Inspecs, the eyewear specialist, recently provided a trading update showcasing a robust performance in the initial nine months of this year, in line with its expectations.
Notably, the company revealed a 4.6% growth in revenue, reaching £159.1 million. On a constant currency basis, revenue displayed a positive trajectory, with a 2.4% increase, amounting to £155.7 million.
Inspecs boasts a notable portfolio, serving as the eyewear licensee for renowned labels such as Joseph, Barbour, Liberty, Superdry, Temperley, and more. Additionally, it manages and markets its own eyewear brands.
During this period, the company showcased its commitment to strong financial management, delivering substantial cash generation. Consequently, net debt (excluding leases) witnessed a significant reduction of £6.4 million, reaching £21.2 million, down from £27.6 million at the end of the previous year.
Moreover, Inspecs continued its investment in expanding its manufacturing capabilities. In the latest quarter, it invested an additional £0.8 million in the construction of a new manufacturing facility in Vietnam while concurrently reducing net debt (excluding leases) by £1.5 million.
CEO Richard Peck shared his insights, stating, «All of the group’s major markets are performing in line with our expectations. The construction of our new manufacturing facility in Vietnam is making good progress, with completion anticipated in H1 2024. Our unwavering focus on enhancing the group’s operational efficiencies remains steadfast. Despite prevailing macroeconomic uncertainties, given our current order book, the board maintains confidence in meeting full-year results in line with market expectations.»
In the previous month, the company reported its first-half results, which included a 6.1% rise in revenue to £111.2 million. The operating profit also surged by 25.1% to £4.6 million, and reported profit before tax showed an impressive turnaround, moving from a loss of £0.2 million a year earlier to £3.8 million in profit.
The company had witnessed robust revenue growth in the UK and North America, while revenue in Europe remained flat year-on-year. A strong performance in the key German market offset softness in other European markets.