Inspired Energy PLC : Trading Update and Notice of Results

11 July 2013

Inspired Energy plc

("Inspired" or the "Group")

Trading Update and

Notice of Results

Inspired Energy plc (AIM: INSE), a leading energy procurement consultant to UK corporates, is pleased to provide a trading update for the six month period ended 30 June 2013.

Inspired Corporate

Inspired's Corporate division, comprising Inspired Energy Solutions ("IES") and Direct Energy Purchasing ("DEP"), has performed strongly during the first half of 2013. Both businesses are now benefitting significantly from cross-selling by leveraging their respective expertise.  This has resulted in a number of contracts being operated as shared contracts, with clients receiving risk management advice from the IES trading team and bureau support from the DEP team.

Order Book Salesi within the division have increased by c.18 per cent. to £4.0 million in the six month period ended 30 June 2013 (30 June 2012 proforma: £3.4m).  The combined Order Book Valueii has also increased by £1.0 million since 31 December 2012 and now stands at a record £9.9 million (30 June 2012: £7.9m) representing 25 per cent. growth year-on-year. Contracted revenues now extend into 2016.

The growth in sales is a result of:

·     increased opportunities being generated through the telesales team which has benefitted from IT and CRM efficiencies as well as integration into DEP;

·     improved product offering for DEP customers who can now take advantage of IES's trading team which offers bespoke, risk managed contracts;

·     commencement of a new 'Multi-Customer-Management' product within IES which has seen strong take-up from existing and new clients; and

·     increased market presence and an increasing breadth of clients being targeted.

In addition, the Group has begun to realise revenue opportunities from a range of special projects including Power Purchase Agreements, Renewable Heat Incentive projects and OFGEM accreditation consultancy.

Inspired SME

The Group launched a new SME division (EnergiSave) in late 2012 in order to provide energy consultancy services to SMEs in the UK.  The development of this division has been strong and in response to market opportunities and partnerships with key energy suppliers, headcount has grown within the division. Notwithstanding this investment in people, the business is performing in line with expectations, reflecting a shorter lead-time for new salespeople to reach profitability than has been experienced in the Group's Corporate division.  The Board believes this strong start will allow the Group to continue to grow this division rapidly, without experiencing significant working capital outflows.

Group

As referred to in the full year results, the integration of DEP is now fully complete and management believe that the work done to date has set a strong platform for further growth and development of the core businesses in the short and medium term. In addition, an improved real-time management reporting system has been introduced within IES which provides increased, more granular, clarity to the Board on the performance of the underlying contracts.  In addition this has also increased the insight that the bureau team is able to provide to customers.  This system will be rolled out to DEP in H2 of 2013.

The Board is confident, based on the Group's performance to date, that earnings for the full year are expected to be in line with market expectations.

Janet Thornton, Managing Director, commented: "I am delighted by our performance in the first half of 2013.  The Group's two divisions are performing well and we have made significant operational progress in the period.  Order book sales have continued to grow at an impressive rate and we are extremely proud to have achieved an order book of £9.9 million.  We are in a very strong financial position and are set to continue our organic growth in H2 2013 and beyond.  We also remain committed to our acquisition strategy and continue to seek further earnings enhancing acquisitions."

Interim Results

The Company will announce its unaudited half year results to 30 June 2013 on 19 August 2013.

iiOrder book value is defined as the aggregate revenue expected by the Group in respect of signed contracts for the remainder of such contracts (where the contract is live) or for the duration of such contracts (where the contract has yet to commence). No value is ascribed to expected retentions of contracts.

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