Inspecs reports dip in H1 revenue amid tariff disruptions

LONDON - Eyewear designer and manufacturer Inspecs Group plc reported a slight decline in first-half revenue to £97.6 million, down from £100.6 million in the same period last year, according to a press release issued Thursday.

On a constant currency basis, revenue decreased by 1.3% to £99.3 million. The company’s gross profit margin contracted by 80 basis points to 51.8%, while underlying EBITDA fell to £9.0 million from £11.0 million in the first half of 2024.

Profit before tax stood at £2.4 million, slightly below the £2.6 million reported in the comparable period. Diluted underlying earnings per share declined to 2.08 pence from 3.94 pence.

The company cited ongoing tariff disruption affecting manufacturing exports from China to the U.S. and reduced government expenditure on low vision products in the U.S. as factors impacting performance.

Despite these challenges, Inspecs highlighted operational improvements, including a £1.1 million reduction in operating expenses within its Frames and Optics division. The company also reported continued improvement in working capital, which was reduced by £3.3 million.

Net debt excluding leases increased slightly to £23.6 million as of June 30, up from £22.9 million at the end of December 2024, primarily due to final payments on deferred consideration related to acquisitions.

The company successfully launched the Tom Tailor eyewear brand on July 1, with initial sales exceeding targets. Inspecs also completed the implementation of new ERP systems in its U.S. and UK businesses.

Looking ahead, Inspecs stated that current trading in the first two months of the second half is slightly behind plan but expects a stronger performance for the remainder of the year based on growth in order books and increased cost savings.

The company announced that Andrea Davis has been selected as the next Non-Executive Chair, to take effect no later than December 31.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.