Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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Nice rise - hopefully just the start.
Ken Wooton (fund manager at Strategic Equity Capital (SEC)) has been a big fan of INSE and SEC is a large holder. He's had a big win this week with the takeover of MGP, which was his second biggest holding - hopefully he'll now buy some more INSE!
*delusional
What a load of rubbish. Firstly INSE is not an energy provider so why is it being claimed that they are top 10 provider ahead of SSE and BG in this video? Secondly not sure who they think is going to believe that shares are worth 20p let alone 35p.
Absolutely dillusional publication.
New video out today from Liberum's analyst - hopefully non Research Tree subscribers can view this.
Liberum have INSE on a P/E of only 8, and have a sum of the parts 20p fair value and a DCF/WACC from which they derive a 35p valuation:
Https://liberum.com/videos/research-reels-inspiredplc-19042023/?wemail=lilly.jones@liberum.com
FFS now whart?
Inspired CEO, Mark Dickinson, CFO, Paul Connor and CCO, David ****shott present the full year results for the period ended 31 December 2022.
Watch the video here: https://www.piworld.co.uk/company-videos/inspired-inse-full-year-2022-presentation-march-2023/
Or listen to the podcast here: https://piworld.podbean.com/e/inspired-inse-full-year-2022-presentation-march-2023/
In the new Shares Magazine out today, Ken Wotton, manager of Strategic Equity Capital, highlights INSE in an article about "how he chooses which stocks to invest in and how he continually reviews his portfolio to ensure it is suited to market conditions":
"Inspired (INSE:AIM) is a good example of the way in which we have sought to exploit the increased dislocation between share prices and business fundamentals
We invested in Inspired, which provides energy advisory and sustainability services to more than 2,900 UK businesses, having identified the opportunity through our investment platform
The business case is clearly attractive. Inspired helps its clients rise to the growing imperative to operate more sustainably – requirements that will only become more demanding – but also to manage their energy consumption more efficiently This is crucial to clients given the elevated levels of energy prices. It also provides Inspired with counter-cyclical qualities – businesses will be especially focused on cost reduction during a difficult period of trading
Importantly, Inspired has secured a high-quality management team that has extensive experience of building and exiting from businesses in this sector. It also has an attractive financial profile – its model features high margins, low capital intensity, and growing revenue and profits; it also cash-generative with an attractive and growing dividend per share
Looking forward, there is every prospect of active consolidation in the marketplace, providing Inspired with an opportunity to grow through acquisition, as well as the potential to attract trade or private equity buyers
In the meantime, the company’s valuation provides a generous margin of safety; its shares trade at a significant discount to those of its peers, and to recent M&A transaction multiples in the sector – as well as to the company’s own historical rating. Our investment in Inspired is a good example of how the platform and capabilities we have developed to conduct such thorough risk management reviews of existing holdings can also be leveraged to deploy further capital into existing
investments."
No, I saw that however the higher performance payment is only made because those acquisitions performed better than expected i.e. they sold more hence the increased sales. This doesnt get away from the fact that the cost of sales and admin expenses have increased 80% and 20% respectively.
The main winner out of this are the previous owners of the acquisitions as they have got a bigger payout than expected. Again very poor arrangement imo which squarely lands at Mark Dickinsons door.
Bargain. Perhaps you missed the £10.8 million performance payment?
So Inspired managed to increase revenues but still managed a £4m pretax loss?! Some simple business ideas here but dont sell your services for less than it costs to deliver them otherwise you dont have a business.
No wonder the share price has dropped 35% over the past year. This is poor from Mark Dickinson. They need to increase prices or reduce expenditure, neither of which is palatable.
https://www.sharesmagazine.co.uk/news/market/1680088254044398400/inspired-swings-to-loss-in-2022-as-costs-increase-but-raises-payout
Cheers Troajan, great to see the CEO so positive.
A reminder - there's an Investor Meet presentation today at 1.00.
As well as Liberum's initiation and 20p target, Shore Capital's new note forecasts 1.37p EPS this year, up from last year's 1.31p EPS despite higher tax, interest and deferred consideration shares this year.
They conclude (extracts):
"Good FY results, strong Q1...
The ‘ESG impact company’, providing specialist energy services and a partner to corporates in the UK and Ireland in the drive to ‘Net Zero’ has published a good FY report, in-line with our expectations as guided by the Company’s January trading update. The current year is indicated to have started well with momentum continuing. The performance achieved overall is against what has perhaps been the most challenging environment seen in UK energy markets. A testament then to Inspired’s strategy and deepening client relationships as a key partner to UK corporates."
"Forecasts and outlook.
The balance sheet performance delivered in H2, with cash collections meeting targets in the face of rapid growth in Optimisation, suggests to us a solid foundation to support Inspired’s strategy in leveraging the visible opportunities in front of the Group. We note the opportunities set out in the report to leverage Inspired’s growing client relationships, the Group aiming to drive ‘client lifetime value’ (CLV) across the divisions.
Management has set out a target of doubling EBITDA over the next five years and we can see how this may be achieved in our model. For now, we retain caution reflecting the still visibly challenging environment. We retain our EBITDA assumptions for FY23F and FY24, noting the significant potential we see for upgrades in normalising conditions. EPS forecasts are modestly diluted by higher interest, tax and deferred consideration shares due to vest in FY23F.
Valuation thoughts.
Inspired continues to evolve and offers investors solid ESG credentials and regulatory tailwinds in addition to long-term economic growth drivers. The Group trades (based on our updated estimates) on a FY23F PER of 7.5x (EV/EBITDA 5.9x), funded by a free cash flow yield in the 10% range. We look to further solid progress through FY23F."
Liberum became joint brokers with Shore only three weeks ago.
Hopefully with these two relatively large players in the small company space now backing them, INSE's message might start making inroads at a time when its prospects appear to be improving nicely and its fundamentals cheap on a historic P/E of 8.
Liberum have today initiated coverage with a Buy and a 20p target price.
And they have a 35p fair value based on DCF....
They see the adjusted PBT rising from £14m last year to £16.2m this year.
It's an 84 page report, so will take some time to read through!
In-line as expected seems a bit uninspired on the face of it. However record revenues with business actually boosted by the energy crisis and one is left wondering again how this bloody stock market really works. Debt increased by 4 million only because they had to make a performance related payment of nearly 11 million on an acquisition. Presumably they will be at least 11 million richer next year? Don’t expect the market to figure that out!
Results are as per the trading statement with 1.31p adjusted EPS.
The most important aspect is the extremely (and unusually) bullish outlook:
"Trading in Q1 2023 started with considerable momentum across the business which is consistent with management expectations of double-digit percentage EBITDA growth in year. Despite the ongoing macroeconomic and geopolitical uncertainties, the Board is confident of the Group's continued ability to deliver full year results in line with expectations"
Cash generation was excellent at almost £22m.
Some won't like all the adjustments to reach the headline numbers, but the core business is evidently doing rather well, and with (1) energy costs remaining a huge issue and (2) ESG's importance only growing, then INSE's prospects should remain bright for some time to come.
Nice 8% rise in the divi to 0.27p shows confidence too (and a decent yield at the current share price).
It looked extremely cheap long before clarkson’s stuff hit the fan. Dont know how much cheaper it can look without being totally ridiculous. did they upset the market at the last placing a couple of yers back possibly? I dont mind if they can afford to up the dividend again. The sp only matters when you want to sell which obviously if you are a hapless fund manger you feel compelled to do to waste your clients money as happened recently. Debt is. Bit of a question mark. Will be interesting to see how that is working out
Good to see the price ticking up to 10.15p now before tomorrow's results and presentations.
Shore's forecasts are for 1.3p adjusted EPS, with £88m revenues, £21m EBITDA and £15.1m adjusted PBT.
INSE should look extremely cheap if the outlook from the year end trading update is reiterated:
"Mark Dickinson, CEO of Inspired, said: "In what has been the most challenging year ever seen in the energy markets, I am delighted with the Group's excellent operational and financial performance, exceeding expectations in revenue growth and delivering EBITDA and net debt in line with market expectations, with strong cash generation in H2 2022.
"With a sales pipeline that is at record levels, and a notable acceleration in Optimisation and strong growth in our ESG practice we are increasingly demonstrating that we are the market leading solution at a market leading price point, and therefore we are confident of future success."
Impressive new NED appointed today - "over 25 years of capital markets experience, which includes positions as Head of Investment Banking at Liberum Capital and senior leadership positions at Merrill Lynch across cash equities and investment banking in London, Frankfurt and New York":
Https://uk.advfn.com/p.php?pid=news&symbol=L%5EINSE
A little consolidation phase now, hopefully before the next move up in the run up to the results on 29th March.
Encouraging news:
Https://inspiredenergy.co.uk/inspired-plc-named-number-one-by-cornwall-insight/
" 24th February 2023
Inspired PLC has been named the number one Industrial & Commercial (I&C) energy advisor in the most recent Cornwall Insight annual TPI (Third Party Intermediary) Index report for 2022. Inspired was ranked above 110 other UK consultancies.
The report rated consultancies on the number of contracts and meters they negotiate per year, their annual billed volume, the number of staff they employ, and the revenue attributed to the business.
Chief Commercial Officer of Inspired, David ****shott on, commented:
“Despite many challenges over the past 12 months, I’m proud to see that Inspired PLC has once again secured the number one spot for the I&C sector in this year’s Cornwall Insight report. This achievement has confirmed our position as the market leader in the UK.”
Cornwall Insight’s report was launched in 2014 as an independently researched analysis and review of the market for consultants and the services they offer. The Cornwall Index report has placed Inspired as the UK’s number one I&C advisor since 2018.
Inspired offer support and solutions to UK organisations to meet their utilities challenges and help them navigate challenging energy markets. Our experienced experts have helped thousands of businesses secure cost and carbon savings across their site portfolio.
With market price increases and decarbonisation pressures to meet the UK’s 2050 net zero goal, Inspired can help your business achieve its energy and sustainability goals."
Looks like a further 2.5m buy from earlier today at 10.75p just reported late. Nice.
Nice buying first thing today - just over 1.5m shares bought already, resulting in a small tick up, including a 550k, a 500k and a 344k.
The buy price has been steadily moving up and is now the full 10.6p published offer, which hopefully augurs well.
....and moving up again to 10p bid after just a £5k buy. Hopefully a signal that there's not much stock around.
Good to see the bounce continuing - 150,000 shares just bought at 10.14p-10.19p seem to have made the difference.