Plusnet turnover up after rise in customers

The Sheffield-based firm said turnover rose 27 per cent to £178.9m in the year to March 31, 2014 thanks to a 17 per cent rise in customer numbers following significant investment in marketing.

However, pre-tax profit dipped 11 per cent to £25.2m, down from £28.4m the year before.

Underlying earnings before interest, taxes, depreciation, and amortization was up 36 per cent to £44.2m, compared to £32.6m the year before.

Finance director Roland Barzegar said yesterday: “Plusnet has had another strong year with 27 per cent revenue growth and 17 per cent customer growth. A change in the way internal group operating costs are allocated to Plusnet has distorted the way Plusnet’s profit figures are presented compared to the previous year, and excluding this intercompany re-allocation, underlying EBITDA has grown by 36 per cent.

“Our underlying profits are growing faster than our revenue which is a result of close control over our fixed costs in a competitive market environment, whilst continuing to win awards for customer service.”

The firm employed 943 staff at the end of March, up from 789 the previous year. Andy Baker was appointed chief executive in January 2014, replacing Jamie Ford.