Inspired Share Discussion Threads

[rivaldo] 19/8/2021 09:07

INSE and Research Tree have just combined to make Shore Capital's and other research available on INSE's Web site for free - great to see INSE being so proactive and investor-friendly.

The latest full Shore Capital note is dated 31st March for reference:

[rivaldo] 18/8/2021 09:13

Nice buy trade of 645,750 shares at 21.125p reported last night.

New article about carbon insetting (as opposed to offsetting) and achieving net zero:



Incidentally, £50,000 of buys can easily cause the price to tick up if there's a lack of stock around, particularly on a quiet day and/or in relatively tightly held companies like INSE.

[1gw] 13/8/2021 10:42

Just now I can apparently sell 100k at 20.47p but can't get a quote (HL online) to buy 50k. So presumably a buy order in. And if they can't tempt sellers out at a headline 20p bid perhaps they'll move it up to 20.5.

[buoycat] 12/8/2021 19:49

Suggesting the price has moved up because of a relatively small share purchase of less than £50k is oversimplification in my view. Otherwise what's then stopping the price falling back? The price moves to balance where buyers and sellers are deemed equally keen to trade. The purchase could equally well have been initiated by the price rise. A trader hoping to catch positive momentum, or even fear of missing out. The price can drive trading rather than the other way round.

[rivaldo] 12/8/2021 08:22

New recent highs now - nice move over 20p, prompted by 263,000 of buys in the first few minutes of trading today.

I suspect the 1.7m of shares reported at 19.7p after the close yesterday may also have helped clear the decks....

[rivaldo] 11/8/2021 15:12

Nice buying coming in - 382,000 shares bought in the last hour, at rising prices and now at 19.95p.

[rivaldo] 09/8/2021 15:16

Today's report on climate change from the Intergovernmental Panel on Climate Change’s (IPCC) Working Group is the lead item on the news everywhere.

INSE have just posted a follow-up item as to their clients' needs and expectations for net zero, including this:



"At Inspired Energy, although we are seeing momentum in public net zero pledges from UK businesses, our sponsored research ‘Net-Zero Business Barometer’, published by edie, revealed that of the 161 respondents, just under half – 45% – claimed their organisation is yet to set a net zero target, with the remaining 3% unsure if one has been set.

We also found there was a very low-level of understanding surrounding Scope 3 emissions and the role they play in an organisation’s carbon footprint (typically they make up around 80%+), as less than a quarter of the respondents asserted to be working with their value chain to tackle their Scope 3 emissions. We’ve no doubt that the concept of Scope 3 will gain traction with the introduction of the Task Force on Climate-Related Financial Disclosures (TCFD) obligations coming down the line.

However, it was very encouraging to see a large number of respondents now have budgets allocated to decarbonisation, with a quarter of respondents controlling a budget of £500k+. Interestingly, about half of respondents hadn’t set a net zero target even though they had a budget for decarbonisation. Inspired Energy has seen an uptick in interest in funded options, so where there is a desire to do more but there is a lack of budget available, we can discuss your funding options for low or zero carbon technology projects.

From this piece, Inspired Energy’s Director: Optimisation Services, Ben Rouncefield-Swales commented “This research gives some real insight into the current net zero landscape amongst UK businesses. The data is encouraging, with some genuine reasons to celebrate – given the increasing awareness and growing action – but there is certainly a lot more work to do.

When developing a net zero strategy, businesses who want to drive real change will need to think carefully about target-setting – and we would strongly encourage that you use a Science Based Target (SBT) – a target that is aligned with the goals of the Paris Agreement. A net zero strategy that follows an SBT is the best way to demonstrate that your organisation is contributing to global emissions reductions in a robust way. These targets must be backed up by robust and credible action plans to be able to stand up to external scrutiny.”

The conversation surrounding net zero is getting louder, but we understand that not all of it is clear. And while some business leaders may understand the problem, not everyone knows how best to tackle it. As the UK’s leading utilities consultancy[1], we have the experience needed to support your carbon reduction ambitions.

With our Carbon Action Programme, you can access specialist support at every step of your decarbonisation journey. Our team will work with you to create a bespoke decarbonisation strategy for your business and provide you with business cases for all of the options you will need to meet your target. To discuss what net zero means for your business and where to begin, contact us today on 01772 689 250 or email [e-mail]."

[rivaldo] 04/8/2021 12:11

News that Star Pubs & Bars yesterday partnered with INSE to reduce energy bills by 10% for all their licensees:



"Star Pubs & Bars negotiates supplier deals to help licensees in wake of Covid-19 pandemic

03-Aug-2021 By Michelle Perrett

Star Pubs & Bars has revealed that it has negotiated new supplier savings for its licensees as they focus on cost-cutting in the wake of the Covid-19 pandemic."

[rivaldo] 04/8/2021 07:33

Looks like a strong NED appointment today, with a confident closing commentary:



"The Board looks forward to benefitting from Dianne's knowledge and expertise as we work towards another year of significant growth and development."

[rivaldo] 21/7/2021 13:46

Cheers Mas - and further M&A is expected to increase target prices further:

"Helped by well-timed acquisitions, the “digitally-led, scalable platform is fully capable of delivering double-digit organic EBITDA growth and attractive cash flows,” said Peel Hunt.

Opportunities for further M&A in fragmented markets add to the investment case, argues the broker."

“Moreover, this target price is supported by our DCF model above. Clearly, any further M&A would lead us to review the target price.”

[masurenguy] 21/7/2021 10:07

Inspired PLC’s pace of evolution and growth is being underestimated by the market, according to Peel Hunt, which rates the group as a buy with a 25p target.

[rivaldo] 19/7/2021 09:10

Hi Brucie5. I can't help directly as I don't subscribe to Stocko, but I can say that I never, ever, trust metrics on financial sites as in my experience they're almost always wrong or nonsensical and don't give the true picture! That's particularly so in the case of companies which are in the process of being transformed or are turning around - I always DMOR.

The re-rating here should continue nicely assuming the recovery flagged in the 30th June AGM statement remains - as it should, and indeed it could accelerate with the removal of COVID restrictions.

Hopefully therefore what we have here is:

(1) a fast-recovering core business with big potential for synergies and cross-selling
(2) a huge opportunity in ESG which INSE are ideally placed to spearhead
(3) the likelihood of more earnings-enhancing acquisitions in a fragmented market to catalyse further growth

[brucie5] 17/7/2021 12:11

Can anyone explain to me why INSE doesn't meet with any positive screens on Stocko, given these excellent metrics? Value is in the the red at 19. Only thing that is good, is momentum at 86.

PE Ratio (f)
13.7
PEG Ratio (f)
0.2
EPS Growth (f)
171.3%
Dividend Yield (f)
2.04%

Historically this also seems to be near the top of its 5 year range, which would suggest a ceiling at 22p. It would need a strong surge to break into a new range. I'm interested, and have held before, but can't quite see the 'outer', which would need presumably to be in terms of growth in earnings.

I also read the article in the IC, and the opportunity seems to lie in this para:

“Inspired is the leading player in the growing but fragmented corporate energy services market, and has significant opportunity to gain market share through client wins, proposition extension, and mergers and acquisitions (M&A)."

[rivaldo] 16/7/2021 10:39

Here's the full article from the IC today:



"Shares I love: Inspired

Ken Wotton tells Leonora Walters why he thinks that Inspired’s revenues and share price have the potential to rebound
July 15, 2021

Increasing complexity of corporate energy requirements, and regulatory and sustainability imperatives could help Inspired to grow organically
It is also in a position to make acquisitions

The company's revenues and share price could rebound in a more normal environment
Ken Wotton, manager of funds including LF Gresham House UK Micro Cap (GB00BV9FYS80) and Strategic Equity Capital (SEC), explains why he invests in energy services and procurement specialist Inspired (INSE).

“Inspired is the leading player in the growing but fragmented corporate energy services market, and has significant opportunity to gain market share through client wins, proposition extension, and mergers and acquisitions (M&A).

“The company [helps] clients, generally large corporates, to procure energy cost-effectively, audit and report their usage of it, and optimise energy efficiency. The increasing complexity of corporate energy requirements and increasing regulatory and sustainability imperatives will support continued strong organic growth for the company with a likely flight to quality leading to further increases in its market share. Inspired’s business model is strong with high quality of earnings from long-term contracts, high margins and return on capital, and good cash conversion.

“Strategic Equity Capital’s initial investment in Inspired was made last year as part of a placing to strengthen the company’s balance sheet and provide [it with the] firepower to undertake a number of bolt-on acquisitions to consolidate its position in the market. We believe that these deals will be attractive financially and strategically.

“But [some of our other funds first] invested in Inspired when it listed in 2011, initially taking a 9.4 per cent stake. [And we had] worked with its management team on areas such as board composition and management incentives prior to the initial public offering. Since 2011, we have regularly engaged with the management team on various projects, most notably business strategy, raising capital for expansion and board composition and planning.

“Although Inspired’s revenues are depressed due to lower corporate energy usage in 2020, there is significant opportunity for a rebound in its revenues and share price when there is a return to a more normalised environment. The company remains well-capitalised and positioned to drive growth and execute further M&As once market conditions normalise.

“Inspired also has strong environmental, social and governance (ESG) credentials. It has a strong focus on sustainability, and [offers] services that help clients measure, report and improve their ESG performance.”

As of 31 March, Gresham House funds in aggregate held 19.8 per cent of Inspired’s shares.

Inspired has recently changed its name from Inspired Energy to reflect the structure into which it has evolved. This comprises three divisions.

Inspired Energy delivers energy, water, and sustainability assurance and optimisation services, so businesses can manage their costs better, reduce their carbon efficiently and meet net-zero targets. Inspired ESG specialises in solutions that enable investors and businesses to make effective ESG disclosures. And Inspired Software delivers technology and software that underpin services provided by Inspired."

[rivaldo] 16/7/2021 08:29

The good news is that due to "strong institutional demand" those institutions have today bought another almost £1.3m of shares in INSE at a very respectable 19p each.

The bad news is that those shares came from director exercises of options etc and subsequent part-sales.

I'll give them some leeway in this case. They mostly date back to a 2017 LTIP. Most importantly, the actual profits arising to the two directors after tax and exercise prices are pretty piddling in overall terms - only around £168k for the CEO and £205k for the CFO. Plus they retained 1.8m of the shares arising, leaving them with meaningful resulting shareholdings.

[rivaldo] 15/7/2021 22:47

INSE have been tipped tonight in the IC by Ken Wotton (the senior fund manager at Gresham House).....

Anyone got the full article?



"Shares I love: Inspired

Ken Wotton tells Leonora Walters why he thinks that Inspired’s revenues and share price have the potential to rebound
July 15, 2021

Increasing complexity of corporate energy requirements, and regulatory and sustainability imperatives could help Inspired to grow organically
It is also in a position to make acquisitions
The company's revenues and share price could rebound in a more normal environment

Ken Wotton, manager of funds including LF Gresham House UK Micro Cap (GB00BV9FYS80) and Strategic Equity Capital (SEC), explains why he invests in energy services and procurement specialist Inspired (INSE).

“Inspired is the leading player in the growing but fragmented corporate energy services market, and has significant opportunity to gain market share through client wins, proposition extension, and mergers and acquisitions (M&A)......"

[rivaldo] 08/7/2021 07:29

Huge potential for INSE from the government-led requirement for energy performance certificates (EPC) in coming years:



"By 2030, the government wants all rented commercial properties to have an energy performance certificate (EPC) of B or above, a proposal that Jefferies expects “to become law”. However, only about a quarter of British Land’s and Land Securities’ portfolios reach that rating at present. Jefferies estimates they will be saddled with a bill of between £700 million and £800 million to sort out their buildings."

Here's INSE's take on how they can help:

[rivaldo] 06/7/2021 23:30

Nice 750,000 share buy at 19.4p reported at the close.

[rivaldo] 06/7/2021 10:31

Good to see an NED buying her maiden stake in INSE - and a decent chunk too at £25,000's worth at 19.5p:

[rivaldo] 30/6/2021 14:42

Brief analyst comment here:



"House broker Shore Capital said: "With recovery out of the pandemic gaining momentum, 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] 30/6/2021 11:34

Nice bit of buying to go with it. Looks like we're threatening a 2-year closing high at the moment.

[rivaldo] 30/6/2021 07:10

Very solid AGM statement today, with the business trading nicely in line with expectations, including the new acquisitions, and:



"The underlying market dynamics continue to provide growth opportunities within Energy Optimisation Services and the Board is encouraged by the increasing traction in demand for Inspired ESG and Inspired Software."

[rivaldo] 24/6/2021 08:08

INSE have jointly produced a new guide for businesses looking to align their reporting with the recommendations of the Taskforce on Climate-related Financial Disclosures (TCFD):



"What are the TCFD recommendations? Why does climate disclosure matter? How do you access the financial impacts of climate change? And, what is scenario analysis? This free edie Explains guide gives you everything you need to know.

-----CLICK HERE TO DOWNLOAD THE GUIDE----

The Financial Stability Board’s (FSB) Taskforce on Climate-related Financial Disclosures (TCFD) is a market-driven initiative that provides a suite of recommendations for voluntary and consistent climate-related financial risk disclosures in mainstream company filings.

However, the Taskforce and the TCFD movement are still in their infancies and as such corporate adoption of the recommendations is still relatively low. This 10-page guide outlines all the key questions and considerations that businesses need to improve climate-related data disclosure in line with the TCFD recommendations.

With the TCFD recommendations now backed by more than 500 companies globally and the G7 confirming that climate-related disclosure will be mandatory at some point in the future, now is the perfect time for businesses to examine their own practices in alignment with the recommendations.

The guide has been produced with assistance from supporting partners Inspired Energy plc and features an expert viewpoint from the company's director of client management (ESG) Rosemary De Vos on why now is the time to get ahead on disclosure.

“While transparency on the risks is what is being sought here, investors are becoming increasingly aware of companies who are working on TCFD compliance today and those who are not,” De Vos said in the viewpoint. “This alone should be a signal for CSR, ESG and sustainability professionals across the private sector to recognise the need to deliver on TCFD disclosure in their own companies before April 2022 arrives.”