Telecom Plus
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Telecom Plus is a Plc based in the United Kingdom. Its initial flagship product was the Smart Box, a free gadget that plugged into a phone socket and hunted out the best telephone call rates[1]
Charles Wigoder, the CEO since 1998, believed that a low-cost route to market would prove to be a critical element in successfully promoting services to the residential market, and established a multi-level marketing system of agents across the United Kingdom. In just over 7 years, the business amassed over 200,000 domestic and small-business customers, 15,000 of whom were also Distributors, signing up new customers in return for a residual income and cheaper utilities themselves. Trading as the The Utility Warehouse, Telecom plus is a “virtual” retailer, with no shops and no advertising – just a Head Office with 200+ staff. Wigoder says: “The secret of our success has been our unique business model. We also have the ability to move quickly to take advantage of opportunities.”
Low costs allow Telecom Plus to offer competitive tariffs to their customers, which has driven sales growth by an average of more than 20% pa over the years to 2007. Since 2003, the Company has been highly profitable, although in November 2005, Telecom Plus warned that high energy prices had resulted in significant losses in its gas business. In February 2006, the Company entered into an agreement with npower under which they took responsibility for purchasing the energy used by UW customers although UW remain responsible for all customer management activities, such as billing, customer service, metering, debt collection and administration. As part of the arrangements, npower have an option to acquire the 29.9% of the equity held by the Board during 2009.
On 6 June 2006 the group said losses experienced in its gas business during the first two months of 2006 reached almost £8m, off-setting the profits of £5.5m achieved during the first half-year. As a result of the losses, the group posted an overall pre-tax loss for the year of £1.6m, compared with a £10.5m profit the previous year. Turnover rose 33% to £136.3m. For the latest year to 31 March 2007, Telecom Plus reported turnover was up to £175m, record pre-tax profits of £11.5m, and cash balances of over £25m with no debt [2].
[edit] Directors, secretary and advisers
Peter Nutting, Non-Executive Chairman - Peter, aged 71, has been a director and Chairman of a number of publicly listed and private companies. He was a member of the Council of Lloyds between 1990 and 1998 and Deputy-Chairman of the Lloyds Regulatory Board from 1992 to 1995. He is currently Chairman of Hampden Agencies Ltd, a director of Hampden Capital plc, two privately owned underwriting companies at Lloyd’s and a number of other companies. He joined the Company in April 1997.
The Hon, Charles Wigoder, Chief Executive - Charles, aged 47, qualified as a Chartered Accountant with KPMG in 1984 and was subsequently employed by Kleinwort Securities as an investment analyst in the media and communication sectors. Between 1985 and 1988, he was head of corporate finance and development at Carlton Communications Plc and then Quadrant Group plc. In March 1988, he left Quadrant Group to set up The Peoples Phone Company plc, which was subsequently purchased by Vodafone for £77 million in December 1996. He joined the Company in February 1998.
Richard Hateley, Finance Director - Richard, aged 42, qualified as a Chartered Accountant with Ernst & Young in 1990. He has worked for companies in the infrastructure and telecommunications sectors, including Blue Circle PLC; the Kvaerner Group, where he was Finance Director of the Corporate Development division; and Level (3) Communications, where he was Director, Infrastructure Finance, responsible for the financial and commercial issues for the completion of the European network. He joined the Company in June 2006 and was appointed Finance Director in December 2006.
Melvin Lawson, Non-Executive Director - Melvin, aged 48, is the Managing Director of A Beckman PLC, a company formerly listed on the London Stock Exchange which was taken private in 1995, and a director of Catalyst Media Group PLC and a number of other companies with a wide range of investment interests. He joined the Company in September 2006.
Richard Michell, Non-Executive Director - Richard, aged 61, is a Fellow of the Chartered Institute of Management Accountants. From 1988 to 1996 he was Treasurer of Sony Broadcast and Communication Limited, a subsidiary of Sony Corporation of Japan, which had a turnover of £250 million per annum. From 1981 to 1988 he was Finance Manager and Company Secretary for Geosource UK Limited, a subsidiary of Geosource Inc, a leading US oil exploration company. He joined the company in April 1997 as Finance Director. He is Chief Financial Officer of Minera IRL Ltd. He became a Non-Executive Director in September 2005.
Michael Pavia, Non-Executive Director - Michael, aged 60, is a Fellow of the Institute of Chartered Accountants in England and Wales (ICAEW), and has significant experience of the energy industry, having served on the Boards of LASMO, SEEBOARD and London Electricity. He is currently a non-executive director of Thames Water, British Nuclear Fuels PLC and WHAM Energy PLC, and is a member of the Council of the ICAEW. He joined the Company in December 2006 as an independent non-executive director and and continues to meet the test of independence under section A.3.1 of the Combined Code.
Keith Stella, Senior Non-Executive Director - Keith, aged 52, is a Partner with Berwin Leighton Paisner and has over 25 years experience in a broad range of work in the company and corporate finance arena, and handling flotations, de-mergers, acquisitions and disposals for a variety of clients, ranging from FTSE 100 companies to family run businesses, and advising the boards of listed and AIM companies extensively on their regulatory and legal obligations. He joined the Company in July 2000 as an independent non-executive director and continues to meet the test of independence under section A.3.1 of the Combined Code.
[edit] The Management
Clifford Wetherall, Operations Director - Clifford is an experienced IT professional from a software development and telecommunications background. He was responsible for developing one of the UK's leading database management systems, used by many of the country's largest businesses as well as UK government departments. He joined the telecommunications industry in 1988 and was Head of IT at Peoples Phone from 1994 to 1997 where he developed leading edge IT systems in billing and customer services. Prior to joining Telecom Plus PLC in March 1998, he worked for a mobile phone service provider in The Netherlands and a multi-billion dollar telecommunications billing company in Atlanta, Georgia, USA developing international billing platforms.
Malcolm Wolpert, Group Director of Human Resources - With 30 years experience in Customer Services and 20 years in the telecommunications industry, Malcolm is a key member of the management team. He joined Peoples Phone in 1990 and he was responsible for a department which comprised of over 200 Customer Service staff servicing a customer base of over 400,000 customers. During his time at Telecom plus Malcolm has been carrying out many roles including Customer Services Director from 1998 - 2005 and at the same time de-facto Director of Human Resources. In March 2005 Malcolm was appointed Group Director of Human Resources and was additionally responsible for our business Customer Service Team supporting TML and the Utility Warehouse Discount Club for Business. During August 2005 Malcolm handed over the reins of TML and the business club and now concentrates fully on our HR and Personnel function.
Wayne Coupland, Executive Services Director - Wayne worked in product management and sales in communications companies before joining Orange as a national sales manager. Later, as head of the Orange product management department, he was responsible for launching mobile data, text messaging and prepay. Wayne joined us in 1999 as our Business Development Director, and was responsible for introducing gas, electricity and broadband into our range of services. He now manages our energy services department, and is also responsible for our 16,000 strong Distributor channel, the College of Excellence Training Programme and the head office team that supports our sales network.
Gary Kaufman, IT Director - Gary is an experienced IT professional who joins us with 17 years of industry experience, having worked extensively within the direct mail and printing industries. Gary joined Telecom plus in 2002 with responsibility for developing the software used by our systems, taking over as IT Manager in 2003. During his time with the company, Gary, alongside our IT team, has been instrumental in making updates and enhancements to our systems. As IT Director Gary is responsible for ensuring that we have the systems developed to support the changes to our business processes.
Jonny Wolf, Business Services Director - Jonny has been involved in the utilities business since 1993 having successfully launched and directed the utility services division of Grants International Limited. In 1996 he was recognised as one of the leading utility cost reduction consultants when he was commissioned by Gee Publishing Limited to co-author a utility cost reduction manual for businesses. Jonny joined Telecom plus in 2000 with responsibility for Marketing. In July 2005 he successfully launched the Utility Warehouse Discount Club for Business and has been responsible for the smooth running of this division since it’s launch. As Director of Business Services he will continue to develop the Business Club offering unrivalled levels of support and customer service.
Andrew Lindsay, Commercial Director - Andrew joined us in April 2007 to strengthen our senior management team and he is involved in many aspects of the business to ensure our continuing commercial success. Andrew was Managing Director of Ryness, an electrical retail chain. Previously he worked as an analyst at Goldman Sachs. Andrew was president of the Oxford University Boat Club in 1998, has rowed for Great Britain and achieved a Gold medal in the Sydney Olympic Games in 2000. He will be bringing all his drive and ambition with him to his new role at Telecom plus.
Humphrey Couchman, Communications Director - Humphrey joined Telecom Plus in July 2007, with responsibility for our internal and external communications, including the way we communicate with our customers, our Distributors, our shareholders and with each other. He has a PhD in the politics of language, and has held communications roles in the public, private and voluntary sectors. His experience has been gained within University lecturing, the educational travel industry, the healthcare retail operations of Hutchison Whampoa, and the British Lung Foundation, a national charity.
