Inspired Energy PLC Deferral of publication of results& COVID19 update (6386H)
26 March 2020 - 6:00PM
UK Regulatory
TIDMINSE
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 GBP49.1m, an increase
of c.50% (2018: GBP32.7m) , adjusted EBITDA of approximately
GBP19.0m, an increase of 38% (2018: GBP13.7m) and cash generated
from operations (excluding restructuring costs and the impact of
deal fees) of approximately GBP14.0m. Net debt was approximately
GBP33.0m 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
GBP57.5m had increased further as at 28 February 2020 to GBP58.5m.
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 GBP10.7m on hand as at 25 March 2020, approximately GBP14.0m of
the Group's GBP60.0m Revolving Credit Facility is undrawn with an
additional GBP25.0m 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 www.inspiredplc.co.uk
Mark Dickinson (Chief Executive Officer) +44 (0) 1772 689250
Paul Connor (Chief Financial Officer)
Shore Capital (Nominated Adviser and
Joint Broker)
Advisory
Dru Danford
Edward Mansfield
James Thomas
Broking
Malachy McEntyre
Heath Snyder +44 (0) 20 7408 4090
Peel Hunt LLP (Joint Broker)
Mike Bell
Ed Allsopp +44 (0) 20 7418 8900
Alma PR +44 (0) 20 3405 0205
Justine James +44 (0) 7525 324431
Josh Royston inspired@almapr.co.uk
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END
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