Inspecs results hit by tough exchange rates in H1

By

Nigel TAYLOR

Published
Aug 21, 2022

Global eyewear/lens design house Inspecs’ results would have been so much better but for a damaging exchange rate. In a nutshell, solid European business was affected by a “rapid decline” in the euro against the US dollar in Q2, which will lead it to “review the reporting currency with our advisors in 2023”, it said.

The company makes eyewear under its own labels, as well as for brands including Superdry, O’Neill, Radley, Farah, Ted Baker, Lulu Guinness, Talbot Runhof and Marc O’Polo.

Its unaudited interim results for the six months ended 30 June were thus: revenue increased to a healthy $138.4 million from $125.7 million in the year ago H1. But at constant revenue, the increase would have been 15.8% to $145.5 million.

Meanwhile, operating profit more than doubled to $5.8 million from $2.5 million a year ago. Gross profit margin improved to 50.5% from 44.2% (underlying 49.1%)

But underlying EBITDA slipped to $15.1 million from $16.8 million in the previous H1 while reported profit before tax of $0.8 million was another positive, ahead of the $3.5 million loss previously.

The company also maintained a strong balance sheet with cash of $30.6 million on hand. 

CEO Robin Totterman said: "The group has made good progress against our strategic objectives during the period, specifically with the ongoing integration of the group's businesses and increasing our distribution reach around the globe.” 

He added: “Our European business performed ahead of internal budget for the first half.” 

And the outlook is positive too. That includes the start construction of its new factory in Portugal this year and an increase in its Vietnam production capacity through expansion. Group order books are also are ahead on a year ago, “and we enter the second half of the year in a good position.” 

Totterman added: “While we remain cautious of the overall economic outlook for the UK and European market, we remain focused on executing a number of strategic priorities that will increase production, enabling us to bring innovative new products to market and continue to deliver shareholder value."