The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Two large 1.7m share trades at 16.57p this morning - followed subsequently by a nice move up.
Maybe more trades atill to be reported, or perhaps clearance of an overhang, who can say.
Gresham House continue to buy. They now own over 20%, with 195.45m shares (their last increased holdings RNS was almost a year ago with 190.2m shares, so they've added over 5m more shares).
The last three holdings RNS's have all shown institutional buying, from Slater, Chelverton and now Gresham House. They seem to be taking up the slack from bored PIs....
Https://www.investegate.co.uk/inspired-plc--inse-/rns/holding-s--in-company/202110181129453985P/
Thanks for the info Rivaldo. The link appears not to work. Finally worked out Stratigic Capital are part of Gresham House. Ken Wooton dd an interview with PI world back in April I think suggesting the market hadn't cottoned on to INSE yet. Not very up to date on institutional RNS holdings. Slater is the last one with a small increase back end of May. There has been some rather persistent large selling of late so surprised not to see any RNS news. Can they all have confused this with an energy supply company? If anything I would think their services will be more in demand than ever.
Continued from prior post......
"The corporate order book grew 10% yoy which bodes well for the company’s trading prospects into the latter stages of 2021 and beyond. The non-core SME-focused division, which represented less than 10% of Group revenues was weaker, and in November the company announced that they had sold this part of the business to the management team for £10.5m. Over the period four acquisitions were completed: Ignite Energy, previously a 40% owned associate that provides energy optimisation services; and LSI Energy Holdings, Businesswise, and GEM, all of which provide energy assurance services and bolster the company’s core offering.
In addition to this, the company launched a range of ESG consultancy and data measurement services; following this the company renamed itself to Inspired plc to reflect the increasing importance of non-energy related services to its proposition. Strategically, all of these developments are positive and are in line with our investment thesis."
Strategic Equity Capital this morning announced their results to 30th June - and INSE are a new holding in their portfolio. So much so, that INSE are now their fifth largest holding, at a cost of £9.1m and 6.3% of their total portfolio.
Here's the summary of their investment thesis:
Https://www.investegate.co.uk/strategic-equity-capital-plc--sec-/prn/final-results/20210930070000PF149/
"Inspired (formerly Inspired Energy)
Description
Is a leading UK B2B corporate energy and ESG services specialist. The company works with their clients, generally large corporates, to procure energy cost effectively, audit and report their usage of it, and help them to optimise their energy efficiency. The company has a strong focus on sustainability with a number of services that help their clients measure, report and improve their ESG performance.
Thesis
Inspired is a leader in the growing, but fragmented, corporate energy services market. The increasing complexity of corporate energy requirements, and increasing regulatory and sustainability imperatives will support continued strong organic growth for the company with a likely ‘flight to quality’ leading to further increases in market share.
The business model of the business is strong with high quality of earnings from long term contracts, high margins (40% EBITDA margin) and return on capital and good cash conversion. The fund’s initial investment was made as part of a placing intended to strengthen the balance sheet and provide firepower for the company to undertake a number of bolt on acquisitions to continue to consolidate its position in the market. Although the company’s revenues were depressed due to lower corporate energy usage over lockdowns, there is significant opportunity for a rebound in revenues, and in the share price, when there is a return to a more normalised environment.
Over the medium term there are strategically attractive opportunities, both organic and inorganic, to gain market share and broaden the range of services offered, particularly in ESG-related areas.
Developments in the period
The company delivered results that were in line with expectations, although trading remained subdued due to Covid restrictions over the period weighing on corporate energy usage. The core corporate division experienced a significant 20% organic decline in revenues as a result, although through management actions margins and cash conversion was robust."
maybe you should read the last RNS and look for clues about how high electricity prices impact 55% of their revenue.
The dreaded EO. Always kills a stock. Knocked about 20% off so far. Think the extra shares hit the market today. Should be outlawed. Take the same risk as us shareholders
Thanks
At the current 19.5p, the P/E for the year starting in only four months is only 12.8, which in itself is pretty cheap.
The PEG for the company is also just 0.75 based on the 17% growth forecast from this year to next. This is of course the measure most favoured by Jim Slater. Any company trading on a PEG of less than 1 is seen to be good value, so a value of 0.75 is extremely good value.
Why do you say cheap? At 1.3 eps our PE is quite this year, 13 on fwd view to next. What sector wide ave are you using as benchmark
The H1 results read well imo, particularly the confidence in meeting expectations. More acquisitions look on the cards, and a full period's trading without the lockdowns of H1 should see the group operating at full steam ahead.
Consensus from 3 analysts is now 1.3p EPS this year rising to 1.52p EPS next year. Looks cheap to me.
Good results.. All KPIs solidly up. This business needs a decent investor relations person. It shouldn't be below the radar like this. Its in the perfect sector good growth and great results
The half year results seem to show its recovery is working well. If it goes up .05p a day for the next year will be quite happy!
Look at the very large buys again! Crazy this must pop soon
https://piworld.podbean.com/e/inspired-energy-inse-full-year-2020-results-presentation.
This is from April, but great insight into the business and its restructuring after fund raise of 30 million just over a year ago, its ESG credentials and the savings it offers its 3.500 corporate clients in GB and future international expansion plans . Still on poultry rating on stockopedia, but the one thing I find about Stockopedia is they are very slow to latch on. Stocks moving up the ratings are the ones to buy and the ones with the high ratings often best to sell, like BOTB most recently.
licker. I think thats hat we say about a lot of shares especially on the London market which is why we are seeing a record number of takeovers. Ken Wotton of Gresham Trust signled this one back in April on Pi world when the sp was hovering around the 15/16p. Its a real slow burner, which I don't mind. I'd rather see a steady rise a bit like Sur. He sited that it was just not on the radar yet. Like Sur once the part time institutions get back to there desks next month and do a bit of digging I expect they will see the value here. I agree it is rather strange that thee consistently large buys have not yet had more of an impact. I would hope to see the price to least double by the spring. If the market takes off again then maybe a bit more. A lot of uncertainty around still though. Gl
Can't understand why price not far higher
New post explaining how INSE can reduce companies' energy bills by:
- timing energy purchase
- increasing efficiency/reducing waste
- checking bills
Https://inspiredenergy.co.uk/three-reasons-why-your-businesss-energy-bills-are-so-high/
New article from INSE about the Government's new Hydrogen Strategy announced this week, and "how it will meet its ambitious target of 5GW of low carbon hydrogen production capacity by 2030":
Https://inspiredenergy.co.uk/the-uks-hydrogen-strategy-heres-what-you-need-to-know/
INSE and Research Tree have just combined to make Shore Capital's and other research available on INSE's Web site for free - great to see INSE being so proactive and investor-friendly.
The latest full Shore Capital note is dated 31st March for reference:
Https://inspiredplc.co.uk/research/
Https://twitter.com/research_tree/status/1427995150614253574
Nice buy trade of 645,750 shares at 21.125p reported last night.
New article about carbon insetting (as opposed to offsetting) and achieving net zero:
Https://inspiredenergy.co.uk/carbon-insetting-drive-down-scope-3-emissions/
Nice to see this but it's not driven by retail trader volume.
Wonder if a institutional big buy order in and they are slowly raising the price to flush out sellers and get it filled. CEO did say they are struggling to fill institutional demand.
New recent highs now - nice move up to 20.5p, prompted by 263,000 of buys in the first few minutes of trading today.
I suspect the 1.7m of shares reported at 19.7p after the close yesterday may also have helped clear the decks....
Nice buying coming in - 382,000 shares bought in the last hour and a half, at rising prices and now at 19.95p.