Inspecs keeping an eye on tariffs as it focuses on operational efficiencies

Eyewear group Inspecs today said it was closely monitoring the impact of US tariffs on its business as it posted a £1m annual loss in what it described as “challenging macroeconomic conditions”.

The Bath-headquartered group, which designs and manufactures a wide range of spectacles, lenses and frames for global markets, makes many of its products in countries affected by President Trump’s import tariffs, including the UK, Italy, Vietnam and China,

Saying the situation remained fast-paced, and admitting it presented uncertainty for the year ahead, the group – which has factories in said there were some mitigations.

These include the fact that the tariffs are based on the landed value of the products, which “will not materially affect the price to the end consumer and therefore this is not expected to impact current consumer demand”.

Inspecs, which opened a state-of-the-art factory in Vietnam last year, also said its non-US based businesses were not currently affected by the recent changes and it was confident that its continuing focus on supply chain efficiencies, reducing operational expenditure and selective pass through of cost increases to preserve margins across key markets would largely mitigate the effects of these new tariffs.

Group revenue for the year to 31 December fell to £198.3m from £203.3m in 2023, with that year’s pre-tax profit of £215,000 turning into a loss of £1.02m.

Shares in Inspecs rose sharply – by more than 11% – in an early equity trading bounce-back in London this morning as investors focussed on its pipeline and mid-term prospects as well as reacting to the overnight tariff reversal.

Inspecs chief executive officer of Richard Peck said: “Inspecs demonstrated resilience in 2024 despite challenging macroeconomic conditions, with revenue declining by 2.5% to £198.3m due to softer consumer demand and competitor consolidation.

“However, our continued focus throughout the year on the integration and simplification of our business has been significant.

“We successfully got our new factory in Vietnam up and running, which has significantly improved our capacity. We also strengthened our brand portfolio by introducing several new brands and expanding our existing ones, all the while working on our supply chain and efficiencies.

“Additionally, we have focused on growing our customer base in key markets. These strategic initiatives allowed us to improve our margins, maintain our administrative costs in an inflationary environment, and reduce our net debt, setting us up well for the future.

“The first quarter has laid the groundwork for a pivotal year and as we move forward, the focus remains on sharpening efficiency, streamlining operations, and advancing key initiatives.

“Notwithstanding the recently announced tariffs and caution in relation to market conditions, compelling new projects in the pipeline give us confidence in delivering on market expectations for 2025 and our medium-term ambition to accelerate revenue growth, deliver double digit underlying EBITDA [earnings before interest, taxes, and amortisation] whilst targeting net debt of 40%-75% of underlying EBITDA.”

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 then underwent rapid growth fuelled by a number of acquisitions.

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.