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This is an excellent H1 results presentation, lasting 40 minutes:
Highlights for me:
- guiding to a base case 1.3p EPS for next year, which is based on conservative/prident assumptions. If that's the worst case then that's good news
- there could be 3-5 acquisitions in this H2. this would move INSE to a 20% share in the Assurance space (from 13%), making INSE easily the dominant player
- the ESG opportunity is getting bigger and is now, with the Sustainable Finance Disclosure rules coming into force next March
- Ignite has won its first new major customer, and second cross-sell has gone into trial stages
- the LSI acquisiton in August, which wasn't RNS'd, was for nil consideration (there may be contingent consideration) could produce £2.5m revenues and £750k EBITDA in 2021. This looks a terrific deal
- INSE look after 2,800 UK businesses. This should increase to 3,800 - all of whom have ESG potential
So this morning's RNS explains half of the 17 million trades last Thursday. Premier Miton selling 10% of their holding. Still a big player, though.
Inspired Energy (INSE) half year results, in a presentation to analysts 9.9.20 by Mark Dickinson, CEO & Paul Connor, CFO.
INSE are featured in this new report on how energy data optimisation can hugely benefit businesses:
"edie launches new business guide on energy data optimisation
edie has today (9 September) published a new report outlining all the key considerations, challenges and benefits to investing in energy data optimisation to assist with low-carbon strategies.
Research suggests that “simple” measures such as installing energy-efficient lighting and better heating management could create more than £45m in energy cost savings across 4,150 analysed sites.
In addition, edie surveys have revealed that energy managers are hoping to focus on data optimisation and smart technologies such as Artificial Intelligence to accelerate low-carbon plans.
But energy data optimisation offers a lot of different options for business. What is energy data optimisation? Why should a business optimise its energy data? What are the costs and challenges of energy data optimisation? This new edie Explains guide answers everything you need to know about the topic.
Energy data optimisation is a complicated topic. However, in layman’s terms, it is about how an organisation can make the most of the energy data it has so that it can understand exactly how much energy it is consuming and identify where it can make improvements in usage and efficiency.
However, there is a multitude of considerations that businesses must explore when looking at energy optimisation. This free-to-download guide, sponsored by Inspired Energy, offers best-practice advice on how to reap the benefits of energy data optimisation.
The report features an expert viewpoint from Inspired Energy’s optimisation manager Daniel Crowe on how the topic can assist with the wider net-zero transition.
“While the nuts and bolts of metering and energy management are nothing new, it feels like there has been a resurgence in attention on energy data availability and quality,” Crowe states in the guide. “This is no surprise considering the combined drivers of an impending recession, mandatory schemes driving data collection at a company level (ESOS, SECR) and the rocketing interest in net-zero carbon targets.
“At Inspired Energy, we are strong advocates of simplifying- and where possible automating - data collection and reporting. Supporting the use of automatic meters wherever possible, to get all your data into one system and start generating the maximum value from the data you already collect.”
Overly gloomy outlook, moneyspider?
You can't have it both ways. If we go into another lockdown you're implying a smaller sized market. If so, why would start a business in a declining market. Very high risk especially if you have little market credibility.
Even if the market is bottoming out prior to a later upturn (which is where I actually think we are as we will defeat this virus ultimately) then, again, it would be very difficult for a start-up to break into the market with no track record and no critical mass to offer lower cost.
Yes some chunky trades. Think that the confidence that we might go into a second lockdown seems to be increasing which will have a large effect on the corporate market segment. Also really think that there is an opportunity from start up's to offer competing services at a lower cost. Tough times ahead for a while, difficult to value the business.
Yep - nice to see the price tick up on those huge volumes today - 17.4m shares traded already.
Some pretty chunky trades in the last couple of hours. Someone increasing their stake or someone dumping shares?
Must be an RNS due, surely, this afternoon or tomorrow morning?
New interview with the CEO:
- after buying the remainder of Ignite INSE have another £21m to deploy in H2 this year, probably to be utilised in three to five transactions/acquisitions
- INSE's market share for assurance services would then increase from 13% to 20%
- reinstatement of dividend is evidence of confidence going forward
- increased demand for zero-carbon and INSE's ESG initiatives
Given the appalling commercial damage caused by COVID 19 and markets still trading far below pre-COVID levels, together with energy consumption dropping so dramatically that oil could not be given away (remember those days..?) the Half Year results from INSE have held up remarkably well. Combined with a successful placing adding strength to the balance sheet, the fundamentals are strong indeed, certainly the basis for future acquisition and profit.
My thoughts too, rivaldo. A little underwhelming but then quite acceptable given the challenging economic times we're in.
Nice to see the return of the dividend
Also, like you, nice to see the balance sheet shored up along with the positive outlook going forward.
I've run out funds for a top up but not for selling either at these levels.
PS you still in OPG, rivaldo? I've been increasing my holding there, hence lack of funds to throw any more in here. For fear of sounding all rampy, OPG does seem a little oversold to me.....
Decent H1 results given the pandemic - 0.66p EPS in a severely affected H1, with trading now improving fast and the Balance Sheet much strengthened after the recent placing and completed acquisition of Ignite.
INSE have two major growth opportunities in (1) the cross-selling of Ignite and (2) ESG/zero-carbon services. Once these start to kick in there should be a transformation of revenues and profitability.
Meanwhile, it's good to read that trading is currently in line, and that COVID-led disruption may accelerate INSE's opportunities:
"Trading remains in line with the Board's expectations and the Board believe the Group is well positioned to take advantage of the acquisitive growth opportunities that continue to exist for Inspired Energy and which may be accelerated by the disruption caused to its markets in 2020 by the COVID-19 pandemic."
Great to see little ol' INSE newly tipped by Richard Penny in Money Week as a "bargain basement" stock - he's an extremely well regarded fund manager, now at the TM Crux UK Special Situations Fund:
"An energy consultancy charging ahead
Inspired Energy (Aim: INSE), an energy consultancy, has an excellent record of helping firms find the best deals from energy utilities. Recently it has started to help firms save energy as well, a market that is twice the size. This should lead to faster growth and stronger relationships with customers; it will also burnish its green credentials. It boasts a financial record of steady growth and good margins, and the shares are very modestly valued. With growth accelerating and a growing interest in environmental stocks, we think Inspired Energy should do well in years to come."
I was thinking a big order must be being filed, rivaldo. Yesterday saw a series of apparent sells, yet the sp ticked up. Looked to me like someone was buying behind the scenes but wtfdik........?
As you say, though, nice to see it ticking up again.
Strong early move up today - and on very low reported volumes too, suggesting that stock is scarce.
Good to see the price rising again and the bid price back up to 15p.
Good to see Fidelity up above 5% with 48.6m shares:
Incidentally, Peel Hunt's forecasts per their recent 2nd June 2020 note are:
this year : 1.9p EPS
next year : 2.1p EPS
At 15.15p that's a current year P/E of only 7.9.
Peel Hunt will update their forecasts after getting more insight to H1 consumption, but even if they reduced to say 1.5p EPS this year, INSE would still look very good value at the current price. Especially with the easing of lockdown and a clear path to next year's 2.1p EPS forecast.
Well, kind of, licker, I suppose. The recent placing means the eps has been trashed with 200 million more shares in play but then we now have a fighting fund for more acquisitions (to, hopefully improve earnings going forward).
don't forget though with that very high PE ratio alot of earnings growth is already fully priced in!
Drat - not 'nogreen' just 'green' I my posting below. I am almost as green as you Qd22 - I can assure you!
...and you have holidays, too!!!!???
Anyhow, glad to see you're still around and, as ever, finding interesting nuggets of information.
As for me I try to look at this investment (and all investments) as objectively as possible and, even accounting for any, nogreen-tinted or any other type of bias, I can't see any reason why INSE shouldn't return to 20p plus over the forthcoming months. I'm not ramping here, just looking at the performance of the company, board statements and looking at the strategy of the company which has been playing out largely in line with those boardroom statements.
Anyhow, GLA but DYOR (and all that)
I like that - convictionless green!
"We are green, but only because it's going to make you/us money."
Makes me think, now fingers are to keyboard. I've been er, slightly, moderately, a little bit somewhat green ever since uni in the 70's. Sort of sickly pale lime! Still eat meat - some - and the electric car experiment has come to a sticky end, for now. But always aware of what I am doing, and what it costs the planet, looking to avoid the excess, looking for the best alternative. Looks bad, but in a way is it the way to go? Attenborough said recently words to the effect of "if we could all just avoid WASTE".
And I've avoided companies that are major polluters or climate killers, or funds that don't take that into consideration. Looks like they expect a lot more like me...
Hi BurnleyMan, apologies - been away on hols for 10 days, so incommunicado! And INSE's been pretty quiet, so nowt to comment on. H1 results are on 3rd September, so not long to wait. Huge volumes yesterday are a healthy sign.
Here's some good news - the Diverse Income Trust, for whom Gervais Manager is a Fund Manager, have just released their Annual report.
They have a £3.6m investment in INSE, and they have this to say about INSE and its green credentials:
"Although the Trust does have a policy of investing across most industry sectors, one of the factors that the Manager takes into account is the risk that some industry sectors may become so unpopular that gradually all other institutional investors will avoid them altogether. If this occurs, then there is a danger that the Trust will be unable to liquidate a holding. The Trust has already scaled back its holdings related to coal extraction companies for this reason.
Conversely, there are quite a few UK-quoted businesses working in sectors that have a positive impact on carbon emission targets. Inspired Energy, which monitors the power and water consumption of their customers, to help them reduce wastage is one example. Over recent years, Inspired Energy have extended their service so that they can provide auditable data on the annual carbon emissions of their clients. At present, the valuations of many of these kinds of companies are often no higher than others in the portfolio, because numerous smaller quoted companies are overlooked by other investors. In time however, we do expect the valuations of stocks that are making a positive impact on the climate change agenda to move to premium valuations. As this occurs, it is expected that it will enhance the returns of the Trust."
....when s/he's needed????
After a couple of days where there's been 6 buys totalling about £3.5m just wondering if our resident sage (no, really) here, rivaldo, has any thoughts on what's going on. Of course, if anyone else has any ideas that, too, would be most welcome.
Hopefully a return to the sp moving forward and with strong results being delivered in the next few weeks.
So, two very big buys today and the share price doesn't move an inch. Must be a very big seller out there too, I suppose, unless anyone else has any theories?