TEP

Telecom Plus PLC

Utilities First-pass screen £937m

430/1000 Overall fit

AI beneficiary 35% 25

Operating leverage 25% 65

Valuation 25% 30

Downside protection 15% 70

First-pass take

Telecom Plus is a well-run UK utility reseller with strong defensive characteristics (essential services, regulated markets, 12.6% organic customer growth). However, it lacks material AI exposure (no revenue, no strategic positioning) and scores poorly on valuation axis (no multiples in filing). Energy commodity exposure and rising bad debt (1.8% vs 1.6%) present headwinds. Operating leverage evident (profit +8.1% despite revenue -9.9%) but limited by regulated margins and commodity price sensitivity.

Flags

no-valuation-datadefensiveenergy-commodity-exposeddividend-focusedregulatedrising-bad-debt