Inspired Energy acquires Horizon Energy Group in Ireland

Inspired Energy is to acquire Horizon Energy Group Limited, an energy procurement consultancy with 34 employees, based in Cork, Ireland with customers including large Corporates, Public Sector bodies and SMEs. The acquisition will be part funded by a £9 million share placing.

Inspired will pay an initial Consideration of €9.0 million to acquire 90% of Horizon. Inspired has the option to acquire the outstanding balance of 10% for a further €1.0 million. Further deferred payments of up to €5.0 million are subject to achievement of financial performance targets for the periods ending 31 December 2017 and 31 December 2018.

Horizon’s management team, including Colin Barry, founder and MD of Horizon, will remain with the Group.

Commenting on the proposed acquisition, Janet Thornton, Chief Executive of Inspired, said: “Inspired continues to look to deliver on its growth strategy and Horizon provides an opportunity to drive growth from Inspired’s platform as it is an established business in a relatively untapped market. It will bring high earnings visibility, supported by a strong procurement corporate order book, and Horizon’s sales team will benefit from the cross-selling opportunities with access to Inspired’s broader capabilities, ultimately benefitting clients.”

“Ireland’s energy procurement sector is relatively underdeveloped compared to the UK, providing a significant opportunity for Inspired to deploy its expertise in increasing its presence in this market, leveraging the Enlarged Group’s experience of growth in the UK market.”

UK, Kirham, Lancashire & Ireland, Cork and Dublin

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Inspired Energy acquires Flexible Energy Management and Churchcom 

inspired-logo3
Inspired Energy has acquired the trade and assets of Flexible Energy Management Limited and 100% of the shares in Churchcom Limited.

Flexible Energy Management Limited (FEM)

Founded in 2012 , FEM is a public sector energy procurement specialist, servicing a customer base comprising of NHS foundation trusts/hospitals and academic and sporting institutions, through two NHS sponsored OJEU frameworks*. The business is based in Manchester, the two Directors of FEM have over 20 years’ experience in the NHS. 

Inspired are paying £2.2 million in cash for FEM and in addition will issue of 2,993,653 new ordinary shares to the shareholders, who will remain with the business. For the financial year ended 31 March 2016, FEM delivered revenues of £0.65 million, EBITDA of £0.47 million and generated operating cash of £0.47 million.

Churchcom Limited

Churchcom is an energy procurement consultant based in Peterlee, County Durham. Churchcom operates under two trading divisions, Church Energy Purchasing Group, which specialises in energy procurement for churches and Energy Partners, offering energy procurement services for commercial customers, complementing Inspired’s core Corporate Division.

Inspired are paying £1.4 million in cash for Churchcom. For the financial year ended 31 January 2017, Churchcom delivered revenues of £0.64 million, EBITDA of £0.35 million and generated operating cash of £0.47 million. Net assets as at 31 December 2016 stood at £0.24 million. The founder directors of Churchcom have sold the business in order to retire and will leave after a handover period.

Commenting on the acquisitions, Janet Thornton, CEO of Inspired Energy said: “We are delighted to conclude the acquisition of Flexible Energy Management and Churchcom, which are highly complementary additions to the Group’s core corporate division. These acquisitions broaden our customer base, further enhance our sector specialisms and increase our geographical spread. “

The acquisitions are being financed from the Group’s existing financial resources, with funding provided by an extension to the Group’s existing £3.5 million acquisition facility with Santander to £5.1 million.

* OJEU frameworks are framework agreements which govern the procurement process for Public Sector Bodies with the intention of improving the effectiveness of the tender process. The frameworks are subject to the rules of Regulation 33 of the Public Contracts Regulation 2015 which transposes Article 33 of Directive 2014/24/EU.

UK, Kirham, Lancashire & Manchester & Peterlee, County Durham

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Inspired Energy acquires Informed Business Solutions

inspired-logo3Inspired Energy PLC has acquired Informed Business Solutions Limitedan energy procurement and environmental services provider, for an initial consideration of approximately £2.25  in cash and shares. Informed Business Solutions provides its services provider to large and multi-site corporates. It has a particularly strong presence in the multi-site retail and leisure markets.  Both companies are based in Kirkham, Lancashire.

Inspired are paying an initial consideration of £1.75 million in cash and issuing 3,545,596 new ordinary shares to the shareholders of Informed. Deferred consideration of up to £2.0 million may also be paid subject to financial performance criteria based on both the contracted order book and revenue for the financial years ending 31 December 2017 and 2018. The Deferred Consideration will be payable in four tranches of up to £0.5 million each.  Two tranches, in relation to the financial year ending 31 December 2017, will be payable in July 2017 and February 2018.  A further two tranches, in respect of the outturn for the year ending 31 December 2018 will be payable in September 2017 and July 2018. 

The directors of the business will remain with the enlarged group. Their shares are subject to a 12 month lock-in and orderly market provisions for a further 12 months from the date of admission.

For the audited financial year ended 31 December 2015, Informed delivered revenues of £1.7 million, EBITDA of £0.7 million, pre-tax profits of £0.7 million and generating operating cash of £0.8 million. Net assets as at 31 December stood at £0.5 million. 

Commenting on the Acquisition, Janet Thornton, CEO of Inspired Energy said: “We are delighted to conclude the acquisition of Informed which is a highly complementary addition to the Group’s core corporate division. The Acquisition broadens our customer base, further enhances our sector specialisms and strengthens our service offering within environmental consultancy. We look forward to working closely with the highly experienced and knowledgeable team of Informed and welcoming them into our core Corporate Division as we seek to advance our position as a market leader.”

UK, Kirkham, Lancashire

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Inspired Energy acquires STC Energy and Carbon Holdings

inspired-logo1Energy procurement company Inspired Energy PLC has acquired STC Energy and Carbon Holdings Limited, an energy bureau, billing and management service provider to large multi-site organisations for an initial consideration of approximately £9 million in cash and shares.

stc-logoThe consideration comprises an initial payment of £5 million in cash and the issue of 32,786,885 new ordinary shares in the capital of Inspired Energy.  The Shares are being issued to the founders of STC, Simon Clayton and Steven Rae, who will remain with the enlarged group and will be subject to a 12 month lock-in and orderly market provisions for a further 12 months from the date of admission.  Simon Clayton will hold 26,229,508 ordinary shares, which will represent 5.56 per cent. of the enlarged group’s issued share capital on admission of the new Shares.

A further contingent consideration of up to £3 million may be payable, in cash and shares in a ratio of 50:50, if certain targets are hit for the period ending 30 September 2017.

In the audited financial year ended 31 March 2015, STC’s principal and only trading subsidiary, STC Energy Management Limited delivered revenues of £3.8 million, EBITDA of £1.7 million, pre-tax profits of £1.4 million and generated operating cash of £1.6 million.

Kent based STC provides a complete range of energy services to help organisations manage their utilities more effectively. In particular, STC has developed a range of energy bureau products and services  aimed at larger UK corporates or organisations with extensive property portfolios or complex billing environments. In addition, STC’s other services include: utility procurement; carbon compliance services; site works and metering; and general energy management consultancy.

STC’s clients range from large multi-site retailers to county councils and housing associations, with property portfolios ranging between 25 and 4,000 individual sites.

STC’s revenue model is predominantly led by fees charged directly to clients in respect of bureau and billing services.  The company has a retention rate on clients of in excess of 90 per cent.  STC also has a commission based revenue stream for energy procurement services, paid directly by suppliers.

Janet Thornton, CEO of Inspired Energy said, “We are delighted to conclude the acquisition of STC, which increases the breadth of our target customer base, enhances our sector specialism including the Public Sector and larger multi-site clients and expands our service offering for our corporate customers and provides geographical diversification.”

In order to fund the cash component of the initial consideration and to provide additional financial flexibility for the Group, Inspired has entered into a new facility agreement with Santander UK plc for a £10 million term loan. The Facility replaces the Group’s previous £5 million term loan facility and £0.6 million of drawn RCF facilities, thus increasing the Group’s indebtedness by £5 million when drawn down.

In addition, the Group has also entered into a revolving credit facility, also with Santander, for the sum of £1.5 million, of which £0.6 million is drawn, to be used for the purposes of satisfying future working capital requirements  and an acquisition facility of up to £3.5m to fund future Group acquisitions.

UK, Kirkham, Lancashire & Bromley, Kent

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World Fuel Services acquires Bergen Energi

WFSWorld Fuel Services Europe, Ltd., a wholly owned subsidiary of World Fuel Services Corporation (WFS), has acquired Bergen Energi, a European energy management services company based in Norway. The terms of the deal were not disclosed.

WFS has a well-established energy services business in North America. The acquisition of Bergen Energi will facilitate an expansion of these services to customers across Europe.

BergenBased in Bergen, Norway, Bergen Energi offers energy procurement, energy risk management, energy data management and energy consultancy services. The company was founded in 1991 when Norway became the first country in Europe to liberalise its electricity market.

WFS is headquartered in Miami, Florida. The company is a global fuel logistics and transaction processing company, principally engaged in the distribution of energy products and services in aviation, marine and land at more than 8,000 locations worldwide.

Bergen Energi will continue to operate under the same name. The main shareholder and former CEO Bill Schjelderup has been replaced by WFS’s Terry Cogan as new CEO.

USA, Miami, FL & Norway, Bergen

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Utilitywise plc Final Results

utilitywiseUtilitywise plc, an AIM listed, independent utility cost management consultancy, has announced its audited full year results for the year ended 31 July 2015.

 Highlights:

  • Revenue: £69.1M (2014 – £48.9M) up 41%
  • Gross profit: £30.3M (2014 – £22.4M) up 35%
  • EBITDA: £17.8M (2014 – £14.5M) up 23%
  • Profit before tax: £16.7M (2014 – £13.4M) up 25%
  • Continued investment in multi-channel routes to the customer
  • Management strengthened with appointment of new COO, Brin Sheridan
  • t-mac Technologies acquisition completed in April
  • UK customers now exceeds 27,000
  • Review of accounting procedures to enable more accurate consumption variance tracking

Geoff Thompson, Chief Executive of Utilitywise, commented:

“The past year has been one of continued progress. We have maintained our growth aspirations and we are well advanced in the roll out of our multi-channel approach to the entire addressable market. We have complemented our capabilities in the year with the acquisition of t-mac Technologies and now can take a customer through the entire journey of procuring their energy, ensuring compliance, monitoring and reporting usage, and controlling and reducing their energy consumption. 

Our management team has been further strengthened and I am delighted to welcome Brin Sheridan to the Group. Brin will assist us along with the rest of the Executive team to deliver this exciting opportunity we have to increase our market share.

We have slowed and refocused our recruitment in recent months to ensure that we have the highest quality of staff capable of delivering our Trusted Advisor strategy effectively and increasing our new customer conversion rates. Since period end the Group’s UK customer base has increased further to 27,265 as at 30 September, with a corresponding increase in secured but not yet recognised revenue to £28.3 million as at 30 September compared to £26.2 million at period end.

Our outlook for the coming years remains extremely positive and we look forward to welcoming thousands of new customers to the services and products we can deploy to help them  optimise their energy usage and to save money.”

For more information click here

UK, North Tyneside

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Management Buy Out of The Energy Brokers Limited

TEBLThe Energy Brokers Limited (TEBL) a specialist energy procurement consultancy has been acquired by The Consultus International Group Limited in a Management Buy Out led by its Managing Director, Andrew Staley. The terms of the transaction have not been disclosed.

andrew-staleyTEBL is a specialist energy procurement consultancy that focuses in the Industrial & Commercial (I&C) sector arranging and managing electricity and gas contracts on behalf of its clients with energy suppliers. It operates predominately in the UK but has been steadily increasing its foothold across the European marketplace. In the UK it has been assessed by an independent party who ranks TEBL joint 2nd in the Cornwall Energy I&C TPI Index.

Based in Leicester TEBL was setup in 1994, following de-regulation of the UK’s electricity & gas markets. During this time it has grown and developed a dedicated and specialised energy procurement team serving many business sectors across a range of organisation sizes. TEBL was setup and led by the former Managing Director, Bernard Messore and its Non-Executive Directors; David Booth, David Dyer, Jane Messore and Roy Warner.

Whilst TEBL has a relatively new management team in place it remains under the guidance of Andrew Staley, who has managed the business since 2009. The new management team consists of industry professionals, who now form the board and are driving the business forward. As part of this deal Consultus has also acquired The Waterbuyers Limited, which is a newly formed Company that will be used to expand the operations of the Group into other areas such as; Water, Energy Efficiency and Internationally.

Clydesdale Bank supported the management buy-out through the provision of debt facilities. Andrew Staley said “we went out to the marketplace for the debt facilities, Clydesdale came back promptly with a competitive offer that not only met our request, but exceeded it by providing additional flexibility. I’m very pleased to be working with Chris (Harris) and the team at Clydesdale.”

UK, Leicester