Bath-headquartered eyewear group Inspecs has increased its financial flexibility by rearranging its existing banking arrangements as it looks ahead to a brighter 2025.
The group, which designs and manufactures a wide range of spectacles, lenses and frames for global markets, warned earlier this month that its full-year revenue and underlying earnings were likely to be lower than previous expectations following weaker fourth-quarter sales.
This was due to a slower recovery in its European markets and some of larger customers deferring orders into next year.
But the group, which floated on the London Stock Exchange’s AIM market in 2020 and then underwent rapid growth fuelled by a number of acquisitions, also said it had experienced year-on-year growth in the second half, signalling what it called “overall positive momentum”.
A new factory in Vietnam has also been completed, meaning production is likely to increase to meet demand through next year.
Its banking refinancing with HSBC UK has been extended to 2027 and consist of a three-year multicurrency revolving credit facility of €38m (£31.6m) and €12m term loan, together with an ‘accordion’ option to extend the facility if the group chooses to.
It said the new facilities provided it with increased financial flexibility for the next three years with an option to extend for two further subject to the bank’s consent.
Inspecs chief financial officer Chris Kay said: “We are very pleased to have refinanced and extended our banking facilities and would like to thank HSBC UK Bank plc for its continued support."
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.
Two years ago it was hit by a boardroom shake-up following the resignation of its chair, former Tesco boss and City grandee Lord MacLaurin, and a simultaneous warning over future sales 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.
