Inspired Share Discussion Threads

[riverman77] 09/9/2020 10:10

I was a bit disappointed with these results. Fall in profits bigger than I expected, and I don't think this was properly flagged up. While this is obviously covid related, it is clear that the company is actually quite exposed to the economic cycle - in an economic downturn we would see lower energy consumption and more firms going out of business, which could have a big impact.

I'm not keen on the large adjustments to EPS, especially excluding share based payments (I do not see these as one-off costs). I would reduce adjusted EPS by at least 20% to give a fairer measure.

Also note the big increase in debt - in my view the rights issues was partly to address this as much as for new acquisitions. A fair amount of deferred consideration for recent acquisition also needs to be highlighted.

[rivaldo] 09/9/2020 08:42

Forgot to mention that the Corporate Order Book at 30th June is up to £61.5m, providing yet more reassurance that the result for the year should be satisfactory.

The recent 15p placing price should provide support. This morning's decline is most likely a combination of the results being decent but hardly exciting, and a few results traders exiting - note that volumes are tiny at only just around £60k.

Happy to hold for the recovery, solid fundamentals and prospects. I'd hope there's likely to be an acquisition soon as well given comments made in the placing and today.

EDIT - hi Mas, sorry, posts crossed!

[masurenguy] 09/9/2020 08:33

LOL - first post on this thread from a well known troll.

Nothing "ghastly" about these interims, given the impact of COVID on many of their customers. The short term reduction in profit will be turned around as businesses return to work unless there is a major increase in COVID or a second wave in the autumn. More significant is that the cash generation has more than doubled and constitutes 37% of sales. Sales up 25% and the forward order book is also up 10%. Rivaldo has also noted the other positive factors about forward prospects above.

[homeboy] 09/9/2020 08:14

not a good read, ghastly set of results, market seems to agree

[rivaldo] 09/9/2020 07:33

Decent H1 results given the pandemic - 0.66p EPS in a severely affected H1, with trading now improving fast and the Balance Sheet much strengthened after the recent placing and completed acquisition of Ignite.

INSE have two major growth opportunities in (1) the cross-selling of Ignite and (2) ESG/zero-carbon services. Once these start to kick in there should be a transformation of revenues and profitability.

Meanwhile, it's good to read that trading is currently in line, and that COVID-led disruption may accelerate INSE's opportunities:

"Trading remains in line with the Board's expectations and the Board believe the Group is well positioned to take advantage of the acquisitive growth opportunities that continue to exist for Inspired Energy and which may be accelerated by the disruption caused to its markets in 2020 by the COVID-19 pandemic."

[rivaldo] 07/9/2020 14:37

Just a reminder that the interims will be out on Wednesday.

[buoycat] 25/8/2020 11:38

The fact that the open offer was undersubscribed wouldn't suggest a shortage of stock. Just little enthusiasm from buyers or sellers at the moment.

[cheshire man] 25/8/2020 08:46

A well overdue move IMV :-)

[rivaldo] 25/8/2020 08:22

Nice early move up today - and on very low reported volumes too, suggesting that stock is scarce.

[masurenguy] 24/8/2020 13:11

Totally agree Riv. This is a very liquid stock compared to many other AIM listed companies, with an average spread of less than 5%. It also has a good roster of institutional shareholders which include Miton (10.3%), Canaccord Genuity (5.34%), Fidelity (5.06%), Slater Investments (4.95%), Invesco (3.08%), Artemis (2.80%), Octopus (2.32%), SGKBB (1.23%) and Liontrust (0.78%).

[rivaldo] 24/8/2020 12:38

Good to see the price rising again and the bid price back up to 15p.

Er rumbers2...(1) the m/cap is only £125m. The number of shares in issue is completely irrelevant. And (2) there are only 960m shares in issue :o))

[rumbers2] 21/8/2020 08:25

With one billion shares in issue isn't it going to take a lot a volume to even shift this?

[robow] 21/8/2020 08:06

thanks Riv and Chesire Man

[cheshire man] 21/8/2020 07:42

The Diverse Income Trust

This is the bit that is importatant going forward

"we do expect the valuations of stocks that are making a positive impact on the climate change agenda to move to premium valuations. As this occurs, it is expected that it will enhance the returns of the Trust."

Little surprise Fidelity upped its state in INSE

[rivaldo] 21/8/2020 07:13

Good to see Fidelity up above 5% with 48.6m shares:

[sphere25] 20/8/2020 09:48

Highly reputable funds buying here and some whopping big buys yesterday.

Surely this isn't painting a picture that there is value here ;-)

[rivaldo] 20/8/2020 08:57

The Diverse Income Trust, for whom Gervais Manager is a Fund Manager, have just released their Annual report.

They have a £3.6m investment in INSE, and they have this to say about INSE and its green credentials:



"Although the Trust does have a policy of investing across most industry sectors, one of the factors that the Manager takes into account is the risk that some industry sectors may become so unpopular that gradually all other institutional investors will avoid them altogether. If this occurs, then there is a danger that the Trust will be unable to liquidate a holding. The Trust has already scaled back its holdings related to coal extraction companies for this reason.

Conversely, there are quite a few UK-quoted businesses working in sectors that have a positive impact on carbon emission targets. Inspired Energy, which monitors the power and water consumption of their customers, to help them reduce wastage is one example. Over recent years, Inspired Energy have extended their service so that they can provide auditable data on the annual carbon emissions of their clients. At present, the valuations of many of these kinds of companies are often no higher than others in the portfolio, because numerous smaller quoted companies are overlooked by other investors. In time however, we do expect the valuations of stocks that are making a positive impact on the climate change agenda to move to premium valuations. As this occurs, it is expected that it will enhance the returns of the Trust."

[rivaldo] 19/8/2020 14:14

Correct Cheshire Man, they still reatin their 25p target price.

7.72m shares bought in two tranches at 15p just before midday. Perhaps more transactions still to be reported.

[cheshire man] 19/8/2020 08:06

Peel Hunt 25p TP still stands as far as I know,

[masurenguy] 19/8/2020 07:56

Interims due 3 weeks today, on Wednesday September 9.

[ge0fft] 17/8/2020 09:54

Business customers can now calculate the size of undisclosed commissions and then start action to have it repaidWww.businessenergyclaims.co.uk

[ge0fft] 29/7/2020 18:41

https://www.ofgem.gov.uk/publications-and-updates/fairer-energy-deals-microbusinesses

[melody9999] 28/7/2020 17:43

1gw - I just think there a lot of placings around at the moment so plenty of options for PIs. I took excess to the open offer in order to not be diluted. Would rather participate in a placing where we know the funds spent on Ignite will increase earnings rather than for working capital / debt reduction purposes.

[1gw] 28/7/2020 13:05

So all gone through ok, but uninspiring participation in the open offer.