Telecom PLUS AND UTILITY WAREHOUSE.
What Utility Warehouse Provides
Utility Warehouse (UW) is one of the UK’s leading multi-service providers. Instead of juggling multiple bills from different companies, UW customers enjoy the convenience of having everything in one simple monthly bill.
UW offers:
- Energy (Gas & Electricity) – competitive tariffs with green energy options.
- Broadband & Landline – fast, reliable home internet and calls.
- Mobile – flexible SIM-only and contract plans.
- Home Insurance – protection for buildings and contents.
- Cashback Card – save money on everyday shopping.
This “all under one roof” approach saves time, money, and stress.
A Brief History of Utility Warehouse
- 1996 – Telecom Plus plc is founded.
- 1997 – Launched the “Smart Box,” offering cheap call routing.
- 2002 – Utility Warehouse brand is established, expanding beyond telecoms into home services.
- 2006–2010 – Growth accelerates with bundled utilities and word-of-mouth marketing.
- Today – UW serves over 1 million customers across the UK, with a growing partner network of more than 70,000 independent distributors.
Unlike traditional utility companies, UW uses a partner network (MLM model) to grow, rewarding distributors for signing up new customers and building teams.
About Telecom Plus Group
Telecom Plus plc is the parent company of Utility Warehouse. It’s a FTSE 250 company listed on the London Stock Exchange.
- Headquarters: London, UK
- Core brand: Utility Warehouse (UW)
- Subsidiaries: Includes Telecommunications Management Limited (TML) and 1pMobile (a low-cost mobile network).
- Business model: Capital-light, subscription-based – UW doesn’t own infrastructure like power plants or fibre networks but buys wholesale and resells in bundles.
This unique model makes Telecom Plus both profitable and resilient, with recurring revenues and strong customer loyalty.
Major Shareholders and Share Performance
Shareholders of Telecom Plus
Telecom Plus has strong backing from some of the world’s largest investment funds:
- Aberdeen Group Plc – ~9.9%
- Schroder Investment Management – ~7.1%
- JPMorgan Asset Management – ~5.6%
- BlackRock, Inc. – ~5.5%
- Vanguard Group, Inc. – ~5.0%
- Wigoder Family Foundation – ~3.9%
👉 Around 88% of Telecom Plus shares are held by institutional investors, showing a high level of confidence from global markets.
Share Performance
- Ticker Symbol: TEP (London Stock Exchange)
- Index: FTSE 250
- Revenue (2025): £1.84 billion
- Net Income (2025): £105.9 million
- Customers: ~1.16 million (15% growth YoY)
- Dividend Yield: ~5% (with a strong payout history)
- Share Price Trend:
- 5-year gain: ~32%
- 2025 YTD gain: ~18%
- Dividend growth: up 13% in FY 2025
This makes Telecom Plus a stable income stock with growth potential, backed by recurring revenue and a capital-light model.
Further reading
JULY 2025
Final Thoughts
Utility Warehouse gives customers a simple, money-saving way to manage their household bills. Behind it stands Telecom Plus plc, a rock-solid FTSE 250 company with some of the biggest global investors backing its growth.
For customers, that means trust and stability.
For partners, it means building a business on solid financial foundations.
Now let’s see what UW has for you.
To find out how Utility Warehouse can save you money, or indeed provide a business opportunity, just follow this link to the UW website and request a quote and discussion with me, Phillip Donnelly. AG6256.
Discover the UW Partner opportunity HERE (Opens in a new page) Use the link above to obtain a quote. UK Home Owners and UK Social Housing Renters.
Remember: The Monthly bill from UW is payable in one lump sum at the end of the month, insufficient funds can cause that to fail. The UW Discount Card gives you an opportunity to top it up and be used against your monthly bill, as well as the ability to obtain a discount at many UK shops including.
More about the UW Cashback card………
The Utility Warehouse Cashback Card (Discount Card)
One of the biggest perks of being a UW customer is the Utility Warehouse Cashback Card (sometimes called the UW discount card). It’s designed to help households save money on everyday shopping while cutting down their utility bills.
How the UW Cashback Card Works
- The card works like a prepaid debit card – you load money onto it and spend as normal.
- Use it at thousands of UK retailers both online and in-store.
- Earn cashback automatically every time you shop.
Cashback Rates
- 3–7% cashback at partner retailers (including supermarkets, high street shops, DIY and dining).
- 1% cashback everywhere else – so you save on all your everyday spending.
Why It’s Popular With Customers
- Cashback is applied directly to your Utility Warehouse bill, reducing what you pay each month.
- Simple and hassle-free – no points or vouchers, just real money back.
- Works like any other debit card, but with the added bonus of built-in savings.
Real Savings Example
If a household spends £500 per month on their UW Cashback Card, they could earn back £15–20 per month. Over the year, that’s £200+ in savings – money that goes straight off their UW bill.
👉 For many customers, the Utility Warehouse Cashback Card easily covers the membership fee and delivers extra value. It’s a simple, practical benefit that helps UW stand out from traditional utility providers.
To be continued……
More information about TelecomPlus
21/08/2025.
Here’s a snapshot of Telecom Plus plc (LSE: TEP)—all set for your review:
(Note: The widget above illustrates the latest share price data.)
Stock Performance Overview
- As of 15 August 2025, the share price closed at approximately 1,870 pence, showing a modest intraday gain of around 0.5 % (FT Markets, Hargreaves Lansdown).
- 2025 YTD, the stock delivered a respectable 18.1 % return (Companies Market Cap).
- Over the past five years, Telecom Plus shares have appreciated by approximately 31.8 % (Hargreaves Lansdown).
- In the most recent month, performance has been even stronger, with a 6.35 % increase (Hargreaves Lansdown).
- Yearly volatility-wise, shares have traded from a 52-week low near 1,582 pence to a high of around 2,095 pence (Hargreaves Lansdown).
Dividend Yield & History
- The final dividend for FY 2025 was 57 p per share, with an ex-dividend date of 24 July 2025 and payment on 15 August 2025 (TipRanks).
- The interim dividend earlier in the year was 37 p per share (paid December 2024), amounting to a total of 94 p per share for FY 2025 (dividenddata.co.uk, Fidelity International).
- Based on current share pricing, that yields a trailing twelve-month dividend yield of around 5.05 % (dividenddata.co.uk, Shares Magazine).
- A range of 4.9 % to just over 5 % is consistent across multiple data sources (Companies Market Cap).
- The payout ratio, at roughly 54–55 %, reflects a sustainable dividend policy (TipRanks).
Performance Highlights
| Metric | Value |
|---|---|
| Latest Share Price | ~1,870 pence |
| YTD Return | +18.1 % |
| 5-Year Gain | ~31.8 % |
| Dividend (Total FY 2025) | 94 p per share |
| Trailing Dividend Yield | ~5.05 % |
| Payout Ratio | ~54–55 % |
Analyst Sentiment & Broader Context
According to the Financial Times, Telecom Plus is often recommended as a “BUY” candidate, thanks to its defensive, capital-light bundled model across utilities, telecoms, and insurance. Analysts anticipate strong earnings growth of around 14 % over the next two years, underpinned by its high free cash flow and efficient cost management (Hargreaves Lansdown, Fidelity International, Companies Market Cap, Morningstar, ft.com).
In today’s inflation-conscious environment, Telecom Plus continues to shine through its attractive dividend yield and proven business stability.
How Telecom Plus stacks up against other UK utilities or telecom plays
Here’s how Telecom Plus (LSE: TEP) stacks up against other notable UK utilities and telecom players in terms of business model, growth, and dividend appeal:
Comparison Overview
Business Model & Structure
- Telecom Plus (Utility Warehouse)
A capital-light, multi-utility bundler offering gas, electricity, broadband, mobile, and insurance. It uses a multi-level marketing model, with no brick-and-mortar outlets or broad advertising—relies on independent distributors and word‑of‑mouth.
(Wikipedia) - BT Group (BT.A)
A large incumbent telecom provider owning infrastructure such as Openreach (full-fibre broadband) and EE mobile. Strategy focused on cost-cutting, efficiency, and increasing free cash flow to support dividends.
(The Times) - Vodafone
A global telecom giant with diverse operations across Europe, Africa, and Asia. Recently simplified its business, sold off parts (e.g., Italy, Spain), and cut dividends while launching share buybacks to reallocate capital.
(The Times)
Growth & Profitability
| Company | Customer Growth | Profitability / ROE | Notes |
|---|---|---|---|
| Telecom Plus | (Financial Times, Morningstar) | ROE ~31.4% (Directors Talk Interviews) | Resilient through economic cycles; bundles drive growth and margins |
| BT | Infrastructure-heavy, slower growth | Not specified | Focus on free cash flow and efficiency, not explicit growth figures (The Times) |
| Vodafone | Varied by region; restructuring underway | High debt burdens; EU focus | Dividend halved amid restructuring but yield remains competitive (The Times) |
Dividends & Cash Returns
- Telecom Plus
- FY 2025: Total dividend 94 p/share (↑13%).
- Dividend yield roughly 5%.
- Free Cash Flow aligns with PBT (~£108 million), enabling strong payouts.
(Morningstar, Directors Talk Interviews, Financial Times)
- BT
- Yield around 5.6%, underpinned by efficiency gains and infrastructure peaks.
- Aims for free cash flow of £2 bn by 2027 and £3 bn by 2030 to support dividends.
(The Times)
- Vodafone
- Dividend recently halved; forecast yield ~5.6%.
- Aggressive share buyback plans (€4 bn) to support capital return.
(The Times)
Risk & Competitive Landscape
- Telecom Plus
- Depends on distributor network; churn risk exists (~13.7% in the year to March 31).
- Must cross‑sell effectively to retain customers amid rising competition.
(Financial Times)
- BT
- Infrastructure-heavy with high pension liabilities and global exposure.
- Regulatory and competitive pressures remain; high CAPEX burden.
(The Times)
- Vodafone
- High debt servicing needs; exposure to volatile emerging markets; profit challenges.
- Restructuring may take time to yield results.
(The Times)
Summary Table
| Metric / Feature | Telecom Plus (TEP) | BT Group | Vodafone |
|---|---|---|---|
| Business Model | Bundled multiservice (cap-light) | Infrastructure & networks | Global telecom operator |
| Customer Growth | Strong (~12–15% annually) | Modest/steady | Mixed, volatile |
| Dividend Yield | ~5% | ~5.6% | ~5.6% (but cut recently) |
| Free Cash Flow | High, supports dividends | Improving via efficiency | Under pressure, restructuring |
| Risks | Churn, distributor model reliance | Legacy systems, pensions | Debt, regulatory, global market |
Verdict
For investors focused on income with steady growth, including consistent customer expansion and strong cash return, Telecom Plus stands out in its segment. Its bundled, capital-light model and recurring revenue—paired with high ROE and dependable dividends—make it a compelling defensive stock in the UK market.
BT offers stability with infrastructure backing and a solid dividend, but comes with legacy challenges and is less growth-oriented today.
Vodafone presents higher risk and restructuring uncertainty, despite potential gains from simplification and buybacks—making it more suitable for risk-tolerant investors.
Here’s what we can gather about Telecom Plus plc (LSE: TEP) share ownership based on the latest available data:
Ownership Breakdown
According to Simply Wall St, the shareholding structure stands as follows:
- Institutions hold a dominant ~88.3% of shares
- Individual insiders collectively own ~7.0%
- The general public accounts for ~3.7%
- Smaller segments include Employee Share Scheme (~0.35%) and Private Companies (~0.09%) (Simply Wall St)
This reflects a highly institutionalised ownership profile.
Largest Individual Shareholders
A snapshot from Investing.com (as of July 1, 2025) shows the leading institutional investors:
- Aberdeen Group Plc: ~9.93%
- Schroder Investment Management Ltd: ~7.07%
- JPMorgan Asset Management: ~5.60%
- BlackRock, Inc.: ~5.48%
- The Vanguard Group, Inc.: ~5.00%
- Wigoder Family Foundation: ~3.89% (Investing.com)
These figures indicate significant influence from major asset managers and a prominent family-backed foundation.
Summary Table
| Shareholder Type | Approximate Holding |
|---|---|
| Institutional Investors | 88.3% |
| Individual Insiders | 7.0% |
| General Public | 3.7% |
| Employee Share Scheme | 0.35% |
| Private Companies | 0.09% |
Top Individual Institutions:
- Aberdeen Group (~9.9%)
- Schroder (~7.1%)
- JPMorgan (~5.6%)
- BlackRock (~5.5%)
- Vanguard (~5.0%)
- Wigoder Family Foundation (~3.9%)
Insight & Implications
- The institutional dominance (~88%) suggests Telecom Plus is closely watched by professional fund managers, giving them considerable sway in company matters.
- Notable institutional investors are diversified across both active (e.g., Aberdeen, Schroders) and passive/ETF-linked (e.g., Vanguard, BlackRock) strategies.
- The Wigoder Family Foundation’s stake symbolizes continuity in vision and alignment with the company’s roots (Charles Wigoder being a founding figure).
- Retail and employees hold minimal positions overall, typical for companies with concentrated institutional backing.
Welcome to Utility Warehouse.
