British eyewear specialist Inspecs Group has announced that its performance for 2023 fell below market expectations, despite projecting double-digit profit growth. The company, which manufactures its own brands as well as licensed products for various labels, revealed in a trading update that its revenue remained stagnant, with a slight decrease compared to the previous year. Inspecs Group recorded total revenue of £200.3 million in 2023, which was in line with the £201.3 million from the prior year. Considering a constant exchange rate, revenue dropped by £3.2 million to £197.8 million. The company attributed this underperformance to weaker trading during December.
Although the revenue figures are disappointing, Inspecs Group still shared some positive news. The company highlighted that it achieved higher EBITDA margins on sales in 2023 due to operational efficiencies, and it anticipates continued progress in this area in 2024. Moreover, the company’s expansion plans in Vietnam are on track and within budget, with production slated to commence in the first half of 2024. Additionally, Inspecs Group has experienced a reduction in losses from its Norville division, thanks to improved sales and performance under new management. The company’s Skunk Works research and development operation continues to drive innovation and generate commercial revenues. The integration of its US businesses, which began in 2023, is expected to yield synergies within the Americas throughout 2024.
Inspecs Group has successfully decreased its net debt and generated significant cash flow in 2023, despite incurring capital expenditure in Vietnam. Last week, the company acquired A-Optikk AS, a Norwegian distributor, for a nominal sum. This strategic acquisition marks a shift towards vertical integration for Inspecs Group and will enhance its presence in the Nordic market.
CEO Richard Peck acknowledged the challenging market conditions in December but expressed optimism about the company’s future prospects. Peck emphasized the focus on operational efficiencies that led to improved margins in 2023 and expressed excitement about the upcoming launch of the Vietnam facility. He also emphasized the importance of strengthening the balance sheet and extending the maturity of financing facilities, which will enable the company to boost sales and enhance overall performance in 2024.
Inspecs Group’s final results for 2023 will be reported in April, providing a more comprehensive overview of the company’s financial performance.
Useful links:
1. Inspecs Group Official Website
2. Inspecs Group Newsroom
