Full year trading update and notice of results
30 January 2023
Inspired PLC
("Inspired" or the "Group")
Full year trading update and notice of results
Strong full year trading performance, an improved cash position and confident outlook
Inspired (AIM: INSE), a leading technology enabled service provider supporting businesses in their drive to net zero, controlling energy costs and managing their response to climate change, announces a trading update for the financial year ended 31 December 2022.
Strong Group trading performance
Positive momentum in the second half enabled the Group to deliver a strong overall trading performance for FY22, whilst also making clear strategic progress and navigating unprecedented volatility in the UK energy markets. Driven by strong demand within Optimisation Services, Group revenue is expected to be 10% ahead of market expectations at c.£88.0m. Combined with a solid H2 performance in Assurance, and further increased traction across the ESG division, Group adjusted EBITDA is expected to be in line with market expectations, and net debt reduced through the second half in line with expectations.
|
· |
Group revenue is expected to be c.30% ahead of FY21, at c.£88.0m, reflecting the higher than expected growth in Optimisation Services |
|
· |
Group adjusted EBITDA* is expected to be 6% ahead of the prior year at c.£21.0m, with Group EBITDA margins reflecting the increased contribution of Optimisation Services to Group revenues |
|
· |
Underlying cash generated from operations increasing by over 125% on FY21 to c.£18.0m, driven by strong working capital management within the Energy Optimisation division |
|
· |
Year-end net debt expected to be c.£37.0m (H1 2022: £42.9m) |
|
· |
The need for energy efficiency initiatives continued to drive strong demand for the Energy Optimisation services as businesses focus on reducing their costs and the Net Zero Carbon agenda |
|
· |
Inspired ESG revenue is expected to be c175% ahead of FY21 and in line with uplifted expectations post the Group's interim results, as the service offering continues to gain traction |
|
· |
Corporate Order Book stood at £69.0 million at the year-end (2021: £67.5 million) |
* Adjusted EBITDA is earnings before interest, taxation, depreciation and amortisation, excluding exceptional non-recurring items and share-based payments.
Operational highlights
The Group continued to deliver across all three business divisions, which are underpinned by long term structural growth drivers:
Energy Assurance Services - As outlined in the interim results, the Group anticipated more volatility in Assurance as a result of the unprecedented conditions in UK energy markets and whilst customer churn has increased, as expected, it has resulted in a record year for new business. Energy Assurance Services delivered revenues in line with expectations, with increased overheads to deliver our service as a result of the unprecedented market conditions leading to a modest reduction in margin in the period.
Energy Optimisation Services - The ongoing energy crisis has significantly sharpened clients' focus on the economics of investment in energy reductions, combined with the drive for delivering net zero, and this has translated into a significant step up in demand and activity for the Optimisation Division during H2.
Inspired ESG and Software - Both divisions performed in line with management expectations, with the Board's confidence in ESG reflected in an uplift in expectations post the Group's interim results, that the team has successfully executed, with a growing pipeline of opportunities for the year ahead.
Current trading and positive outlook
While conscious of the challenging wider economic backdrop, the Group's strong performance in FY22 and, in particular, the momentum experienced across Inspired's Energy Optimisation Services and ESG divisions, provides the Board with confidence in the outlook for the new financial year, as well as in the Group's ability to achieve its longer term financial and strategic goals.
The global energy crisis has highlighted energy as a high priority board level topic. The Group continues to proactively respond to this, working tirelessly to support clients in managing energy prices as well as reducing their energy consumption and carbon emissions during these unprecedented times. Whilst market conditions are difficult to predict at this point, the need for the Group's services have never been more apparent and its divisions are well aligned to meet the market demands and customer requirements.
Commenting on period, Mark Dickinson, CEO of Inspired, said: " In what has been the most challenging year ever seen in the energy markets, I am delighted with the Group's excellent operational and financial performance, exceeding expectations in revenue growth and delivering EBITDA and net debt in line with market expectations, with strong cash generation in H2 2022.
"With a sales pipeline that is at record levels, and a notable acceleration in Optimisation and strong growth in our ESG practice we are increasingly demonstrating that we are the market leading solution at a market leading price point, and therefore we are confident of future success."
Notice of Results
Inspired expects to announce its audited full year results to 31 December 2022 on 29 March 2023.
Enquiries please contact:
|
Inspired PLC Mark Dickinson (Chief Executive Officer) Paul Connor (Chief Financial Officer) David Cockshott (Chief Commercial Officer)
|
+44 (0) 1772 689250
|
|
Shore Capital (Nominated Adviser and Joint Broker) Patrick Castle James Thomas
|
+44 (0) 20 7408 4090
|
|
Peel Hunt LLP (Joint Broker) Mike Bell Ed Allsopp
|
+44 (0) 20 7418 8900 |
|
Alma PR Justine James Hannah Campbell Will Ellis Hancock
|
+44 (0) 20 3405 0205 +44 (0) 7525 324431 |
Notes to editors
Inspired PLC is a leading technology enabled service provider of energy advisory and sustainability services, supporting businesses in their drive to net zero, controlling energy costs and managing their response to climate change.
Founded in 2000, Inspired operates three divisions: Energy Solutions (Assurance and Optimisation), Software Solutions and ESG Solutions, providing expert energy advisory and sustainability services to over 3,400 businesses in the UK and Ireland who typically spend more than £100,000 on energy and water per year.
Inspired has been recognised with the London Stock Exchange's Green Economy market since 2020 for its environmental and strategic advice, service, and support to customers and is also ranked as the UK's leading advisor by the independent energy market intelligence consultancy, Cornwall Insight.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
Latest directors dealings
- 1 day ago Savannah Energy
- 1 day ago Buccaneer Energy PLC
- 1 day ago Savannah Energy
- 1 day ago Carclo
- 1 day ago Schroder Japan Growth Fund