RE: Independent Utilities Ltd acquisition07 Jan 2020 09:11
bristoljohn, a source close to the business informed me that a company announcement was circulated yesterday. I hope I have not done anything improper by sharing this, I did not expect to beat the RNS to market!
To untangle this, it’s important to understand exactly what Labour has pledged itself to and the models it is currently examining. The 2017 manifesto committed Labour to taking energy “back into public ownership” in three stages:
Regaining control of the distribution networks through changes to their license conditions.
Supporting local publicly owned energy companies and co-operatives to compete with existing private providers.
Permitting publicly owned companies to purchase regional grid infrastructure and bring the regional and national grid into public ownership over time.
"But as ever, change may also create winners. A new breed of municipally operated or co-operatively run energy companies would increase the market for experienced firms to advise on the structure and work of the new entities as they’re created and begin operation."
So the existing suppliers are not going to disappear and assuming they are able to leverage their larger buying power to remain competitive, there will simply be greater choice of suppliers and contract options for clients (requiring more analysis of quotes - a core service of Inspired) and perhaps to increase the focus of existing suppliers on adding local / social value. Potentially a very positive change. Fill your boots before everyone else realises what is really afoot!
AFAIAC Riv only points out pertinent information. I for one enjoy the positive and relevant comment so I say more power to you Riv and GLA. Here's to 5 or more acquisitions in 2019. Who knows, INSE may even buy your struggling outfit.
I'm sorry to hear that you have lost money on UTW, I expect you are far from alone in this, however if one was to lose money on BT, is it appropriate to vent your frustrations towards Vodafone investors for no other reason than that they are both in the telecommunications game? There are very real differences in the makeup of INSE v UTW and I am confident that even if regulation comes, companies like Inspired will be the model, representing as they do the gold standard of the energy consultancy business.
Observerbill, such abrasive comments wear me down, I'll file them accordingly.
As for Inspired Energy, a completely different company I'm sure you'll agree, with well diversified revenue streams, conservative revenue recognition and a lack of skeletons in the closet. To borrow from Rudyard Kipling, if you can keep your name when all about you are changing theirs (seemingly every 5 minutes), perhaps you are not trying to escape a dodgy past!
I speculate, knowing where utw share price has been, that many must have gotten onto what looked like a nice ride, to find a nightmare roller coaster from hell with missing sections of track. Must be a number of folk nursing substantial losses and holding in the (perhaps forlorn?) hope of recovering some value. Perhaps they are hoping for a very specific something to happen...
INSE has plenty of space for growth and this will be realised and recognised, also an organic and acquisitive growth plan and progressive dividend policy which is being delivered and will become more and more interesting to investors in the market for a stock to buy and hold long.
May I make an observation having done a great deal of research on this matter?
The bulk of INSE business is Industrial and commercial (I&C) clients, whereas Small to medium enterprise (SME) represents a far smaller share of their income stream.
I&C clients will be on Half-Hourly meters so contracts are based on irrefutable historical consumption data, therefore INSE's core business is not vulnerable to 'sexing up' and in fairness, I do not believe this company is "a Utilitywise waiting to happen".
Hope that is of some value to anyone concerned by recent developments.