Strong trading over the summer and an uptick in new orders means Inspecs, the Bath-headquartered eyewear firm, is focusing on a better second half after seeing a fall in revenue earlier this year.
The group, which designs and makes a wide range of spectacles, lenses and frames for worldwide sale, suffered a 7.3% fall in sales to £103m in the six months to the end of June.
Pre-tax profits for the period slumped by 192% to £1.3m, partly due to a lower gain on exchange relating to borrowings.
However, the group, which has factories in the UK, Italy, Vietnam and China, said during the period it improved its gross profit margin by 100 basis points to 52.4% and enjoyed strong cash generation.
At the same time it achieved cost savings of 3.6% through ongoing operational efficiencies, particularly in the US.
INSPECS CEO Richard Peck said trading in the second half so far had exceeded the prior year and its order book at the end of August was 7% ahead of the equivalent date in 2023.
He added: “Despite ongoing challenges relating to inflationary pressures and the market readjusting after competitor acquisitions, the optical market remains resilient.
“We have made good progress against our global distribution strategic pillar, evidenced through the agreement of new distribution and the expansion of existing partnerships with global retailers, as well as achieving revenue growth in travel retail.
“It is expected that the reduction in net debt will accelerate in the second half due to reduced capital expenditure, following a period of increased investment in the new Vietnam manufacturing facility.”
He said the group’s board remained cautious in relation to market conditions but was “confident in meeting market expectations for the full year."
Inspecs was launched in London in 1988 by former bond trader Robin Totterman, who is now its chair. It later relocated it to Bath, opening its head office in the city’s old Gas Light and Coke building on Upper Bristol Road.
It floated on the London Stock Exchange’s AIM market in 2020 and underwent rapid growth fuelled by a number of acquisitions, including Norville, the historic Gloucester-based lens manufacturing business, Norwegian distributor A-Optikk AS, and German eyewear manufacturer Eschenbach Optik.
In 2022 it was hit by a boardroom reshuffle following the resignation of its chair, former Tesco boss and City grandee Lord MacLaurin, and a warning over future sales made at the same time that resulted in its shares losing half their value.
The group manufactures a broad range of eyewear frames, low-vision aids and lenses, covering optical, sunglasses and safety, that are either made under licence for established brands, for retail customers or under its own proprietary brands.
