Inspired Energy plc – results for the 12 months ended 31 December 2012

March 20, 2013 — Fusion DigiNet

inspiredenergyInspired Energy plc, a UK energy procurement consultant to UK corporates, has announced its final results for the 12 month period ended 31 December 2012.

Financial Highlights

  • Revenue in the year to 31 December 2012 was £5.26 million (six months to 31 December 2011: £1.53 million)
  • Earnings before exceptional costs, depreciation, amortisation and share-based payment costs for the period was £2.64 million (six months to 31 December 2011: £0.91 million)
  • Adjusted EPS was 0.48 pence (excluding amortisation, acquisition cost, share based payments and restructuring cost) (six months ended 31 December 2011: 0.20 pence)
  • Profit before tax £0.89 million (six months to 31 December 2011: £0.61 million loss)
  • Order book of £8.9 million as at 31 December 2012 (£4.3 million at 31 December 2011)
  • New Group bank facilities agreed with Santander UK Plc (“Santander”) – £3.5 million facility to replace existing debt on more attractive terms with an additional acquisition facility of £1.5 million for future transactions
  • Maiden dividend proposed of 0.11 pence per share

Operational Highlights

  • Successful integration of Direct Energy Purchasing Limited, acquired in April 2012
  • Diversification of customer base into new sectors, including public sector and large scale infrastructure
  • Client retention
    • Renewals across the Group at 86 per cent (by contract value)
    • Risk Management division achieved a 100 per cent retention
  • Significant investment in staffing to drive revenue growth with average headcount in year increasing 69 per cent to 54 (31 December 2011: 32)
  • Investment in a bespoke core IT platform to optimise sales and client servicing, in line with the Group’s strategy on admission
  • Ongoing product development including launch of innovative Multi-Customer Management solution
  • Client driven expansion into Europe commenced, including set up of Irish office

Commenting on the results, Bob Holt, Chairman, said: “2012 was a transformational year for the Group, which has delivered confidently on its growth strategy; completing the first acquisition, broadening the customer base, both by sector and geographically and hiring key talent. This combined with the investment in a bespoke IT platform has streamlined business processes enabling us to increase the productivity from our highly skilled and experienced team.”

Janet Thornton, Managing Director, added: “Following a strong performance in 2012 and the significant investment in the business platform I am confident of the prospects for the Group in the new financial year. We have delivered a strong set of results whilst growing the business organically, accelerated by the investment in additional expertise and through the acquisition of DEP. In 2013, I believe that the Group will begin to see significant financial and operational benefits from the investment we have made in both IT infrastructure and talent and we will be able to continue our strong growth rates as well as broadening our product base and geographic reach.”

UK, Lancashire

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Inspired Energy plc trading update for the financial year ended 31 December 2012

February 4, 2013 — Fusion DigiNet

inspiredenergyInspired Energy plc trading update for the financial year ended 31 December 2012

Inspired Energy, an energy procurement consultant to UK corporates, has provided a trading update for the financial year ended 31 December 2012.

Revenues for the full year are expected to be marginally ahead of market expectations whilst profit before tax, excluding deal costs and amortisation of intangible assets associated with the acquisition of Direct Energy Purchasing Limited (“DEP”), is anticipated to be broadly in line with forecasts.  Net Debt is expected to be approximately £1.8 million.

Trading remains strong with the contracted order book of Inspired Energy Solutions Limited rising to £6.3 million as at 31 December 2012 (31 December 2011: £4.3 million).  DEP’s order book has also grown substantially in the period since its acquisition to £2.6 million (31 December 2011: £1.7 million), taking the Group’s aggregate current, contracted, order book to £8.9 million as at 31 December 2012.

Janet Thornton, Managing Director of Inspired Energy, commented: “We have a strong contracted order book and the Board is confident of the Group’s outlook. We look forward to continued organic growth in the year ahead, alongside the pursuit of further earnings enhancing acquisitions.”

Inspired Energy expects to announce its full year results for the year ended 31 December 2012 on 21 March 2013.

UK, Kirkham, Lancashire

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Utilitywise – maiden report

October 18, 2012 — Fusion DigiNet

Utilitywise, a company that specialises in energy procurement and energy management services for businesses, has announced its first annual report since launching as a new company on AIM in June this year.

Financial highlights

  • Proforma revenue increased by 25% to £14.6 million (2011: £11.7 million)
  • Proforma EBITDA increased by 25% to £4.7 million (2011: £3.7 million)
  • Proforma PBT increased by 23% to £4.3 million (2011: £3.5 million)
  • Proforma EPS increased by 39% to 6.4p (2011: 4.6p)
  • Net cash at the year end of £8.2 million (2011: £0.2 million)
  • Maiden dividend of 1p proposed–ahead of schedule

Corporate highlights

  • Acquisition of EcoMonitoringUtility Systems Limited in January 2012
  • Acquisition of Clouds EnvironmentalConsultancy Limited (post reporting period)
  • Listing on AIM on 12 June 2012 raising £6.9million (before expenses)
  • New contracted meters grew to 20,013 at 31 July 2012 from 15,006 at 31 July 2011
  • Energy consultancy headcount increased to 188 at 31 July 2012 from 131 at 31 July 2011

Read the full report here.

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Utilitywise acquires Clouds Environmental Consultancy Limited

October 2, 2012 — Fusion DigiNet

Utilitywise, a leading independent utility cost management consultancy which was admitted to AIM on 12 June 2012,has acquired independent energy consultancy Clouds Environmental Consultancy Limited.

Clouds, based in Portsmouth, is an independent consultancy specialising in energy management services which are designed to help clients identify areas of potential energy and cost savings. Its team of highly qualified energy consultants helps businesses effectively manage their clients’ energy and environmental impact and, in so doing, improve resource efficiency and reduce business overheads. The Clouds team will continue to operate from Portsmouth and will provide Utilitywise with additional technical capabilities for its suite of energy management products.

The total consideration is for a maximum of £985,000 with an initial £600,000 paid on completion, (subject to adjustment on the basis of completion accounts) with the balance of up to £385,000 payable over the next 12 months, depending on certain EBITDA targets being met. The acquisition will be financed equally from the Company’s cash resources and through the issue of new ordinary shares in Utilitywise.  Clouds reported revenue of £945,000 and EBITDA of £185,000 in the year ending 30 April 2012.

With capacity to grow the Clouds team, the acquisition will provide Utilitywise with a new base from which to address the South of England, and further extends its coverage of the UK market. Clouds has a range of products and services which complement and extend the existing Utilitywise offerings in the areas of legislative Compliance, Auditing and Surveying and Feasibility and Design. They have an established market presence in both the public and private sectors and will bring to Utilitywise an extensive customer base, including customers such as British Airways, Telefonica O2, Eli Lilly, Thales, NHS Heath Trusts and The National Gallery

Geoff Thompson, Chief Executive of Utilitywise, commented, “We are pleased to have completed our first acquisition since admission to AIM in June 2012.  It has been our stated strategy to complement our organic growth with acquisitions that enhance and broaden our products and services. We have followed Clouds’ progress for many years and I am confident that their team of market leading energy consultants, strong customer base and geographic platform will be of great long term benefit to Utilitywise.”

UK, South Shields and Portsmouth

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Utilitywise to list on AIM

June 18, 2012 — Fusion DigiNet

South Shields based energy consultancy, Utilitywise has began trading on AIM. It raised £6.86m gross through a placing of shares at 60p each with institutional investors, giving a market capitalisation of £36.9m.  The money will be used to finance further organic growth as well as growth through acquisitions.

In the 12 months ending 31 July 2011 the Company reported a profit before tax of £3.5 million on revenues of £11.7 million. Nominated advisor FinnCap is forecasting £4.1m pre-tax profit in the year to end July 2012, rising to £6.6m in 2012/13.

Utilitywise has enjoyed huge success since it was founded 6 years ago by father and son team Geoff and Adam Thompson. It specialises in business energy procurement and energy management. The Company negotiates rates with energy suppliers on behalf of commercial end-users and offers a range of products and services to help customers manage their energy consumption. Utilitywise clients stretch the length and breadth of the UK.

After the IPO  Geoff Thompson retains 56 per cent of the shares, Adam Thompson 16% and Andrew Richardson, FD, 8%.

The business has grown over the past few years, with over 100% growth in turnover in the last year. The Company’s growth has been achieved as a result of its focus on three key elements: its investment in IT infrastructure, its focus on business process management and the development of its energy services offering.

Utilitywise moved into new offices in Market Dock, South Shields in January this year which were officially opened by local MP David Milliband. It currently employs 230 people, making it one of the largest private sector employers in the region and, according to Chief Operating Officer Adam Thompson, its plans don’t stop there: “Tyneside has a real depth of talented individuals and we are delighted to be one of the largest employers in the area. We’ve recently moved to larger offices and dedicated further investment in training and human resources to give our staff the tools they need to succeed.“

UK, South Shields

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Schneider Electric acquires M&C Energy Group

May 4, 2012 — Fusion DigiNet

Schneider Electric has signed an agreement to acquire M&C Energy Group, a fast-growing company specialised in energy procurement and sustainability services for both multinationals and small to medium sized enterprises.

Headquartered in the Fife, Scotland, M&C provides its customers with energy procurement, compliance and performance optimization services mostly on recurring subscription basis. The company has more than 500 employees including 300 energy specialists and an international presence with 21 offices across 15 countries, particularly in Europe and Asia-Pacific.  M&C expects to generate total sales of approximately £35 million for the current year ending June 2012 with an EBITA margin above the Schneider Electric average.

In March last year Schneider Electric bought Summit Energy for total purchase price for the company is $268 million (~ € 190 million). See Fusion DigiNet article here.

Schneider Electric say that the M&C acquisition will complement the offerings and geographic presence of Summit Energy. M&C brings:

  • A strong client base of about 4,000 customers comprised of large corporations as well as a big pool of small to medium sized enterprises
  • Complementary geographical footprint, including Australia, Asia and some European locations
  • Highly experienced team specialized in services like energy procurement and risk management, regulatory analysis and compliance, performance optimization and sustainability auditing.

Chris Curtis, Schneider Electric’s Executive Vice President, Buildings Business, commented: “M&C is a bolt-on acquisition that will strongly complement Summit’s offerings, significantly enhance the Group’s position in energy management services, and accelerate our growth in countries where our presence is limited. In addition, this acquisition is totally in line with the Group’s strategy to boost services growth. The combination will allow us to connect their supply side expertise with our lead in demand side solutions and generate significant synergies.”

Mark Dickinson, CEO, M&C Energy Group commented: “Bringing M&C Energy Group and Schneider Electric together creates a global force in the energy advisory sector, providing long-term benefits to both staff and clients flowing from the combined knowledge, expertise, geographic footprint and range of products and service available.”

The completion of the transaction is subject to regulatory approvals and customary closing conditions.  The closing is expected to occur in the second quarter 2012. This acquisition is expected to be accretive on earnings per share from year 1 and to meet Schneider Electric’s Return on Capital Employed criteria in year 3.

France, Rueil-Malmaison, UK, Scotland, Fife and USA, Kentucky
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Inspired Energy acquires Direct Energy Purchasing Limited and raises £1M

April 16, 2012 — Fusion DigiNet

Inspired Energy plc, a UK energy procurement consultant to UK corporates, has entered into a conditional agreement to acquire Direct Energy Purchasing Limited (“DEP”), an energy procurement adviser to predominantly multi-site corporates, for a consideration of up to £4.0 million.  Inspired Energy has also raised £1.0 million (before expenses) through a placing of new ordinary shares.

The total consideration for the Acquisition comprises initial consideration of £2.0 million to be satisfied by a cash payment of £1.25 million and the issue of 21,428,572 ordinary shares in the capital of Inspired plus two deferred payments of up to £1.0 million each based primarily upon the financial performance of DEP in the two financial years ending 31 March 2013 and 31 March 2014.

The principal terms of the Acquisition Agreement are described in more detail below.

Inspired has raised £1.0 million (before expenses) through an oversubscribed placing by Shore Capital Stockbrokers Limited of 28,571,429 new ordinary shares of 0.125p each at a price of 3.5p per Placing Share, which will provide additional financing for the Group.

The initial cash payment in respect of the Acquisition will be funded from the Group’s existing cash resources and the Placing. The deferred consideration of up to £2.0 million is expected to be funded from existing cash resources as at completion and future cash-flows generated by the enlarged group.

Overview of DEP and the Acquisition

DEP is an energy purchasing management and consultancy business focused on providing consultancy and bureau services to multi site corporates, with specialisms in the healthcare and specialty retail sectors

The acquisition brings access to new sector verticals and increases the average size of clients across the enlarged Group’s portfolio, complementing and building on Inspired’s growth strategy

In the year ended 31 March 2011, DEP achieved revenues of c. £1.2 million and profit before tax of c. £0.7 million.  As at 31 December 2011, the contracted order book stood at c.£1.7 million. DEP currently serves 68 clients, and manages the procurement and administration of in excess of 6,000 energy meters across the UK.

DEP’s strong retention rates underpin stable revenue progression

Based in Bolton, DEP employs 18 staff and has 68 customers across the UK

Commenting on the Acquisition, Janet Thornton, Managing Director of Inspired said: “We are delighted to conclude our first acquisition since our admission to AIM in November 2011.  The acquisition of DEP complements our growth strategy, providing access to new sector specialisms as well as increasing our average size of client and geographic reach. We believe that the acquisition of DEP will benefit both Inspired and DEP. The acquisition of DEP increases the breadth of our target customer base and brings operational benefits, including increasing our supplier diversification and providing a platform for increased real time reporting.  Similarly, we believe that by becoming part of the Group, DEP’s customers can benefit from our exclusive products, increased buying power and access to our highly innovative and respected risk management team.”

UK, Kirkham, Lancashire and Bolton, Lancashire

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M&C Energy Group acquire Coleman Hines

March 7, 2012 — Fusion DigiNet

Just months after global energy consultants M&C Energy Group opened their first US office in Atlanta, Georgia, it has moved quickly to expand its USA footprint and strengthen its market position with the acquisition of energy consultancy service Coleman Hines, headquartered in Phoenix, Arizona.

Coleman Hines, founded in April 2000, provides energy consultancy services to many National Fortune 500 clients at nearly 35,000 sites covering all US states and Canada, particularly in the retail, restaurant, and commercial sectors. They will become part of M&C Energy Group’s growing worldwide organisation which already has 18 offices in 13 countries and clients in 40 countries.

Mark Dickinson, CEO M&C Energy Group, said: “Bringing M&C Energy Group and Coleman Hines together now creates an exciting prospect within the energy consultancy sector in North America. Not only will they increase our reach in North America, but Coleman Hines provides M&C with a number of exciting products and services specifically developed for the local markets, which will strengthen our portfolio of services. While M&C is a well-known industry-leader around the world, the North American market is relatively new to us and bringing Coleman Hines on board will strengthen our foothold and market position there.”

UK-based mid-market growth investor, Lyceum Capital, acquired M&C Energy Group for £22 million in 2010 and, since then, has implemented a rigorous programme of operational enhancement and supported a number of strategic acquisitions.

Dan Adler, Partner at Lyceum and M&C board member, said: “Coleman Hines is a well-established energy advisory firm of scale with an outstanding client retention rate and a highly progressive management team. The company’s services are closely aligned to those of M&C and so it presents the ideal platform for the wider Group to develop its North American proposition and gain market share in the country’s growing energy consultancy sector, which remains highly fragmented. The US is a key market for M&C’s services and, with a number of significant contracts already in the pipeline for the enlarged business, there is a compelling case for the firm’s North American expansion.”

The addition of Coleman Hines the latest in a line of acquisitions by M&C. In 2010 they acquired Utility Masters Ltd in the UK (a deal brokered by Fusion Corporate Partners), ETT GmbH in Germany, Creative Energy Solutions in Australia, and Encore International Ltd in the UK and in Hungary (also brokered by Fusion Corporate Partners).

Recently M&C added a Brisbane office to their Australian operation to complement their existing Melbourne office. A New Zealand office is expected to open in the Spring of 2012.

UK, Dunfermline & USA, Phoenix, AZ

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A Fusion Deal : Energy specialist Utilyx sold to MITIE Group

January 10, 2012 — Fusion DigiNet

Fusion Corporate Partners are pleased to announce our first deal of 2012. The sale of leading energy and carbon management specialist Utilyx Holdings Limited to MITIE Group PLC, the strategic outsourcing and energy services company.

Utilyx provides a number of services relating to its clients’ energy demands including strategic planning, procurement and risk management, all of which are designed to manage the business impact of energy consumption and rising energy costs.

The acquisition of Utilyx will complement and enhance MITIE’s existing CarbonCare energy services capabilities. The energy services market is significant for MITIE, with 35% of the Group’s revenues derived in this area. MITIE is ranked as the second largest energy services company in the UK, providing a full range of integrated services that help its clients manage their energy use and carbon footprint. MITIE’s energy services proposition supports all the key energy issues facing businesses and public sector organisations across the UK. These include business continuity through security of energy supply, value through cost reduction, reduction of carbon emissions and renewable energy.

As a leading consultant on corporate carbon and energy strategy, Utilyx counts a range of major UK energy users among its clients, from the industrial, commercial and public sectors. Utilyx has excellent high-level working relationships with numerous blue-chip companies including Scottish Water, Iceland and McDonald’s. It has excellent strategic relationships across the fast-growing energy services market and also provides specialist services to generators and developers of renewable energy projects.

Established in 2000, Utilyx purchases a significant proportion of the UK corporate energy market on behalf of its clients. The business has a deserved reputation for excellence and innovation, having introduced a number of new products and concepts to the market, including flexible risk managed electricity purchasing, open-book agreements and end-user Power Purchase Agreements.

Utilyx has annualised revenues of over £7m and is well placed to support MITIE’s progress in the growing energy services market in the UK. The total consideration for the acquisition will be up to £16.2m. Initial consideration of £15m was paid in cash on completion and the balance (capped at a maximum additional payment of £1.2m) will be paid in cash, dependent on future business performance. The proforma EBITDA of Utilyx is £1.7m and it is expected the acquisition will be earnings neutral in the first year of ownership.

Ruby McGregor-Smith CBE, Chief Executive, MITIE Group PLC, commenting on the transaction, said: “We are delighted to have acquired Utilyx. There is no doubt that the need for all organisations to use fewer natural resources is changing our marketplace. Energy management is integral to what we do and this acquisition forms part of our considerable investment to further develop MITIE’s energy services capability.

Chris Bowden, Chief Executive Officer of Utilyx added: “We are excited by the opportunity this presents for us and our clients. The energy sector is fast-moving and by bringing together our expertise and experience, we will be in an even stronger position to help our clients meet the challenges and opportunities that the new low-carbon economy .

Paul Kelly, Director at Fusion, said “We were delighted to work with Chris and his team at Utilyx. They have built a great business and the fit with MITIE is excellent. The energy services sector has become an important part of the Fusion business. This our sixth energy services deal. Besides private equity interest, we are seeing an increase in acquisition interest from large energy management, FM, environmental services and building services companies. We expect to continue to be active in the sector for some time to come.”

Previous Fusion energy services deals:

UK, London & Bristol

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Siemens acquires Pace Global Energy Services

January 4, 2012 — Fusion DigiNet

Siemens Industry has acquired Pace Global Energy Services in Fairfax, Va. Terms of the deal were not disclosed.

The acquisition of Pace Global supports Siemens strategic commitment to enhance enterprise value for its global clients by truly optimising energy and resource efficiency. Pace Global’s deep knowledge of energy markets, its experience with C-Suite decision support and its commercial solutions—including energy and carbon management (ECM) capabilities—are a natural fit with Siemens sustainability and energy management solutions. This creates a valuable, useful and seamless solution set that supports both the executive decision process and operating efficiencies.

“Sustainability and energy efficiency are top priorities for enterprises and municipalities,” said Andreas Schierenbeck, president of the U.S. Building Technologies Division of Siemens. “With a current portfolio ranging from energy services to performance contracting, we have expanded our capabilities with the addition of energy consulting and procurement services. By combining both companies’ market-leading solutions, Siemens has formed an end-to-end energy consulting and project delivery capability that is unique in the market, and is a perfect complement to the realities of running today’s business operations.”

Pace Global has a 36-year history providing energy services to a global portfolio of clients. The company manages more than $5 billion in energy spend for 200 clients around the world, oversees a risk portfolio valued at approximately $10 billion, and supports the development, acquisition, and financing of over $100 billion of energy assets worldwide. Pace global combines in-depth industry knowledge with commercial,technical, financial, and regulatory expertise to help organizations maximize enterprise value and manage risk in today’s complex energy and environmental markets.

Pace Global will integrate within the Siemens Building Technologies division, but will continue to operate as a separate operating unit. Timothy F. Sutherland will continue to lead the operating unit after the acquisition, and Pace Global’s executive staff and employees will remain intact. With offices in Fairfax Virginia, Houston Texas, Columbia South Carolina, London and Moscow, Pace Global provides international reach and integrated access through the company’s experience, knowledge base, tools and consulting services for clients in more than 60 countries around the world.

“The purchase of Pace Global allows us to extend our reach into the energy market and enhance our current building automation portfolio of energy management solutions and services to both the private and public sectors,” said Dave Hopping, Vice President of the U.S. Siemens Building Automation business unit. “Together, Siemens and Pace Global have established a recognized and client-valued position in the marketplace.”

Pace Global’s unique business model includes the combination of strategic enterprise consulting with ECM. This supports the Siemens objective of helping solve complex energy-related problems through resource planning, sustainability and energy master planning, risk management and regulatory guidance. This solution set also includes infrastructure development support and provides utility spend and billing, energy purchasing advisory services, carbon management and tracking, and energy asset management.

USA, Buffalo Grove, IL & Fairfax, VA

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