SHARE PUNT OF THE WEEK

PRICE: 1382p

WHO IS IT? Telecom Plus supplies gas, electricity, landline, broadband and mobile services to homes and businesses. It operates the Utility Warehouse brand, which relies on wordof-mouth recommendations from members to attract new customers. Though it might not provide good perks for gifting, it does give shareholders 10pc off their bills.

WHAT’S THE LATEST? The company released solid half-year results in November which showed customer numbers, sales, profits and the dividend all rising. It added that no competitors seem to be copying its business model, which slashes marketing expenses.

WHO BACKS IT? Charles Wigoder, the son of former Liberal Party politician and barrister Lord Widoger, is the largest shareholder. He joined shortly after its formation. Melvin Lawson, one of the company’s directors, is also a top-ten shareholder. Standard Life, Schroders, Canaccord Genuity Wealth Management and Neptune Investment Management all appear among the biggest investors.

WHY YOU SHOULD INVEST As well as bill discounts, AJ Bell’s Russ Mould says Telecom Plus’s competitive position remains strong. Its 20year power supply deal with Npower has also helped to shelter it from energy price swings.

. . . AND WHY YOU SHOULDN’T However, Mould points out that the shares are trading on a high value compared to the company’s underlying earnings. The ratio is approximately 23 times. The FTSE 100 on average is trading on barely half of that. Mould says: ‘As a result, the shares are unlikely to suddenly zoom higher but the scope for further growth in customers, sales, profit and ultimately dividend increases mean that Telecom Plus may appeal to patient portfolio builders, especially if they get a discount on some of their bills.’