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Last year a half year update was issued on september 6th. As yet we have had no announcement for this year about trading update. With prices easing and price cap being lowered would hope this helps the business on many counts. Ken Wotton is fund manager of about five funds. Wonder why that is. O yes he has two takeovers this year netting me 50% gains following his opinions. I thought the purpose of theses boards was to comment on our vested interests. Why would you bother if not invested or interested? ‘Ouch it doesnt look good’ is not particularly informative. Most of the market is the ouch it doesnt look good category at the moment for obvious reasons. Sometime it will be ouch I missed the bull market if you dont stay tuned to what is actually going on in a company rather than commenting on the vagaries of of the current impotent market movements.
So boring. More repeated 'info' from those with vested interests.
FYI Liberum's is an 11 page note - here's their summary:
"Order book growth underpins outlook
The H1 update guides to good progress in H1, with momentum in Q1 continuing into Q2. We introduce H1 FD EPS of 5.0p which implies an H1 weighting of 39%. We expect IAS 17 net debt to increase from £37m at FY 22 to £48m at H1.
We maintain our FY 23 FD EPS estimate of 13.0p, despite an increase in expected interest, and maintain our net debt estimate. We expect that the order book is growing due to new business generation, longer contracts and higher retention at Assurance. Looking at the divisions: 1) At Energy Assurance, limited growth in year but new business wins and improved retention; 2) At Energy Optimisation there is continued strong growth as customers continue to focus on ESG, helped by cross-sell; 3) ESG is also growing very fast from a low base, and benefitting Optimisation.
A CY 24 P/E of 6.9x is attractive given the growth.
The H1 update guides to good progress in H1, with momentum in Q1 continuing into Q2. Each of the four divisions is trading well. We expect interim results on the 11th of September.
We introduce H1 FD EPS of 5.0p which implies an H1 weighting of 39% For the first time we introduce earnings estimates for H1. We assume sales increase 9% (all organic) to £44m, and that the EBITDA margin remains stable at 23.9%. We assume that EBTDA grows from £9.7m to £10.5m. If we assume £2.4m of DA that suggests EBIT of £8.1m, an EBIT margin of 16.2%. We estimate H1 FD EPS of 5.0p, which represents an H1 weighting of 39.0%, and we assume H1 DPS of 1.4p."
"A CY 24 P/E of 6.9x is attractive given the growth. Inspired has a low carbon beta, but that should change as its ESG credentials become more apparent. Growth in newer areas like Optimisation, Software and ESG, should accelerate growth and drive a re-rating. Our SoTP suggests a TP of 200p."
Just to add, Shore Capital forecast 13.7p EPS this year against the 91.5p share price.
Shore Capital are also bullish - extracts as follows:
"H1 trading, momentum and confidence
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 announced a trading update for its H1 period to end June this morning. This confirms good operational and strategic progress across Group activities.
Accordingly, Inspired is confidently retaining guidance for its FY23F performance at this juncture (revenue of c.£110m, EBITDA of c.£24m; we currently have revenues at £105m and EBITDA in-line at £24m). We will review our model and forecasts with the interim results confirmed to be posted on 11 September"
"Valuation thoughts
We note a confident tone in this H1 trading update. Inspired continues to evolve and offers investors solid ESG credentials and regulatory tailwinds in addition to long-term economic growth drivers.
The Group trades on a FY23F PER of 6.6x (EV/EBITDA 5.4x), funded by a free cash flow yield in the 11% range, with an anticipated dividend yield of 3.2%. We look to further solid progress through the current H2 period and beyond."
Liberum have retained their 200p price target and forecast 12.9p EPS this year.
Good to see the one trade this morning is a Buy at 96p, 1p above the 95p published offer price, and that was for just £1k or so. Perhaps there's not much stock around.
Hopefully a little press attention and/or more institutional buying will trigger a sustained move back to 120p for starters.
A rather encouraging H1 trading update this morning....
INSE are trading nicely in line with consensus forecasts of 13.5p EPS this year, with revenue of £110.5m and adjusted EBITDA of £24.2m.
At 90p that's a current year P/E of just 6.7.
All divisions are trading well. The newer ESG and Software divisions continue to grow. And the outlook is very confident:
"We head into H2 with a strong pipeline and a growing orderbook, underpinning our confidence for the full year and beyond."
Https://uk.advfn.com/stock-market/london/inspired-INSE/share-news/Inspired-PLC-Half-year-trading-update-and-Notice-o/91766216
OT : thanks LordofBurnley, appreciated. I value broker research as valuable insights into the company, particularly as these days such info and the forecasts therein are usually "guided" by the company. Price targets are obviously more subjective, but that's a matter for discussion and no reason for dismissing all such broker research out of hand!
Not sure the hostile posting for rivaldo is necessary, bargainhunter20.
Over the months/years s/he (rivaldo) has posted quite a bit of info which I'm not sure I would have found. It's up to the individual to look at any info with a critical eye and make their own mind up .
As for your posting just having a go at a fellow poster without offering a well-supported counter argument, does seem a cheap shot. I know you've asked the question about why the sp is performing the way it is but rather than just having a pop at someone who presents info which suggests the sp doesn't make sense, it might be more helpful if you could offer some explanation rather than just being unduly aggressive towards other posters.
Anyhow, I for one, appreciate rivaldo's posts.
Have a nice day everyone. -.
Has this stock had a share spilt or something last time i looked it was 10p
@rivaldo - why do you re-post this sort of tripe? All those with interests in INSE will try and pump up the share price with these sorts of ridiculous statements and you seem to just re-post these without question. I dont see the benefit of this 'news' being posted in the chat as it doesnt provide any relation to the real-world share performance.
Right now the share price is performing poorly on a downward-sideways trajectory. I would be more interested to understand why this is the case considering all the perpetual 'good news' from Liberium and the so-called sage that is Ken Wooton.
Liberum have today issued their first update note on INSE since the consolidation.
They have a 200p target price. They forecast 13p EPS this year, with a 2.7p dividend, giving a current year P/E of 7.
They summarise:
"Inspired Plc*
Site visit highlights the value of Ignite
Yesterday, Inspired hosted a site visit that showcased the Ignite business. The synergies with Assurance Services mean Inspired is uniquely placed to take advantage of the large opportunity. Ignite uses data to identify potential energy wastage. A comprehensive view of a customer’s sites allows it to target the low hanging fruit first and maximise the saving. It can help customers cut energy
consumption by c.45% which can lead to new work and secure a revenue stream to monitor energy usage on an ongoing basis. Our FY 24 and FY 25 revenue estimates for
Optimisation Services are cautiously set.
The deed of variation signed with the vendors of Ignite on 22 May introduced stretching targets, that will be self-funding and incentivises the management team.
We maintain our BUY recommendation but increase our TP from 20p to 200p to reflect the stock consolidation of 10 shares for 1 effective on 3 July 2023. A CY 24 P/E of 7.0x represents growth at a reasonable price.
Yesterday, Inspired hosted a site visit at some of its Ignite (c. 50% of
Optimisation services) customers and showcased how the business is able to help its customers to significantly reduce their energy consumption and carbon emissions; saving them money and aiding them in their journey to net zero.
The synergies with Assurance Services mean Inspired is uniquely placed to take advantage of the large opportunity From its strong position in Energy Assurance Services, where it works with a range of blue chip clients, Inspired can cross sell into Optimisation services."
Ouch! Not looking good right now.
Yes basically more room to fall it seems. Really pointless exercise. Still it exceeded the brokers target of 20p with a liitle manipulation. Not quite so many to the pound
*seeming*
There has been a 10 to 1 consolidation, hence the seeing price leap.
900% up and no one interested here?!
Another uninspired rns
Any ideas why share price has fallen 15% over the last month?
Gresham have added a further 7m shares and now own 29.55%. Another 0.5% and they'll have to make an offer for the company :o))
Https://uk.advfn.com/stock-market/london/inspired-INSE/share-news/Inspired-PLC-Holdings-in-Company/91331417
Yes but Ken Wooton said.... ;)
Massive sells again. What is going at this company. Hopelesscommunicators, or rather they just don’t
Ken Wooton did a presentation on Tuesday at the Mello investment conference on behalf of Strategic Equity Capital/Gresham House. They of course have a large holding in INSE, and Ken ran through a few companies in their portfolio. INSE was one of the companies he highlighted.
In particular it was good to hear him confirm that he and other large shareholders had been consulted and approved the recent renegotiation of the Ignite deferred consideration.
Liberum say Buy with a 20p valuation after today's news. Here's their summary and conclusion:
"Inspired announces a Deed of variation signed with the vendors of Ignite. It provides maximum additional consideration of £9.25m. We make four key points: 1) The new earn-out requires delivery of certain targets, which our analysis shows, are stretching. 2) The statement says the additional contingent consideration (CC) is self-funding. 3) The purpose is to incentivise the Ignite management. 4) The
acquisition of Ignite remains an attractive deal, with a possible CY 24 EV/EBITDA of 2.7x. We maintain our BUY recommendation and TP of 20p; A CY 23 P/E of 9.4x
represents growth at a reasonable price."
"We maintain our BUY recommendation and TP of 20p; A CY 23 P/E of 9.4x represents growth at a reasonable price
We maintain our BUY recommendation and TP of 20p; A CY 23 P/E of 9.4x represents growth at a reasonable price. The strong credentials should become a positive share price driver, even though Inspired still trades like an energy company. Using a sum of the parts, we derive our target price of 20p."
Overall this looks promising for INSE imo, extending the timeline for the Ignite consideration out to 2027 and presumably locking in their management until then for a growth phase which could transform INSE.
Obviously the preferable option would be no additional consideration, but it's easy to see that Covid knocked out two years of calculations for the initial agreement, so a renegotiation was always on the cards and getting consensus on strategy through to 2027 strikes me as a good thing.
Nice 250,000 share buy at the full 12.5p offer reported after the close, coming after a 300,000 buy also at 12.5p just before the close.