Bullish Inspecs weathers weak end to 2023 as sales and profits still rise

Despite a profit warning in January following softer than expected sales in December, UK-based eyewear producer/distributor Inspecs was in an upbeat mood Wednesday delivering final results covering 2023 that saw revenues inch up and a marginal return to pre-tax profit.

Although group revenue for the year to 31 December rose by just £2.3 million to £203.3 million and fell slightly at constant exchange rates, chief exec Richard Peck noted it was still a record sales performance with an increased in the number of frames sold, “despite a slower than expected end to the year.”

The business produces a raft of external brands’ fashion eyewear, (including Superdry, O’Neill, Radley, Barbour, Ted Baker and Lulu Guinness as well as its own brands) and supplies to over 80 countries and around 75,000 points of sale.

It also saw gross profit rise 4.7% £103.5 million. Pre-tax profit returned to the positive (just, at £0.2 million) following a pre-tax loss of £7.7 million a year ago. Underlying EBITDA was 16% ahead at £18 million.

Peck said: “After a disappointing end to 2023 and a slow start to 2024, the recent trend has been more encouraging. The progress that we have made in 2023 is now delivering increased distribution of our brands to both key accounts and our independent markets. Whilst consumer markets in Europe remain subdued, our businesses are continuing to perform well.”

He noted its  Frames and Optics division delivered “solid revenue growth” of £5.4m in revenue and a “significant increase” in operational performance despite the loss of sales to Grand Vision following its acquisition by Essilor Luxottica. 

“This, and an adjustment in buying patterns by our major global retailers in 2023 caused by the effect of Covid, particularly affected our manufacturing business in Asia,” we’re told. 

On a positive note, he said the construction of its new, state-of-the-art 8,000 sq m manufacturing facility in Vietnam — delivered on time and on budget — is preparing for initial production later in the year, supporting expected growth in the second half of 2024.

He added: “Our group operates in a resilient and growing market, and we continue to refine our business model and our strategy to deliver sustained and profitable growth.

“Current momentum in the business supports delivery of market expectations for 2024 and I am confident that the group is well positioned for continued success. We are excited about our future and look forward to sharing more achievements in the coming year.”