Inspecs, a British eyewear company, has released its positive financial results for the first half of 2023. The company experienced a 6.1% increase in revenue, reaching £111.2 million. However, when factoring in constant exchange rates, the growth was only 2.3%. Operating profit also saw a significant rise of 25.1% to £4.6 million, with a gross profit margin of 51.4%, up from 50.5%. Underlying EBITDA, another financial indicator, increased by 5.4% to £12.1 million. It’s worth noting that adjusted profit before tax decreased to £6.9 million from £7.5 million, but reported profit before tax rose to £3.8 million from a loss of £0.2 million in the previous year.
One of the key factors contributing to Inspecs’ success was the strong revenue growth in the UK, which saw a remarkable increase of nearly 20% to £13.6 million. This growth can be attributed to the company’s increased distribution to major retail chains. In North America, revenue also rose by 9% to £37.4 million, and there was growth in Latin America as well. However, revenue in Europe remained stagnant at £52.2 million. While the German market performed well, other European markets weighed down overall growth.
During the first half of the year, Inspecs sold 6.9 million eyewear frames, surpassing the 6.2 million sold in the same period the previous year. Furthermore, the company successfully launched a new range of eyewear frames designed for women under its TitanFlex brand, offering exceptional comfort to customers.
Inspecs is also focusing on expanding its manufacturing capacity. The company has begun constructing a new facility in Vietnam, which is expected to be completed in the first half of next year. Once operational, this facility will increase Inspecs’ manufacturing capacity to approximately 12 million units per year.
Additionally, Inspecs renewed key licensed brands like Marco Polo and Ted Baker, showcasing its ongoing commitment to partnerships. The company also secured orders for a “key license brand by a global retailer, to be delivered in Q4.”
CEO Richard Peck expressed his satisfaction with the company’s performance and highlighted the projected growth of the eyewear market, stating that according to Statista.com, the industry is expected to increase by 4.4% per year from 2023 to 2027. Peck emphasized Inspecs’ dedication to achieving operational efficiency and identifying integration opportunities across its global trading platform.
Inspecs remains confident in its full-year outlook, with trading in the second half of the year aligning with expectations and order books at a healthy level. Nevertheless, the company acknowledges the need for caution due to potential impacts from global economic and political events.
Useful links:
– [Statista Eyewear Market Outlook](https://www.statista.com/outlook/304/100/eyewear/worldwide)
– [Inspecs Official Website](https://www.inspecs.com/)
