Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
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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!
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.
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."
Just to add, Shore Capital forecast 13.7p EPS this year against the 91.5p share price.
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."
So boring. More repeated 'info' from those with vested interests.
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.