INSPECS (SPEC), an eyewear and lens designer and manufacturer, has released its unaudited interim results for the six months ended 30 June 2023, citing improved trading and cash generation, along with a strong order book. 

Revenue increased by 6.1% to £111.2m in the period, driven by strong growth in UK, North American, and LATAM markets. Operating profit was up 25.1% to £4.6m, while underlying EBITDA increased from £11.4m in H1 2022 to £12.1m in H1 2023.

Profit before tax for the period was £3.8m, up from a £0.2m loss in the previous period, which Inspecs said was due to an increase in finance costs of £0.7m, an increase in amortisation and depreciation of £0.3m and an improvement in exchange adjustments on borrowings of £2.8m.

INSPECS remains well-funded, with £25.9 million in cash as of June 30. Strong cash generation reduced net debt to £22.7 million from £27.6 million as of December 31, 2022.

In the period INSPECS sold 6.9 million eyewear frames, up from 6.2 million in H1 2022.  North American low vision aids revenue increased by 19% to £5.9 million during this period. 

Other notable milestones include the construction of its new Vietnam manufacturing facility, beginning in May 2023. INSPECS also made key licence renewals, including Marco Polo and Ted Baker, as well as receiving a significant order from a global retailer for a key licence brand which will be delivered in Q4 2023.

For the remainder of the year, Inspecs said its order book remains at a good level, and trading in the second half is in line with expectations. 
 

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INSPECS  provides a one-stop-shop solution for high quality eyewear, producing a range of eyewear 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. 

Looking ahead, Inspecs remains confident in its full year outlook, supported by a strong order book. Moving into 2024, the outlook remains positive with its manufacturing capacity increasing to around 12 million units per year, following the scheduled completion of its Vietnam facility in H1 2024. 

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