Jump in dividend sends TalkTalk soaring

TalkTalk's shares surged 20 per cent yesterday to 159p, their highest level in a year, after the broadband and telecoms group raised its dividend by almost two thirds, with the promise of more to come.

Pre-tax profits more than doubled to £127m in the year to March as it sold more products to customers and reduced the numbers quitting.

Its chief executive Dido Harding said consumers saw TalkTalk as offering "value for money" against bigger rivals such as BT, Virgin and Sky.

She raised the dividend by 61 per cent and promised a further 15 per cent for each of the next two years.