Interim Results

Telecom Plus PLC
28 November 2003


                                TELECOM plus PLC


           Interim results for the six months ended 30 September 2003

Telecom plus plc, the UK's best value multi-utility (gas, electricity,
telephony, internet), announces interim results for the six months ended 30
September 2003.

Financial and business highlights:

   •    Interim dividend up 80% to 4.5p (2002: 2.5p)

   •    Profit before tax up 96% to £4.9m (2002: £2.5m)

   •    Turnover up 46% to £37.2m (2002: £25.4m)

   •    Customer base up by 26,000 in the period to 160,000

   •    Number of services supplied increases by 47% to 270,000 (2002: 184,000)

   •    Recent OFTEL ruling preventing BT from contacting its customers during
        the CPS process, to prevent them switching to competitors, is expected 
        to have a positive impact for Telecom plus

Commenting on the recent trading, Chairman Peter Nutting, said:

'This is an exceptionally strong set of results. Over the last six months, the
recent higher rates of new customer growth within our core Telecom plus business
have been maintained delivering a significant increase in the number of services
we supply to our customers.

'The outlook for our growth and profitability remains highly encouraging and we
intend to maintain our progressive dividend policy. We remain strongly
positioned as the UK's first low cost multi-service utility company and I
continue to view the future with considerable confidence.'

For press enquiries, please contact:

Charles Wigoder                           Neil Boom/Theresa Forrest
Telecom plus PLC                          Gresham PR Ltd.
020 8955 5000                             020 7404 9000

                                TELECOM plus PLC

CHAIRMAN'S STATEMENT

I am pleased to report an exceptionally strong set of results. We have enjoyed a
substantial increase in customer numbers, in revenues and in profits compared
with the corresponding period last year.

In the six months under review pre-tax profits almost doubled to £4.9m (2002:
£2.5m) on turnover which is ahead by 46% to £37.2m (2002: £25.4m). This reflects
a substantially improved operating profit within our Virtual Network business of
£6.5m (2002: £3.8m) and includes a contribution of £0.6m from TML (2002: £0.1m).

The faster growth within Telecom plus which we reported during the second half
of last year has been maintained. We experienced net growth of around 26,000
customers during the period (2002: 12,000), taking our total customer base to
approximately 160,000 by the end of September 2003. Meanwhile the number of
services being provided has increased to 270,000 (2002: 184,000).

The Board remain convinced of the importance of prudent and conservative
accounting policies, hence our continuing decision to charge all costs related
to acquiring new customers through the Profit and Loss Account as incurred,
notwithstanding the substantial continuing and long-term value of the revenue
streams generated by this growing customer base. These costs amounted to £1.8m
during the period (2002: £1.4m), reflecting the strong rise in customer numbers
reported above.

In view of the strength of these results, our future prospects and continuing
strong cash flow, the Board has decided to pay an increased interim dividend of
4.5p (2002: 2.5p) per share. This interim dividend will be paid on 5 January
2004 to shareholders on the register at 12 December 2003.

Outlook

Almost 2,500 of our distributors joined us recently at our annual distributor
sales conference (twice as many as attended the previous year), where we
launched the 'Utility Warehouse Discount Club.' This Club provides members with
a range of exclusive benefits, including an additional discount dependent on the
number of different services they are using. This new concept received a warm
reception from those present, and their enthusiasm has since been reflected in a
considerable rise in the number of new distributors joining the business.

New customer growth continues in line with expectations and the recent ruling by
OFTEL preventing BT from continuing to breach their licence conditions by making
'save' calls to former customers can be expected to have a positive impact on
our business going forward.

Our internal systems continue to perform well, and we have more than adequate
capacity to support substantial future customer growth. We believe our unique
computerised subscriber administration and convergent billing system gives us a
significant competitive edge in terms of a lower overhead base-cost, greater
efficiency and the ability to provide a cost-effective yet enhanced level of
customer care and support.

The outlook for our growth and profitability remains very encouraging. Due to
the highly cash generative nature of the business, and the correspondingly low
capital expenditure requirements, the directors intend to maintain the
progressive dividend policy we have followed since we obtained our Listing in
July 2000.

We remain strongly positioned as the UK's first low cost multi-service utility
company and my Board colleagues and I continue to view the future with
considerable confidence.

Peter Nutting 27 November 2003
Chairman

                                TELECOM plus PLC
                       Consolidated Profit & Loss Account
                                        
                                         6 months        6 months         Year
                                            ended           ended        ended
                                     30 September    30 September     31 March
                                             2003            2002         2003
                                      (unaudited)     (unaudited)    (audited)

                                            £'000           £'000        £'000

Turnover                                   37,206          25,439       58,036

Cost of sales                             (24,570)        (16,955)     (39,739)
                                       ----------      ----------    ---------

Gross profit                               12,636           8,484       18,297

Sales and marketing costs                  (3,203)         (2,008)      (4,543)

Administrative expenses                    (4,688)         (4,121)      (8,514)
                                       ----------      ----------    ---------

Operating profit                            4,745           2,355        5,240

Interest receivable                           172             273          464

Interest payable                              (13)            (82)        (116)
                                       ----------      ----------    ---------

Profit before taxation                      4,904           2,546        5,588

Taxation                                   (1,651)           (665)      (1,607)
                                       ----------      ----------    ---------

Profit after taxation                       3,253           1,881        3,981

Dividends                                  (2,765)         (1,469)      (3,424)
                                       ----------      ----------    ---------

Retained profit                               488             412          557
                                       ==========      ==========    =========

Basic earnings per ordinary share             5.4p            3.2p         6.8p

Diluted earnings per ordinary                 5.2p            3.1p         6.6p
share

Dividend per share                            4.5p            2.5p        5.75p




                                TELECOM plus PLC
                               Segmental Analysis

                               6 months              6 months             Year
                                  ended                 ended            ended
                           30 September          30 September         31 March
                                   2003                  2002             2003
                                  £'000                 £'000            £'000

Virtual Network

Turnover                         35,584                24,172           55,187
Operating costs                 (29,078)              (20,397)         (46,835)
                             ----------            ----------        ---------
Operating profit                  6,506                 3,775            8,352
                             ==========            ==========        =========

Distribution

Turnover                          1,622                 1,267            2,849
Operating costs                  (3,383)               (2,687)          (5,961)
                             ----------            ----------        ---------
Operating loss                   (1,761)               (1,420)          (3,112)
                             ==========            ==========        =========

Total

Turnover                         37,206                25,439           58,036
Operating costs                 (32,461)              (23,084)         (52,796)
                             ----------            ----------        ---------
Operating profit                  4,745                 2,355            5,240
                             ==========            ==========        =========




                                TELECOM plus PLC
                            Consolidated Balance Sheet

                                      As at              As at           As at
                               30 September       30 September        31 March
                                       2003               2002            2003
                                (unaudited)        (unaudited)       (audited)
                                      £'000              £'000           £'000
FIXED ASSETS
Tangible assets                       2,068              1,973           1,946
Intangible assets                     3,970              4,169           4,198
Investments                           1,038                  -           1,038
                                 ----------          ---------        --------
                                      7,076              6,142           7,182
CURRENT ASSETS
Stocks                                  866                645             590
Debtors
(due within one year)                 7,469              9,367           7,994
Debtors
(due after one year)                  2,712                  -           2,822
Investments in
quoted loan securities                    -              2,541               -
Cash at bank and in hand              8,299              5,094           6,056
                                 ----------          ---------        --------
                                     19,346             17,647          17,462
CREDITORS
Due within one year                 (14,611)           (12,800)        (13,418)

NET CURRENT ASSETS                    4,735              4,847           4,044

TOTAL ASSETS LESS
CURRENT LIABILITIES                  11,811             10,989          11,226

CREDITORS
Due after more than one                   -               (851)           (350)
year                             ----------          ---------        --------
                                     11,811             10,138          10,876
                                 ==========          =========        ========

CAPITAL AND RESERVES
Called up share capital               3,048              2,939           3,002
Share premium account                 6,257              5,326           5,856
Profit and loss account               2,506              1,873           2,018
                                 ----------          ---------        --------
Shareholders' funds                  11,811             10,138          10,876
                                 ==========          =========        ========


These unaudited results do not amount to statutory accounts within the meaning
of section 240 of the Companies Act 1985. The results for the year ended 31
March 2003 have been extracted from the full statutory accounts for that period,
which have been delivered to the Registrar of Companies and on which the
auditors gave an unqualified report.



                                TELECOM plus PLC

Consolidated Cash Flow Statement

                                 6 months             6 months            Year
                                    ended                ended           ended
                             30 September         30 September        31 March
                                     2003                 2002            2003
                              (unaudited)          (unaudited)       (audited)
                                    £'000                £'000           £'000
Reconciliation of
operating profit
to operating cash flow

Operating profit                    4,745                2,355           5,240
Goodwill amortisation                 228                  144             360
Depreciation                          220                  235             503
Decrease/(increase) in               (276)                 682             737
stocks
Decrease/(increase) in                635                 (676)         (2,332)
debtors
Increase/(decrease) in               (645)                (472)            818
creditors
Amortisation of loan                   12                   12              25
stock issue costs              ----------            ---------        --------
Net cash flow from                  4,919                2,280           5,351
operating activities           ==========            =========        ========

Net cash flow from                  4,919                2,280           5,351
operating activities                       

Return on investments and             154                  175             319
servicing of finance
Capital expenditure                  (342)                (121)           (363)
Acquisitions                            -               (4,304)         (5,461)
Corporation tax paid                 (775)                   -          (1,952)
Dividends paid                     (1,962)              (1,433)         (2,903)
Management of liquid                    -                    -           2,541
resources
Financing                             249                   24             103
                               ----------            ---------        --------
Increase/(decrease) in              2,243               (3,379)         (2,365)
cash                           ==========            =========        ========

Reconciliation of net
cash flow to movement
in net funds

Increase/(decrease) in              2,243               (3,379)         (2,365)
cash
Net cash on                             -                   52               -
acquisition                    ----------            ---------        --------

Change in net funds                 2,243               (3,327)         (2,365)
resulting from cash flows
Conversion of loan stock              198                  721           1,235
to equity shares
Cash released from                      -                    -          (2,541)
liquid resources               ----------            ---------        --------
Movement in net funds               2,441               (2,606)         (3,671)
for the period

Net funds at 31 March               5,676                9,347           9,347
2003                           ----------            ---------        --------
Net funds at 30                     8,117                6,741           5,676
September 2003                 ==========            =========        ========




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