Inspecs, the renowned British eyewear specialist, has recently released its full-year trading update for 2022. Although the company experienced a slight decline in group revenue, from $246.5 million to $246 million compared to the previous year, it stated that these figures were in line with their revised expectations. The revenue from its existing business saw a decrease of 12.9% to $233.4 million, but thanks to the acquisitions made in 2021, there was a growth of 12.4% in 2022, bringing it to $12.6 million.
However, there is positive news for Inspecs as well. When considering a constant exchange rate basis, the company’s revenue actually increased from $246.5 million to $270 million, indicating a growth rate of 9.5%. Despite the challenges posed by supply chain disruptions and Covid-19 restrictions, Inspecs’ factories in Asia successfully maintained production for the majority of the year. Interestingly, the production volume in China even experienced an increase in 2022, despite the restrictions in place.
Another positive development came from Norville, a division of Inspecs. The division witnessed a narrowing of losses in Q4, and the company highlighted that further progress is being made. Additionally, its R&D department, Skunk Works, generated its first commercial income, and operational efficiencies are expected to yield further benefits in 2023.
Inspecs boasts a global presence and is renowned for its own brands as well as eyewear licenses for numerous fashion labels, including Viktor & Rolf, Barbour, Liberty, Henri-Lloyd, Superdry, Radley, Temperley, and Ted Baker, among others. The company did face a decrease in order flow in Q3 due to a slowdown in its German, French, and other European markets, resulting in reduced sales in Q4. In response, Inspecs initiated a cost reduction program to enhance operational efficiency in 2023. However, its performance in other markets remained in line with the management’s expectations.
Despite encountering several challenges in 2022, such as the depreciation of the euro against the US dollar and record-high freight costs, Inspecs is making progress in effectively managing these headwinds. The company is highly focused on cost-cutting and streamlining its business at Norville, with a strong emphasis on revenue growth. Inspecs aims to seek operational efficiencies and reduce costs where appropriate while staying committed to executing its growth strategy.
Moving forward, Inspecs plans to commence the construction of new manufacturing facilities in the second half of this year, financed through free cash flow. The company enters 2023 with a robust order book totaling $41.9 million, only slightly lower compared to the previous year. Inspecs remains confident in delivering enhanced value for all stakeholders and is fully dedicated to pursuing its growth objectives.
Useful links related to the article:
– Inspecs Official Website
– Inspecs Eyewear Brands
