Inspecs hails "encouraging" recent trading after tepid start to 2024

(Alliance News) - Inspecs Group PLC on Wednesday reported improved annual results and said it has

"confidence" that it can achieve market expectations in 2024.

The Bath, England-based eyewear company reported a pretax profit of GBP200,000, swinging from a loss of GBP7.7 million in 2022.

Revenue increased by 1.1% to GBP203.3 million in 2023 from GBP201.0 million in 2022.

Inspecs shares were up 8.5% to 51.00 pence each in London on Wednesday morning.

The company is preparing to launch its gaming eyewear offering in May with direct-to-consumer sales, as well as launching new low vision aids through its Eschenbach Optik subsidiary.

It is currently preparing to begin production in a new 8,000 square metre manufacturing facility, as well as roll out one of its brands in-store with a leading global retailer.

Inspecs added that the company's operational efficiency has been improved by its work on its US operations and global supply chain.

Inspecs Chief Executive Officer Richard Peck said: "The group delivered record sales in 2023 with an increased number of frames sold, despite a slower than expected end to the year. The progress that we have made in 2023 is now delivering increased distribution of our brands to both key accounts and our independent markets. While consumer markets in Europe remain subdued, our businesses are continuing to perform well.

"Our frames and optics division delivered solid growth of GBP4.5 million in revenue and a significant increase in operational performance despite the loss of sales to GrandVision NV following its acquisition by Essilor Luxotica SA. 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.

Inspecs said it suffered a "disappointing end to 2023 and a slow start to 2024" but trends more recently has been encouraging.

CEO Peck said: "I am pleased with the performance of the business to date and, with the opportunities that are in place for 2024, this gives me confidence in the group achieving market expectations for 2024."

By Emily Parsons, Alliance News reporter

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