|
Inspecs PLC on Thursday reported a drop in first-half revenue and profit, citing the impact of US-China tariffs on production. The Bath, Somerset-based eyewear maker posted £97.6 million in revenue for the six months that ended June 30, down 3.0% from £100.6 million the previous year. Pretax profit fell 7.7% to £2.4m from £2.6m on a reported basis, after a £1.4m gain on exchange relating to borrowings, compared to a gain of £100,000 gain in the first half of 2024. Underlying pretax profit dropped 25% to £6.4 million from £4.9 million on-year. Earnings before interest, tax, depreciation and amortisation declined 16% on-year to £8.8 million, while underlying Ebitda was 18% below the previous year at £9.0 million. ‘As previously communicated, revenue and Ebitda in the first half of 2025 was lower than initially expected largely as a result of slower trading in Europe and the uncertainty stemming from US tariffs,’ said Chief Executive Richard Peck. Frames & Optics revenue was down 3.0% on-year at £91.4 million, with ‘particularly challenging’ conditions in the US market, where coupled with slower-than-expected sales in Europe. Peck said tariffs had contributed to higher product costs and customer hesitancy. ‘At the same time, several key customers have faced delays or reductions in government funding due to the changing political landscape,’ he added. Manufacturing revenue shrunk to £7.9 million from £9.0 million a year earlier, with Inspecs noting a ‘considerable’ impact on its Chinese factory where customers are ‘delaying orders whilst they wait for more tariff certainty.’ Inspecs described trading in the first two months of its second half as ‘slightly behind plan’ but maintained ‘a reasonable expectation’ of meeting full-year guidance. ‘The growth in our order books and increased cost savings are expected to deliver a stronger performance in the remainder of the year,’ the company said, reiterating medium-term guidance for double-digit underlying Ebitda growth. Peck added: ‘We continue to prioritise achieving our medium-term targets of accelerated revenue growth, operational strength and sustainable leverage through a number of key areas of focus.’ Inspecs shares traded 6.1% lower at 40.40 pence on Thursday afternoon in London, and have lost 26% in the past 12 months. Copyright 2025 Alliance News Ltd. All Rights Reserved.
|
