Inspecs, the global eyewear and lens design house, faced mixed results in the first half of the year primarily due to the impact of exchange rates. The decline in the euro against the US dollar in the second quarter negatively affected Inspecs’ solid European business. As a response, the company plans to consult with advisors in 2023 to review its reporting currency.
Despite the challenges arising from exchange rates, Inspecs witnessed a growth in revenue during the first half of the year. Unaudited interim results revealed an increase from $125.7 million to $138.4 million compared to the same period last year. However, if measured at constant revenue, the increase would have been even higher, reaching $145.5 million, representing a 15.8% rise.
Operating profit more than doubled from $2.5 million to $5.8 million year-on-year. The company also experienced an improvement in gross profit margin, climbing up to 50.5% from 44.2% (with an underlying margin of 49.1%). Nevertheless, underlying EBITDA slipped to $15.1 million from $16.8 million in the first half of the previous year. On a positive note, reported profit before tax amounted to $0.8 million, exceeding the previous loss of $3.5 million.
Inspecs maintains a strong financial position, boasting a cash balance of $30.6 million. CEO Robin Totterman expressed contentment with the company’s progress in achieving its strategic objectives throughout the period. This included successfully integrating the group’s businesses and expanding distribution reach on a global scale. The European business also performed splendidly, surpassing internal budget expectations in the first half of the year.
Looking ahead, Inspecs holds a positive outlook. The company plans to commence the construction of a new factory in Portugal and expand its production capacity in Vietnam. Furthermore, group order books are ahead compared to the previous year, positioning Inspecs advantageously for the second half of 2022. Despite the uncertain economic outlook for the UK and European market, Inspecs remains committed to executing its strategic priorities, which involve increasing production, introducing innovative products to the market, and delivering value to shareholders.
Useful links:
1. Inspecs Official Website
2. Inspecs on Reuters
