Energy procurement firm predicts increase in revenues and profit

Lancashire firm Inspired Energy has said it expects to deliver a strong set of results with growth in revenue, profits and cash.

The AIM listed energy procurement firm which is based in Preston issued a trading statement this morning.

Group revenues are expected to be approximately 21% ahead of 2017.

Group Adjusted EBITDA is expected to be approximately 24% ahead of 2017, and adjusted profit before tax approximately 22% ahead of 2017, both in line with market expectations.

Year-end procurement corporate order book stood at £53m representing year on year growth of 36%.

Cash generated from operations is expected to be approximately 37% ahead of 2017, further reinforcing the cash generation capability of the group.

Net debt is expected to be approximately £24m at the year end.

Trading remained strong throughout the year and this trend has continued into 2019, underpinned by the order book.

The completion of five strategic acquisitions in 2018, further enhanced growth opportunities and the service offering for clients.

• Acquisition of Inprova Finance Limited for consideration of £19.5m, completed on 27 December 2018, which has increased the Corporate Order Book, and will augment the contribution to group revenues, increasing the corporate market share and significantly strengthens the group’s position as market leader in the UK.

• Integration of Inprova has started well and in line with management expectations.

• Integration of Squareone Limited and Professional Cost Management Group Limited, acquired in August and September 2018 respectively, is progressing well.

• Systemslink 2000 Limited and Energy Cost Management Limited, both acquired in March 2018, are now fully integrated into the group.

Chief executive Mark Dickinson said: “2018 has seen the acceleration of our next growth phase with five complementary and value-enhancing acquisitions completed, whilst the group has continued to deliver sustained organic growth in the corporate division.

“These acquisitions have materially increased the group’s client meters under management (units of opportunity) and we continue systematically engaging with clients to quantify the cross-selling opportunities and increased accessible revenue at each meter point.

“We remain focused on delivering our core financial, operational and strategic objectives, whilst simultaneously broadening the service offering for our clients, to help them to optimise the value of every pound spent on utilities.

“Inspired Energy had an excellent 2018 and I am confident that 2019 will be another year of significant progress for the Group with trading in line with expectations.”