Deferral of publication of results& COVID19 update

RNS Number : 6386H

Inspired Energy PLC

26 March 2020

 

26 March 2020

Inspired Energy plc

("Inspired Energy" or the "Group")

Deferral of publication of results and COVID-19 update

Inspired Energy (AIM: INSE), a leading UK energy consultant to UK and Irish corporates, provides the following update on the publication date of the Group's 2019 full year results, the impact of the COVID-19 situation on the Group, its actions to mitigate this and the Group's current trading outlook.

Deferral of publication of results

As previously announced, Inspired Energy intended to announce its results for the year ended 31 December 2019, on 31 March 2020. The audit of its financial results is substantially complete, and the Group had intended to publish its results as planned.

However, due to the recent requests from the Financial Conduct Authority ("FCA") and the Financial Reporting Council for listed companies to delay the reporting of their financial results, the Board will defer the announcement of its final results on 31 March 2020 and the audited results will be published in due course.

In line with existing guidance provided in the trading update on 30 January 2020, Inspired Energy expects to report revenues for the year ended 31 December 2019 of approximately £49.1m, an increase of c.50% (2018: £32.7m) , adjusted EBITDA of approximately £19.0m, an increase of 38% (2018: £13.7m) and cash generated from operations (excluding restructuring costs and the impact of deal fees) of approximately £14.0m. Net debt was approximately £33.0m at the year end.

COVID-19 update

The health, safety and wellbeing of our employees, their families and our customers is our overriding priority. We are doing all we can to support our employees during this unprecedented time and are actively encouraging them to precisely follow the latest Government guidance on COVID-19. As a business, we have therefore successfully implemented our business continuity plan and c.80% of our workforce are now working remotely.

The Group is in the fortunate position of having a robust balance sheet and a business underpinned by the strength of its Corporate Order Book, and the diversity of its 2,800 corporate customers that operate across all segments of the UK and Irish economies. The year-end Corporate Order Book which stood at £57.5m had increased further as at 28 February 2020 to £58.5m. There has been no material impact on the assurance and advisory services provided by the core Corporate Division to date, which represents c.90% of 2019 Group revenues.

The Group's smaller SME division representing c.10% of 2019 Group revenues, is currently seeing a reduction in demand for energy supplier switching services. As such a number of staff in this division have been placed on furlough, with a core team remaining to service this sector, as such the immediate financial impact to the Group is being mitigated accordingly.

Financial position and liquidity

The Group has a strong balance sheet position, 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 £10.7m on hand as at 25 March 2020, approximately £14.0m of the Group's £60.0m Revolving Credit Facility is undrawn with an additional £25.0m accordion option available, subject to continued covenant compliance. The Board is actively focused on cash conservation and management, taking prudent and proactive measures to preserve cash.

Since its listing on AIM in 2011, Inspired has established a track record of delivery on financial forecasts which has facilitated a consistent and progressive dividend policy. Following a successful 2019, and a strong start to 2020, ordinarily the Board would expect to propose a final dividend for the year in line with that approach. However, in light of the exceptional circumstances caused by the COVID-19 outbreak, the Board deems it prudent to defer declaration of the final dividend at this time, and will reassess the position on release of the 2020 interim results statement.

Outlook

As a result of the recent uncertainty caused by COVID-19, the Board is not able to provide updated guidance for the current financial year ended 31 December 2020 at this stage. The Group will provide further updates to the market as and when there is greater clarity on the impact of COVID-19 on the trading environment and the UK Government's public health policy measures.

Mark Dickinson, CEO of Inspired Energy , commented:   " This year marks Inspired's 20^th year of operation and our 9th year as a listed company. Whilst we undoubtedly are in a period of economic uncertainty, the Board believes that the Group's profitable and cash generative nature coupled with a strong order book and substantial liquidity at its disposal will see it well placed as the economy emerges from the current period of uncertainty.

"As a management team we will ensure we remain disciplined and proportionate in our response to the crisis. At times of significant trading pressures, companies like Inspired Energy tend to be part of the solution for corporate energy consumers looking to regain their competitiveness and restart their economic engines and as such demand for our service often increases at times of crisis. This was the experience of the energy advisory sector during the financial crisis of 2008.

"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 please contact:

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 Dru Danford Edward Mansfield James Thomas Broking Malachy McEntyre Heath Snyder	[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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