Trading Update and Notice of Results

Inspired Energy plc

("Inspired Energy" or the "Group")

Trading Update and Notice of Results

Inspired Energy (AIM: INSE), a leading UK energy procurement consultant to UK and Irish corporates, is pleased to provide a trading update for the financial year ended 31 December 2018.

Group Trading Performance

The Board is pleased to report that Inspired Energy expects to announce another strong set of results, delivering good growth in revenue, profits and cash generated from operations.

·     Group revenues are expected to be approximately 21 per cent ahead of 2017.

·     The core Corporate Division delivered an excellent performance in the year:

o  Revenue growth approximately 29% ahead of 2017;

o  Contributing approximately 84% of Group revenues in 2018 (2017: 79%); and

o  8% of the Corporate Division revenue growth in the period was organic (2017: 6%).

·     Group Adjusted EBITDA* is expected to be approximately 24 per cent ahead of 2017, and adjusted profit before tax** approximately 22 percent ahead of 2017, both in line with market expectations.

·     Year-end procurement Corporate Order Book stood at £53.0 million (2017: £39.0 million) representing year on year growth of 36 per cent.

·     Cash generated from operations is expected to be approximately 37 per cent ahead of 2017, further reinforcing the cash generation capability of the Group.

·     Net debt is expected to be approximately £24.0 million at the year end.

·     Trading remained strong throughout the year and this trend has continued into 2019, underpinned by the order book.

 * Adjusted EBITDA is earnings before interest, taxation, depreciation and amortisation, excluding exceptional items and share-based payments.

**Adjusted profit before tax is earnings before tax, amortisation of intangible assets (excluding internally generated amortisation related to computer software and customer databases), exceptional items, share-based payments, the unwinding of deferred consideration and foreign exchange variances.

Acquisition Highlights

Completion of five strategic acquisitions in 2018, further enhancing growth opportunities and the service offering for clients:

·     Acquisition of Inprova Finance Limited ("Inprova") for consideration of £19.5m, completed on 27 December 2018, which has increased the Corporate Order Book, and will augment the contribution to Group revenues from the Corporate Division in 2019, increasing the Corporate market share and significantly strengthens the Group's position as market leader in the UK.

·     Integration of Inprova has started well and in line with management expectations.

·     Integration of Squareone Limited and Professional Cost Management Group Limited, acquired in August and September 2018 respectively, is progressing well.

·     Systemslink 2000 Limited and Energy Cost Management Limited, both acquired in March 2018, are now fully integrated into the Group.

Mark Dickinson, CEO of Inspired Energy, commented: "2018 has seen the acceleration of our next growth phase with five complementary and value-enhancing acquisitions completed, whilst the Group has continued to deliver sustained organic growth in the Corporate Division. These acquisitions have materially increased the Group's client meters under management (units of opportunity) and we continue systematically engaging with clients to quantify the cross-selling opportunities and increased accessible revenue at each meter point.

"We remain focused on delivering our core financial, operational and strategic objectives, whilst simultaneously broadening the service offering for our clients, to help them to optimise the value of every pound spent on utilities.

"Inspired Energy had an excellent 2018 and I am confident that 2019 will be another year of significant progress for the Group with trading in line with expectations."

Notice of Final Results

Inspired Energy expects to announce its full year results for the year ended 31 December 2018 on 27 March 2019.

 Enquiries please contact:

Notes to editor

Inspired Energy was established in 2000 and provides expert consultancy on the negotiation of energy contracts, offering a range of services to its clients through the life of each contract including market analysis, bureau services and management services with the primary aim of reducing costs for its clients.

In 2018 Inspired Energy was ranked in first place in the Cornwall Insight I&C TPI index rankings out of 111 TPI's shortlisted, reaffirming the Group's position as a market leader. This independent report is based on the opinions of business energy suppliers which reinforces to the Group's strong positioning within the TPI market and that its development and growth strategy is well received.  This market leading position has been further strengthened by the five acquisitions completed in 2018.