Inspired Share Price (INSE)

inspired chief executive officer, mark dickinson, chief commercial officer, david ****shott and cfo, paul connor present final results for the year ended 31 december 2023.

watch the video here: https://www.piworld.co.uk/company-videos/inspired-inse-full-year-2023-results-presentation-march-2024/

or listen to the podcast here: https://piworld.podbean.com/e/inspired-inse-full-year-2023-results-presentation-march-2024/

Liberum have issued a new 36 page Buy note this morning, with a 200p price target....

Here's their summary:

"Inspired Plc

The transition to a more diversified business is on track

The FY 23 results were slightly ahead of our estimates. We make four key points on the business: 1) Inspired has evolved from a Third-Party Intermediary (TPI) in the energy market to a technology-enabled services provider; 2) synergies between divisions help cross-selling and make Inspired uniquely qualified to help with both sides of the energy equation (cost + consumption); 3) underlying EBITDA is expected to double in five years (FY 22-27), indicating 24% upside to our FY 26 estimate; 4) the business is becoming less reliant on Energy Assurance profits, which helps increase earnings quality. In terms of valuation, a CY 24 P/E of 4.6x is attractive given the growth.

Key points

FY 23 results were slightly ahead.

Optimisation was the star performer.

Net debt (exc. leases) was flat at the H1 23 level of £49m.

Contingent consideration being paid.

Value drivers

Scope to grow in areas like Optimisation, Software and ESG.

These should accelerate growth and increase the valuation multiple.

A huge addressable market.

What market misses

Assurance

On excellent early volumes. Hopefully just the start of a big bounce for this seriously undervalued (imo) company.

Https://www.proactiveinvestors.co.uk/companies/news/1044025/inspired-reports-strong-2023-performance-as-it-gears-up-for-further-success-in-2024-1044025.html

Liberum say Buy and have a 200p target price. They summarise:

"A revised CY 24 P/E of 4.6x is attractive given the growth A CY 24 P/E of 4.6x 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."

And:

"FY 23 underlying EBITDA increased 20% to £25.2m and FD EPS was 3% ahead of estimates. Net debt was flat at the H1 level of £49m and cash conversion was below target as expected, but LTM conversion to February was > 100%.

We maintain our FY 24 FD EPS estimate of 13.7p, indicating 3% FD EPS growth. We make 4 key points: 1) Deferred consideration will fall sharply after FY 24; 2) A wealth of new KPIs shows cross-sell is working and increasing the life-time value; 3) Assurance has good visibility and is stable; and 4) At Energy Optimisation, EBITDA has increased £5m p.a. over the last three years. A CY 24 P/E of 4.6x is attractive given the growth."