Soaring energy prices boost FTSE AIM All-Share advice Inspired sales as companies try to cut bills
- Revenue for the Preston-based business rose 31% to £88.8million in 2022
- Inspired’s optimization services segment provided the bulk of the sales growth
Turnover at consultancy Inspired jumped last year as businesses sought to minimize their energy bills, which soared following the war in Ukraine and the easing of Covid restrictions -19.
Revenue rose 31% year-on-year to £88.8m in 2022 as the company’s four divisions reached expansion.
The group’s optimization services segment, which offers water conservation, energy efficiency and forensic audits, provided the bulk of the growth, with sales jumping nearly two-thirds to £47.7 million.
Results: Inspired revenue surged last year as companies sought to minimize energy bills following Russia’s large-scale invasion of Ukraine and easing of restrictions related to Covid-19
Energy markets experienced unprecedented turbulence last year amid soaring gas and electricity prices caused by the escalation of the conflict in Ukraine and a resurgence in energy consumption after the reopening of economies.
Prices were also lifted by the UK having low levels of gas storage capacity, a long winter in 2020/21, lower wind and solar generation than expected two years ago and demand higher in Asia and South America.
Inspired said the “new normal” resulting from the current crisis has led to increased interest in its products and services, including from several leading UK retailers.
Its insurance services division, which helps negotiate energy contracts on behalf of its clients, won new contracts like Naked Wines and Aldi, meal kit seller Hello Fresh and car dealership chain Arnold Clark.
But sales performance did not prevent the Preston-based company from suffering a loss of £3.6million, after making a profit of £1.6million the previous year.
The company said trading started 2023 with “considerable momentum” and is optimistic it will deliver full-year results in line with forecasts despite continued economic and political unpredictability.
Chief Executive Mark Dickinson said: “While bearing in mind the current environment, the long-term opportunities for the group are clear and we entered FY23 in a strong position, building on the momentum from the previous year.
“We have a substantial addressable market, top-tier clients and a new record deal pipeline, which reinforces the board’s confidence in the group’s long-term growth and success.”
Founded in 2000, Inspired provides energy and sustainability advisory services to over 3,500 businesses in the UK and Republic of Ireland and listed on the London Stock Exchange in 2011.
Robin Speakman, research analyst at brokerage Shore Capital, said: “The overall performance came in what has been perhaps the most challenging environment seen in UK energy markets. United.”
“A testament to Inspired’s strategy and deepening client relationships as a key partner for UK businesses.”
Inspired shares were 1.6%, or 0.17p, lower from 10.1p on Wednesday morning. Since March of last year, they have fallen by around 36%.