Inspired PLC (AIM:INSE) proposed a 7% dividend increase as it published results for 2023 in line with expectations, saying the new year has started strongly.
The company, which uses technology to help enable businesses to transition to net-zero and manage their response to climate change, said the demand from companies to reduce energy consumption, drive efficiencies and report against progress “remains unchanged and underpins demand for the group's services”.
The new financial year has “started strongly”, it said, with trading in line with expectations and much-improved cash generation.
Revenue for calendar 2023 came to £98.9 million, up 11% on the prior year, with underlying profit (EBITDA) growing 20% to £25.2 million, which was flagged in a January update.
Full results showed a £6.2 million loss before tax, compared to a £4 million loss the previous year, while net debt ended the year at £48.7 million compared to £37.2 million last time.
Inspired generated £18.7 million in underlying cash from operations, at a lower conversion rate of 75% as a result of the increased number of optimisation projects in the second half and the associated investment in working capital.
But the working capital investment unwound in the new year, with cash conversion for the 12 months to 29 February 2024 in excess of 100%.
A final dividend of 1.50p was declared, resulting in a full-year dividend of 2.9p, up 7% year on year, which the board said was reflective of its confidence in the business.
As part of its annual results, Inspired shared a range of new key performance indicators, including that it had increased the number of clients supported by multiple divisions by 25% to 615, with a 37% rise in the number of clients with optimisation projects in the year to 370.
There was a 47% rise in the number of clients generating at least £50,000 of revenue to 227, and of those 159 were supported by more than one division, a rise of 53%.