Those who have followed our coverage of energy services group Inspired Energy (INSE) since last year will be aware of the tendency of the order book to closely predict future growth. If that trend continues, 2018 should be a strong year for the group as its corporate order book was up 39 per cent to £39m at the end of last year. Headcount in the division – the group's largest – also rose considerably to 210.
But the amortisation of acquired intangibles and costs associated with three acquisitions made in 2017 dented statutory profit and earnings figures. Strip those out and pre-tax profits were up 38 per cent, while EPS rose 24 per cent. The acquisitions also pushed net debt up 37 per cent to £14.8m, although rising adjusted cash profits meant the net gearing position reduced.
Management announced two acquisitions alongside the results. The first, SystemsLink, provides energy management software while ECM, the second, provides management for both energy and water, and also adds water engineering capabilities to the group. The deals are to be funded by up to £5.9m in cash and shares.
Analysts at Peel Hunt are forecasting adjusted pre tax profits of £11.1m, giving EPS of 1.5p in 2018 (from £8.4m and 1.3p in 2017).
| INSPIRED ENERGY (INSE) | ||||
| ORD PRICE: | 21p | MARKET VALUE: | £ 120m | |
| TOUCH: | 21-22p | 12-MONTH HIGH: | 25p | LOW: 15p |
| DIVIDEND YIELD: | 2.6% | PE RATIO: | 44 | |
| NET ASSET VALUE: | 4p* | NET DEBT: | 59% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2013 | 7.6 | 1.75 | 0.35 | 0.17 |
| 2014 | 10.8 | 2.98 | 0.59 | 0.25 |
| 2015 | 15.2 | 3.49 | 0.65 | 0.35 |
| 2016 | 21.5 | 4.02 | 0.71 | 0.45 |
| 2017 | 27.5 | 3.55 | 0.48 | 0.55 |
| % change | +28 | -12 | -32 | +22 |
| Ex-div: | 07 Jun | |||
| Payment: | 13 Jul | |||
| *Includes intangible assets of £33.3m, or 6p a share | ||||
