Date: 20/1/12
Broker: Shore Capital
Company: Inspired Energy
Share price: 3.4p
Target price: N/A
Recommendation: N/A
Following the issue of a trading statement by Inspired, house broker Shore Capital has issued its first forecast for the Lancashire-based energy consultancy since the company's flotation. Second half revenues were 30% higher than the same period in 2010, with strong trading in November and December, which is in line with expectations. The order book is £250,000 higher than it was in October and, at £4.3 million, is at a record level.
Inspired is hiring more people in order to accelerate its organic growth.
Shore forecasts a 2012 profit of £2.09 million. The company's shares are trading on just over eight times 2012 forecast earnings.
Shore points out that Mitie recently acquired energy and carbon management specialist Utilyx for £16.2 million - £15 million paid on completion. This was equivalent to 9.5 times EBITDA, whereas Inspired is valued on an EV/EBITDA multiple of 6.1 times 2012 forecast earnings.
