Adrian Hargrave, CEO of SEEEN, explains how the new funds will accelerate customer growth Watch the video here.
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You fail to mention that if Inspired's customers cant pay their utility invoices then the suppliers stop paying commission immediately. Furthermore contracting out customers to 2024 and 2025 doesn't mean anything if those customers cease trading as again energy suppliers dont pay the commission out.
I believe that Inspired's accounts will be very positive when published however this is in the past and the future is very uncertain for them.
Mindthedip, you are perfectly correct to point out that supplier commission forms a significant part of INSE revenue, but that can also be a positive. For most large energy users, core supply contracts are in place for years to come; as a competitor to INSE, our own clients have contracted out to 2024 and in some cases 2025, we suffer no bad debt (because the largest commercial suppliers are well funded) and clients are blue chip. There are very few AIM listed investments where revenue streams are predictable that far ahead; of course you are also correct in identifying the likelihood of short-term reduced consumption, but the long-term remains strongly upward. More people, more production, more schools, more hospitals. And in such a huge UK market, my team focus on retaining and expanding the client base. No doubt INSE will strive to do the same. UTW was a shocking but entirely predictable failure; INSE is in a different league. Not perfect by any means, but not deserving of a kicking either!
over half of revenues received through supplier commission... hmmm.. seems worth flagging "Accuracy"
Energy supply is second only to agriculture as the largest market in the World, so to dismiss leading UK players as a poor investment shows a very narrow perspective. And to see ill informed and quite frankly malicious attacks on Inspired Energy shows just how little is understood about the nature of energy services. As founder of a leading and very rapidly expanding energy partner, and as a strong competitor to INSE, I know exactly how INSE generate their revenues. Sorry if some of you lost money on Utilitywise but that is down to your herd instinct to invest without knowledge. Inspired is doing a great job in a difficult market, but one which can deliver great rewards too. So grow up, stop throwing stones. INSE is not UTW.
You only have to go on the Ignite website and case studies to see their client bases. You can then make up your own mind as to how they will be impacted
Almost invested after the Ignite acquisition but so glad I didnt. Their large corporate customer base is going to struggle with the current market conditions. Wonder what happens when the investments made by Ignite in energy-efficient installations cannot be paid back because their customers go bust? I believe Mark Dickinson said in the Mello London investor presentation that all of Ignite's customers comprise only 10 customers generating 12m revenue. Thats quite worrying now.
I don't disagree that they are going to take a hit on income because a proportion of their business is the commission from consumption but not all their income comes via that channel. I do think the recent acquisition will add to the overall concerns as its increased costs, (staff will be cut) but they have a good corporate client base who will be on a direct contract income so wont to be impacted by consumption. Their risk is how many of their clients will be standing in 3+ months and how they service the debt they have.
At this point in time, it is a risk to buy but the other side of that coin is it could be a bargain when looking back in 12 months
I think this company has had it! Sell!
eishhh... this is approaching their IPO... :(
oh of course it'll survive the corona-virus, no doubt (just like Utilitywise survived the first the time it's share price was suspended.. 12 months before it went bust!)...
but a business model based on a customer increasing their consumption is something it probably wont.. so let's all deny the reality.. but i'd rather hope for a more diversified business model (i just don't see it in their acquisitions).
all i can say is, i lost a lot of money on Utilitywise collapsed, looking back the hallmarks were all there..) INSE could be different though... couldn't it?
Today's massive fall here is not justified. INSE will survice the Corona crisis better than most, IMHO.
i'm not sure why the motive's relevant when the facts are so clear!
If this kind of post is popping up from someone with this posting history over two years, you have to question motive?
staggered that people are still buying this and more people not dumping it... 2 reasons...
do people not get the link between: the very high level of revenues received from commissions driven by customers kWh consumption AND the imminent closure of UK PLC for a period of time due to COVID-19...
for the same reason, (as above) a business model dependent on consumption VS the tidal wave of support for Net-Zero = much lower consumption..
for different reasons but similar outcomes, this looks like another Utilitywise in the making.. lets hope not, but i hear popping in the near distance.
Results will be on 31st March - less than three weeks away - and we know that they will be good from the trading update, which concluded as follows:
"Trading remained strong throughout the year and this trend has accelerated in the opening weeks of 2020, underpinned by the order book."
So INSE are now on a historic P/E of 9.2 given 1.8p EPS, and are strongly on track for 2p EP this year - a P/E of 8.25.
Inspired have an incredibly ‘sticky’ client book, their clients are so well serviced across a range of offerings it is near impossible to take business away from them. The market is awash with competition which to the untrained eye would be cause for concern. However this has the reverse effect for established consultancies like Inspired, their portfolio will be getting between 5-10 calls a day from rival firms. This bombardment of approaches cocoons the clients and pushes them closer to inspired. Inspired will have been running off tighter margins over the last 3/4 years as the wholesale cost of energy has been squeezing their profit. The recent drop in the market is well covered but not generally digested by business users. Inspired have a chance to renew key customers in their book taking advantage of wholesale costs to show value/savings, whilst increasing their profit from each deal. This is a very strong buy.
Continuing to bounce today. The P/E at 18.3p is now up to just 9.15 based on 2p EPS this year....
I'd have thought INSE should be one of the safest investments around in the current virus-affected market given their lack of exposure to the virus-affected supply chain.
And at 18.375p the P/E is now only just above 9 given 2p EPS forecast this year.
The shareholder list is worth noting - this list of major holders is rather impressive and now comprises almost 80% of the shares in issue!
Https://inspiredplc.co.uk/investors-shareholders/
Gresham House Asset Management 111,446,777 15.61%
Miton Asset Management Ltd 97,821,468 13.70%
Regent Gas Holdings Ltd 62,593,768 8.77%
Canaccord Genuity Wealth Management (Inst) 51,100,000 7.16%
Business Growth Fund 50,427,673 7.06%
Inspired Energy EBT 38,250,000 5.36%
Fidelity International 33,500,886 4.69%
Slater Investments Ltd 32,712,695 4.58%
Invesco 29,454,967 4.13%
Artemis 26,789,513 3.75%
Otus Capital Management 22,183,650 3.11%
Buys at the end of day again! All the research I've done is positive. Newbies please view interview with CEO posted by Rivaldo. Very impressive.
Rivaldo - That is excellent news. Surprised at there being no RNS from INSE, it is an important deal.
Excellent news just out today - looks like a major deal brokered by INSE for the NHS Property Services. Hopefully more to come....
Https://www.edie.net/news/11/-A-landmark-moment---NHS-to-boost-renewable-energy-sourcing/
"'A landmark moment': NHS to boost renewable energy sourcing
14 February 2020
More than 11% of the NHS's estate will be switched to 100% renewable electricity this spring, under new energy deals signed by its Property Services arm.
NHS Property Services (NHSPS) is responsible for more than 3,500 buildings, including hospitals, health centres and GP surgeries. These properties collectively total more than 34 million square feet.
Under new contracts signed through Inspired Energy, all of these properties will be switched to 100% renewable electricity in April. The contract will also see a shift to lower-carbon natural gas for heating.
NHSPS claims the switch will reduce its annual direct (Scope 1) and power-related (Scope 2) carbon emissions by more than 40,000 tonnes.
etc"
….and can't get a price now for a top up of 10000 shares....frustrating....but can't complain really....
13.64m shares going through this morning in 2 trades - the clearance of an overhang. Hopefully now onwards to 25p+ if all goes well.
I can visualize many a company suffering a knock or two from the virus-situation in China and its potential worldwide spread, but I certainly cannot see INSE being adversely affected in any way.
Impressive interview with the CEO - direct link here:
Https://www.proactiveinvestors.co.uk/companies/news/911855/inspired-energy-reports--acceleration-of-growth--as-it-steps-up-investment-911855.html
Highlights:
- 2020 visibility is excellent via the order book metric
- more acquisitions to come
- INSE's price side market is £400m, but the consumption side is £800m and rising due in particular to the zero-carbon compliance agenda, driven by compliance and regulation, i.e Sainsbury's recently announced £1 billion investment in this market
- Ignite acquisition : INSE currently earn around £220 per meter, but Ignite earn around £840 per meter
- Ignite was bought on the basis of £12m revenues and £3m EBITDA from just 10-12 customers. INSE have 500 customers whom they hope to roll out Ignite's services to over time
- INSE's two other more recent acquisitions take them into water leak detection and water consumption, plus more specialisation on the "heat" side