Inspired plc, an energy and sustainability adviser, has successfully raised nearly £30 million to enhance its balance sheet and capitalize on opportunities within its Optimisation division. The company secured £28.25 million through an oversubscribed placing, the issuance of convertible loan notes, and a retail offer, with participation from shareholders Gresham House Asset Management and Regent Gas.

The funds will enable Inspired to pursue a robust pipeline of projects aimed at reducing energy consumption and carbon emissions for approximately 130 clients. This pipeline is projected to generate around £165 million in revenue and a potential gross margin contribution of about £58 million. However, Inspired noted that the current funding structure is inadequate to manage the working capital fluctuations associated with the anticipated growth in the Optimisation division, particularly as it expects significant expansion in 2025.

The net proceeds from this fundraising initiative will also help reduce leverage and interest costs, which will be beneficial for future refinancing discussions. Mark Dickinson, the CEO of Inspired, emphasized the importance of strengthening the company's balance sheet to unlock these opportunities. He acknowledged the strategic challenges posed by the timing of various Optimisation projects and highlighted the division's record pipeline in terms of both size and number of projects.

Dickinson stated that while these projects require a higher working capital investment compared to others, they are crucial for the company's competitive advantage in assisting clients with their net-zero commitments. He expressed confidence in the company's clear plan involving customers, banking partners, and stakeholders, which positions Inspired for strong growth in 2025.

Shore Capital Stockbrokers and Panmure Liberum are serving as joint bookrunners for the fundraising effort.