Telecom plus
Website:
Telecom plus
Index:
FTSE 250
EPIC: TEP
Supersector:
Telecommunications
Sector:
Fixed Line Telecommunications
Subsector:
Fixed Line Telecommunications
Market Cap:
£1.13B
Payout Frequency: Semi-Annual
Telecom plus Dividend Analysis and Summary
Key dividend details
- Dividend declared: Interim dividend of 38.0p per share (up 2.7% YoY from 37.0p)
- Ex-dividend date: 04/12/2025
- Record date: 05/12/2025
- Payment date: 19/12/2025
- Dividend policy: Progressive; 80–90% payout of adjusted post-tax profit over the medium term
- Coverage context: H1 adjusted EPS 31.5p vs interim DPS 38.0p (reflects H2-weighted profit phasing). FY25 adjusted EPS 119.2p with total DPS 94.0p (~79% payout), consistent with policy.
Financial support and outlook for the dividend
- Profit guidance: FY26 adjusted PBT guided at £132–£138m; the Board states dividend growth will track adjusted post-tax profit.
- Cash generation: H1 operating cash inflow £64.6m (benefit from working capital timing); strong recurring subscription-style cashflows.
- Balance sheet: Net debt £143.9m; net debt/adjusted EBITDA 1.1x (vs 0.8x FY25). Ample liquidity via £205m RCF (to Nov-2028) and private placements maturing 2030/2032.
- Risk mitigation: Long-standing E.ON wholesale agreement limits commodity risk and funds seasonal working capital; H2 profit weighting confirmed with no impact on full-year profit expectations.
Dividend sustainability and growth
- Sustainability: Despite H1 profit phasing and lower H1 earnings, the dividend appears supported by full-year outlook, robust cash generation, and modest leverage. FY25 payout (~79%) sits within the stated 80–90% medium-term target range.
- Growth trajectory: Interim DPS up 2.7% YoY. With guided FY26 adjusted PBT growth and reiterated policy, the full-year dividend is positioned to grow in line with adjusted post-tax profit, albeit mindful of regulatory headwinds.
- Capital allocation: Management is funding growth (notably the TalkTalk customer contracts and tech investment) while maintaining a progressive dividend, indicating confidence in cash returns alongside expansion.
Structural changes and policy factors relevant to future dividends
- Customer contracts acquisition (TalkTalk): ~£40.7m capitalised in H1 for acquired broadband customer contracts; cross-sell is performing ahead of expectations. This can enhance lifetime value and cashflows over time, supporting dividend capacity.
- Profit phasing: Revised allocation of certain energy costs now weights profit to H2; management expects no impact on full-year profit, but interim coverage metrics will look temporarily tighter.
- Policy reaffirmed: Progressive dividend with 80–90% payout reiterated; FY26 dividend growth expected to align with adjusted post-tax profit.
Risks and flags to dividend stability
- Bad debt: Charge rose to £19.8m (vs £15.1m). Although industry mechanisms typically allow recovery via the price cap, there can be timing lags and policy risk.
- Regulatory: Ofgem’s review of operating cost allowances and broader price cap adjustments present downside risks to margins; capital adequacy requirements continue to apply.
- Cost pressures: Higher National Insurance and National Living Wage cited as headwinds to FY26 profitability.
- Leverage uptick: Net debt/EBITDA increased to 1.1x due to investment and acquisition; still conservative, but bears monitoring if growth capex or further acquisitions continue.
Read more
Telecom plus Annual Dividend Yield - 6.75%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 24/07/2025 |
15/08/2025 |
Final |
57.00p |
GBX |
| 04/12/2025 |
19/12/2025 |
Interim |
38.0000p |
GBX |
Total (Annual Dividends Per Share):
95.00p
Dividend Yield =
Annual Dividends Per Share (95.00p)
÷ Share Price (1408p)
= 6.75%
Telecom plus Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 04/12/2025 |
19/12/2025 |
Interim |
38.0000p |
GBX |
| 24/07/2025 |
15/08/2025 |
Final |
57.00p |
GBX |
| 05/12/2024 |
20/12/2024 |
Interim |
37.00p |
GBX |
| 01/08/2024 |
23/08/2024 |
Final |
47.00p |
GBX |
| 30/11/2023 |
15/12/2023 |
Interim |
36.00p |
GBX |
| 20/07/2023 |
11/08/2023 |
Final |
46.00p |
GBX |
| 01/12/2022 |
16/12/2022 |
Interim |
34.00p |
GBX |
| 14/07/2022 |
05/08/2022 |
Final |
30.0p |
GBX |
| 02/12/2021 |
17/12/2021 |
Interim |
27.00p |
GBX |
| 08/07/2021 |
30/07/2021 |
Final |
30.0p |
GBX |
| 26/11/2020 |
11/12/2020 |
Interim |
27.00p |
GBX |
| 09/07/2020 |
31/07/2020 |
Final |
30.0p |
GBX |
| 28/11/2019 |
13/12/2019 |
Interim |
27.00p |
GBX |
| 11/07/2019 |
02/08/2019 |
Final |
27.00p |
GBX |
| 29/11/2018 |
14/12/2018 |
Interim |
25.00p |
GBX |
| 12/07/2018 |
03/08/2018 |
Final |
26.00p |
GBX |
| 30/11/2017 |
15/12/2017 |
Interim |
24.00p |
GBX |
| 06/07/2017 |
28/07/2017 |
Final |
25.00p |
GBX |
| 01/12/2016 |
16/12/2016 |
Interim |
23.00p |
GBX |
| 07/07/2016 |
29/07/2016 |
Final |
24.00p |
GBX |
| 03/12/2015 |
18/12/2015 |
Interim |
22.00p |
GBX |
| 23/07/2015 |
18/08/2015 |
Final |
21.00p |
GBX |
| 27/11/2014 |
15/12/2014 |
Interim |
19.00p |
GBX |
| 16/07/2014 |
01/08/2014 |
Final |
19.00p |
GBX |
| 27/11/2013 |
16/12/2013 |
Interim |
16.00p |
GBX |
| 17/07/2013 |
02/08/2013 |
Final |
18.00p |
GBX |
| 28/11/2012 |
17/12/2012 |
Interim |
13.00p |
GBX |
| Year |
Interim |
Final |
Currency |
Total |
Change |
| 2024 |
37.000 |
47.000 |
GBX |
84.000 |
2.430 |
| 2023 |
36.000 |
46.000 |
GBX |
82.000 |
28.120 |
| 2022 |
34.000 |
30.000 |
GBX |
64.000 |
12.280 |
| 2021 |
27.000 |
30.000 |
GBX |
57.000 |
0.000 |
| 2020 |
27.000 |
30.000 |
GBX |
57.000 |
5.550 |
| 2019 |
27.000 |
27.000 |
GBX |
54.000 |
5.880 |
| 2018 |
25.000 |
26.000 |
GBX |
51.000 |
4.080 |
| 2017 |
24.000 |
25.000 |
GBX |
49.000 |
4.250 |
| 2016 |
23.000 |
24.000 |
GBX |
47.000 |
9.300 |
| 2015 |
22.000 |
21.000 |
GBX |
43.000 |
13.150 |
| 2014 |
19.000 |
19.000 |
GBX |
38.000 |
11.760 |
| 2013 |
16.000 |
18.000 |
GBX |
34.000 |
161.530 |
| 2012 |
13.000 |
|
GBX |
13.000 |
|
Telecom plus Dividend Calculator
Telecom plus Dividend Growth
| Dividend Growth (1Y) |
13.1%
|
| Dividend CAGR (5Y) |
10.76%
|
| Years of Growth |
3
|
| Payout Ratio |
112.96%
|
| Buyback Yield |
-1.19%
|
| Shareholder Yield |
5.48%
|
| P/E Ratio (TTM) | 17.17 |
|---|
| Forward P/E | 11.2 |
|---|
| P/FCF | 9.43 |
|---|
| Earnings Yield | 5.88% |
|---|
| FCF Yield | 10.61% |
|---|
| ROE | 28.8% |
|---|
| ROCE | 22.99% |
|---|
| Profit Margin | 3.51% |
|---|
| Operating Margin | 5.7% |
|---|
| Gross Margin | 18.46% |
|---|