|
Shares fell in Inspired PLC on Monday after the company noted press reports citing the risk of Russian energy giant PJSC Gazprom ceasing its trading and operations in the UK, of which Inspired is a current beneficiary.
Shares in the Preston, England-based energy advisory and sustainability services provider were 12% lower at 14.50 pence on Monday in London.
The Sunday Times reported that the UK energy supply arm of Gazprom, known as Gazprom Energy is racing to find a buyer to stave off collapse following the rush of big companies exiting their deals with Gazprom following the invasion of Ukraine.
Gazprom Marketing & Trading Retail Ltd is the registered company behind the energy supply arm, and its three Russian directors have resigned from their roles.
https://www.thetimes.co.uk/article/firms-rush-to-pull-out-of-gazprom-lwjhh9c5m
Inspired said that 5% of its revenue, all within the company's Energy Assurance services division rely on clients that are contracted with Gazprom. Should Gazprom cease trading, Inspired could take at most a £3 million hit to its earnings before interest, tax, depreciation and amortisation for the year ending December 31.
However, Inspired said that even in this situation it would be able to meet its banking covenant and liquidity tests, allowing it to continue operating as a going concern.
‘Whilst the potential impact on the financial performance of the group should Gazprom cease to trade in the UK would be disappointing, these factors are unfortunately outside of the group's control. We have proactively considered the impact of this event in its entirety and are already focused on the mitigating actions we can take by supporting clients with contract replacement,’ said Chief Executive Officer Mark Dickinson.
Inspired will publish its 2021 results on Wednesday next week.
Copyright 2022 Alliance News Limited. All Rights Reserved.
|
