Inspecs revenue remains flat amid period of ‘softer trading’

Eyewear design and manufacturer Inspecs Group has published a trading update for the year ended 31 December 2023, in which it said it had experienced “softer trading” resulting in financial performance below market expectations.

While the group said that it still expected to report a 16.1 percent increase in unaudited adjusted underlying EBITDA to 18 million pounds, up from the prior 15.5 million pounds, it's revenue remained broadly flat at 200.3 million pounds.

In addition to this, its constant exchange rate basis revenue dropped 3.2 million pounds to 197.8 million pounds.

While this may have been the case, the group did report a decrease in its net debt for the period, dropping from 27.6 million pounds in the year prior to 24.3 million pounds.

The board’s outlook also remained positive for 2024 with new accounts and distribution to come into play, including a new Vietnam factory that aims to provide additional capacity following its scheduled opening in the first half of the year.

Prior to the period’s end, the group further acquired Norwegian distributor A-Optikk AS for a “nominal sum”, marking a “resumption of strategic acquisitions” aimed to increase the group’s vertical integration.

In a release, Inspecs CEO Richard Peck said that while the company had been faced with a soft market, he was encouraged that its operational efficiencies “delivered an improvement” on margins.

He continued: “Having further strengthened the balance sheet and extended the maturity of our financing facilities, I look forward to driving sales in 2024, whilst continuing our programme of improving operational efficiency and continuing to develop group synergies to enhance our performance."