Inspired Share Discussion Threads

[rivaldo] 19/6/2020 13:49

:o)) I wondered if anyone would spot that....I assume they mean getting off the sub-optimal ones and onto the ones they SHOULD be on.....

[1gw] 19/6/2020 12:14

Nice. Not sure about advising them on sub-optimal tariffs though!

[rivaldo] 19/6/2020 12:12

Just been tipped by Ken Wotton, Manager of the Gresham House UK Micro Cap Fund in this video interview transcript:



"Wotton: Our final stock is a company called Inspired Energy Group. Inspired Energy is a specialist energy procurement consultancy business. So, it focuses on mid-sized corporates, typically ones that use greater amounts of energy than average and it advices them on the sub-optimal tariffs that they should be entering into for their gas and electricity and also advices them on how they can reduce their energy consumption that is very topical at the moment sort of as sustainability becomes a more prominent thing in people's minds. And this is a business that has really successfully used the AIM market over the time it's been listed. So, we invested in that business in 2011 when it came to the AIM market. It was a 10 million market cap company and made profits of just over £1 million. Roll forward to last year, and it made profits of £18 million…

Black: And is it often that you'll hold a company for that long, particularly it's still fitting your micro-cap remit?

Wotton: Yeah. So, we are long-term investors. On average, we'll hold a company for four to five years, but we have some which we've held for shorter times and some we've held for much longer including Inspired Energy. And we look at it based on the opportunity and whether we still believe there's good attractive returns to come and this is in category of – it was a very small company. It's now sort of a medium-sized company but we think there is a good growth opportunity for the next few years."

[rivaldo] 08/6/2020 12:23

Good to see the bid price ticking up twice today and the spread reducing. With sells achieving large premiums over the bid price - the last at 17.55p - INSE seems to be looking strong at present.

The chart looks good too. Hopefully back to 20p soon for starters.

[rivaldo] 07/6/2020 07:49

INSE's results last week actually beat forecasts by more than I'd thought originally.

INSE themselves highlighted that they'd achieved 1.74p adjusted fully diluted EPS, and this against the forecast 1.7p EPS.

But hidden in Note 5 one can see that the adjusted basic EPS, which most companies highlight, was actually 1.84p EPS:



Kudos to INSE for being conservative, but there's no point in holding good info back.

1.84p EPS puts INSE on a historic P/E of just 9.5.

[rivaldo] 05/6/2020 11:09

Good to see the full 18p offer price being paid for buys now.

[rivaldo] 05/6/2020 07:28

Peel Hunt have retained their forecast of 1.9p EPS this year, as well as the 25p target price.

That's a P/E of only 9.2 at the current 17.5p. And reinforces the substantial director share buying.

[1gw] 04/6/2020 12:38

Nice quick move back up.

[rivaldo] 04/6/2020 09:07

True :o)) But the CEO does always come across very impressively imo, particularly in person.

Still looking good online - you can sell at least 160,000 at a premium at 16.5p, whilst the maximum you can buy is only 60k at 17.45p.

[luffness] 04/6/2020 08:35

Have you ever seen a Proactive interview that wasnt positive?

[rivaldo] 04/6/2020 07:37

Positive new interview with the CEO:

[melody9999] 03/6/2020 23:02

followed the substantial BOD buying by re-entering this morning. happy to get in at a lower price than the insiders paid.

[wanttowin] 03/6/2020 17:49

Crikey what's with the 2 massive trades totalling nearly 8 million shares ?

[rivaldo] 03/6/2020 11:29

The sizeable director buying and the 250,000 buy at 16.9p just reported mean online is looking encouraging.

You can now sell at least 160,000 at a decent premium at 16.38p, whilst you can only buy a maximum 60k at almost the full offer price.

[1gw] 02/6/2020 17:08

Good to see the director buying. I did sell some this morning, but it remains a top 5 holding.

[rivaldo] 02/6/2020 15:20

Large director share buying today at between 16.9p-17.4p....by the entire Board.

That's just over 1,400,000 shares at a cost of around £240,000.

Most importantly the CEO has bought almost £100,000 of shares. And the CFO - who's normally the least wealthy and most cautious Board member - has bought almost £75,000 of shares at 16.9p.

[rivaldo] 02/6/2020 13:30

The Corporate Order Book had increased to £60.1m at the end of April (from £57.5m at 31st December), so it was still looking very good/secure well past the end of Q1.

And INSE had visibility over £40m of revenues from the Corporate division at 30th April - plus further revenues from Ignite and the small SME division. That's well over 80% of last year's total revenues secured already.

Plus actual consumption in April was "notably higher" than their downside scenario, and SME activity turned upwards in May.

There will have been some disruption in May - as INSE say themselves - but the country is swiftly moving out of lockdown and this disruption will have only been material for one to two months. Costs have been cut and losses mitigated.

Given the income already secured for Q1 and the high visibility going forward, INSE should be in a good position to produce positive results for this year.

[riverman77] 02/6/2020 10:06

They say the first quarter saw no impact on the corporate division, but I get the sense that there has since been a significant impact (makes sense as there would clearly be a big drop in energy consumption).

The outlook section states - 'the group was largely unaffected by Covid19 until very late in March' - my reading of this is that they are indeed now seeing the impact.

Personally I've sold with a view to buy back cheaper - it's been on a good run and on past form it does tend to slip back following rallies.

[rivaldo] 02/6/2020 09:37

INSE are on a historic P/E of 9.5 now.

They've already secured a large part of the current year's revenues - and that's whilst the lockdown has only just begun to ease.

The dominant Corporate Division has barely been affected by COVID-19.

They have a transformational opportunity already being sold into in Optimisation Services resulting from Net Zero Carbon and ESG - which "represents a significantly greater market than traditional Assurance Services".

In this market, that's all you can ask for from a company that's not based on biotech or online game playing :o))

[buoycat] 02/6/2020 09:13

I think you'll find all financial results have the "going concern" thing. I imagine it's a legal requirement

[ygor705] 02/6/2020 09:08

Sold most of mine this morning. No point in hanging around on the back and ifs and buts in this market.

[wanttowin] 02/6/2020 09:01

Tad disappointed in the market reaction..I suspect share price could sink back to the 14's..I'll be ready to add if it does

[1gw] 02/6/2020 08:42

I think they've done ok, and the "going concern" comments are probably the result of an "abundance of caution" in scenario planning, but they do illustrate that even the apparently strongest companies are not guaranteed to get through this thing without taking a significant hit.

Given what I think is their relatively strong financial position, they should be well-placed to emerge in a stronger competitive position once the dust settles. In particular the "private equity backed consolidators" who appear to have been somewhat trashing the margins in their SME space in 2019 might be expected to be more vulnerable in terms of balance sheet structure. In this context relaxing covenant tests in advance and deferring the dividend make sense - both increasing the chances of survival and providing more capacity to react quickly should opportunities arise.

But given INSE is still my 4th biggest holding, I'm more likely to reduce than add at this point.

[ygor705] 02/6/2020 08:28

Can't see anything to get over-excited about here and the deferral of the dividend is disappointing. Not sure that I agree with Peel Hunts assessment.

[rivaldo] 02/6/2020 08:06

Peel Hunt retain their Buy and 25p target: