BATH, England—Inspecs Group plc (LSE: SPEC), a global eyewear and lens design house and manufacturer, reported its 2023 full-year financial results. Group revenue for 2023 grew 1 percent to £203.3 million compared with £201.0 million in the same period last year. On a constant exchange rate basis, revenue decreased to £200.7 million (compared with £201.0 million in 2022). Gross profit for 2023 increased 4.7 percent year-over-year to £103.5 million. Cash generated from operations was £16.9 million, while net debt excluding leasing was £24.2 million.

The company’s frames and optics segment revenue grew by £5.4 million in 2023 despite a reduction in sales to Grand Vision retail stores around the globe, following its acquisition by EssilorLuxottica, and subdued European retail demand. Its low vision business, based in Europe and the U.S., had a strong performance in 2023, delivering double-digit growth of 12 percent. And its lenses segment increased revenue by 18 percent and reduced its operating losses by £2.0 million in the year to £2.0 million.

“The group delivered record sales in 2023 with an increased number of frames sold, despite a slower than expected end to the year,” said Richard Peck, chief executive officer. “The progress that we have made in 2023 is now delivering increased distribution of our brands to both key accounts and our independent markets. Whilst consumer markets in Europe remain subdued, our businesses are continuing to perform well.”

He added, “Our frames and optics division delivered solid growth of £5.4 million in revenue and a significant increase in operational performance despite the loss of sales to Grand Vision following its acquisition by EssilorLuxottica. This, and an adjustment in buying patterns by our major global retailers in 2023 caused by the effect of COVID, particularly affected our manufacturing business in Asia.

"The construction of our new, state-of-the-art 8,000 sqm manufacturing facility in Vietnam has been delivered on time and on budget, and the manufacturing division is now poised for further growth in the second half of 2024. Norville, our lens manufacturing business, continues to show month-on-month growth with significant new independent accounts and a new key account in place for 2024.”

Operational highlights included the launch of a leading brand into major global retailer delivered in 2023, with a store rollout in April 2024; Eschenbach Optik will be launching new low vision aids in H2 2024; gaming eyewear launching in May 2024, with direct-to-consumer sales; significant new distribution into two major U.S. chains secured for H2 2024; and a new acquisition in Norway, A-Optikk AS, which is currently trading in line with expectations, according to the company.

“Our group operates in a resilient and growing market, and we continue to refine our business model and our strategy to deliver sustained and profitable growth,” said Peck. “After a disappointing end to 2023 and a slow start to 2024, the recent trend has been more encouraging. Current momentum in the business supports delivery of market expectations for 2024 and I am confident that the group is well positioned for continued success. We are excited about our future and look forward to sharing more achievements in the coming year.”