Glasses manufacturer Inspecs issues warning on financial performance

Glasses and eyewear manufacturer Inspecs says the firm financial performance will be below market expectations due to a slump in trading.

The Wiltshire designer, manufacturer, and distributor of eyewear (sunglasses, optical frames, lenses and other products has announces a trading update for the year.

The group has maintained its focus on margin improvement through 2023 and expects to report a 16.1 per cent increase in unaudited Adjusted Underlying EDITDA to £18m.

Despite this, financial performance is below the market expectations due to softer trading in December.

Group revenue of £200.3m was broadly flat on 2022, below our expectations, however the board remains positive for 2024 with new accounts and distribution in place.

In January the Group acquired Norwegian distributor, A-Optikk AS, for a nominal sum. This acquisition marks a resumption of strategic acquisitions which increase the group’s vertical integration.

Inspecs says it will continue to focus on delivering further operational efficiencies and reducing costs, while also reducing net debt and leverage.

Chief executive Richard Peck said: “Whilst our revenue performance was affected by a soft market in December, I am encouraged that our focus on operational efficiencies in 2024 delivered an improvement in our margins.

“The group has also reduced its net debt while investing in significant additional manufacturing capacity for the future, with our new Vietnam facility coming onstream in H1 2024. Having further strengthened the balance sheet and extended the maturity of our financing facilities, I look forward to driving sales in 2024, whilst continuing our programme of improving operational efficiency and continuing to develop Group synergies to enhance our performance.”