Listed energy company returns to profit
Listed energy company Inspired is back in the black as revenues grew by nearly 50%.
The company said 2021 was a year of ‘significant progress’ across the group, both financially and operationally.
Revenues for the 12 months to the end of December 2021 grew to £67.9m, up from £46.1m in the previous year, an increase of 47%.
Adjusted EBITDA also grew 55% from £12.8m to £19.8m and pre-tax profits grew from a £4.5m loss in 2020 to £1.1m in its latest financial year.
During the period the group also completed acquisitions of Businesswise Solutions and General Energy Management.
There was also a big drive towards providing enhanced opportunity to cross sell its Net Zero Carbon services, enabling clients to remove carbon from the environment and this will continue to be a focus in 2022.
Inspired added that trading in Q1 has started in line with expectations as the Group continues to manage the current macroeconomic and geopolitical uncertainties.
New business sales have started ‘particularly well’ with the orderbook values of new customer contracts signed in the first two months of the year being some 93% ahead of the previous year.
In regards to the recent energy crisis, the group said as corporate businesses do not benefit from an energy cap, the price inflation will impact those businesses more significantly.
Its revenues and profits however are not directly impacted by changes in energy commodity prices.
Market conditions, including record high commodity prices, have led to some customers delaying renewals of supply contracts, which is predominantly the point at which assurance customers contract with the Group, it said.
Management believes this is a point of timing, not contraction of demand, with customer retention remaining consistent with previous years during the period at around 85%.
Mark Dickinson, CEO of Inspired, said: “Despite the changing landscape, we are delighted to report on a period of significant progress across the Group in 2021, both financially and operationally.
The performance reflects the continuing recovery in energy consumption, alongside a return to on site access to client premises, accelerating the delivery and implementation of energy optimisation services.
“Turning to current trading, we are pleased that Q1 has started in line with expectations, and we are continuing to successfully manage the uncertain macroeconomic and geopolitical backdrops. Inspired remains focused on helping its clients manage their costs and sustainability challenges through this crisis.
“Looking ahead, the trend towards greater ESG focus coupled with strong growth of the Group’s revenues, and adjusted EBITDA in the year, has created a strengthened platform capable of generating long-term growth, and underpins the Board’s confidence in achieving our financial goals.”