County energy consultancy posts record turnover and leap in profits

Fylde-based energy consultancy Inspired Energy has seen its revenues hit record levels and its pre-tax profits soar.

Tuesday, 2nd June 2020, 12:25 pm

The Kirkham-based firm has unveiled its financial figures for the year ending December 2019, but warned that coronavirus may have an effect on its performance in the second and third quarters of this year.

It said the first quarter had been virtually unaffected but it saw a falling off in demand from its small and medium sized business customers and has put some of its staff in that are on furlough.

For the year ending in December Inspired saw revenues leap from £32.69m the previous year to £49.30m.

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Mark Dickinson of Inspired Energy

Pre-tax profits came in at £14.72m, up from £11.38m in 2018.

It said its corporate order book now stood at £57.50m, up from £53.00m in 2018.

Mark Dickinson, chief executive, said: “While we are undoubtedly 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.

“The additional flexibility provided by the extension of our banking covenants ensures that the Group does not have to undertake any permanent restructuring actions which could prejudice the effective implementation of our strategic growth plan as envisaged prior to the COVID-19 crisis and which we expect to resume unfettered, save for delay, once conditions allow.”

During the year Inspired bought Waterwatch UK and of Independent Utilities Limited and the board said it believes there will continue to be significant scope to continue its acquisition strategy in the future and "will look to act decisively where value-enhancing opportunities are presented".