28th Aug 2014 15:29
LONDON (Alliance News) - Inspired Energy PLC Thursday reported higher pretax profit for the first half of the year, as strong trading in its corporate and small medium enterprise divisions pushed up revenue and the order book, and it reiterated its confidence for the full-year and increased its interim dividend.
The UK energy procurement consultant to UK corporates said pretax profit came was GBP1.2 million for the six months to June 30, up from GBP800,000 a year earlier, as revenue jumped 41% to GBP5.0 million, from GBP3.5 million.
Corporate order book sales were 20% higher than the previous year at GBP4.8 million, representing a record six months, it said.
Its small- and medium-sized enterprise unit posted revenue of GBP1.6 million, up from GBP0.4 million.
The company sees opportunities in sizeable and mid-corporate firms as more companies attempt to drive down costs and improve efficiencies, according to Chief Executive John Bick, who said more companies are also seeking advice due to high government energy charges and the ongoing probe into the UK energy market.
"Energy costs can be one of the largest costs, if not the main outgoing for large businesses," he said.
The AIM-listed company said its corporate order book as of June 30 was GBP12.5 million, compared to GBP9.9 million in 2013, and had risen by a further GBP500,000 up to August 27.
"The corporate division is, and likely will be the core of the business down to the analytical expertise available" said Bick, adding that the corporate team needs to have more expertise than the SME team.
The company said its corporate team delivered a strong performance. "In addition to winning significant levels of new business, the team has maintained the high level of client retention across the division in excess of 80%, and maintaining a 100% client retention rate in our Risk Management division" said Chairman Bob Holt in the statement.
The SME division has accelerated its planned staffing investment, which will help it achieve short and medium-term growth targets without requiring significant additional headcount, the company said.
The company acquired Simply Business Energy and KWH Consulting for its SME business in the first half, and they have been successfully integrated and are performing in line with expectations, it said. Simply Business Energy's online platform and KWH's bespoke customer relationship management system and product set have added to the scalability and efficiency of the division, it added.
The company will now allow the SME division to grow organically whilst the corporate division could make further acquisitions in the future.
The company declared an interim dividend of 0.07 pence, up from 0.05 pence in the first-half of 2013.
Looking ahead Inspired Energy said contracted revenues now extend into 2017, providing good earnings visibility and a strong platform from which to continue to grow organically.
"We are in a strong position to deliver further growth for the full year," said Janet Thornton, managing director.
Although Inspired had a strong first-half, expectations have remained the same for the rest of the year as the company waits for 'more transparency...and quantifiable justification," Bick told Alliance News
"There is lots of fuel in the tank for the future and the corporate division will drive it forward" the CEO added.
Shares in Inspired Energy were Thursday morning trading 5.73% higher at 13.48 pence per share.
By Alice Attwood and Joshua Warner; [email protected]; @AliceAtAlliance
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