AIM-listed energy-management company Inspired PLC (AIM:INSE) hit its targets in full-year 2023, with group revenues 11% higher year on year, reaching nearly £98.7 million.
This increase was partly attributed to a strategic shift in the product mix within the optimisation division, leading to a higher margin contribution.
Adjusted earnings surged 19% year on year to £25 million on a 25% margin, the company said in a trading update.
Despite higher interest rates impacting finance costs, Inspired's adjusted profit before tax remained in line with market projections, though an exact figure was not provided in the update.
Inspired's assurance services division continued to generate new business, maintaining high retention rates and margins, while the optimisation services division witnessed 13% revenue growth in the year, spurred by repeat demands from existing clients and successful cross-selling strategies.
Notably, the ESG services division doubled its revenue in 2023, while the software services arm saw a 15% increase in revenue over the year.
Post period, Inspired saw solid cash generation in January as the fourth-quarter working capital investment unwound, allowing the group to bring net debt down from £48.7 million to £45 million in the month alone.
Commenting on the period, chief executive Mark Dickinson said: "The group delivered a solid operational and financial performance during the year, with adjusted EBITDA and profit before tax in line with market expectations, with a continued focus on cash generation.
"Managing energy costs and ESG have now become firmly embedded as operationally and commercially critical for most businesses. This is creating sustained and increasing demand for Inspired's differentiated products and services.
“We are better placed than ever as a full-service provider and are confident of future success and in our outlook for 2024 on the back of momentum in 2023."
Inspired is set to announce its audited full-year results on 26 March 2024.