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Inspired Energy pushes to optimise energy advisory with more acquisitions

Snapshot

  • Inspired Energy is a consultancy that helps corporates improve their energy buying and usage
  • Acquisitions have focused on moving into optimisation services across utilities
Inspired Energy plc -

Quick facts: Inspired Energy plc

Price: 14.85 GBX

AIM:INSE
Market: AIM
Market Cap: £106.03 m
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What Inspired Energy does

Inspired Energy plc (LON:INSE) is an energy consultancy, which aims to take the headache out of energy procurement for big users, selecting the best deals, helping to cut consumption and digitising the whole process.

Also referred to as a Third Party Intermediary (TPI), it works mainly with commercial, industrial and public sector organisations to give advice on procurement, energy accounting, supply chain management, audit, optimisation and strategy.

Inspired has a ‘buy and build’ growth strategy, and keeps a keen eye on acquisition opportunities to help it expands its geographic spread, add technical capabilities, and become more efficient within the growing market, after racking up five purchases in 2018 including Inprova Finance Limited for £19.5mln.

In late 2019 it also bought water auditor Waterwatch and IU Energy, following the taking of a 40% stake in Ignite Energy with the option to buy the rest before the end of 2021, all of which tap into the attractive market of optimisation services.

Optimisation services involve working with businesses on ways to futureproof them against rising utility costs.

Inspired isn’t intending on slowing down either – in October, Inspired added £60mln revolving credit facility with existing bank Santander and new lender Bank of Ireland.

 

How is it doing

In January 2020 the company said that revenues for the prior calendar year are expected to be up 50%, accelerating from the 33% growth in the first half of the year and 24% in 2018.

The core corporate division grew 58% and made up 89% of the group total, with organic growth was up 7% over the year.

Group underlying profits (EBITDA) is anticipated to be roughly 39% higher than the £13.75mln in 2018, while cash from operations was up 18% to £14.5mln.

 

 

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What the boss says

In January, chief executive Mark Dickinson said the acceleration of growth in 2019 was due to the sustaining of organic growth alongside the acquisition activity. 

"We remain focused on delivering our core financial, operational and strategic objectives, in parallel with broadening the service offering for our clients, to help them to optimise the value of every pound spent on utilities.

"In 2019, we increased investment in our internal infrastructure and talent in order to leverage the optimisation services opportunity and create a platform to support the expected acceleration of growth in 2020 and beyond."

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Inspired Energy reports 'acceleration of growth' as it steps up investment

Inspired Energy plc's (LON:INSE) Mark Dickinson tells Proactive London's Andrew Scott that the second half of 2019 saw an acceleration in sales growth. Across the year itself he says group revenues are expected to be approximately 50% ahead of 2018 and the core Corporate Division delivered an...

on 30/1/20

2 min read