Comment relating to Gazprom M&T press speculation

RNS Number : 3657F

Inspired PLC

21 March 2022

 

21 March 2022

Inspired PLC

("Inspired" or the "Group")

Comment regarding press speculation in relation to Gazprom Marketing and Trading Retail Limited

Inspired (AIM: INSE), a leading technology enabled service provider supporting businesses in their drive to reduce energy consumption, deliver net zero, control energy costs and manage their response to climate change, notes the press speculation regarding the future of Gazprom Marketing and Trading Retail Limited ("Gazprom"), a subsidiary of the Gazprom Group, a Russian majority state-owned multinational energy corporation, including the possibility of it ceasing trading in the UK. Accordingly, the Group provides the following update in relation to the potential impact that may arise from this situation.

The impacts of the war in Ukraine have been fast moving and continue to cause significant volatility and uncertainty across commodity and energy markets. The Group notes that Gazprom is a significant gas supplier to businesses across the UK, including both clients of Inspired and businesses within their supply chains.

The Board estimates that approximately 5% of Group revenues, all within Inspired's Energy Assurance services division, are dependent upon clients that are contracted with Gazprom. Should Gazprom cease trading and the disruption arising from this not be possible to mitigate in the short term, then the Board believes that the potential impact could be up to c.£3m to its expected FY2022 EBITDA. It is important to stress that in the event that such an extreme scenario occurs, the Group would still comfortably be able to meet its banking covenant and liquidity tests and therefore, continue to operate as a going concern.

More widely, the Group continues to take every opportunity to help all customers mitigate the cost of energy and manage their energy consumption during this energy crisis. Maintaining these client relationships and helping those in need to secure alternative supply contracts will help mitigate the revenue at risk if Gazprom ceases to trade in the UK market.

The Group will announce its Full Year results for the financial year ended 31 December 2021, on Wednesday 30 March 2022.

Mark Dickinson, CEO of Inspired, commented: " Whilst the potential impact on the financial performance of the Group should Gazprom cease to trade in the UK would be disappointing, these factors are unfortunately outside of the Group's control. We have proactively considered the impact of this event in its entirety and are already focused on the mitigating actions we can take by supporting clients with contract replacement. Inspired remains focused on helping its clients manage their costs and sustainability challenges through this crisis.

"With regard to the invasion of Ukraine, I am sure many share our shock at the abhorrent actions of the Russian regime and our hope that the war and resulting humanitarian crisis ends soon with a peaceful resolution." 

Enquiries please contact:

Inspired plc Mark Dickinson (Chief Executive Officer) Paul Connor (Chief Financial Officer)	www.inspiredplc.co.uk [phone]
Shore Capital (Nominated Adviser and Joint Broker) Patrick Castle James Thomas	[phone]
Peel Hunt LLP (Joint Broker) Mike Bell Ed Allsopp	[phone]
Alma PR Justine James Hannah Campbell	[phone] [phone] [e-mail]

This announcement contains inside information as defined in Article 7 of the retained EU law version of the Market Abuse Regulation No 596/2014 ("UK MAR") and has been announced in accordance with the Company's obligations under Article 17 of UK MAR.

Notes to editors

Inspired plc is a leading technology enabled service provider of energy advisory and sustainability services, supporting businesses in their drive to net zero, controlling energy costs and managing their response to climate change.

Founded in 2000, Inspired operates three divisions: Energy Solutions (Assurance and Optimisation), Software Solutions and ESG Solutions, providing expert energy advisory and sustainability services to over 3,400 businesses in the UK and Ireland who typically spend more than £100,000 on energy and water per year.

Inspired has been recognised with the London Stock Exchange's Green Economy market since 2020 for its environmental and strategic advice, service, and support to customers and is also ranked as the UK's leading advisor by the independent energy market intelligence consultancy, Cornwall Insight.

 

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