Telecom Plus forecasts 25% dividend rise

8th Jul 2009 07:49

Utility services provider Telecom Plus has a forecast a 25% increase in its dividend payment this year as it expects continuing strong organic growth over the coming months, driven by a surge in the number of new distributors.The firm said that over the three months to June, the number of services it provided rose by 62,220 to 856,338 (30 June 2008: 618,320), customer numbers increased by 21,185 to 302,360 (30 June 2008: 225,017) and distributor numbers rose to almost 30,000 (31 March 2009: 27,051)."While energy prices have fallen slightly this year, the forward wholesale price curve suggests that future retail prices are likely to resume the upward trend we have seen over the last few years. In addition, the impact of these higher wholesale prices is likely to be exacerbated for most consumers by the costs associated with the steadily increasing social, regulatory and environmental burdens the industry is facing," Telecom said."It remains our intention, in the absence of unforeseen circumstances, to recommend a total dividend of 22p for the current year, representing an increase of 25%," it added.