Inspired Energy buys Flexible Energy Management and Churchcom for total £3.6m
(ShareCast News) - Inspired Energy, an energy procurement consultancy, has completed the acquisitions of Flexible Energy Management and Churchcom for a combined £3.6m.
The AIM-listed company bought Flexible Energy, public sector energy procurement specialist, for £2.2m in cash and the issue of 2.99m new shares.
The new shares are subject to a 12 month lock-in period and will be admitted to trade on AIM on 26 April. Following admission, the company will have 490.18m shares in issue of 0.125p each.
It believes that Flexible Energy's two NHS sponsored Official Journal of the European Union frameworks will allow Inspired to accelerate its growth into the public sector and increase the strength of the its public sector team which was created in 2016.
For the year ended 31 March 2016, Flexible Energy delivered revenue of £650,000, and earnings before interest, tax, depreciation and amortisation (EBITDA) of £470,000 as well as generated operating cash of £470,000.
The company also bought Churchcom, an energy procurement consultancy serving the church sector, for £1.4m in cash. Churchcom has a secured order book as well as "strong" retention rates and Inspired believes that it is a complementary addition to its core corporate division.
For the year ended 31 January, Churchcom generated revenue of £640,000, EBITDA of £350,00 and operating cash of £470,000. Its net assets at the end of 2016 stood at £240,000.
Inspired chief executive Janet Thornton said: "These acquisitions broaden our customer base, further enhance our sector specialisms and increase our geographical spread.
"Following the transactions, the enlarged group's procurement corporate order book now exceeds £30m, which represents another milestone for the group and gives us great revenue certainty for the short and medium term."