Trading Update and Notice of Results

Inspired Energy (AIM: INSE), a leading energy procurement consultant to UK corporates and SMEs, is pleased to provide a trading update for the financial year ended 31 December 2015.

Group Results

Group revenues are expected to be ahead of market expectations at £15.1 million, representing an increase of c.40 per cent year-on-year (31 December 2014: £10.8 million). Adjusted EBITDA* is anticipated to be 25 per cent ahead of the previous year and in line with market expectations, which were revised upwards during 2015.

The Group has continued to deliver its growth strategy throughout the year and the Board is pleased to see that this trend has continued strongly into the start of the new financial year.

Following the investment made to acquire Wholesale Power UK Limited (“WPUK”) and STC Carbon Holdings Limited (“STC”) during H2 2015, net debt is expected to be approximately £9.0 million as at the end of the period.

Corporate

The Corporate division had an excellent year, both organically and as a result of the enhanced service offering following the acquisitions of WPUK and STC.

• The core Corporate division, excluding WPUK and STC, made Procurement Corporate Order Book Sales of £12.2 million in the year to 31 December 2015 (2014: £10.0 million), representing like-for-like organic growth of 22 per cent.
• The Procurement Corporate Order Book (previously reported as ‘Corporate Order Book’) excluding the impact of the acquisitions of WPUK and STC, was £17.5 million as at 31 December 2015 (2014: £14.0m), representing a year on year, like-for-like increase of 25 per cent.
• Including the acquisitions, the Procurement Corporate Order Book exceeded £24.5 million, representing a year on year increase of 75 per cent.

The Procurement Corporate Order Book, following the strong organic growth in the year, augmented by the acquisitions made, remains a consistent guide providing strong visibility of revenues for the next three years.

In respect of the acquisitions of WPUK and STC, the Group is pleased to report that both businesses are integrating well and that the acquisitions have, as expected, both enhanced Inspired Energy’s service offering and broadened the client base within the Corporate division, both geographically and by sector.  The acquisition of STC in particular has added skills, services and strategic options to the Group and the Board is pleased to report that the alignment between the existing Corporate division and the team at STC is beginning to provide significant revenue opportunities.

SME

The SME division has continued to deliver strong revenue and profitability growth, whilst contributing material operating cash for the Group. The continued growth in the division has been achieved through the development of the team and the enhancement of operating systems.

Janet Thornton, CEO of Inspired Energy, commented: “I am delighted with the Group’s achievements over the past year, delivering strong growth on all fronts as we continue to deliver value-add services to our customers. Our strong organic growth has been enhanced by the successful execution of the acquisitions of WPUK and STC. Both acquisitions have proved complimentary to the business, increasing the breadth of our target customer base, while enhancing our sector specialism to now include Leisure, Logistics and the Public Sector. Integration of both companies is progressing well, and we continue to advance our position as a market leader.

“With the enhanced structures and team now in place, we have a very strong platform for growth which we are continuing to experience in the current year.”

Final Results

Inspired Energy expects to announce its full year results for the year ended 31 December 2015 on 21 March 2016.

 * Earnings before exceptional costs (transaction fees in relation to acquisitions), depreciation, amortization and share-based payment costs

Enquiries:

Inspired Energy plc www.inspiredenergy.co.uk
Janet Thornton, CEO +44 (0) 1772 689250
Paul Connor, Finance Director
David Foreman, Corporate Development Director +44 (0) 7717 707 201

Shore Capital (Nomad and Joint Broker) +44 (0) 20 7408 4090
Bidhi Bhoma
Edward Mansfield

Panmure Gordon (Joint Broker) +44 (0) 20 7886 2500
Ben Thorne
Mark Taylor

Gable Communications +44 (0) 20 7193 7463
Justine James +44 (0) 7525 324431
John Bick [email protected]