16th Aug 2024 12:00
(Alliance News) - Inspired PLC on Friday said it made "good progress" in the first half of 2024 with robust performance across all four of its divisions.
The Lancashire, England-based sustainability advisor reported momentum in new business generation in Assurance Revenue and good growth for ESG Services and Software Services.
Optimisation Services saw increased levels of repeatable demand from existing clients with the company expecting such revenue to account for 60% of its gross profit contribution in the second half.
Improved cash conversion of approximately 80% in the first half marked an increase from 75% for full-year 2023.
Inspired remains confident it can deliver full-year 2024 results in line with market consensus and management expectations.
Chief Executive Officer Mark Dickinson said: "The group has delivered a robust H1 performance and is better placed than ever as a full-service provider of sustainability solutions for businesses. Managing energy costs and ESG are now firmly embedded as operationally and commercially critical for most businesses, creating sustained and increasing demand for Inspired's differentiated products and services."
The termination of the deed of variation with Ignite Energy Ltd has resulted in no outstanding contingent consideration payment obligations.
After acquiring 40% of Ignite in August 2019, Inspired obtained full ownership in July 2020 after purchasing the remaining shares.
In May 2023, Inspired entered into the deed "to refresh the unearned contingent consideration" from the purchase agreement and reset a three-year timeframe to facilitate a full transition of leadership and integration.
Inspired now anticipates the full transition of senior leadership to complete on May 31, two years earlier than outlined in the deed, resulting in its termination.
Consequently, Inspired has entered into consultancy agreements with two Ignite vendors, David Higgins and Benjamin Higgins, equivalent to their previous employment contracts alongside a performance fee based on gross margin targets for Ignite during the restructuring period.
"Based on management's current expectations for the Ignite business, the total "on target" performance fee would be GBP2.3 million, payable in two instalments over H1 2025 and satisfied from existing cash resources," Inspired said.
In addition, following the final contingent payment of GBP2.2 million in the second half relating to the 2021 Businesswise Solutions Ltd transaction, Inspired will have no further contingent consideration payments to fund.
The company will release its interim results on September 12.
Inspired shares were flat at 70.00 pence each in London on late Friday morning.
By Elijah Dale, Alliance News reporter
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