Inspired Share Discussion Threads

[1gw] 07/4/2021 17:38

And 2 5m's and a 10m today. Does it all mean something or just someone shuffling things around internally?

[1gw] 01/4/2021 17:25

Another 1m share trade from this morning just reported. If that was a sell it perhaps supplied all the liquidity needed to cater for Tempus-inspired investors!

[cheshire man] 01/4/2021 12:18

Wondered why we were rising...... Thanks Mas:-)

[bdroop] 01/4/2021 12:14

Positive rise today... still cheap having said that..

[1gw] 01/4/2021 08:38

This will be an interesting test of liquidity if we get a rush of new investors. Here's hoping!

[1gw] 01/4/2021 08:26

Very nice.

[rivaldo] 01/4/2021 07:40

Excellent news Mas - should bring in some further interest here.

[rivaldo] 31/3/2021 08:43

Shore Capital have updated today. They forecast 1.3p EPS this year, rising to 1.5p EPS next year - with 0.2p and 0.3p dividends respectively.

They conclude:

"Valuation thoughts.

As the economy recovers from the impact of the Covid pandemic, Inspired is trading on a revised FY2021F PER of 13.2x (EV/EBITDA 9.7x), offering a progressive dividend yield of 1.4%. With recovery out of the pandemic set to emerge, Inspired is poised to benefit, in our view, delivering essential services in energy assurance and optimisation as well as through its emerging ESG based compliance platforms"

[1gw] 31/3/2021 07:57

To some extent I agree. But INSE does a lot of acquisitions, with a lot of intangibles on the balance sheet, and so is perhaps vulnerable to this type of occasional big loss on disposal of a part of the business that no longer fits.

[rivaldo] 31/3/2021 07:48

That's right - the £6.9m adjusted profit is for the continuing business going forward for this year and the future, excluding one-offs like business disposals, so is the relevant figure to use for analysis of the business.

[1gw] 31/3/2021 07:42

That's "adjusted profit" rivaldo. The actual loss for the year was £4.5m, principally because of the big loss on disposal of the SME business.

[rivaldo] 31/3/2021 07:32

The results look pretty decent considering the pandemic badly affected Energy Optimisation:

- INSE achieved a £6.9m PBT
- £11.6m positive cash generation from operations
- confidently paying a 0.12p dividend
- and the Corporate Order Book increasing again showing great visibility going forward

Encouragingly INSE are already able to say "the Board remains confident of achieving current market expectations" despite optimisation being hit by the Q1 lockdown. From memory those expectations were for 1.3p EPS?

Particularly exciting are (1) the new proprietary software for customers which is "optimising their energy cost equations, quantifying their carbon emissions, and delivering their ESG objectives", and (2) the new ESG Disclosure Services which are already delivering revenues.

[1gw] 26/3/2021 12:07

And now a 3.25m trade reported. What chance a holdings notice before long?

[1gw] 25/3/2021 16:26

2m share trade just been reported.

[1gw] 25/3/2021 09:52

And down again. Easy come, easy go.

[rivaldo] 22/3/2021 22:52

Yep, a terrific finish. There was some news today, but not enough to account for the rise - though it does highlight INSE's green credentials:



"The impact of Covid-19 on SECR reporting
22nd March 2021

As many businesses continue to feel the effects of Covid-19, energy reporting may not always be high on the agenda right now. So when it comes to their latest Streamlined Energy and Carbon Reporting (SECR) deadline, it’s important for eligible businesses to consider and prepare for the ways in which Covid-19 could have impacted their compliance.

All large UK companies and large LLPs, along with all quoted companies, must report on their annual energy use, resulting greenhouse gas emissions, an intensity metric and any energy efficiency actions they have undertaken over the year within their SECR report. Their SECR report must be submitted every year alongside their Directors’ Report, which means that many businesses will be preparing to submit their second SECR report in 2021, following the scheme’s introduction in April 2019.

While SECR was designed to make the energy reporting process easier for businesses, in working with our SECR customers our experts have found that many are finding reporting more difficult this year due to challenges created by the coronavirus pandemic. We want to make SECR compliance simpler for businesses, so we’ve taken a look at the common challenges facing eligible organisations and how they can overcome them.....

....Having external support from energy experts can take the hassle out of achieving SECR compliance. Our SECR specialists can support you with every aspect of the compliance process, from chasing suppliers for energy usage data to backing you up in the boardroom when you’re trying to gain buy-in for your energy efficiency improvements.

We can handle the entire process for you, from start to finish, so that you can concentrate on your core business operations. If you’d like to find out more about how we can support you, head to our SECR services page or call us on 01772 689 250."

[1gw] 22/3/2021 17:20

Nice finish. Is there news or just a buyer combined with low liquidity?

[rivaldo] 05/3/2021 07:15

Interesting interview with the CEO of the latest acquisition:



Extracts:

“We’re delighted to join the Inspired Energy plc group,” he said. “Being part of the UK’s largest commercial and energy advisors will bring clear advantages of scale.”

The founders will remain with the business and the company will continue to operate independently under the Businesswise Solutions brand, with the same senior management team and under the leadership of CEO Durris."

"“Furthermore, we now have at our disposal, market-leading energy management tools and energy buying products, plus access to Environmental, Social and Governance (ESG) solutions.

“This range of solutions will allow our clients to deliver long term year-on-year sustainable energy management improvements and utility cost reduction for their businesses."

"Our capability has now been strengthened by access to a wider range of products, deeper level of resources and enhanced market position through volume of energy procured.

....Businesswise Solutions has over 340 customers, including Graham & Brown, DFS and Burnley Football Club."

[cheshire man] 04/3/2021 08:34

Thanks for the link rivaldo,,,,,very encouraging :-)

[1gw] 03/3/2021 15:40

Another tick up. If it sticks it gives us a new closing high in this recovery run.

[rivaldo] 03/3/2021 15:04

Shore Capital have now increased their forecasts - they now see 1.27p EPS this year.

The current year P/E is now only 12.99 at 16.5p, with a decent 2% or so divi yield:



Extract:

"Inspired’s house broker Shore Capital estimated the transactions, based upon a 10-month contribution, will enhance Inspire’s adjusted profit before tax this year by about £1mln and increase earnings per share (EPS) by roughly 7%.

As a result, it has pencilled in 1.27p for its EPS forecast this year, up from 1.19p previously.

“As the economy recovers from the impact of the Covid pandemic, Inspired is trading on a revised FY2021F PER [price/earnings ratio] of 12.4x (EV [enterprise value]/EBITDA 9.0x), offering a progressive dividend yield of 2.3%. With recovery out of the pandemic set to emerge, Inspired is poised to benefit, in our view, delivering essential services in energy assurance and optimisation as well through its emerging ESG based compliance platforms,” Shore said."

[1gw] 03/3/2021 09:04

I think it's a function of the pandemic disruption. Total consideration of £29.5m would be 6x the 2023 EBITDA target of £5m. If they can deliver that sort of EBITDA, it doesn't seem an unreasonable price does it? The initial consideration of £6m is around 5x FY20 EBITDA and FY20 pbt. Presumably FY21/calendar 2020 results will be impacted by the pandemic (and FY20 to a lesser extent) and this would have made it difficult to establish consideration based on "current" earnings.

[owenski] 03/3/2021 08:37

Anyone else thinking that incentivised payout on Businesswise @ 23.5m even for OTE targets looks very generous on top of the 6m upfront cost?