Inspired PLC (AIM:INSE) highlighted a stronger financial position and continued operational progress as it reported final results for 2024.
The 2025 financial year was reported to have started well and in line with management's expectations, as the three "significant" projects in Optimisation are on track for delivery in the first half.
Looking back on the past calendar year, revenue came in at £93.8 million, versus £98.8 million in 2023, while all divisions reported growth in operational KPIs and 10-year client lifetime value potential increased 20% to £277,840.
By division, Assurance Services revenue was just above flat at £36.6 million with 82% of 2025 revenues already contracted; Optimisation Services delivered gross profit of £27.7 million despite a 12% decline in revenue; ESG Services revenue rose 16% to £6.4 million and and its adjusted EBITDA contribution was roughly unchanged at £1.4 million; Software Services revenue increased 18% to £3.5 million, supported by new client acquisitions and retention, with its adjusted EBITDA increasing to £2.2 million.
The number of clients supported by two or more divisions increased to 675 from 615 a year earlier.
Group gross profit increased 3.6% to £69.7 million and adjusted EBITDA declined 8.8% to £23 million, while a statutory profit before tax of £11.8 million was reported compared to a loss of £6.2 million in the previous year. This was in line with what the company had indicated in January.
Free cash flow increased 22% to £3.9 million and the board proposed a final dividend of 1p, resulting in a full year dividend of 2.45p, compared to 2.9p in 2023.
After net debt increased to £59.2 million by year end, a fundraising of £26.7 million in January 2025 meant the ratio of pro forma net debt to adjusted EBITDA reduced to 1.47x. The company targets a 1x ratio by the end of this year.
CEO Mark Dickinson commented: "Our stronger balance sheet provides a firm foundation to deliver Inspired's growth strategy over the medium-term and our ambition to approach being debt free by year end 2027.
"As a group, we have seen a significant number of new clients being signed up during the year and have grown our 10-year client lifetime value by 20%.
"We continue to offer our clients excellent service and material cost savings in their energy bills."
On the outlook, he said trading was in line with management expectations in the first quarter, "with a strong pipeline across all four divisions, and has started the year with good momentum giving us confidence in our future prospects".