Investors have traditionally looked to energy consultant Inspired Energy’s (INSE) order book as an indicator of future levels of growth. They are likely to be pleased with its latest update, announcing growth in the procurement corporate order book of 60 per cent to £41.2m, a record for the group. Inspired also hit record levels for its revenue and profit, with adjusted cash profit growing 26 per cent to £4.71m for the half year. Growth owes a lot to recent acquisitions – such as energy procurement company Informed. All together, the acquisitions added £12.6m to the order book from the year-end, which is doubly significant as the backlog represents "a consistent guide to the future performance". The group is continuing to look for potential deals and has entered new borrowing facilities for £29.6m, including £12.5m earmarked for acquisitions – hardly surprising given the contribution by acquired assets this time around.
The group grew across both of its divisions, but management was keen to stress that it remains focused on the corporate business, which now accounts for 91 per cent of group cash profits. The SME business grew sales 15 per cent to £3m, but is “by no means the growth engine”, reflected by flat headcount through the period.
Analysts at Shore Capital are forecasting adjusted pre-tax profit of £8.6m, giving EPS of 1.3p in 2017 (from £6.4m and 1.1p in 2016).
| INSPIRED ENERGY (INSE) | ||||
| ORD PRICE: | 20p | MARKET VALUE: | £113m | |
| TOUCH: | 19.5-20p | 12-MONTH HIGH: | 21p | LOW: 12p |
| DIVIDEND YIELD: | 2.4% | PE RATIO: | 27 | |
| NET ASSET VALUE: | 3p* | NET DEBT: | 72% | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2016 | 10.2 | 1.9 | 0.33 | 0.13 |
| 2017 | 12.2 | 2.2 | 0.37 | 0.16 |
| % change | +20 | +13 | +12 | +23 |
| Ex-div: | 7 Sep | |||
| Payment: | 14 Nov | |||
| *Includes intangible assets of £23.7m, or 4p a share | ||||
