Inspired Share Discussion Threads

[rivaldo] 30/6/2017 08:48

Positive view of INSE from the Armchair Trader:



Extract:

"Can Inspired Energy lift its shareholders?

AIM listed energy consultancy Inspired Energy is undergoing an acquisition strategy to grow the business and boost shareholder value

AIM listed stock, Inspired Energy PLC, is a provider of energy purchasing and energy consultancy services to large private and public sector organisations.

With a market capitalisation of £73.6million, the business offers energy procurement services to large businesses, aimed at significantly cutting down on energy costs and usage.

Inspired Energy came to my attention yesterday through my usual weekly searches through Company Refs, and then again today today as a result of their acquisition of Irish firm Horizon Energy for £9m. Other recent acquisitions in 2017 include Flexible Energy Management Ltd and the acquisition of Churchcom Ltd.

So, why did Inspired Energy appear in my filters? What makes them a candidate for growth? Let’s take a look at the fundamentals.

Inspired Energy Fundamentals

The business has been consistently growing year on year. Turnover and pretax profits are up every year since 2012. In turn, Earnings Per Share have followed suit.

Looking ahead, forward growth is expected at around the 40% mark, but there’s a note of caution that comes with this forecast. The only broker contributing is Canaccord Genuity. Ideally for a reliable consensus, I’d want to see at least five or six brokers forming a consensus.

We’ll stick with the forward looking ratios as they look extremely appealing – but do bear in mind my thoughts on a reliable consensus.

Ok, so the forward P/E ratio based on the Canaccord Genuity numbers comes in at 9.24 times while the forward PEG (Price/Earnings to Growth) is at 0.23 suggesting significant room for share price growth given the forecast profit for the next two years.

The business is being run effectively with ROCE (Return on Capital Employed) at an impressive 72.2%, which is very good, even for a support services business with low operating costs.

On top of this, profit margin levels are at a very healthy 24.5%.

etc"

[rivaldo] 29/6/2017 13:43

The IC say Buy:



"Energy services group Inspired Energy (INSE) has completed a £9m placing, which was proposed this morning alongside a conditional offer for Irish energy procurement consultant Horizon. The acquisition would increase the corporate order book for the group to £41m, and has been agreed at €9m (£7.9m) on a debt-free cash-free basis for 90 per cent of the issued share capital of the group, it also has the option to acquire the remaining share capital for €1m. Inspired has also entered into new banking facilities with Santander for £29.6m and €7m. Share are up 6 per cent and we retain our buy recommendation."

[hjs] 29/6/2017 12:42

Today's acquisition news is excellent. Earnings enhancing in FY2017 and significantly earnings enhancing in FY2018 should bring new "big" investors and push the share price higher. I personally prefer "internal growth to acquisitions" as it dilutes the share price

[1gw] 29/6/2017 11:39

edale - I think it must open some opportunities to gain new investors as well. UTW has probably been the higher profile company in the past, but INSE can now present itself as not just a more conservatively-accounted company but also as a bigger cap company and therefore perhaps a more appropriate home for some funds' investments in the sector.

[edale] 29/6/2017 11:05

Just been looking at the UTW announcement this morning and the big drop in share price. Presumably UTW performing badly must generate opportunities for INSE to pick up business.

[1gw] 29/6/2017 10:41

INSE vs UTW market cap

I note with interest that should the conditional placing complete, INSE will have a market cap approx 50% higher than UTW at current prices, if I have my numbers right. That is an amazing move since as recently as April, the position was more or less reversed as rivaldo's numbers in the post below show.

INSE: 515m shares at 15.75p = £81m market cap (after firm placing)
INSE: 553m shares at 15.75p = £87m market cap (after conditional placing)
UTW: 78.5m shares at 74p = £58m market cap

Well done to anyone who took out a long INSE - short UTW pair!

------------------------------------------------
rivaldo 5 Apr '17 - 13:44 - 1281 of 1396 1 0
1gw, UTW has a £110m m/cap to INSE's £76m, so I doubt UTW's management would appreciate any offer from INSE! Personally I really don't want any link with UTW which would muddy the waters for INSE.
...

[nurdin] 29/6/2017 10:33

Yes very encouraging

[rivaldo] 29/6/2017 10:24

The placing completion RNS notes that it was "significantly oversubscribed with a number of new and existing shareholders participating".

Also good to see £100,000 of shares bought between the COO - doubling his holding - and a non-exec taking a maiden stake.

[sharesoc] 29/6/2017 08:37

There is a detailed report on Inspired Energy's recent AGM which can be found in our members network:

To access the report, you'll need to be a full member of ShareSoc, which is a not-for-profit organisation that supports individual shareholders and campaigns for shareholder rights. If you're not already a member you can join here:

Once you've joined, you'll receive an invitation to register for our "members network" private social network, from where you'll be able to access the report (and reports on 100s of other meetings). If you're already a member and have any difficulty accessing the report, please do not hesitate to contact us here:

[mfhmfh] 29/6/2017 08:28

'Increase the combined Procurement Corporate Order Book for the Group to in excess of £41.0 million.'

Procurement Corporate Order Book was £28 million for year ended 2016.

[yump] 29/6/2017 08:05

Oh look at that ! Having dropped for no obvious reason and looking curiously cheap, the share price is almost exactly at the placing price.

Lets just say its chicken and egg, rather than leaky corruption. This is the fine upstanding UK after all.

[rivaldo] 29/6/2017 07:36

Indeed 1gw :o))

Looks like an excellent acquisition - "earnings enhancing in FY2017 and SIGNIFICANTLY (my caps) earnings enhancing in FY2018".

Plus it's a nice bridgehead into the EU in case of Brexit difficulties.

Good to see Horizon's management staying with the company.

And INSE say today "Inspired continues to trade in line with market expectations".

[1gw] 29/6/2017 07:16

Nice juxtaposition this morning of inse's further expansion and utw's accounting chickens coming home to roost.

[funkmasterp12] 29/6/2017 07:05

Placing and acquisition - may explain recent weakness?

[kinloch] 26/6/2017 15:02

big buy coming in watch the price adjust after it goes through.

[nurdin] 26/6/2017 13:48

I simply dont understand the weakness in the share price.What am I missing?

[penpont] 23/6/2017 11:52

Just adding my thanks PJ1, excellent job.

[rivaldo] 23/6/2017 09:57

PJ1, many thanks for your AGM report (on this and on TST as well - you've been doing overtime!).

[funkmasterp12] 22/6/2017 17:15

Thanks PJ!

[martinthebrave] 22/6/2017 16:49

Thanks for taking the time PJ. Very comprehensive.

[nurdin] 22/6/2017 16:31

Yes many thanks PJ1

[1gw] 22/6/2017 15:20

Many thanks for sharing PJ1.

[cheshire man] 22/6/2017 09:56

Thanks for posting pp,,,,,,I'm happy to have took more on the dip :-)

[rivaldo] 22/6/2017 09:56

Cheers penpont, excellent news.

I'll see if I can find anything more on Canaccord's initiation.