Inspired Regulatory News (INSE)

29 January 2018

Inspired Energy plc

("Inspired Energy" or the "Group")

Trading Update and Notice of Results

Inspired Energy (AIM: INSE), a leading UK energy procurement consultant to UK and Irish corporates and SMEs, is pleased to provide a trading update for the financial year ended 31 December 2017.

Financial Performance

Inspired Energy continues to deliver on its growth strategy and expects to report results in line with revised market expectations, which were upgraded twice during 2017:

· Group revenues are expected to be c.28 per cent ahead of 2016, with adjusted EBITDA* expected to be c.33 per cent ahead of 2016.

· Procurement Corporate Order Book stood at £39.0 million (2016: £28.0 million) representing year on year growth of 39 per cent.

· Cash generated from operations is expected to be c.42 per cent ahead of 2016.

· Net debt is expected to be approximately £14.7 million at the year end.

· Trading on all fronts remained strong throughout the year and this trend has continued into the start of the new financial year.

Acquisition Highlights

· Integration of Flexible Energy Management Limited ("FEML") and Churchcom Limited ("Churchcom"), acquired in April 2017, is progressing well and in line with plans.

· Acquisition of Horizon Energy Group Limited ("Horizon") completed in July 2017, increasing the geographical presence of the Group and strengthening its position as a market leader in Ireland.

· Horizon traded in line with Board expectations in H2 2017, and trading in 2018 has started strongly.

· Final settlement, in cash, of the outstanding consideration due to the vendors of STC Energy and Carbon Holdings Limited, Wholesale Power UK and Informed Business Solutions.

Board transition

· Gordon Oliver, Group Finance Director of James Halstead plc, today appointed as an independent Non-Executive Director.

· Matthew Thornton to step down as Sales Director and become a Non-Executive Director following the release of the Group's preliminary results for the year ending 31 December 2017, which will complete the transition of the Board composition to two Executive Directors, supported by a Non-Executive Chairman and three Non-Executive Directors.

Corporate Division

The Corporate Division delivered an excellent performance in the year, contributing c.79% of Group revenues in 2017 (2016: 76%). The division generated strong organic growth and the Board is pleased by the performance of the three acquisitions completed in the period, FEML, Churchcom and Horizon.

Client retention within the division remained above 85% which contributed to a Procurement Corporate Order Book of £39.0 million (2016: £28.0 million) representing year on year growth of 39 per cent.

With the integration of the businesses now well progressed, the Board has initiated the process of consolidating its corporate service offering from subsidiary brands to operating a under the unified "Inspired" brand. In addition, the service offering has now been segmented into five broad categories of customer focus being: Energy Intensive, Commercial/Estate intensive, Public Services, Corporate and Ireland.

SME

The SME Division has performed well in the year and continued to deliver strong growth in revenue, profits and cash generation, in line with the Board's expectations.

Mark Dickinson, CEO of Inspired Energy, commented: "I am delighted to report on a very strong period of growth for the Group across all key areas: financially, operationally and strategically. In 2017, the Group completed three value-enhancing Corporate acquisitions, a debt refinancing and a £9.0m placing, providing an excellent platform for the business to continue to deliver on our stated growth strategy. I am pleased to report all three acquisitions concluded in 2017 are performing in line with expectations and the integration process is progressing well.

"Inspired Energy had an excellent 2017 and I am confident that 2018 will be another year of significant progress for the Group with trading in the current year to date strong."

Notice of final Results

Inspired Energy expects to announce its full year results for the year ended 31 December 2017 on 22 March 2018.

 * Earnings before exceptional costs (includes restructuring costs and transaction fees in relation to acquisitions), depreciation, amortization and share-based payment costs

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