2nd Dec 2024 15:24
(Alliance News) - Inspired PLC on Monday saw its shares climb despite revealing that project profit contributions would be deferred to next year.
Inspired shares were up 17% at 40.40 pence on Monday afternoon in London.
The Lancashire, England-based sustainability and energy advisor said full-year adjusted earnings before interest, tax, depreciation and amortisation are now expected to be approximately GBP23 million, owing to delays with its optimisation projects.
Previously, the firm guided adjusted Ebitda for 2024 in line with the market consensus figure of GBP27.4 million.
Last year, the firm realised adjusted Ebitda of GBP25.2 million.
In its interim results announced in September, Inspired said meeting full-year expectations was contingent upon delivery of key optimisation services projects, noting today that three would be contributing to next-year's gross profits.
Inspired said that Project 1 which relates to European installations has experienced "unexpected delays", but expects them to be resolved imminently with its remaining gross contributions to be recognised as the project is delivered in the first-half of next year.
Project 2 is also expected to be delivered in the first-half of next year, following a later than expected project start date of January. The majority of project 3's gross profit contribution is expected to be delivered in the same period.
The firm does not expect to deviate from net debt consensus figures for the full-year of approximately GBP58.0 million. This compares with GBP48.7 million reported for 2023. Inspired added that it expects its leverage ratio to reduce throughout 2025 owed to the firm's focus on deleveraging its balance sheet.
Despite the project delays, Inspired said its better-than-expected performance in other service optimisation lines has largely offset the deferred contributions, adding it has realised a movement in its gross margin across financial years but not a loss of projects.
Inspired said it now has "increased confidence" in meeting consensus figures of GBP30.1 million for its adjusted Ebitda for 2025.
The AIM-listed firm said it expects to report a year-end trading update in January.
Inspired Chief Executive Mark Dickinson said: "The team has worked tirelessly in securing, and in part, commencing these significant optimisation projects.
"Noting the inter-period uncertainty created by large optimisation projects, the group has made good progress on diversifying the risk of large projects, through a significant increase in the number of clients which are actively at the 'Pilot' phase of the project cycle which leads to a record level of pipeline for the Optimisation division as we enter 2025."
By Christopher Ward, Alliance News reporter
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