British eyewear specialist Inspecs has announced its financial results for 2020, which show a decrease in revenues and a net loss. Despite this, the company remains optimistic about its performance during a challenging year and sees it as a foundation for growth in 2021.
Inspecs reported a drop in revenue from $61.2 million to $47.4 million, as well as a net loss of $8.9 million compared to a profit of $6.4 million in 2019. However, the company still achieved a profit on an underlying EBITDA basis of $5.8 million, although this figure was lower than the previous year’s $13 million. Gross profit also declined from $27.5 million to $20.5 million. On the positive side, net assets increased from $31.3 million in 2019 to $145.8 million in 2020.
Despite the challenging circumstances caused by the pandemic, Inspecs remains positive and credits its favorable performance to significant investments made in its operations throughout the year. CEO Robin Totterman expressed gratitude for the opportunity to support NHS trusts with PPE requirements while navigating the difficult business environment brought on by Covid-19.
Inspecs has focused on expansion and diversification, acquiring companies such as Norville and Eschenbach. These acquisitions have allowed the company to become a vertically integrated business serving both global retail chains and the independent optical market. With a worldwide distribution network spanning over 70,000 retail outlets, Inspecs sees plenty of opportunities for further growth.
The company’s performance in 2021 has been promising, with Q1 sales reaching $67 million and the acquisition of new customers continuing. Additionally, the company’s order books are higher than they were at the same time in 2020 on a like-for-like basis. The CEO expects the first-half update in August to showcase the capabilities of the expanded group.
Inspecs has significantly expanded its manufacturing capacity and can now produce over 8.5 million frames, representing a 70% increase. The company has also introduced seven new in-house brands, including Botaniq, its first fully sustainable eyewear range. Furthermore, it has added numerous global branded licenses to its portfolio and launched a B2B website, with 63% of independent UK customers registered.
Inspecs’ commitment to sustainability has been recognized, as it was awarded the international Green Product Award for its fully recycled and recyclable O’Neill Wove frame.
While the results for 2020 reflected the challenges of the pandemic, Inspecs’ positive momentum and strategic investments have positioned it well for growth in 2021. With an expanded business model, a strong distribution network, and a commitment to sustainability, Inspecs is ready to seize new opportunities in the eyewear market.
Useful links:
– Inspecs official website (link to Inspecs’ official website)
– Green Product Award website (link to the Green Product Award website)
