Market Prognosis

A concise summary of the major macro events of the past 24 hours, and selected UK company-specific news.

November 21, 2023

Telecom Plus dials back to pre-2014

Macro & Overnight

There is little new to report on the macro front. The rally in risk assets continued yesterday and overnight.

UK investors await tomorrow’s Autumn Statement; the £ has strengthened to 1.25 against a weakening dollar.

The Open AI saga is moving into a full-scale corporate meltdown, with 95% of its staff indicating no confidence in the Board and a preference to join their former bosses at Microsoft.

The decision to sack Altman last week has probably cost the ethically-minded Board about $85 billion value.

UK Company News

Telecom Plus, which trades as Utility Warehouse, reported H1 Revenue up 57% and profit up 36%. The critical customer count is up +14% to 950,000, the 5th consecutive half-year period delivering double-digit customer growth. It says the energy market looks similar to the competitive landscape before 2014 when six large suppliers held over 90% market share. It further states that its ability to offer hard-pressed people a meaningful second income for recommending its multiservice customer proposition to people they know supports strong customer growth. With just a 3% market share, the growth opportunity remains significant: it can double the size of the business yet remain only the 7th largest supplier in the UK. 

Telecom Plus has a unique customer proposition whose competitive advantage was negated after 2014 when OFGEM began offering incentives to new alternative energy providers. With the sharp rise in energy costs in 2021 putting most smaller entrants out of business, Telecom Plus’s cost advantage has returned, enabling it to double its customer base. Today, it looks forward to doubling it again. Telecom Plus’s outlook seems well grounded with its ability to cross-sell a multiservice offering to its growing list of new customers.

Prognosticator   

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