AGM Statement

RNS Number : 4495R

Inspired Energy PLC

30 June 2020

 

30 June 2020

Inspired Energy plc

("Inspired Energy" or the "Group")

AGM Statement

Inspired Energy (AIM: INSE), the leading consultant for energy procurement, utility cost optimisation and legislative compliance in the UK and Ireland, will hold its Annual General Meeting today at 10 a.m. at the offices of Gateley Legal, Ship Canal House, 98 King Street, Manchester, M2 4WU.

In light of the evolving Coronavirus (COVID-19) pandemic, the Board continues to closely monitor the rapidly changing situation. The health of our shareholders, employees and stakeholders remains extremely important to us and accordingly, the Board has taken into consideration the social distancing guidance published by the UK Government. Shareholders are therefore requested not to attend the AGM as the Company will not be able to allow entry to anyone seeking to attend the AGM in person. Shareholders were encouraged to vote via proxy in advance of the meeting.

Chairman, Michael Fletcher, will provide the following update on current trading at today's meeting:

"Whilst the Group and the rest of the UK are undoubtedly experiencing a period of economic disruption, the Board believes that Inspired Energy remains in a strong position benefitting from a very significant order book, which has increased to £61.1 million as at the 31 May 2020 (£60.1 million as at 30 April 2020), underpinning a profitable and cash generative business that has substantial liquidity at its disposal. Consequently, the Board believes the Company is well placed to continue its strategic progress as activity levels in the economy recover.

The Group was largely unaffected by COVID-19 until very late in March and the business delivered a strong performance in the first quarter, with trading in line with the Board's expectations at the time and ahead of the same period last year.

Whilst operational disruption has been more evident since the end of the first quarter, the Group has remained both strongly cash generative and delivered profits ahead of management's prudent downside scenario, which it utilised when resetting its banking covenants in May.

The Group's balance sheet position remains strong, having recently refinanced its banking facilities to October 2023, with an option to extend to October 2024. In addition to cash and cash equivalents of £11.5 million on hand as at 29 June 2020 (£11.7m as at 30 April 2020), approximately £14.0 million of the Group's £60.0 million Revolving Credit Facility is undrawn with an additional £25.0 million accordion option available. The cash and cash equivalents balance at 29 June 2020, includes the payment, in May, of £3.0 million of contingent consideration to the vendors of Ignite Energy Ltd for achievement of certain financial performance targets for the year ended 31 December 2019 .

The Board has been encouraged by the performance of the Group during this very challenging period and believes it is well positioned to respond effectively as activity levels continue to recover. Inspired Energy continues to be a leading player in its markets, the evolution of which may well be accelerated by opportunities presented by the current environment. The Board believes that there will continue to be significant scope to progress its successful acquisition strategy moving forward and will look to act decisively where value-enhancing opportunities are presented.

On behalf of the Board, I would like to thank our staff, customers and wider stakeholders, whose health, safety, and wellbeing remains our overriding priority."

Enquiries: 

Inspired Energy plc Mark Dickinson (Chief Executive Officer) Paul Connor (Chief Financial Officer)	www.inspiredplc.co.uk [phone]
Shore Capital (Nominated Adviser and Joint Broker) Advisory Edward Mansfield / James Thomas/Michael McGloin Broking Malachy McEntyre	[phone]
Peel Hunt LLP (Joint Broker) Mike Bell / Ed Allsopp	[phone]
Alma PR Justine James Josh Royston	[phone] [phone] [e-mail]

 

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