Will businesses that have suffered from the coronavirus pandemic bounce back?
Inspired Energy is one of the UK’s leading energy procurement groups. The Preston-based PLC has disposed of its SME Division, which is comprised of Energisave Online Limited, KwH Consulting Limited and Simply Business Energy Limited, through a management buyout.
Andrew Nuttall, has driven the performance of the SME Division since formation and will now lead the business as Managing Director post sale. Under the management buyout terms, Inspired Energy Group will use the divested company as a supplier to maintain full market coverage and provide price comparison services to SME customers.
In 2019, the SME Division turned over £5.6 million with an adjusted EBITDA of £1.9 million. However, the coronavirus pandemic has reduced the Division’s performance. Hence, in 2020 the Division will make a loss, despite utilising the Government Coronavirus Job Retention Scheme (CJRS).
The £10.5 million deal is part of the Group’s strategy to focus on providing expert assurance and utility cost optimisation services to corporate energy consumers. The board considers the SME Division’s price comparison and contract arrangement services for SME consumers to be a non-core activity, which contributed 7% to Group revenues in the first half of 2020.