Inspired Energy – Half Year Report (plus presentation)

Results for the six months ended 30 June 2017
Continued strong performance

Inspired Energy plc (AIM: INSE), a leading UK energy procurement consultant to UK and Irish corporates and SMEs, announces its consolidated, unaudited half year results for the six month period ended 30 June 2017.

DOWNLOAD HALF YEAR PRESENTATION

Financial Highlights

H1 2017 H1 2016 2017 % increase
Revenue £12.24m

£10.16m

20%

Gross profit

£9.83m

£7.95m

24%

Adjusted EBITDA*

£4.71m

£3.75m

26%

Adjusted profit before tax**

£4.17m

£3.31m

26%

Profit before tax

£2.18m

£1.93m

13%

Cash generated from operations

£3.47m

£2.55m

36%

Interim dividend per share

0.16p

0.13p

23%

Adjusted EPS

0.78p

0.62p

26%

Basic EPS

0.37p

0.33p

12%

Procurement Corporate Order Book

£41.2m

£25.7m

60%

Net Debt

£12.60m

£8.08m

56%

* Earnings before interest, taxation, depreciation, amortisation, exceptional costs and share based payments

**Adjusted profit before tax is earnings before amortisation, excluding exceptional items and share based payments

  • Results for the six months ended 30 June 2017 in line with management’s expectations
  • Strong cash generation from operations representing 74% of adjusted EBITDA (H1 2016: 68%; FY16; 60%)
  • Interim dividend increased by 23% to 0.16p per share (H1 2016: 0.13p)
  • The Procurement Corporate Order Book, which provides strong visibility of revenues and is a consistent guide to the future performance of the Corporate Division, has increased by 60% to £41.2m (H1 2016: £25.7m)
  • Corporate division EBITDA reaches 91% of Group EBITDA for the period (2016: 86%)

Operational Highlights

  •  Mark Dickinson appointed Chief Operating Officer (“COO”) of the Group, having joined Inspired as a non-executive Director in September 2016. Mark was previously CEO of M&C Energy Group where he led the buy and build strategy completing four acquisitions before selling the company to Schneider Electric in 2013
  • Richard Logan appointed as a non-executive Director in March 2017
  • Successful relocation and integration of Informed Business Solutions Limited (“Informed”), a corporate-focused acquisition completed in H2 2016
  •  Integration of Flexible Energy Management Limited (“FEML”) and Churchcom Limited (“Churchcom”) progressing well and in line with plans

Acquisitions and Finance

  • Completed the acquisitions of FEML and Churchcom, with both businesses performing well and in line with expectations
  • Completed the acquisition of Horizon Energy Group Limited (“Horizon”) in July 2017 for a consideration of up to €15.0m, of which €9.0m was paid on completion
  • The Group entered into new banking facilities with Santander for £29.6m and €7.0m, of which £14.6m and €7.0m, was drawn, to refinance the existing indebtedness of Group and to further support the Group’s acquisition strategy. The new facilities include a £12.5m acquisition facility and a £2.5m revolving credit facility. Both remain undrawn. As at 30 June 2017, Group net indebtedness was £12.6m (2016: £8.08m)
  • The Group raised £9.0m via the placing of 62,068,966 new ordinary shares in the Company in July 2017, which was significantly oversubscribed, to fund the initial cash consideration in the acquisition of Horizon

Commenting on the results, Janet Thornton, CEO of Inspired, said: “I am delighted to report on a fantastic period of growth for the Group: financially, operationally and strategically.  The work undertaken over the last 18 months, which culminated in the three Corporate acquisitions completed in the first half, the debt refinancing and the £9.0m placing, has provided an excellent platform for the business to continue its organic growth complemented by these significant further acquisitions.

“Inspired has delivered another period of strong growth on all fronts and the record results and performance once again demonstrate the commitment, drive and expertise of the whole team, which has now grown to 270 staff across the UK and Ireland. Our sector leading Corporate Division offers a breadth of innovative and cost effective solutions to a wide range of clients and sectors, backed-up by proactive advice and assurance throughout the life of a contract.

“The announcement of the strategic acquisition of Horizon after the period end will provide a platform to leverage the capabilities of the Group with the aim of becoming a market-leader in Ireland, and the net contribution from this and the two acquisitions in H1 enable us to look ahead into FY 2018 with even greater confidence.

“As demonstrated by the half year results and our key performance metrics including the Corporate Order Book, which continues to grow significantly both organically and through acquisitions, the Group is in an extremely strong position to continue to deliver a robust performance throughout the remainder of 2017 and beyond.  On behalf of the Board, I would like to thank all of the Inspired team for the hard work over the past six months, as we look forward to completing another exciting year of growth and development of the business.”

Read the full Half year report announcement: click here 

For further information, please contact:

Inspired Energy plc
Janet Thornton, Chief Executive Officer
Paul Connor, Finance Director
www.inspiredplc.co.uk
+44 (0) 1772 689 250
Shore Capital (Nomad and Joint Broker)
Bidhi Bhoma
Edward Mansfield
+44 (0) 20 7408 4090
Panmure Gordon (Joint Broker)
Ben Thorne
James Stearns
+44 (0) 20 7886 2500
Gable Communications
Justine James
John Bick
+44 (0) 20 7193 7463
+44 (0) 7872 061007 inspired@gablecommunications.com