finnCap has repeated its 'buy' recommendation for utility services provider Telecom Plus after a strong first-quarter update from the firm on Tuesday.

"Telecom Plus is a premium stock with impressive gross profit focus and growth," said Analyst Harold Evans.

The company, which provides gas, electricity, fixed-line and mobile telephony, and broadband, impressed the market by saying that organic growth was "comfortably ahead" of last year and first-quarter profits should be "significantly ahead".

Evans pointed out that customer numbers have grown 25% year-on-year to 547,378, while the company continues to target around 600,000 by year-end.

"The quality of customers joining has remained high, with over 25% of new residential customers applying for all five core services - this is a good reflection on the 'stickiness' of the customer," he said.

The stock was 7.8% higher at 1,335p by 10:06.

BC

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