Image source: © 2025 Krish Capital Pty. Ltd.

Highlights

  • INSPECS Group records H1 FY25 revenue of GBP 97.6M, compared with GBP 100.6M in H1 2024.
  • Underlying EBITDA of INSPECS Group reached GBP 9.0M vs GBP 11.0M in H1 2024.
  • Net debt (excluding leases) stood at GBP 23.6M, slightly up from GBP 22.9M at 31 December 2024.

INSPECS Group plc (LSE:SPEC) designs, manufactures, and distributes eyewear, including sunglasses, optical frames, and low-vision products. The Group operates globally, with brands and distribution networks across Europe, the US, and Asia.

Financial Performance

For the six months ended 30 June 2025, revenue was GBP 97.6M, compared with GBP 100.6M in H1 2024. On a constant currency basis, revenue was GBP 99.3M, a decline of 1.3%. Gross profit margin fell 80 basis points to 51.8% from 52.6% in the prior period.

Operating expenses decreased to GBP 47.8M from GBP 48.4M. Underlying EBITDA was GBP 9.0M, compared with GBP 11.0M in H1 2024. Diluted underlying EPS was 2.08p, down from 3.94p.

Profit before tax was GBP 2.4M, slightly lower than GBP 2.6M in H1 2024. Cash generated from operations was GBP 11.2M, compared with GBP 12.5M. Working capital improved by GBP 3.3M, following a GBP 2.4M reduction in the prior year.

Net debt (excluding leases) increased to GBP 23.6M from GBP 22.9M at year-end 2024, reflecting final payments for acquisitions and funding of discontinued operations. Finance costs were 21% lower year over year, supported by switching to Euribor-based debt, with around 50% hedged via interest rate swaps.

Norville, classified as a discontinued operation, delivered GBP 2.4M revenue and an underlying EBITDA loss of GBP 0.7M.

Operational Review

The Group launched the Tom Tailor eyewear brand on 1 July 2025, with initial sales above target. Operating efficiencies continued, with a GBP 1.1M reduction in expenses in the Frames and Optics division compared with H1 2024.

Norville lens manufacturing was discontinued as part of portfolio rationalisation. The amalgamation of selected European sales businesses remains on track for completion by year-end 2025.

In the US, the Optics division was affected by lower government spending on low-vision products due to political changes. Ongoing tariff disruption continued to impact exports from China to the US.

ERP system implementations were completed in both US and UK operations.

Board Update

Andrea Davis has been appointed as the incoming Non-Executive Chair, effective no later than 31 December 2025, following a recruitment process.

Outlook

Trading in the first two months of H2 2025 has been slightly behind plan, but growth in order books and cost savings are expected to support stronger performance in the second half. The Board continues to expect the Group to meet its full-year guidance for underlying EBITDA of GBP 18.7M (excluding Norville).

Medium-term targets remain in place, including organic revenue CAGR 40% above market growth (currently forecast at 3%), double-digit underlying EBITDA margin, and net debt of 40%–75% of underlying EBITDA.