Listed energy firm on acquisition trail

LANCASHIRE-based Inspired Energy has bought Informed Business Solutions, an energy procurement and environmental services provider, for up to £4.25m as it continues to consolidate the market.

Informed, which had a turnover of £1.7m and profits of £700,000 in its last financial year, has a strong presence in the multi-site retail and leisure markets for energy procurement, which Inspired said made it a complementary addition to its own core corporate division.

Inspired Energy has paid an initial £2.25m in cash and shares for the business, with a further £2m to be paid in four tranches, subject to financial performance up to 2018. All directors of the Kirkham-based business will remain with the enlarged group for at least 12 months.

The enlarged group’s procurement corporate order book, which it said provides strong visibility of revenues and is a consistent guide to the future performance of the firm’s corporate division, stands at  £28.8m as a result of the acquisition.

Janet Thornton, chief executive of Inspired, said: “We are delighted to conclude the acquisition of Informed which is a highly complementary addition to the group’s core corporate division. The acquisition broadens our customer base, further enhances our sector specialisms and strengthens our service offering within environmental consultancy.

“We look forward to working closely with the highly experienced and knowledgeable team of Informed and welcoming them into our core corporate division as we seek to advance our position as a market leader.”

Inspired Energy’s latest financial results saw revenues rise by 56% to £10.16m and adjusted profit before tax increase by 44% to £3.31m in the six months to the end of June.

The energy company has enjoyed significant growth in its corporate division since its acquisition of Wholesale Power UK in July 2015, which provided the group with entry into new industry sectors, including leisure and logistics.

It also bought STC Energy and Carbon Holdings in November 2015, an energy bureau, billing and management service provider to large multi-site organisations, enabling further diversification of customer base both regionally and by sector, including entry into the public sector and generating additional revenue streams.

Gateley’s Manchester office acted for Inspired Energy on the deal. The team was led by corporate partner Paul Jefferson, assisted by corporate solicitor Leigh Whittaker, banking senior associate Richard Cowan and banking solicitor Abigail Sowden.

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