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Birmingham Post
Birmingham Post
Business
Jon Robinson

Energy company braced for revenue hit if British arm of Russian energy giant Gazprom collapses

A listed energy company is bracing for a potential £3m hit to its revenue if the British arm of Russian energy giant Gazprom collapses.

Lancashire-headquartered Inspired has reported to reports regarding the future of Gazprom Marketing and Trading Retail Limited including the possibility of it ceasing trading in the UK.

Manchester-based Gazprom Energy supplies more than a fifth of the gas used by British companies.

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In a statement, Inspired said its board has estimated that approximately 5% of group revenues, all within Inspired's Energy Assurance services division, are dependent upon clients that are contracted with Gazprom.

It added that should Gazprom cease trading and the disruption arising from this not be possible to mitigate in the short term, then the board believes that the potential impact could be up to c.£3m to its expected FY2022 EBITDA.

It said: "It is important to stress that in the event that such an extreme scenario occurs, the group would still comfortably be able to meet its banking covenant and liquidity tests and therefore, continue to operate as a going concern."

It added: "The impacts of the war in Ukraine have been fast moving and continue to cause significant volatility and uncertainty across commodity and energy markets.

"The group notes that Gazprom is a significant gas supplier to businesses across the UK, including both clients of Inspired and businesses within their supply chains.

"More widely, the group continues to take every opportunity to help all customers mitigate the cost of energy and manage their energy consumption during this energy crisis.

"Maintaining these client relationships and helping those in need to secure alternative supply contracts will help mitigate the revenue at risk if Gazprom ceases to trade in the UK market."

Chief executive Mark Dickinson said: "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. Inspired remains focused on helping its clients manage their costs and sustainability challenges through this crisis.

"With regard to the invasion of Ukraine, I am sure many share our shock at the abhorrent actions of the Russian regime and our hope that the war and resulting humanitarian crisis ends soon with a peaceful resolution."

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