INSPECS(SPEC) , an eyewear and lens designer and manufacturer, issued a short trading update for the nine months ended 30 September 2023, with strong cash generation in the period leading to net-debt decreasing and allowing for further investment in its new Vietnam manufacturing facility.
Trading in the period was in line with expectations, with reported revenue increasing by 4.6% to £159.1m. On a constant currency basis, revenue increased by 2.4% to £155.7m.
INSPECS showed strong cash generation, reducing net debt to £21.2m from £27.6m as of December 31, 2022. In the three months from July 1 to September 30, 2023, INSPECS invested £0.8m in the new Vietnam facility and reduced net debt (excluding leases) by £1.5m.
Richard Peck, Chief Executive Officer of INSPECS Group plc, commented: "All of the Group's major markets are performing as we expected. Construction of our new manufacturing facility in Vietnam is progressing well with completion expected in H1 2024.
Our focus on improving the Group's operational efficiencies continues and, notwithstanding the ongoing macroeconomic uncertainties, with our current order book the Board remains confident of delivering full year results in line with market expectations."
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Today’s update on further investment in INSPECS' manufacturing facility in Vietnam bodes well for scheduled completion in H1 2024. Once the facility is up and running, its manufacturing capacity will increase to around 12 million units annually.
INSPECS provides a one-stop-shop solution for high quality eyewear, producing a range of frames, low vision aids and lenses, covering optical, sunglasses and safety, that are branded or unbranded for retail customers. INSPECS’s retail customers include industry leaders that cover fashion, sports and lifestyle brands such as Barbour, Liberty, Ted Baker and Marc O’Polo.
The global eyewear market was valued at USD 169.9 billion in 2022 and is expected to grow at a compound annual growth rate of 8.5% from 2023 to 2030. Factors such as changing lifestyle patterns and willingness to spend on more expensive accessories from younger generations have underpinned market growth in recent years.
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