Inspired Energy plc (LON:INSE) has lifted its full year dividend 29% after achieving its sixth consecutive year of record revenue and profit.
The group, which procures gas and electricity for companies, reported a 38% increase in adjusted pre-tax profit to £7.02mln for the year ended 31 December, compared to £5.07mln the previous year.
Revenue gained 42% to £21.51mln from £15.19mln, driven by its corporate division, which helps large energy businesses such as foundries and food manufacturing buy gas and electricity.
Inspired said the corporate arm was supported by new business wins in commercial and public sectors, along with the acquisition of UK energy procurement and environmental compliance consultancy, Informed Business Solutions, in September 2016.
The corporate procurement order book stood at £28.0mln at the end of 2016, up 14% on 2015’s £24.5mln.
However, revenue was flat in the small and medium enterprises business where management continued to consolidated operations to focus on profits and cash generation.
The dividend was raised to 0.45p from 0.35p the prior year as the company said it expects another year of growth.
"I am proud of the accomplishments of our talented and dedicated team, whose hard work has delivered strong growth on all fronts,” said chief executive Janet Thornton.
“Our growth has been further enhanced by the successful acquisition of Informed, which has integrated extremely well in a relatively short period of time and has continued to perform well as part of the enlarged group.”
On the back of acquisitions within the corporate division and investments, Inspired increased its average headcount 68% to 200 employees.
Cash generated from operations increased 83% to £4.98mln from £2.72mln, boosted by the SME division.
Net debt grew 21% to £10.79mln from £8.90mln, reflecting an initial consideration of £1.75mln for buying Informed and £2.0mln of deferred cash consideration for the acquisitions of STC Energy and Wholesale Power UK.
Shares fell 0.73% to 17.0p in morning trading after an initial rise.
Shore Capital said the group's revenue was behind its forecast of £21.5mln, though profits were in line with expectations. "Organic growth is forecast to continue through the current year, with further acquisition potential evident, in our view."
The broker added: "We retain our view of a fragmented market in energy services that provides a sustained opportunity to drive growth."
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