30 January 2025
Inspecs Group plc
("INSPECS" or "the
Group")
Full Year
Trading Update
Inspecs Group plc, a leading
designer, manufacturer and distributor of eyewear (sunglasses,
optical frames, lenses and low vision products), today announces a
trading update for the year ended 31 December 2024 ahead of
reporting its final results on 10 April 2025.
Summary
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Group revenue of £200.5m (2023:
£203.3m) and Underlying EBITDA of £17.5m (2023: £18.0m)
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H2 2024 revenue increase of 5.9% to
£97.5m (H2 2023: £92.1m)
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Gross profit margin increased from
50.9% to 51.4%
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Reduced net debt (excluding leases)
by £1.3m to £22.9m (2023: £24.2m)
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Integration of US businesses
completed in 2024 and now fully amalgamated
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The new facility in Vietnam is now
fully operational, with promising enquiries to utilise the enlarged
manufacturing capacity
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Eschenbach Optics division has
performed strongly, particularly in the US and Europe, with our new
digital low vision aids well received by the market
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European business continues to take
market share despite an overall soft market
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Renewed and extended Group banking
facilities to 2027 with HSBC
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Revenue and Underlying EBITDA
Group revenue for the year was
£200.5m (2023: £203.3m) and on a constant currency
basis1, revenue increased £2.3m to £205.6m. The Group
expects to deliver an Underlying EBITDA of £17.5m (2023: £18.0m) in
line with recently updated market expectations2. The
Group is targeting revenue growth in 2025 together with improving
EBITDA margin as key priorities.
Financial position
The Group's net debt (excluding
leases) decreased by £1.3m during the year to £22.9m (31 December
2023: £24.2m). The Group invested a further £0.7m in the new
Vietnam factory as planned to provide additional capacity with
improved sustainable efficiency, and a further £1.9m on deferred
and contingent acquisition consideration.
Financial funding and liquidity
The Group successfully refinanced
its existing banking arrangements with HSBC UK Bank plc in
December, extending their maturity to 2027.
The debt facilities consist of a
three-year Multicurrency Revolving Credit Facility and a Term Loan
predominantly drawn in Euros and, as a result, the Group expects to
reduce its interest costs in 2025 by circa £0.6m compared to
2024.
Outlook
The Group will continue to focus on
delivering further operational efficiencies and reducing costs,
while also reducing net debt and leverage. Whilst 2024 did not meet
the full expectations of the Board, our US business delivered good
growth during the year. The Group has made a solid start to 2025
and is confident of its ability to continue to reduce debt and
increase margins and Underlying EBITDA.
Richard Peck, Chief Executive Officer
commented:
"Whilst total revenue and Underlying EBITDA
for the Group in 2024 was behind our original expectations, revenue
growth was achieved in the second half of the year. I am also
pleased that the Group increased its gross profit margin for the
full year. During the period, we continued to focus on our
operational efficiencies and, despite the inflationary pressures
experienced in 2024, our operational costs have remained flat. The
Group has also reduced net debt while investing in significant
additional manufacturing capacity which is now operational,
following the successful completion of construction in
Vietnam.
"2025 has started well and our key objectives for the year are
to raise the Group's revenue and increase our Underlying EBITDA
margins across the Group while continuing to reduce our net
debt."
1. Constant exchange rates: figures at
constant exchange rates have been calculated using the average
exchange rates in effect for the corresponding period in the
relevant comparative year.
2. Company compiled market expectation
- Revenue c.£197m and Underlying EBITDA £17.4m to
£17.9m.
For further
information please contact:
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Inspecs Group
plc
Richard Peck (CEO)
Chris Kay (CFO)
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via FTI
Consulting
Tel: +44 (0)
20 3727 1000
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Peel Hunt
(Nominated Adviser and Broker)
George Sellar
Andrew Clark
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Tel: +44 (0)
20 7418 8900
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FTI Consulting
(Financial PR)
Alex Beagley
Harriet Jackson
Amy Goldup
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Tel: +44 (0)
20 3727 1000
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About INSPECS
Group plc
INSPECS is a leading provider of
eyewear solutions to the global eyewear market. The Group produces
a broad range of eyewear frames, low vision aids and lenses,
covering optical, sunglasses and safety, which are either "Branded"
(under licence or under the Group's own proprietary brands), or
"OEM" (unbranded or private label on behalf of retail
customers).
INSPECS is building a global eyewear
business through its vertically integrated business model. Its
continued growth is underpinned by six core pillars: increasing the
penetration of its own-brand portfolio, increasing distribution,
growing its travel retail markets, maximising group synergies,
expanding its manufacturing capacity and scaling the research and
development department as it develops new and innovative eyewear
products. The Group has operations across the globe: with offices
and subsidiaries in the UK, Germany, Portugal, Scandinavia, the US
and China (including Hong Kong, Macau and Shenzhen), and
manufacturing facilities in Vietnam, China, the UK and
Italy.
INSPECS customers are global optical
and non-optical retailers, global distributors and independent
opticians. Its distribution network covers over 80 countries and
reaches approximately 75,000 points of sale.
More information is available at:
www.INSPECS.com
