Still under the radar.
17.8p to buy this morning, could go lower but I had a little top up.
Going ex div on the 7th of June.
That divvie of 0.39p earns you just over a 2% return in 21 days (providing the share price goes no lower of course)
A little test I have started applying to my potential investments is this one I picked up from an elderly chap who had a very successful time in the markets.
CASH FROM OPERATIONS (Found in the Cash Flow statement)
Must be higher than
OPERATING PROFIT (Found in the Income Statement)
I can't remember, or understood the ins and outs of it but It is proving to be a useful stock selection tool.
Share price movements always surprise me. They very rarely are logical or make sense. The number of times Ive seen a Company report good results and the share price go down is very common. Of course you always get sages coming forward with their wisdom that the results where not as good as the market expected Rubbish. There are usually wheels within wheels and MMs working their own game especially in the Aim market. As winningstreak says DYOR. If the fundamentals of a company seem good then the sp will eventually reflect that. It seems to me that this Company is in a good position. Stay with it or buy I agree with winningstreak it is cheap at this price.
It never ceases to amaze me how cheap a share price can go,
also the opposite, how expensive a share price can go.
Here we must be looking at a rock bottom low entry
point for those who might want to come on board. The
upside potential from current 18p has to be considerable,
possibly as much as 50% within one year, IMO.
But as always, do not take my word for it, DYOR and/or
speak to your financial adviser.
p.s. Meantime I am fully invested here, up to and indeed
a bit over my self imposed limit for a single stock.
Given this bullish outlook comment, there could be substantial upside from here if the "strong trading" continues:
"I am delighted to report on a very strong period of growth for the Group across all key areas: financially, operationally and strategically, which is a testament to the value of our customer proposition and the talent and dedication of our staff. In 2017, the Group completed three value-enhancing acquisitions within our core Corporate Division, a debt refinancing and a £9.0m equity placing, providing an excellent platform for the business to continue to deliver on our stated growth strategy. I am pleased to report the integration of all three acquisitions concluded in 2017 is progressing well and they are each performing in line with expectations.
"Inspired Energy had an excellent 2017 and I am confident that 2018 will be another year of significant progress for the Group, with strong trading in the current year to date."
I do not have the latest EPS forecast at hand, but I am pretty
sure EPS for the current financial year will be no less than
1.7p. At that rate the shares are currently looking very cheap
at just 19p, indeed I would go as far as to say Dirt Cheap.
If I weren't already fully invested, I would be filling my boots
right now. The shares are worth at least 25p when comparing
to anything else going in the market.
However, do not just take my word for it, DYOR and/or speak
to your financial adviser.
Lots of moving parts to the company now, looks very much like a company entering a new phase of growth.
Out there on the Fylde coast they have access to plenty of well educated graduates from Preston and Lancaster Uni's.
I have been watching for ages but finally made my first buy today.
A genuine Growth stock with plenty of legs yet.
"The Procurement Corporate Order Book has increased to £39.0m as at 31 December 2017 (2016: £28.0m) representing a year on year increase of 39%. This remains a consistent guide to the future performance of the Group, providing strong visibility of revenues for FY 2018 and the next three years, enabling the Board to look forward with great confidence over the short to medium term."
Canaccord's updated target price at 33p does sound a little optimistic,
whilst at the same time being appropriate for the shares of this excellently
managed progressive company. I can see a considerable uplift from the
current low price of 18.5p, as buyers are bound to come in once they see
the bargain to be had here.
Thank you Gretel for always quickly sharing the latest news, here and
There may be some confusion over EPS. This year's adjusted
EPS figure at 1.57p is up by 28% on last year's adjusted EPS
figure of 1.27p But looking at the Basic EPS figure (0.48p)
without taking into account the background to the reduction
there, one may well get the impression (certainly at first
sight) that INSE has not fared all that well. But add back the
exceptionals and amortisation (all to do with the earnings-
enhancing acquisitions), and we arrive back at the more
realistic performance-reflecting figure of 1.57p EPS.
Going by past performance and the robust outlook, II reckon
we shall see EPS for the current financial year come in
at somewhere between 1.7p -1.8p. Makes the shares look
rather cheap at 19p, or am I missing something? Add the
nicely growing Dividend, then... what is there not to like!
I hold long term, very long term I hope.
Joatmon - Never, never ever put all your eggs in one basket, that is
my motto, I do not care what anyone else says. Most of my shares
are below 10% of my portfolio, but ones like INSE can be as high as
20% but that is where I ultimately draw the line. So should INSE go
belly-up (although extremely unlikely) then I still have 80% of my
portfolio intact. Apart from my shares I have some other investments,
so a 20% blow from an individual stock will not keel me over. Should
I, however, have no other investments, then my line would probably
be drawn at 10% or 15% for an individual stock.
That is broadly how I operate. My results over the years have been
It has always perplexed me how often a Co reports better than expected figures or even as expected yet the share price goes down. I wonder if some computer system is triggered. Anyway it is often a good time to jump in which certainly appears the case for this Co.
It is remarkable how the share price of a good company can be
low and the price of mediocre and/or dubious company can be
high (plenty examples to be found).
In my view, INSE's performance record and robust outlook, as
well as nice dividend growth, warrant a share price of not less
than 25p, yet the shares can currently be bought for under 20p.
I have bought to my self-imposed limit for an individual stock
(self-imposed limit for balanced portfolio). I hold long term.
P.S. For those who are sitting on the fence, I do not think the
share price will loiter for very long below 20p / IMHO.
Three late trades from yesterday just reported of 3.8m shares at 20p, which may well have been behind the flat reaction to the results.
Meanwhile, the IC today say Buy, and their thoughts reflect mine given the expansion into the water sector and the high order book - I note that Peel Hunt again seem to have a much lower forecast than others, so can only guess they have a different calculation method:
"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 at £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 the net debt up 37 per cent to £14.8m, though 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 (2017: £8.4m, 1.3p).
Trading at 14 times forecast earnings, shares in Inspired are now comfortably ahead of their historic average. However, with a Bloomberg peer group average of 17.5 times and the group expanding into the water sector, we see further upside ahead. Buy."
I topped up this morning for long term hold. Now just about
the largest holding in my portfolio. Quite safe I would say, and
the dividend beats interest in the Bank, whilst there is ongoing
Gretel - Great summing up! I entirely agree, but you forgot to mention
the very substantial rise in Dividend. The shares are cheap at current
price (21.1p) I reckon we'll see a gradual rise to 25p+ over the coming
months. INSE has a remarkable ability out-perform and in my experience
never disappoint. A good share to own.
Excellent results, with 1.57p EPS and a strong order book up almost 40% year on year.
Plus also two earnings-enhancing acquisitions announced separately, costing a maximum £5.9m and bringing in £0.62m of operating profit. And that profit is historic so should have increased nicely by now.
In particular, the outlook quotes "strong trading" for this year to date, with confidence in "significant progress" for the Group.
It's ironic that such results should be published on the same day as UTW issues yet another RNS'd reminder of why INSE should be the preferred choice of any corporate customer looking for an energy specialist.
Gretel, even Peel Hunt's figures (the lowest) are good enough to me.
One would expect Peel Hunt as housebroken to be closest to the mark.
On one thing there can be no doubt, INSE is making excellent progress
in increasing sales and profits in a fantastic growth market.
"Shares in Inspired Energy (INSE) are up 2 per cent this morning following a trading update from the group. Trading on all fronts has been strong for the group and it expects to report results in line with expectations, with revenue and order book increases of 28 and 39 per cent respectively. Buy."
Canaccord have 1.63p now historic EPS for last year and Panmure have 1.5p EPS.
For this year Canaccord have 1.82p EPS, and Panmure 1.8p EPS, rising to 2p EPS next year.
Peel Hunt are the outliers, with historic 1.24p EPS and 1.48p EPS this year. I haven't got their research and tend to dismiss this as out of date - INSE made 0.78p EPS in H1 alone.
Given 1.8p EPS for this year (2018) a 21.5p share price would seem extremely good value on a P/E of only 11.9.
Future looks bright here. I topped up this morning (despite being at
my self-imposed limit for a single stock), I reckon we shall see a decent
rise over the weeks/months ahead. Honest management, operating
an honest outfit, making excellent progress in a growth market.
Well you know which company to invest in - when you can trade again in UTW. Yes, INSE where you can trust the company to perform.
'Utilitywise plc (AIM:UTW), a leading independent utility cost management consultancy, today announces that the Directors have now concluded that the Company will not be able to publish its annual audited accounts for the year ended 31 July 2017 ("FY17") by 31 January 2018.
Accordingly, trading in the Company's shares will be suspended pending notification of its FY17 full year results. Trading will be temporarily suspended from 7.30am today until such time as the results are published, in accordance with AIM Rule 19.
I pressed the botton for Strong Buy after my comment, but with so much of Interactive Investors new platform, it ddoesnt seem to be working consistently. For example, there is nothing of today's company announcement in the News section.
I will try again!
Going from strength to strength. All acquisitions paid off. Cash generative so I am looking for more earnings accretive acquisitions during 2018.
'Inspired Energy continues to deliver on its growth strategy and expects to report results in line with revised market expectations, which were upgraded twice during 2017:
· Group revenues are expected to be c.28 per cent ahead of 2016, with adjusted EBITDA* expected to be c.33 per cent ahead of 2016.
· Procurement Corporate Order Book stood at £39.0 million (2016: £28.0 million) representing year on year growth of 39 per cent.
· Cash generated from operations is expected to be c.42 per cent ahead of 2016.
· Net debt is expected to be approximately £14.7 million at the year end.
· Trading on all fronts remained strong throughout the year and this trend has continued into the start of the new financial year.
· Integration of Flexible Energy Management Limited ("FEML") and Churchcom Limited ("Churchcom"), acquired in April 2017, is progressing well and in line with plans.
· Acquisition of Horizon Energy Group Limited ("Horizon") completed in July 2017, increasing the geographical presence of the Group and strengthening its position as a market leader in Ireland.
· Horizon traded in line with Board expectations in H2 2017, and trading in 2018 has started strongly.
· Final settlement, in cash, of the outstanding consideration due to the vendors of STC Energy and Carbon Holdings Limited, Wholesale Power UK and Informed Business Solutions.
- in line with twice upgraded expectations
- order book up a whopping 39%
- EBITDA up 33%
- trading is "strong" and this has continued into 2018
- good to see Matthew Thornton remaining as an NED, confirming that JT's stepping down was amicable as previously explained
Very bullish outlook comment:
"I am pleased to report all three acquisitions concluded in 2017 are performing in line with expectations and the integration process is progressing well.
"Inspired Energy had an excellent 2017 and I am confident that 2018 will be another year of significant progress for the Group with trading in the current year to date strong."
Good to see buying now at the full 20p offer price.
The year end trading update is due soon, with the last couple of years being 30th and 28th January.
Given the confident outlook in the interims as below, I'm hopeful these results will be nicely in line at worst and perhaps better than expectations to some extent:
"The announcement of the strategic acquisition of Horizon after the period end will provide a platform to leverage the capabilities of the Group with the aim of becoming a market-leader in Ireland, and the net contribution from this and the two acquisitions in H1 enable us to look ahead into FY 2018 with even greater confidence.
"As demonstrated by the half year results and our key performance metrics including the Corporate Order Book, which continues to grow significantly both organically and through acquisitions, the Group is in an extremely strong position to continue to deliver a robust performance throughout the remainder of 2017 and beyond. On behalf of the Board, I would like to thank all of the Inspired team for the hard work over the past six months, as we look forward to completing another exciting year of growth and development of the business."
I agree with the Daily Mail's assessment that 25p a share is on
the near horizon. INSE has an enviable track record of Sales &
Profit Growth. And prospects for further rapid growth look very
positive indeed. Best value share in my portfolio.
"Our top stock was Inspired Energy, which helps companies to save money on their gas and electricity bills. The stock, which Midas recommended in February, has risen by exactly 50 per cent to 19.125p and brokers believe it should reach 25p over the coming months.
Inspireds performance is all the more impressive as its founder and chief executive Janet Thornton resigned abruptly in October for personal reasons. The company has reassured investors that her departure had nothing to do with the shape of the business and brokers remain optimistic about Inspireds prospects. Importantly too, a new chief executive was instantly appointed Mark Dickinson, an energy consultant with a successful track record of running energy firms.
The group buys energy on behalf of companies, using its scale to negotiate cheaper terms than individual firms could obtain. Inspired also advises businesses on how best to manage their energy usage.
Profits for 2017 are expected to rise by almost 40 per cent to £8.5 million with £11 million pencilled in for 2018. There is a decent dividend too with 0.6p forecast for this year, rising to 0.7p next.
Thornton and her team built up Inspired by serving existing customers well, acquiring new ones and encouraging new and old to buy more services from the group. Dickinson will maintain this approach but is likely to accelerate growth through acquisitions.
Midas verdict: Existing shareholders should stick with Inspired. New investors could also find value at 19.125p."
Whilst the weather-related heating demand was expected, the reduction in flows via a number of terminals was not, Nick Campbell, an energy risk manager at Inspired Energy Plc, said by email. Therefore this has left the system tight and battling to pull in more gas from the continent.
Based on PE-ratio, annual Growth and respectable Dividend,
I consider INSE the best value stock in my portfolio.
In my view the shares deserve to be trading at above 25p.
I believe the broker.'s target price is 29p. So a nice stretch
ahead when the retrace reverses into a rise
Willow67 - Although the departure of CEO Thornton can be viewed as
a negative, it should be recognized that the Company's structure is:
(quoting from statement) "now firmly embedded, and a proven strategy which
combines organic growth with selective acquisitions - we have a very
strong platform from which to continue our growth", That does sound
jolly positive to me. INSE is in my view a healthy growth company,
operating in a field of growing demand. The low PE-ratio and the rising
dividend add further to make INSE a very attractive investment..
I'm out of the shares fully today following this bounce. I have no idea where the shares are going from here, possibly a lot higher, but there are couple of red flags for me I am not comfortable with. 1) Resignation of the founder / ceo leaving a board of just 3 executive directors, with a ceo who only joined 12 months ago as a non-exec and a number 2 who as been there even less time. In summary 2 new people running the company. 2) The b/s is weak.....£20m of real debt vs a lot of intangibles and receivables and almost no cash. I think a false move here would put them in a bit of trouble.
There are lots of there great opportunities out there without needing to take these risks
Yep, good news - not only has the STE Energy/Carbon Holdings acquisition earned almost all of its deferred consideration, which was based on a "challenging financial target", but that deferred consideration will now be paid in cash rather than shares, so less dilution for us shareholders:
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