Energy group on track to achieve another record year

Half year revenues and pre-tax profits have increased at Inspired Energy, the Preston-based energy procurement firm, putting it on track to report another record year of results.

Turnover for the six months to June 30, rose 33% from £16.24m to £21.56m, while pre-tax profits of £3.23m were a 55% improvement on last year’s £2.09m figure.

Net debt rose 26% to £25.09m, but the interim dividend to shareholders also rose 16% to 0.22p per share.

During the six month period the company achieved record revenues in its corporate division, growing 36% to £18.68m, contributing 87% of group revenue for the period, up from 85% last year.

It also managed continued organic revenue growth of 6% in the corporate division, in line with the group’s stated target, while its adjsted EBITDA of £8.97m was a 40% increase.

The corporate order book increased to £55.4m in the period, compared with £53m at December 31, with strong customer retention and robust performance from significant new customer wins. The order book provides 12 months secured revenue of £28.4m, up from £26m at December 31.

The SME division generated revenues of £2.88m (H1 2018: £2.48m), growing 16% organically in the period.

Inspired Energy’s capital investment programme identified at the start of the year is under way and progressing in line with management expectations, resulting in the increase in payments to acquire intangible assets to £1.05m in the first half of 2019, compared with £1.51m in the 2018 financial year.

The company also completed the acquisition of an initial 40% of Ignite Energy in the post period, on August 2, with an exclusive option, until July 31, 2021, to acquire the balancing interest of 60% under the terms of an option agreement.

The board believes the strategic investment accelerates the group’s ability to deliver on the stated strategy to grow its market share within the third-party intermediary optimisation services market.

The investment in Ignite was financed from the group’s existing facilities with Santander.

Chief executive Mark Dickinson said today: “Concluding 2018 with the Inprova acquisition was a significant strategic milestone for the group.

“2019 has continued at pace with the acceleration of our next growth phase, further complementary and value-enhancing acquisitions completed in parallel with sustained organic growth.”

“The group is well placed to deliver another set of record results as we continue to benefit from further organic growth and the net contribution of recent acquisitions.

“On behalf of the board, I would like to thank all of the Inspired team for their continued hard work and commitment over the past six months.”