Designer eyewear firm Inspecs has said it remains “confident” about its future growth following a tough trading year for the Bath-based firm. In a full-year trading update, the AIM-listed company reported a drop in revenues from $246.3m in 2021 to $233.4m for the year ending December 31, 2022. The business said on Thursday (January 26) the results were in line with revised expectations.
There was some positive news for the company, however. It said on a constant exchange rate basis, revenue rose by $23.5m from $246.5m to $270.0m - an increase of 9.5%.
The group also said production in China increased last year despite Covid-19 restrictions in the country. In Asia, Inspecs’ factories maintained production throughout most of 2022, despite both supply chain and pandemic lockdowns.
Inspecs added it had narrowed losses at Norville, the Gloucestershire-based glasses company it acquired in 2020 for £2.4m. The business has made several acquisitions over the last couple of years, including deals for German frames distributor BoDE Design , global design and licensing company Ego Eyewear and German competitor Eschenbach.
It also said its research and development department, Skunk Works, generated its first commercial revenues in 2022, with management expecting further growth in 2023.
However, the group said it saw a decrease in order flow in the third quarter of last year following a slowdown in its German, French and other European markets, resulting in a reduction of sales in the fourth quarter.
As a result, Inspecs said its board had introduced a cost-reduction programme to improve operational efficiency in 2023. The company said it had experienced “several headwinds” last year including a large decrease in the Euro against the US Dollar, which the business said had “a material impact” on the reporting of its European business. The firm blamed “record high” freight costs and a rise in material, product and operating costs in the year.
Richard Peck, who took over as chief executive of Inspecs in December, said: “I am confident that these programmes will ensure the group is fit for the future and best placed to take advantage of the exciting growth opportunities that I see in the market.”
Looking ahead, Inspecs has said it expects to start construction of its new manufacturing facilities in the second half of 2023, funded from free cashflow.
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