Inspecs reports solid trading so far this year

Eyewear specialist Inspecs’ trading update on Monday showed a “solid performance” in the first nine months of the year. 

In line with its expectations, revenue rose 4.6% to £159.1 million, and on a constant currency basis it was up 2.4% to £155.7 million.

The company is the eyewear licensee for labels including Joseph, Barbour, Liberty, Superdry and Temperley, among others. And it also makes and markets its own labels.

It said it “delivered strong cash generation in the period and, as a result, net debt (excluding leases) decreased by £6.4 million to £21.2million”. It was £27.6 million at the end of last year. 

The company added that during the latest quarter, it invested a further £0.8 million in construction of its new manufacturing facility in Vietnam and reduced the net debt (excluding leases) by £1.5 million.

CEO Richard Peck said: “All of the group’s major markets are performing as we expected. Construction of our new manufacturing facility in Vietnam is progressing well with completion expected in H1 2024.

“Our focus on improving the group’s operational efficiencies continues and, notwithstanding the ongoing macroeconomic uncertainties, with our current order book the board remains confident of delivering full-year results in line with market expectations.”

Last month, the company had reported its first-half results and said revenue rose 6.1% to £111.2 million. Operating profit rose 25.1% to £4.6 million and reported profit before tax rose to £3.8 million from a loss of £0.2 million a year earlier.

It had seen strong revenue growth in the UK and North America, but revenue in Europe was flat year on year, with a strong performance in its key German market countered by softness in other European markets.