finnCap reiterates upbeat outlook for Telecom Plus

15th Jul 2014 10:03

finnCap has repeated its 'buy' recommendation for utility services provider Telecom Plus after a strong first-quarter update from the firm on Tuesday."Telecom Plus is a premium stock with impressive gross profit focus and growth," said Analyst Harold Evans.The company, which provides gas, electricity, fixed-line and mobile telephony, and broadband, impressed the market by saying that organic growth was "comfortably ahead" of last year and first-quarter profits should be "significantly ahead".Evans pointed out that customer numbers have grown 25% year-on-year to 547,378, while the company continues to target around 600,000 by year-end."The quality of customers joining has remained high, with over 25% of new residential customers applying for all five core services - this is a good reflection on the 'stickiness' of the customer," he said.The stock was 7.8% higher at 1,335p by 10:06.BC