Eyewear specialist InSpecs has released its preliminary results for 2024 and while its profit margin rose, revenue, underlying EBITDA and cash flows from operating activities all fell.
The company, which makes and markets its own brands as well as operating licenses for Barbour, Joseph, Radley, Superdry, Temperley and Viktor&Rolf, among others, said group revenue fell to £198.3 million from £203.3 million. At constant currency though it was only down to £203.2 million.
The gross profit margin rose to 52.2% from 50.9% but underlying EBITDA fell to £17.6 million from £18 million. Operating profit actually managed to rise to £3.4 million from £2.9 million but cash flows from operating activities were down to £14.2 million from £16.9 million. However, the company’s net debt excluding leasing was reduced to £22.9 million from £24.2 million.
The year saw a number of achievements including distribution agreed for key new brands in leading retailers across the US, Canada and Europe; completion of the group’s new state-of-the-art manufacturing facility in Vietnam; the integration of the US businesses; group centralised procurement generating supply chain efficiencies; the launch of a new optics product ‘Optaro’, being a video magnifier specifically made for smartphones; and new finance facilities put in place until 2027 with improved terms.
The company also responded to the current tariff situation and doesn’t seem excessively worried.
Its non-US based businesses aren’t currently affected by the recent changes in tariffs, and the group is “confident that the continuing focus on supply chain efficiencies, reducing operational expenditure and selective pass through of cost increases to preserve margins across key markets will largely mitigate the effects of these new tariffs”.
The company also set out its medium-term ambition to deliver CAGR organic revenue growth 40% above the market rate, which is currently forecast to grow at 3% CAGR over the next five years, as well as double-digit underlying EBITDA.
CEO Richard Peck said the firm “demonstrated resilience in 2024 despite challenging macroeconomic conditions, with revenue declining by 2.5% due to softer consumer demand and competitor consolidation. However, our continued focus throughout the year on the integration and simplification of our business has been significant.
“The first quarter has laid the groundwork for a pivotal year and as we move forward, the focus remains on sharpening efficiency, streamlining operations, and advancing key initiatives. Notwithstanding the recently announced tariffs and caution in relation to market conditions, compelling new projects in the pipeline give us confidence in delivering on market expectations for 2025.”
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