Sales at eyewear manufacturer and distributor Inspecs have been cut after being hit by inflation and competitor acquisitions. However, the company added it remains optimistic about the future.
The firm’s revenue for the six months ended 30 June, 2024, was down 7.3 per cent from £111.2m to £103m, compared to the same period in 2023, according to new figures submitted to the London Stock Exchange.
Operating expenses at the Bath-headquartered company also decreased by 3.6 per cent to £50.7m from £52.6m in the first half, while earnings per share fell to 2.72p from 4.28p.
Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) fell to £10.1m from £12.1m in 2023 due to the drop in revenue.
This was partially offset by cost savings, the company said. Operating expenses decreased by 3.6 per cent to £50.7m, from £52.6m in 2023.
The eyewear firm reported strong sales in travel retail and lenses despite a soft market overall, with revenue in those markets rising 45 per cent and 22 per cent year on year respectively.
Inspecs invested in a new Vietnam manufacturing facility during the half, which it expected to reduce capital expenditure and therefore net debt. Net debt (excluding leases) fell by £4.4m in the six months to 30 June, to £19.8m.
Richard Peck, CEO of Inspecs, said: “The group has made steady progress during the period, with significantly improved gross profit margins delivered across all divisions and strong cash generation.
“We have achieved sustainable cost savings through the ongoing implementation of operational efficiencies, particularly in the US, and we will continue to undertake further initiatives during the second half.”
“Trading in the second half to date has exceeded the prior year and our order books are ahead of last year as of the end of August,” Peck said.
“Whilst we remain cautious in relation to market conditions and focused on the delivery of our cost saving initiatives and planned shipments in the fourth quarter, the board is confident in meeting market expectations for the full year,” he added.