30 January 2023

Inspired PLC

("Inspired" or the "Group")

Full year trading update and notice of results

Strong full year trading performance, an improved cash position and confident outlook

Inspired (AIM: INSE), a leading technology enabled service provider supporting businesses in their drive to net zero, controlling energy costs and managing their response to climate change, announces a trading update for the financial year ended 31 December 2022.

Strong Group trading performance

Positive momentum in the second half enabled the Group to deliver a strong overall trading performance for FY22, whilst also making clear strategic progress and navigating unprecedented volatility in the UK energy markets. Driven by strong demand within Optimisation Services, Group revenue is expected to be 10% ahead of market expectations at c.£88.0m. Combined with a solid H2 performance in Assurance, and further increased traction across the ESG division, Group adjusted EBITDA is expected to be in line with market expectations, and net debt reduced through the second half in line with expectations.

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

Operational highlights

The Group continued to deliver across all three business divisions, which are underpinned by long term structural growth drivers:

Energy Assurance Services - As outlined in the interim results, the Group anticipated more volatility in Assurance as a result of the unprecedented conditions in UK energy markets and whilst customer churn has increased, as expected, it has resulted in a record year for new business. Energy Assurance Services delivered revenues in line with expectations, with increased overheads to deliver our service as a result of the unprecedented market conditions leading to a modest reduction in margin in the period.

Energy Optimisation Services - The ongoing energy crisis has significantly sharpened clients' focus on the economics of investment in energy reductions, combined with the drive for delivering net zero, and this has translated into a significant step up in demand and activity for the Optimisation Division during H2.

Inspired ESG and Software - Both divisions performed in line with management expectations, with the Board's confidence in ESG reflected in an uplift in expectations post the Group's interim results, that the team has successfully executed, with a growing pipeline of opportunities for the year ahead.

Current trading and positive outlook

While conscious of the challenging wider economic backdrop, the Group's strong performance in FY22 and, in particular, the momentum experienced across Inspired's Energy Optimisation Services and ESG divisions, provides the Board with confidence in the outlook for the new financial year, as well as in the Group's ability to achieve its longer term financial and strategic goals.

The global energy crisis has highlighted energy as a high priority board level topic. The Group continues to proactively respond to this, working tirelessly to support clients in managing energy prices as well as reducing their energy consumption and carbon emissions during these unprecedented times. Whilst market conditions are difficult to predict at this point, the need for the Group's services have never been more apparent and its divisions are well aligned to meet the market demands and customer requirements.

Commenting on period, Mark Dickinson, CEO of Inspired, said: "In what has been the most challenging year ever seen in the energy markets, I am delighted with the Group's excellent operational and financial performance, exceeding expectations in revenue growth and delivering EBITDA and net debt in line with market expectations, with strong cash generation in H2 2022.

"With a sales pipeline that is at record levels, and a notable acceleration in Optimisation and strong growth in our ESG practice we are increasingly demonstrating that we are the market leading solution at a market leading price point, and therefore we are confident of future success."

Notice of Results

Inspired expects to announce its audited full year results to 31 December 2022 on 29 March 2023.

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Notes to editors

Inspired PLC is a leading technology enabled service provider of energy advisory and sustainability services, supporting businesses in their drive to net zero, controlling energy costs and managing their response to climate change.

Founded in 2000, Inspired operates three divisions: Energy Solutions (Assurance and Optimisation), Software Solutions and ESG Solutions, providing expert energy advisory and sustainability services to over 3,400 businesses in the UK and Ireland who typically spend more than £100,000 on energy and water per year.

Inspired has been recognised with the London Stock Exchange's Green Economy market since 2020 for its environmental and strategic advice, service, and support to customers and is also ranked as the UK's leading advisor by the independent energy market intelligence consultancy, Cornwall Insight.