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:
Besides their target prices being well above current
share price of 18.75p, they expect upgrades to be likely. .
Pretty positive outlook, I woud say. I cannot see the
shares trading below 19p for long.
Happy to have a substantial holding here.
Peel Hunt have reiterated their Buy and 25p target, and Panmure Gordon similarly with their Buy and 23p target. The latter conclude as follows (with the P/E's based on a higher 19.3p share price):
"Valuation: after a strong run, the shares of both INSE and UTW have come off this
month, leaving INSE with 19% upside to our fair value level. The shares currently
trade on an undemanding PE of only 10.7x (Dec18) falling to 9.6x (Dec19) for 20%+
expected top line growth on 35%+ margins. We expect upgrades to consensus
earnings forecast in due course, and remind investors that the recent move into the
large and ripe Irish market affords the possibility for incremental good news on new business. Buy."
And with Panmure forecasting 1.5p EPS this year rising to 1.8p EPS, and Canaccord going for 1.63p EPS rising to 1.82p EPS, hopefully the recent slide has left INSE cheap enough for the CEO news to be already in the price and more.
Just after complimenting the CEO yesterday, I am sorry to see
the RNS today about her stepping out. lmost certainly for health
reasons, I would say.
However, the Company is now well established and trading in
line with expectations. Still on the right growth track then.
A shame to see Janet Thornton leave- "personal reasons" implies she's had some sort of family/medical crisis. Best wishes to her, and congrats on her success over the years. As an aside, I notice that Matthew Thornton remains on the Board, which confirms that the issue relates solely to Janet Thornton.
In particular, it's good to hear today that:
"The Group has an established acquisition strategy in place and the strong performance in the first half of 2017 has continued with the Group trading in line with the Board's expectations."
"With the Group structure 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, as demonstrated in the robust performance of the Group in the first half of 2017."
Against my principle of having too much riding on one stock, I
topped up today at 19.4p. A bargain price in my view. INSE
is a very well managed company, with a sharp CEO at the helm.
Going from strength to strength, I would say..
Gretel - Tends to happen, a lull and share price down, but the trend
overall is up, and I reckon we'll see the next rise going to 24p+.
I am well invested here, but should the share price fall to 19.5p
(offer), then I shall top up. A great little Company this, very well
managed by a jolly capable CEO.
"Energy Awards 2017 Finalists!
15th September 2017
We are very excited to announce that we are finalists at the 2017 Energy Awards. We have been shortlisted for the "Third Party Intermediary of the Year (Over 50 Employees)" category.
The Energy Awards is one of the most respected energy events in the industry and the ceremony will be attended by some of the most senior operators in the energy market both locally and internationally.
The winner of the Third Party Intermediary of the Year (Over 50 Employees) category will be announced at the esteemed Hilton Park Lane hotel in London, where the award ceremony takes place on December 6th.
2017 has so far been a record year for Inspired Energy, and being recognised for this award is a true testament to our success. We are thrilled that the Energy Awards indentified Inspired Energy as a market leader within the sector and truly recognises our determination to offer the best possible opportunities and services to our clients."
gretel -- You are supplying us with plenty of good news about INSE. Here I have something for you
Have a look at ITM. . It is a hydrogen company that keeps getting more orders. I bought it at 18P and now it is 36p. You can find all you want to know from the London Stock exchange buy looking at, Regulatory News, and the Newsfeed- Alliance News. You can also read the new on the company news here on this channel.
"Why I'd buy Inspired Energy plc over BT Group plc
By The Motley Fool 22 Aug 2017, 12:29
Energy procurement consultancy Inspired Energy(LSE: INSE) delivered another cracking set of interim results this morning with revenue 20% higher than a year ago, cash from operations shooting up 36% and earnings per share rising 26%.
Growing order book
These double-digit growth numbers are in line with the directors' expectations, and the share price has put on around 54% since the beginning of the year to stand at today's 20p, which reflects the firm's progress. Looking forward, the order book is around 60% higher than a year ago, which suggests more good performance ahead. The directors expressed their confidence in the outlook by raising the interim dividend 23%.
Chief executive Janet Thornton reckons the growth in the order book is organic as well as via the firm's vibrant acquisition programme. During the period, it completed two bolt-on acquisitions and announced a third, a company called Horizon, after the first-half period ended. Horizon is based in Ireland, and the directors aim to build on operations there with the aim of making Inspired Energy a market leader in Ireland. Such potential international expansion suggests growth could have much further to run.
Strong forecasts for earnings growth
City analysts following the firm estimate that earnings will increase 16% during 2017 and 16% in 2018, which looks attractive if they are correct. Meanwhile, today's 20p share price throws out a forward price-to-earnings (P/E) rating just under 12 for 2018 and a forward dividend yield running at almost 2.9%. Those forward earnings should cover the payout a healthy-looking three times, which is generous cover consistent with the directors' apparent view that plenty of ongoing opportunities exist to invest in the business for further growth.
Inspired Energy is delivering well on growth and it's hard to make a case that the shares are expensive. I find the stock attractive and would rather take my chances on the firm's ongoing growth story than with a business that looks like it has gone ex-growth such as telecoms provider BT Group (LSE: BT.A)."
An uplift in H2 to EPS 0.82p and hey presto, we have EPS 1.6p for the year.
Should not be too difficult to achieve 0.82p considering that earnings in H2
are generally above H1 (in part due to H2-weighting, and part due to rising
trend in earnings anyway). Personally I expect Basic Adjusted EPS for the full
year to come in above 1.6p, probably close to 1.7p.
How can you make these judgements boys? I cannot find the latest PG forecast, so it is hard to be precise, but which EPS are you using? They quote basic at 0.37p, but there is also diluted basic, adjusted basic, adjusted diluted basic and alternate adjusted basic and alternate adjusted diluted basic. I agree the highest is 0.78p but I am baffled by which we should really use.
- the order book is up 60% and looks great for some years going forward
- acquisitions are bedding in successfully (two in H1 and the biggie subsequently)
- the outlook is very bullish
- "strong cash generation"
- further acquisitions on the cards
First up is Inspired Energy, which was founded at the turn of the millennium and floated onto the Alternative Investment Market (AIM) market in 2011. It provides consultancy for commercial and industrial clients who are looking to reduce energy costs and usage.
Since its IPO, the stock has outperformed its FTSE AIM All-Share index by almost eight time with gains of 457.03 per cent.
"Inspired Energy did a placing in June this year of 14.5p to raise money to acquire a competitor in Ireland," Power explained.
"We started investing in this company in our EIS [Enterprise Investment Scheme] portfolios about seven years ago when the company was making a profit of £1m. Today it's making profit of £10m and, with this Irish acquisition, that will jump to £14m so it will be very earnings-enhancing for them.
"With a £75m market cap it's just under the radar of the bigger small-cap investors so, on the back of this acquisition they've completed and some share price appreciation following the acquisition, we expect it to appear on the radar screen and re-rate to nearer 12x or 14x earnings.
"We think you will see this company continue to make acquisitions and to do well. We think it will make profits north of £20m over the next few years."
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