• Telecom Plus bought 162,032 shares between 10 and 14 August at a weighted average price of 850.25p
  • Treasury holdings rose to 3,575,716 shares under the £40m buyback programme launched in June

The fact

Telecom Plus bought 162,032 of its own shares between 10 and 14 August as part of its ongoing share-buyback programme. The purchases, carried out through Peel Hunt, were made at prices ranging from 835p to 857p per share, with an average price of 850.25p. The shares will be held in treasury.

The latest purchases increased Telecom Plus's treasury holdings to 3,575,716 shares. The company had 81,373,768 ordinary shares in issue after the transactions.

Telecom Plus launched the buyback in June and has authorised purchases of up to £40m. Peel Hunt and Investec are carrying out the programme under instructions agreed in advance, with completion due no later than 31 March 2027. Under the company's shareholder distribution policy, buybacks are used when the share price falls below a valuation threshold based on 20 times implied post-tax earnings.

The assessment

The latest purchases do not represent a new decision to buy back shares. Telecom Plus approved the £40m programme in June and instructed Peel Hunt and Investec to carry it out. The weekly disclosures show how that programme is progressing, rather than a fresh management decision each time shares are bought.

The timing matters because Telecom Plus is also increasing spending under its five-year growth plan. The company expects around £55m of annual P&L investment and has guided FY27 adjusted pre-tax profit to £80m–£90m, down from £132.2m in FY26. At the same time, it intends to return at least 80% of adjusted post-tax profit to shareholders, with at least half paid through ordinary dividends.

For BTW readers, the question is how Telecom Plus balances those commitments as investment rises and profit falls. FY27 results should show whether the company can maintain its planned shareholder returns while funding the growth programme and keeping leverage within its stated limits.

What to watch

Watch subsequent buyback disclosures for the number of shares purchased and progress towards the £40m programme limit. Telecom Plus says repurchases will pause if its shares rise above the valuation threshold set by its policy. FY27 results will also show investment spending, adjusted profit and net debt as the first year of the five-year plan progresses.