Half-year Financial Report

10 September 2026

INSPECS Group plc

("INSPECS", "the Company" or "the Group")

Interim Results

 

INSPECS Group plc, a leading designer, manufacturer and distributor of eyewear (sunglasses, optical frames and low vision products) presents its unaudited interim results for the six months ended 30 June 2026.

Financial review:

·      Revenue increased by 1.6% to £99.1m in H1 2026 from £97.6m in H1 2025

·      On a constant exchange rate basis¹, revenue increased by 2.0% to £99.6m

·      Gross profit margin increased by 90 basis points to 52.7%, compared with 51.8% in H1 2025

·    Operating expenses decreased by £1.5m to £46.4m (H1 2025: £47.8m)

·    Underlying EBITDA² increased by 13.1% to £10.2m from £9.0m in H1 2025, with the Underlying EBITDA margin increasing to 10.3% from 9.3%

·    Diluted Underlying EPS³ increased 46% to 3.03p from 2.08p in H1 2025

·    Operating profit before non-underlying items increased to £5.9m from £2.7m in H1 2025

·    Net working capital decreased by £3.5m during the period to £40.7m at 30 June 2026

·    Cash generated from operations remained strong at £10.8m, compared with £11.2m in H1 2025

·    Net debt excluding leases⁴ decreased by £13.6m to £18.7m at 30 June 2026 from £32.3m at 31 December 2025, including £7.4m net proceeds from the issue of new shares

·    The Group remained comfortably within its banking covenants at 30 June 2026, with leverage of 1.21x against a maximum covenant of 2.25x, debt service cover of 2.3x against a minimum of 1.1x and interest cover of 6.7x against a minimum of 3.0x.

Operational review:

·    Strategic investment of £7.4m by Qualcomm completed during the period, with the Group continuing to work closely with Qualcomm to progress strategic projects and identify opportunities to support future growth

·    The Group continued to implement operational efficiencies and cost-reduction initiatives across its businesses, including further integration within the European operations

·    The offer by Bidco 1125 Limited became unconditional on 12 March 2026

·    The wind-down of Norville progressed substantially during the period, with all remaining employees leaving the business and its inventory and property, plant and equipment sold

Current trading and outlook:

·    The Group entered the second half with a strengthened balance sheet, net debt excluding leases of £18.7m and good headroom against all banking covenants. While market conditions remain challenging, particularly within the US optical frames market and the German low vision market, the Group continues to benefit from growth within Eschenbach eyewear and the cost savings delivered through the integration of its UK operations.

·      We remain committed to delivering on our medium-term targets:

o  CAGR organic revenue growth 40% above the market rate, which is currently forecast to grow at 3% CAGR

o  Double-digit Underlying EBITDA margin - achieved in H1 2026

o  Net debt to be 40% - 75% of Underlying EBITDA - on track to deliver in 2027

 

1         Constant currency exchange rates: figures at constant currency exchange rates have been calculated using the average exchange rates in effect for the relevant comparative period (H1 2025).

2         Refer to table 'Underlying EBITDA and Underlying PAT'.

3         Refer to note 5.

4         Refer to note 9.

 

Richard Peck, CEO of INSPECS, said:

"The Group delivered revenue growth in the first half of 2026, together with an improvement in gross margin and a 13.1% increase in Underlying EBITDA to £10.2m. This performance was achieved despite continued challenging conditions in a number of our markets and reflects the benefit of disciplined cost management, improved manufacturing performance and the operational efficiencies delivered across the Group.

 

"The Qualcomm investment during the period, combined with strong cash generation and continued focus on working capital and cost control, put the Group in a strong position heading into the second half of 2026. We remain focused on further operational efficiencies, cost discipline and the development of new business opportunities as we progress through the remainder of the year."

 

For further information please contact:

INSPECS Group plc Richard Peck (CEO)	Tel: +44 (0) 1225 717 000
Peel Hunt (Nominated Adviser and Broker) George Sellar Andrew Clark	Tel: +44 (0) 20 7418 8900

About INSPECS Group plc

INSPECS is a leading provider of eyewear solutions to the global eyewear market. The Group produces a broad range of eyewear frames and low vision aids, covering optical, sunglasses and safety, which are either "Branded" (under licence or under the Group's own proprietary brands), or "OEM" (unbranded or private label on behalf of retail customers).

INSPECS is building a global eyewear business through its vertically integrated business model. Its continued growth is underpinned by increasing the penetration of its own-brand portfolio, worldwide distribution, growing retail presence, maximising group synergies and its global network, expanding its manufacturing capacity and scaling the research and development department as it develops new and innovative eyewear products.

The Group has operations across the globe: with offices and subsidiaries in the UK, Europe, the US and China (including Hong Kong, Macau and Shenzhen), and manufacturing facilities in Vietnam, China and Italy.

INSPECS customers are global optical and non-optical retailers, global distributors and independent opticians. Its distribution network covers over 80 countries and reaches approximately 75,000 points of sale.

More information is available at: www.INSPECS.com

CHIEF EXECUTIVE REVIEW

The Group delivered improved revenue and Underlying EBITDA during the first half of 2026 despite continued challenging market conditions, including subdued demand in certain European and US markets and ongoing uncertainty surrounding US tariffs.

Revenue increased by 1.6% to £99.1m in H1 2026 from £97.6m in H1 2025. On a constant exchange rate basis, revenue increased by 2.0% to £99.6m. Underlying EBITDA increased by 13.1% to £10.2m from £9.0m, with the Underlying EBITDA margin improving to 10.3% from 9.3%.

We remain focused on delivering sustainable revenue growth, improving operational performance and maintaining appropriate leverage. Our priorities include strengthening performance in our core markets, developing new customer and product opportunities, maintaining disciplined cost control and completing the remaining rationalisation and integration initiatives across the Group.

Frames and Optics

Revenue from the Frames and Optics segment remained broadly consistent with the prior period at £91.3m. Underlying EBITDA was £10.4m compared with £10.5m in H1 2025.

Our European eyewear operations delivered continued growth, particularly through key accounts, although this was partly offset by weaker performance in the European low vision and optics market. Overall market conditions in Germany remained subdued, with continued volume pressure in core markets. Despite this backdrop, the German eyewear business delivered a strong performance, supported by the successful execution of strategic initiatives, the benefits of recent leadership changes and the continued strength of key proprietary brands. The European operations maintained a strong focus on product development, design, quality and service, alongside disciplined cost management.

The US optical frames market remained challenging during the period, with industry-wide volume pressure affecting demand across a number of channels. Key-account activity was stronger in certain areas, while opportunities within safety eyewear and sunglasses continued to progress.

 

Manufacturing

Revenue from the Manufacturing segment increased by 33.3% to £10.5m in H1 2026 from £7.9m in H1 2025. Underlying EBITDA increased to £1.2m from £0.4m, reflecting higher revenue and improved factory performance, partly offset by a modest reduction in gross margin and additional investment in manufacturing personnel.

Our Asian manufacturing operations delivered strong revenue growth compared with H1 2025, supported in part by delayed orders from 2025 being shipped during January and February 2026. Customer demand and order flow improved in certain areas, although gross margins continued to be affected by product mix and lower volumes of internally manufactured concepts, titanium and regular metal products.

Our manufacturing facility in Vietnam continued to operate effectively and increase production activity during the period. Management remains focused on increasing utilisation, broadening the customer base and securing further orders to support future revenue and margin growth.

Operational efficiencies

The Group continued to implement operational efficiencies and cost-reduction initiatives across its businesses including further integration within the European and UK operations. The wind-down of Norville also progressed substantially during the period. All remaining employees left the business and the sale of its inventory and property, plant and equipment was completed. The residual activities principally comprise the collection and settlement of outstanding balances and completion of the wind-down process.

 

 

ESG

During the period, the Group continued to progress initiatives intended to reduce emissions and improve energy efficiency across its global operations. These included continued investment in renewable energy and energy resilience within the Group's Asian manufacturing operations.

The Group has also continued its work on sustainable packaging and the measurement and management of Scope 3 emissions. We remain committed to delivering measurable progress against our ESG objectives and supporting our people, communities and the environment.

Corporate update

The offer by Bidco 1125 Limited became unconditional on 12 March 2026. The Group incurred £2.2m of professional fees and other transaction-related costs in connection with the proposed acquisition and subsequent offer during H1 2026.

During June 2026, the Group received net proceeds of £7.4m from the issue of new shares to Qualcomm. A portion of the proceeds was used to reduce drawings under the Group's revolving credit facility, strengthening liquidity and increasing available borrowing capacity. The Group continues to work closely with Qualcomm to progress strategic projects and identify opportunities to support future growth.

Outlook

Despite ongoing macroeconomic headwinds, the optical market remains resilient. Management remains focused on progressing new customer and product opportunities, as well as improving working capital, delivering further operational efficiencies and maintaining disciplined cost control.

I would like to take this opportunity to thank all our teams worldwide for their continued efforts and commitment to developing the Group as a leading global eyewear business.

 

Richard Peck

10 September 2026

 

 

 

 

FINANCIAL REVIEW

 

Revenue

Revenue was £99.1m for H1 2026, up from £97.6m in H1 2025, an increase of 1.6%. On a constant exchange rate basis, revenue increased 2.0% to £99.6m.

 

Gross Profit Margin

The Group's gross profit margin increased to 52.7% in H1 2026 versus 51.8% in H1 2025.

 

Operating Profit

The Group's operating profit before non-underlying items increased to £5.9m (H1 2025: £2.7m).

 

Administrative expenses

Administrative costs decreased by £1.5m to £43.7m in H1 2026 from £45.2m in H1 2025, a result of the Group's continuing focus on operational efficiency and cost discipline, together with lower amortisation charges as certain purchase price allocation intangible assets became fully amortised.

 

Underlying EBITDA

The Group's Underlying EBITDA increased to £10.2m in H1 2026 from £9.0m in H1 2025. Underlying EBITDA margin increased to 10.3% in H1 2026 from 9.3% in H1 2025.

 

Non-underlying costs

Non-underlying costs in H1 2026 of £2.5m predominantly relate to one-off transaction and advisory costs associated with the proposed acquisition and subsequent offer by Bidco 1125 Limited, which became unconditional on 12 March 2026.

 

Depreciation and amortisation

	Period ended 30 June 2026 £m	Period ended 30 June 2025 £m
Depreciation	2.8	2.8
Amortisation	1.7	3.3
Total	4.5	6.1

 

The decline in amortisation is due to certain purchase price allocation intangible assets associated with the Eschenbach acquisition becoming fully amortised as of December 2025.

 

Profit Before Tax

Profit before tax for the period was £1.8m (H1 2025: £2.4m), including £2.5m of non-underlying costs incurred during H1 2026 (H1 2025: £0.2m) and after a nil gain on exchange adjustments on borrowings in H1 2026, compared to a gain of £1.4m in H1 2025.

 

Tax charge

The tax charge for the period of £1.9m (H1 2025: £2.1m) comprises a current tax charge of £2.7m (H1 2025: £2.6m) and a deferred tax credit of £0.8m (H1 2025: £0.5m credit). The deferred tax credit is as a result of the unwinding of deferred tax balances arising on acquisitions.

 

Cash Generation

The Group continued to have strong cash generation from operations of £10.8m (H1 2025: £11.2m).

 

Net Debt

Net debt excluding leases decreased by £13.6m to £18.7m at 30 June 2026 from £32.3m at 31 December 2025, reflecting strong  cash generation from trading and £7.4m net proceeds from the issue of new shares.

 

Financing

The Group finances its operations through the following borrowings and facilities.

		Expires	Balance at 30 June 2026 £m	Balance at 31 December 2025 £m
Group revolving credit facility		December 2027	28.4	31.4
Term loans		December 2027	6.1	8.5
Revolving credit facility USA		1-year rolling	6.9	6.8
Invoice discounting		1-year rolling	3.2	1.6
Total			44.6	48.3

 

Leverage covenant

The Group's leverage position is shown below:

	30 June 2026	31 December 2025
Actual ratio	1.21	2.22
Covenant ratio	2.25	2.25

The Group remains within its banking covenants and forecasts that it will continue to remain within banking covenants for the length of the arrangement.

 

Inventory

The revenue-to-inventory ratio declined marginally compared with 30 June 2025, when inventory levels were temporarily lower following reduced purchasing by the Group's US operations between April and June 2025 in response to tariff uncertainty.

	Period ended 30 June 2026 £m	Period ended 30 June 2025 £m
Revenue	99.1	97.6
Inventory	46.1	42.0
Revenue to inventory ratio	2.1	2.3

 

Current asset ratio

The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations, or those due within one year.

	As at 30 June 2026 £m	As at 30 June 2025 £m
Current Assets	106.1	98.0
Current Liabilities	76.1	76.1
Ratio	1.4	1.3

 

Quick ratio

The quick ratio is an indicator of a company's short-term liquidity position and measures a company's ability to meet its short-term obligations with its most liquid assets.

	As at 30 June 2026 £m	As at 30 June 2025 £m
Current Assets	106.1	98.0
Less Inventory	(46.1)	(42.0)
	60.0	56.0
Current Liabilities	76.1	76.1
Ratio	0.8	0.7

 

Net working capital

	As at 30 June 2026 £m	As at 30 June 2025 £m	As at 31 December 2025 £m
Trade and other receivables	33.4	33.2	37.5
Inventory	46.1	42.0	47.2
Trade and other payables	(38.8)	(36.9)	(40.5)
Net working capital	40.7	38.3	44.2
Working capital as a percentage of 12-month rolling revenue	21.1%	20.1%	23.1%

 

Earnings per Share

The Group's Diluted Underlying EPS for the 6 months to 30 June 2026 was 3.03p compared to 2.08p for the 6 months to 30 June 2025. The Group's Diluted EPS was a loss of 0.48p for the 6 months to 30 June 2026 (H1 2025: loss 4.54p).

 

Dividend

The Group does not currently intend to pay a dividend in relation to the first half of 2026. The Board continues to review its dividend policy on a regular basis.

 

Underlying EBITDA and Underlying PAT

 

The below table shows how Underlying EBITDA and Underlying PAT are calculated:

 

			6 months ended 30 June 2026		6 months ended 30 June 2025		12 months ended 31 December 2025
			£'000		£'000		£'000
	Revenue		99,149		97,623		191,701
	Gross Profit		52,275		50,570		99,176
	Operating expenses		(46,374)		(47,834)		(93,491)
	Operating profit before non-underlying items		5,901		2,736		5,685
	Add back: Amortisation		1,710		3,270		6,197
	Add back: Depreciation		2,762		2,758		5,608
	EBITDA		10,373		8,764		17,490
	(Deduct)/add back: Share-based payment credit/expense		(151)		277		185
	Underlying EBITDA		10,222		9,041		17,675
	Less: Depreciation		(2,762)		(2,758)		(5,608)
	Less: Net interest (excluding amortisation of loan arrangement fees)		(1,519)		(1,433)		(2,789)
	Underlying Profit Before Tax (PBT)		5,941		4,850		9,278
	Current tax charge		(2,677)		(2,627)		(1,878)
	Underlying Profit After Tax (PAT)		3,264		2,223		7,400
	Underlying EPS		Pence		Pence		Pence
	Basic Underlying EPS for the period attributable to the equity holders of the parent		3.19		2.19		7.28
	Diluted Underlying EPS for the period attributable to the equity holders of the parent		3.03		2.08		6.87

 

Underlying EBITDA segmental information

Underlying EBITDA by reportable segment for the six months ended 30 June 2026 is as follows:

	Frames &		Manufacturing		Total before		Adjustments		Total
	Optics				adjustments &		& eliminations
					eliminations
	£'000		£'000		£'000		£'000		£'000
Revenue	91,305		10,478		101,783		(2,634)		99,149
Operating profit/(loss)	6,767		466		7,233		(1,332)		5,901
Add back:
Amortisation	1,397		313		1,710		-		1,710
Depreciation	2,314		417		2,731		31		2,762
Share-based payments	(75)		(23)		(98)		(53)		(151)
Underlying EBITDA	10,403		1,173		11,576		(1,354)		10,222

 

 

Underlying EBITDA by reportable segment for the six months ended 30 June 2025 is as follows:

	Frames &		Manufacturing		Total before		Adjustments		Total
	Optics				adjustments &		& eliminations
					eliminations
	£'000		£'000		£'000		£'000		£'000
Revenue	91,398		7,869		99,267		(1,644)		97,623
Operating profit/(loss)	5,117		(410)		4,707		(1,971)		2,736
Add back:
Amortisation	2,957		313		3,270		-		3,270
Depreciation	2,297		413		2,710		48		2,758
Share-based payments	96		57		153		124		277
Underlying EBITDA	10,467		373		10,840		(1,799)		9,041

 

 

INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME               For the period ended 30 June 2026
	Notes	Unaudited 6 months ended 30 June 2026		Unaudited 6 months ended 30 June 2025
		£'000		£'000
REVENUE	4	99,149		97,623
Cost of sales		(46,874)		(47,053)
GROSS PROFIT		52,275		50,570
Distribution costs		(2,712)		(2,656)
Administrative expenses		(43,662)		(45,178)
OPERATING PROFIT BEFORE NON-UNDERLYING ITEMS		5,901		2,736
Non-underlying costs	10	(2,471)		(247)
Exchange adjustments on borrowings		(43)		1,399
Share of profit of associates		-		6
Finance costs		(1,668)		(1,612)
Finance income		37		72
PROFIT BEFORE INCOME TAX		1,756		2,354
Income tax		(1,885)		(2,087)
(LOSS)/PROFIT FOR THE PERIOD - CONTINUING OPERATIONS		(129)		267
LOSS FOR THE PERIOD - DISCONTINUED OPERATION	12	(359)		(4,879)
LOSS FOR THE PERIOD		(488)		(4,612)
OTHER COMPREHENSIVE PROFIT/(LOSS):
Exchange adjustment on consolidation		974		(6,560)
TOTAL COMPREHENSIVE PROFIT/(LOSS) FOR THE PERIOD		486		(11,172)

 

 

INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (continued)                                                                                                                               For the period ended 30 June 2026
	Notes		Unaudited 6 months ended 30 June 2026			Unaudited 6 months ended 30 June 2025
(Loss)/profit per share from continuing operations			Pence				Pence
Basic EPS for the period attributable   to the equity holders of the parent		5	(0.13)				0.26
Diluted EPS for the period attributable   to the equity holders of the parent		5	(0.13)				0.25
Loss per share
Basic EPS for the period attributable   to the equity holders of the parent		5	(0.48)				(4.54)
Diluted EPS for the period attributable   to the equity holders of the parent		5	(0.48)				(4.54)

 

 

 

 

 

INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION    

As at 30 June 2026

			Notes					Unaudited As at 30 June 2026 £'000						Unaudited As at 30 June 2025 (restated) £'000								As at 31 December 2025 £'000
ASSETS
NON-CURRENT ASSETS
Goodwill								56,987						55,772								56,832
Intangible assets								15,431						20,504								16,848
Property, plant and equipment								22,950						25,310								24,253
Investment in associate and joint venture								54						70								54
Deferred tax								1,935						3,574								1,736
								97,357						105,230								99,723
CURRENT ASSETS
Inventories								46,124						41,968								47,225
Trade and other receivables			6					33,448						33,167								37,465
Tax receivable								518						184								887
Cash and cash equivalents			7					25,961						22,667								15,986
								106,051						97,986								101,563
Assets held for sale			12					-						2,392								944
TOTAL ASSETS								203,408						205,608								202,230
EQUITY
SHAREHOLDERS' EQUITY
Called up share capital								1,092						1,017								1,017
Share premium								96,871						89,508								89,508
Foreign currency translation reserve								20						(3,555)								(954)
Share option reserve								3,329						3,847								3,755
Merger reserve								5,340						5,340								5,340
Accumulated losses								(19,163)						(14,004)								(18,950)
TOTAL EQUITY								87,489						82,153								79,716
LIABILITIES
NON-CURRENT LIABILITIES
Financial liabilities - borrowings
Interest bearing loans and borrowings								38,973							43,902								44,414
Deferred tax								803							1,673								1,425
								39,776							45,575								45,839
CURRENT LIABILITIES
Trade and other payables				8				38,782							36,923								40,522
Right of return liability								15,622							16,027								15,655
Warranty provision								2,569							3,222								2,868
Financial liabilities - borrowings
Interest bearing loans and borrowings								12,719							12,725								13,782
Invoice discounting								3,185							2,012								1,580
Deferred and contingent consideration								-							991								-
Tax payable								3,266							4,237								2,268
								76,143							76,137								76,675
Liabilities held for sale				12				-							1,743								-
TOTAL LIABILITIES								115,919							123,455								122,514
TOTAL EQUITY AND LIABILITIES								203,408							205,608								202,230