Inspired Energy plc (LON:INSE) reported “record results” for the half year ended June, with revenues up 56% and gross profit up 62% on last year.
Revenues stood at £10.1mln for the period, compared to £6.52mln last year. Gross profit stood at £7.95mln, from £4.9mln last year. Adjusted earnings (EBITDA) stood at £3.75mln, a 52% increase from £2.46mln the same period last year.
The energy purchasing group said an increased weighting of the Corporate Division resulted in strong cash generation from operations representing 68% of adjusted earnings (EBITDA).
The Corporate Division is now firmly established as a leading energy consultant to UK Corporates, said the group.
“The focus of the six months to 30 June 2016 was on the integration and relocation of the acquired businesses of WPUK and STC which have been achieved on target and within budget. In addition, the underlying businesses have continued to perform to plan, with sales opportunities created by the acquisitions already gaining traction,” said chief executive Janet Thornton.
The group maintained its retention rates in excess of 85% for the period.
"The momentum built in the last two years continues unabated with the second half of the year starting strongly,” added Thornton.
The group pushed net debt down 9% to £8.08mln.
The board proposed an interim dividend of 0.13p per share, from 0.10p per share last year.
Analysts at Panmure Gordon issued a target price of 19p, a 40% upside to its current share price, citing “strong cash conversion and exceptional revenue visibility”.
The broker upgraded its sales forecast for the next year by 15% to “reflect the on-going strength in the corporate order book”.
Shares rose 3.5% to 14.10p.