Inspired has retained its buy recommendation and 20p target price from broker Liberum after it ran through the numbers of a deed of variation signed with the vendors of acquisition Ignite.
The deed provides a maximum additional earn-out of £9.25mlm, though the broker adds that this comes with what it describes as “stretching” financial targets.
Liberum notes that energy consultant Inspired said the additional contingent consideration (is self-funding, is designed to incentivise the Ignite management while it reckons that the numbers involved mean the Ignite deal is still an attractive one.
A calendar year price/earnings ratio of 9.4 represents growth at a reasonable price, added the broker.
Shares today were trading at 11.95p, down 0.4%.