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Inspired Energy PLC (GB:INSE)
LSE:INSE

Inspired Energy (INSE) AI Stock Analysis

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GB

Inspired Energy

(LSE:INSE)

Rating:78Outperform
Price Target:
87.00p
▲(14.47%Upside)
Inspired Energy's strong technical momentum and attractive valuation are the most significant factors driving its stock score. The financial performance is solid, with improvements in profitability and cash flow management, although revenue growth remains a concern. Corporate events highlight potential strategic shifts with mixed implications for shareholder value. Overall, the stock presents a compelling investment opportunity with its current momentum and valuation.

Inspired Energy (INSE) vs. iShares MSCI United Kingdom ETF (EWC)

Inspired Energy Business Overview & Revenue Model

Company DescriptionInspired Plc provides energy consultancy services to corporate business energy users in the United Kingdom and Ireland. The company operates through three segments: Inspired Energy Solutions, Inspired ESG Solutions, and Inspired Software Solutions. Its energy solutions include energy assurance and energy optimization services. The company also offers ESG services, such as data collection, resources, taxonomy agnostic disclosures, audit management, internal expert empowerment, strategic advice, and technology solutions. In addition, it provides technology and energy management software solutions for third party service providers and intermediaries; and delivers water and sustainability services. The company was formerly known as Inspired Energy PLC and changed its name to Inspired Plc in June 2021. Inspired Plc was founded in 2000 and is based in Preston, the United Kingdom.
How the Company Makes MoneyInspired Energy makes money through a diverse revenue model centered around its consultancy services. The company earns revenue by providing energy procurement services, where it helps businesses secure favorable energy contracts with suppliers, often earning a commission or fee based on the savings achieved. Additionally, Inspired Energy offers risk management services, advising clients on market dynamics and strategies to mitigate energy price volatility, for which it charges consultancy fees. The company also provides energy efficiency solutions, assisting clients in reducing energy consumption and improving sustainability, which generates income through project management fees and performance-based incentives. Significant partnerships with energy suppliers and technology providers enhance its service offerings, contributing to its overall revenue.

Inspired Energy Financial Statement Overview

Summary
Inspired Energy exhibits a solid recovery path with improvements in EBIT and net income, alongside strong cash flow management. Despite a decline in revenue, profitability margins and cash flow conversion rates are favorable. The balance sheet reflects a stable financial position with moderate leverage, aligning with industry standards. Continued focus on revenue growth and leverage management will be key to sustaining positive financial momentum.
Income Statement
67
Positive
Inspired Energy has shown a recovery in profitability with a significant shift from a negative EBIT in 2023 to a positive EBIT in 2024, leading to an improved EBIT margin of 18.7%. The gross profit margin is robust at 68.5%, indicating strong cost management. However, revenue has declined by 5.0% from 2023 to 2024, which could signal potential challenges in demand or market conditions.
Balance Sheet
72
Positive
The balance sheet shows a healthy equity ratio of 40.6%, demonstrating a stable financial foundation. The debt-to-equity ratio is 1.03, which is reasonable for the industry, though it suggests moderate leverage. Return on equity stands at 14.9%, indicating effective use of equity to generate profit. Improvements in equity and asset utilization are evident, though leverage remains a consideration.
Cash Flow
75
Positive
Cash flow management appears strong with a positive shift in free cash flow, growing to 10.1 million in 2024. Operating cash flow to net income ratio is 1.14, showing efficient conversion of income to cash. The company has improved its free cash flow position substantially, enhancing financial flexibility. However, sustaining this trend will be crucial to mitigate any potential liquidity risks.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
93.79M98.76M88.78M67.94M46.11M
Gross Profit
64.22M67.30M57.71M50.69M29.42M
EBIT
17.54M-1.70M12.21M9.92M1.69M
EBITDA
24.39M6.04M5.74M12.14M7.37M
Net Income Common Stockholders
9.63M-7.16M-3.63M1.64M-5.99M
Balance SheetCash, Cash Equivalents and Short-Term Investments
5.19M8.78M12.27M12.94M26.88M
Total Assets
159.56M157.68M152.13M151.72M138.71M
Total Debt
66.78M59.79M50.88M47.70M48.40M
Net Debt
61.59M51.01M38.61M34.76M21.52M
Total Liabilities
94.73M102.80M91.11M85.14M72.43M
Stockholders Equity
64.83M54.88M61.03M66.58M66.28M
Cash FlowFree Cash Flow
10.13M8.60M10.51M-1.90M-1.80M
Operating Cash Flow
10.97M15.17M16.30M4.96M3.84M
Investing Cash Flow
-17.60M-18.49M-17.11M-15.72M-15.56M
Financing Cash Flow
3.05M-155.00K-3.03M-3.05M33.36M

Inspired Energy Technical Analysis

Technical Analysis Sentiment
Positive
Last Price76.00
Price Trends
50DMA
68.09
Positive
100DMA
64.60
Positive
200DMA
53.96
Positive
Market Momentum
MACD
1.91
Positive
RSI
80.37
Negative
STOCH
44.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:INSE, the sentiment is Positive. The current price of 76 is above the 20-day moving average (MA) of 74.16, above the 50-day MA of 68.09, and above the 200-day MA of 53.96, indicating a bullish trend. The MACD of 1.91 indicates Positive momentum. The RSI at 80.37 is Negative, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:INSE.

Inspired Energy Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBJSG
79
Outperform
£576.21M16.5512.12%3.80%10.34%33.59%
78
Outperform
£121.33M8.1716.09%2.63%-5.03%
GBMTO
77
Outperform
£1.75B17.4823.48%1.81%15.25%25.57%
GBSRP
72
Outperform
£2.00B47.314.71%2.86%-0.68%-78.93%
GBCPI
71
Outperform
£322.80M4.1049.03%-10.33%
GBRST
68
Neutral
£355.32M28.395.32%2.93%-0.65%
66
Neutral
$4.44B12.085.34%5.82%4.17%-11.81%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:INSE
Inspired Energy
76.00
-1.44
-1.86%
GB:CPI
Capita plc
279.50
68.90
32.72%
GB:JSG
Johnson Service
143.40
-14.43
-9.14%
GB:MTO
Mitie Group plc
140.80
27.40
24.16%
GB:RST
Restore
262.50
19.97
8.23%
GB:SRP
Serco Group plc
198.40
30.73
18.33%

Inspired Energy Corporate Events

Executive/Board ChangesRegulatory Filings and Compliance
Inspired PLC Grants Share Options to Directors Under Incentive Plan
Neutral
Jun 2, 2025

Inspired PLC has announced the grant of options over ordinary shares to certain directors under the Inspired PLC Incentive Plan for the FY23 financial year. This grant, totaling 1,317,190 options, was delayed due to regulatory restrictions but has now been approved by the Takeover Panel. The options are exercisable at nil cost from March 2027, contingent on continued employment, and are subject to malus and clawback provisions, reflecting the company’s commitment to aligning management incentives with shareholder interests.

M&A Transactions
Inspired PLC Shareholders Back Potential HGGC Offer
Positive
May 29, 2025

Inspired PLC has announced that shareholders holding 38.15% of its issued share capital have expressed their intention to accept a possible cash offer of 81 pence per share from HGGC, should a recommended firm offer be made. This potential acquisition, supported by major shareholders including Gresham House Asset Management, Otus Capital Management, and William Currie Investments, could significantly impact Inspired’s market position and shareholder value.

M&A Transactions
Inspired PLC Receives Shareholder Support for Potential Acquisition Offer
Neutral
May 28, 2025

Inspired PLC has announced that its largest shareholder, Gresham House Asset Management Limited, has expressed its intention to accept a potential cash offer for Inspired’s shares, should a firm offer be made on the terms proposed by HGGC, LLC and its affiliates. This potential offer values each Inspired share at 81p and includes Gresham House’s significant holdings and voting rights in the company, which could significantly impact Inspired’s ownership structure and market positioning.

M&A Transactions
Inspired PLC Engages in Potential Acquisition Talks with HGGC
Neutral
May 27, 2025

Inspired PLC is currently in discussions with HGGC, LLC regarding a potential cash offer of 81p per share for the entire issued and to be issued share capital of the company. This proposal follows an unsolicited offer from Regent Acquisitions 2025 Limited, which Inspired’s Board has recommended shareholders reject. The HGGC proposal is expected to be structured as a takeover offer, with the Board indicating a willingness to recommend it to shareholders if a firm offer is made on the proposed terms. The potential acquisition could significantly impact Inspired’s market position and shareholder value.

M&A TransactionsBusiness Operations and Strategy
Inspired PLC Urges Rejection of Regent’s Undervalued Offer
Negative
May 21, 2025

Inspired PLC has published a response document urging shareholders to reject an unsolicited cash offer from Regent Acquisitions 2025 Limited, which the board deems undervalues the company. The board is in discussions with a third party for a potential higher offer, suggesting confidence in the company’s long-term value strategy.

Shareholder MeetingsFinancial Disclosures
Inspired PLC Announces AGM Date and Releases 2024 Annual Report
Neutral
May 15, 2025

Inspired PLC has announced the date for its Annual General Meeting (AGM), which is set to take place on 27 June 2025 in Manchester. The company has also released its Annual Report and Accounts for the year ending 31 December 2024, which will be distributed to shareholders and made available on their website. This announcement underscores Inspired’s commitment to transparency and stakeholder engagement, reinforcing its position as a key player in the energy advisory industry.

Regulatory Filings and Compliance
FIL Limited Reduces Voting Rights in Inspired PLC
Neutral
May 12, 2025

Inspired PLC, a UK-based company, announced a change in the voting rights held by FIL Limited, a Bermuda-registered entity. The notification reveals that FIL Limited’s voting rights in Inspired PLC have decreased from 5.06% to 4.5769%, which could impact the company’s shareholder dynamics and influence within the market.

M&A Transactions
Inspired PLC Shareholders Reject Regent’s Offer
Neutral
Apr 29, 2025

Inspired PLC has announced an update regarding the intentions of its shareholders in response to an offer from Regent Acquisitions 2025 Limited. The company revealed that shareholders controlling 49.14% of its issued share capital do not plan to accept Regent’s offer of 68.5p per share. This decision could significantly impact the potential acquisition and reflects the current sentiment among major shareholders. Inspired PLC’s board advises shareholders to refrain from taking any action at this time.

M&A TransactionsBusiness Operations and Strategy
Inspired PLC Shareholders Reject Regent’s Offer
Negative
Apr 28, 2025

Inspired PLC, a company in the energy sector, is facing an unsolicited offer from Regent Acquisitions 2025 Limited at a price of 68.5p per share, which represents a 12% premium over the previous closing price. However, shareholders controlling 49.15% of Inspired’s share capital, including major stakeholders like Gresham House Asset Management and Slater Investment Limited, have expressed their intention not to accept the offer, citing that it undervalues the company. The Board of Inspired has urged shareholders not to take any action at this time.

M&A TransactionsBusiness Operations and Strategy
Inspired PLC Rejects Unsolicited Offer with Shareholder Support
Neutral
Apr 25, 2025

Inspired PLC, a company in the energy sector, has received support from its largest shareholder, Gresham House Asset Management Limited, against an unsolicited cash offer from Regent Acquisitions 2025 Limited. Gresham House, which holds a significant portion of Inspired’s shares, believes the offer undervalues the company and has no intention of accepting it, aligning with the Board’s unanimous view.

Private Placements and Financing
Inspired PLC Announces New Share Issuance to Support Option Exercises
Neutral
Apr 24, 2025

Inspired PLC has announced the issuance of 4,000 new ordinary shares to accommodate the exercise of options under its Share Option Schemes. This move will increase the company’s total share capital to 159,649,070 ordinary shares, impacting the calculation for shareholders’ interest notifications under FCA rules.

M&A Transactions
Inspired PLC Receives Unsolicited Acquisition Offer
Negative
Apr 23, 2025

Inspired PLC has received an unsolicited all-cash offer from Regent Acquisitions 2025 Limited to acquire all its shares at 68.5 pence per share. The board of Inspired believes the offer undervalues the company and advises shareholders not to take any action at this time, as they prepare a formal response with financial advice from Evercore.

Executive/Board ChangesBusiness Operations and Strategy
Inspired PLC Announces Departure of Non-Executive Chairman
Neutral
Apr 14, 2025

Inspired PLC announced the upcoming departure of Richard Logan, the Non-Executive Chairman, who will step down after the Annual General Meeting in June 2025. Richard Logan has been instrumental in guiding the company through significant challenges, including the Covid-19 pandemic and energy crisis, and leaves Inspired with a strong foundation and growth strategy.

Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
Inspired PLC Strengthens Financial Position Amidst Revenue Decline
Neutral
Mar 31, 2025

Inspired PLC reported its 2024 financial results, highlighting a decrease in revenue and adjusted profit before tax, but an increase in gross profit and cash flow generation. Despite facing challenges such as project delays and increased finance costs, the company has strengthened its financial position through fundraising and aims to reduce its debt significantly by 2027. The company remains optimistic about future growth, driven by a robust pipeline and high client retention rates across its divisions.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.