Willow67
14 Jun 2017
Re: Share price / FAO Gretel They need to show strong eps growth with associated cash generation. If they do, the share price will get taken care of. They have expanded the number of shares by 50% in the last few years so my view is they need to pay down debt / grow csh and show some strong organic growth and the shares will move on rapidly. My view is the market won't attribute them a higher multiple until leverage reduces and they can clearly demonstrate the acquisitions are of real value, i.e. they are buying and growing businesses and not just buying them and letting the b/s balloon. Fingers crossed.
winningstreak
13 Jun 2017
Re: Share price / FAO Gretel Gretel- I agree with everything you say, and see no valid reasonfor the share price to be this low. Pretty sure we'll see a recovery fairly soon, and when it comes I expect to see 18p reached / breached.Excellent management whose every move is the right move.Thanks for your comments.w.s.
gretel
13 Jun 2017
Re: Share price / FAO Gretel Hi winningstreak,I continue to believe that the current share price (now at only 15.12p) is extremely good value.The AGM is coming up on 20th January, so hopefully we'll get a trading statement.Panmure - who have a 21p price target - called the share price post-results "curious" in their most recent full note, and they were "baffled" by the 20% discount to the wider market. And that was when the share price was 16.6p!They put this down to (1) the slower organic growth in the last H2, which they expect to snap back this year, (2) acquisitions causing a rise in gearing, which is expected to now fall rapidly, (3) the management's placing of shares and (4) the very poor performance by peer UTW, which "fails to recognize the fundamental difference between the two companies’ different models".I suppose the share price did also rise quickly from the 12p-13p range, so perhaps we've had some profit-taking going on.
winningstreak
09 Jun 2017
Share price / FAO Gretel Gretel, your view on the current low low share price please.Tempted to buy even more than I already have, but that's would be going in even more serious breach of my selfimposed limit for a single stock. WS
winningstreak
08 Jun 2017
Re: INSE still looks very cheap A good & sound share at a low PE-ratio, not many of those in the market. A bargain buy at 16p. I am seriously well stocked up now, indeed I have gone over my self-imposed maximum limit for single stock.IMO,ws
gretel
24 May 2017
INSE still looks very cheap Panmure's latest forecasts are 1.5p EPS this year and 1.7p EPS next year (with 0.5p and 0.6p dividends respectively).That's not far off a single-digit P/E for next year.Plus the water industry deregulation rules have just come into force. I note that Utilitywise are already blowing their own trumpet on this, noting that "In the month following water deregulation on April 1, Utilitywise received more than 50,000 business engagements regarding water supply".As usual (by comparison), INSE are simply quietly getting on with business. But if they receive a similar level of new business then shareholders should be in for a treat.
Willow67
18 May 2017
Valuation There's a fair amount of incredulity on this board about how cheap INSE's shares are. I happen to agree they are cheap and own some, but I think there are reasons you look under the hood. Net debt is £10m+, x1.25 ebitda and costing them 10% of ebitda each year in interest cost. There isn't much on the asset side of the b/s sheet that isn't intangibles, only £12m of trade receivables vs that debt. Yes its an advisory business I get it but still it is not a strong b/s. In 2016 they generated £5m from operations and spent it all on acquisitions, contingent payments and intangibles and borrowed more on top. They are borrowing and issuing equity to grow the business and so far it has worked. It might well continue to but there is risk here and as a shareholder I would have a concern if the b/s sheet expanded much more. There is another small company gretel (on this board) and I talk about regularly who have a similar buy&build strategy but are doing it from cash with no borrowing, so it CAN be done.
gretel
02 May 2017
Looking very good online You just can't get any stock - well, you can buy a maximum 200 shares at 17.75p - whereas you can sell well over 200,000 shares at a premium at 17.33p.Which bodes rather well.
winningstreak
20 Apr 2017
Re: RNS - Two acquisitions! Gretel - The historic EBITDA of £0.82m may include the 'wages/private drawings'of the two directors who owned FEML? I privately own a small business, my accountant does not deduct my my private drawings from the business' profit.ws
gretel
20 Apr 2017
Re: RNS - Two acquisitions! Panmure Gordon have increased their EPS forecasts slightly to 1.5p EPS this year and 1.7p EPS next year. They retain their 21p target price.I suspect these are pretty conservative, For example, they've increased 2018's PBTA forecast by £0.6m - despite the historic £0.82m EBITDA of the acquired businesses.
S-Moonraker
20 Apr 2017
Re: RNS - Two acquisitions! ...either the markets aren't, or people are taking a fair while to absorb the news. A 10% increase in EBITDA excluding any synergies should have a more positive impact than this!
winningstreak
20 Apr 2017
Re: RNS - Two acquisitions! Management wide awake here!ws
S-Moonraker
20 Apr 2017
Re: RNS - Two acquisitions! 19p today? 20p?
gretel
20 Apr 2017
Re: RNS - Two acquisitions! This gets even better - two acquisitions this morning for a combined £4.1m or so which are making a historic combined £0.82m EBITDA....even before any synergies etc:[link] these take INSE into new sectors and geographies.Very, very cheap now imho.
S-Moonraker
20 Apr 2017
RNS - Two acquisitions! Purchase of the trade and assets of Flexible Energy Management Limited,Acquisition of Churchcom Limited and Issue of Equity Inspired (AIM: INSE), a leading energy procurement consultant to UK corporates, is delighted to announce that it has completed the purchase of the trade and assets of Flexible Energy Management Limited ("FEML"
and the acquisition of Churchcom Limited ("Churchcom". HIGHLIGHTS FEML acquisition· FEML is a public sector energy procurement specialist, servicing a customer base comprising of NHS foundation trusts/hospitals and academic and sporting institutions, through two NHS sponsored OJEU frameworks*; · The OJEU frameworks will allow Inspired to accelerate its growth into the public sector and significantly increases the strength of the Inspired Public Sector team which was created in 2016 · Consideration to be satisfied by a cash payment of £2.2 million and the issue of 2,993,653 new ordinary shares to the shareholders of FEML, who will remain with the enlarged Group. Churchcom acquisition· Churchcom is an energy procurement consultancy operating through two principal divisions, the Church Energy Purchasing Group, which specialises in serving the church sector, and Energy Partners, a growing commercial energy procurement business· Churchcom benefits from a strong secured order book and strong retention rates and is a complementary addition to Inspired's core Corporate Division.· Consideration to be satisfied by a cash payment of £1.4 million to the shareholders of Churchcom. Highlights of the transactions· Enlarged Group's 'Procurement Corporate Order Book' increases to £30.9 million as a result of the Acquisitions; · Both acquisitions broaden the sector specialisms of Inspired's core Corporate Division;· Acquisitions financed from the Group's existing financial resources, with funding provided by an extension to the Group's existing £3.5 million acquisition facility with Santander to £5.1 million; and · Both acquisitions are expected to be earnings enhancing in FY17. Information on FEML and rationale for the acquisitionFEML was founded in 2012 and is a public sector procurement and energy services specialist, based in Manchester. FEML has a strong presence in the Public Sector, having been spun out of the NHS at the time of its foundation, and the two Directors of FEML have over 20 years' experience in the NHS. The business has a large portfolio of customers including NHS Trusts/hospitals, academic and sporting institutions. The acquisition of FEML enhances Inspired's presence in the public sector, further augmenting the organic growth and presence acquired as a result of the STC acquisition. The Board believes the NHS sponsored OJEU frameworks provide a vehicle to accelerate growth in the sector as the frameworks can be increased in size significantly from sales leads generated by the Inspired Public Sector team, access to which has historically been a barrier to growth in the sector. The Board believes that the acquisition will complement Inspired's core Corporate Division and enhance the Group's sector specialism. For the financial year ended 31 March 2016, FEML delivered revenues of £0.65 million, EBITDA of £0.47 million and generated operating cash of £0.47 million. Terms of the FEML acquisitionThe consideration for the trade and assets of FEML comprises consideration to be satisfied by a cash payment of £2.2 million and the issue of 2,993,653 new ordinary shares in the capital of Inspired Energy (the "Consideration Shares". The Consideration Shares are being issued to the shareholders of FEML who are all directors of the business and will remain with the enlarged Group and be subject to a 12 month lock-in and orderly market provisions for a further 12 months from the date of admission of the Consideration Shar
