Inspecs Reports Strong Performance in UK and North America; European Market Holds Steady
Inspecs, a leading eyewear licensee for prestigious brands like Joseph, Barbour, Liberty, Superdry, and Temperley, reveals its comprehensive unaudited financial report, building upon the promising indicators outlined in its July trading update.
During the first half of the year, Inspecs achieved an impressive 6.1% surge in revenue, totaling £111.2 million, though this figure adjusted to a 2.3% growth on a constant exchange rate basis. Operating profit experienced remarkable growth, soaring by 25.1% to reach £4.6 million. The gross profit margin also improved, reaching 51.4%, up from the previous 50.5%. Underlying EBITDA exhibited a robust 5.4% increase, totaling £12.1 million, while adjusted profit before tax slightly dipped to £6.9 million from the previous £7.5 million.
Notably, reported profit before tax demonstrated a remarkable turnaround, surging from a loss of £0.2 million in the prior year to £3.8 million.
In terms of eyewear frames, Inspecs successfully sold 6.9 million units during the first half of 2023, a significant uptick from the 6.2 million sold during the same period in 2022. This growth primarily stemmed from strong revenue gains in the UK, where sales skyrocketed by nearly 20% to £13.6 million, driven by expanded distribution to major retail chains. North America also showcased commendable performance, recording a 9% increase in revenue, reaching £37.4 million, accompanied by additional growth in Latin America.
However, the European market held steady, with revenue remaining consistent at £52.2 million, reflecting a mixed performance across the continent, with robust results in Germany offsetting softer performances in other European markets.
During this period, TitanFlex, a comfort-focused brand, successfully launched a new range catering to women. Additionally, construction commenced on Inspecs’ state-of-the-art manufacturing facility in Vietnam, slated for completion in the first half of the upcoming year. Upon full operation, this facility will bolster the group’s manufacturing capacity to approximately 12 million units annually.
Inspecs also emphasized the renewal of key licensed brands, Marco Polo and Ted Baker, in addition to receiving orders for a «key licensed brand by a global retailer,» set to be delivered in Q4.
CEO Richard Peck remarked, «The group has made consistent progress during this period, demonstrating improved trading and cash generation performance. Our ongoing focus is on achieving operational efficiency gains and identifying integration opportunities across our global trading platform.»
Peck also noted that the eyewear market is poised for steady growth, projected to expand at a rate of 4.4% annually between 2023 and 2027, as per Statista.com. This positions the company favorably for its long-term growth strategy. Furthermore, second-half trading aligns with expectations, and order books remain robust. Despite acknowledging global economic and political uncertainties, Inspecs retains unwavering confidence in its full-year outlook.