(PRESS RELEASE) INSPECS Group plc, a global eyewear and lens design house and manufacturer, presents its interim results for the six months ended 30 June 2021.
Financial highlights:
- Revenue increased to $125.7m (H1 2020: $16.7m)
- Gross profit margin 44.9% (H1 2020: 44.5%)
- Underlying gross profit margin* 49.8% (H1 2020: 44.5%)
- Underlying EBITDA* increased to $17.7m (H1 2020: $0.7m)
- Underlying basic Earnings Per Share (EPS) of $0.17 (H1 2020: $0.01), with underlying diluted EPS of $0.16 (H1 2020: $0.01)
- Reported loss before tax of $2.6m (H1 2020: $8.3m)
- Reported loss after tax of $3.2m (H1 2020: $7.5m)
- Reported basic EPS of $(0.03) (H1 2020: $(0.12)), with diluted EPS of $(0.03) (H1 2020: $(0.12))
- Strong balance sheet with cash at 30 June 2021 of $37.7m (30 June 2020: $28.6m)
- Cash flow from operating activities $15.4m (H1 2020: $(2.5)m)
*Underlying gross profit margin for H1 2021 excludes $6.1m purchase price allocation adjustment relating to inventory valuation following the acquisition of Eschenbach on 16 December 2020. Underlying EBITDA excludes this purchase price allocation adjustment and share based payment expense for the period. See ‘Underlying EBITDA’ table below for reconciliation to operating profit as shown below.
Operational highlights:
- Despite the restrictions of Covid-19, operations have remained fully functional and the business is currently transitioning from a work at home basis to a flexible office/home-working environment where applicable.
- Construction work on our Vietnam plant has been completed, despite Covid-19 related restrictions, production is at good levels.
- Further land acquired in Vietnam allows an additional expansion of manufacturing capacity.
- New B2B digital platform increases revenues.
- Eschenbach integration continues across the Group.
- Launch of new in-house designed and manufactured sustainable frames “Botaniq TM” continues to prove successful.
- Development of antiviral and antibacterial products for healthcare markets.
- Norville appointed UK sales distributor for “LEICA Lenses”.
- Construction of new Norville production facility underway, completion expected Q4 2021.
- ESG teams working to move Group’s offices to carbon neutral.
Robin Totterman, CEO of INSPECS, said: “I am pleased to report our underlying EBITDA increased from $0.7m for the 6 months to 30 June 2020 to $17.7m for the 6 months to 30 June 2021. These are good results for the Group that demonstrate its trajectory following the acquisition of Eschenbach on the 16 December 2020.
“These results reflect the hard work that our employees have put in to ensure that the Group can operate despite Covid-19 restrictions. My thanks for the flexibility our teams have displayed across the globe. Our factories have managed to carry on producing in what has been an extraordinarily difficult time and all our factory workers in Vietnam have been vaccinated to enable them to carry on production. Our plant in China has continued to operate despite Covid-19 difficulties throughout the period. Our teams across the globe continue to drive new innovation, explore opportunities and expand into new markets through integration, organic growth and acquisitions.
“We have strong order books and notwithstanding the potential future disruption from Covid-19 our full year expections remain unchanged. We look forward to providing a further update with our Q3 trading update at the end of October.”