Energy consultancy Inspired sees revenue climb by nearly a third

Sales at consulting firm Inspired skyrocketed last year as companies tried to minimize energy bills, which soared in the wake of Ukraine’s war and the easing of Covid-19 restrictions.

Sales rose 31 per cent year-on-year to £88.8 million in 2022, with all four of the company’s divisions posting growth.

The group’s optimization services segment, which offers water conservation, energy efficiency and forensic audits, accounted for the bulk of the growth as revenue rose by almost two-thirds to £47.7m.

Energy markets experienced unprecedented turbulence last year amid skyrocketing gas and electricity prices due to the escalating conflict in Ukraine and a resurgence in energy use after economies reopened.

Prices were also pushed up by the UK having low gas storage capacity, a long winter in 2020/21, lower than expected wind and solar generation two years ago and higher demand for gas from Asia and South America.

Inspired said the ‘new normal’ due to the current crisis has led to increased interest in its products and services, including from several prominent UK retailers.

The Assurance Services department, which helps customers negotiate energy contracts on behalf of customers, won new orders from, among others, Naked Wines and Aldi, seller of meal kits Hello Fresh and car dealership chain Arnold Clark.

But sales performance couldn’t prevent the Preston-based company from turning to a loss of £3.6m after making a profit of £1.6m last year.

The company said trading had begun in 2023 with “significant momentum” and despite continued economic and political unpredictability, is optimistic about achieving annual results in line with forecasts.

Chief executive Mark Dickinson said: “While we take into account the current situation, the long-term opportunities for the group are clear and we entered FY23 with a robust position, building on the momentum of the previous year.

“We have a substantial addressable market, high-profile clients and a record new business pipeline, which underpins the Board’s confidence in the Group’s long-term growth and success.”

Founded in 2000, Inspired provides energy advisory and sustainability services to over 3,500 companies in the UK and the Republic of Ireland and was listed on the London Stock Exchange in 2011.

Robin Speakman, a research analyst at broker Shore Capital said: ‘The performance achieved is overall against what has been arguably the most challenging environment in the UK energy markets.

‘A testament to Inspired’s strategy and deepening customer relationships as a key partner for UK businesses.’

Inspired stocks were 1.6 percent, or 0.17 pence, lower at 10.1p late Wednesday morning. Since March last year, they are down about 36 percent.