- Roland Head’s dividend website
Happy listening!
Maynard Paton
PS: The podcast was recorded on 28th February 2023.
