Inspired plc proposed a 7% increase in the final dividend to 1.5 pence (2022: 1.4 pence), subject to shareholder approval at the AGM in June, resulting in a full-year dividend of 2.9 pence (2022: 2.7 pence). The dividend aligns with the company's stated policy of a dividend cover of at least 3x earnings, to deliver progressive dividend growth over time and reflects the firm's confidence in the business. The dividend will be payable on 26 July 2024 to all shareholders on the register on 21 June 2024 and the shares will go ex-dividend on 20 June 2024.
Other financial highlights include:
Double digit revenue and Adjusted EBITDA growth reflects solid trading across all four divisions, in line with the firm's stated growth strategy.
Adjusted PBT: £15.8m (2022: £14.0m), with the increase in adjusted EBITDA offset in part by an increase in finance costs.
Underlying operating cash conversion was 75%, as a result of the increased number of Optimisation projects in H2 and the associated investment in working capital. The working capital investment unwound post period, with cash conversion for the 12 months to 29 February 2024 in excess of 100%.
The Group paid £12.1m in contingent consideration fees, relating to the achievement of earnout targets by prior acquisitions. The majority of the final payments in relation to past acquisitions, being a further £10.6m in cash consideration, will be made in FY24. The only remaining potential payments of contingent consideration after 2024 will be up to the maximum amounts payable under the Deed of Variation with Ignite Energy LTD ("Ignite") of £2.3m per annum for 2024-2027 performance.
Net debt increased to 1.95x Adjusted EBITDA, within the Board's stated objective to maintain it to less than 2.00x. Firm remains focused on reducing net debt as the performance fees conclude from the acquisitions completed in 2020 and 2021, with the Board's objective to reduce net debt to Adjusted EBITDA to nearer to a 1 to 1 ratio through organic cash generation by the end of 2025.
