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INSPECS Group (SPEC) investor relations material

INSPECS Group Q2 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2025 earnings summary18 Sep, 2025

Executive summary

  • Revenue for H1 2025 decreased by 3.0% to £97.6m, with constant currency revenue down 1.3% to £99.3m compared to H1 2024.

  • Underlying EBITDA fell to £9.0m from £11.0m, and operating profit dropped 40% to £2.7m year-over-year.

  • Profit before tax was £2.4m, slightly down from £2.6m year-over-year.

  • Operational efficiencies reduced total operating expenses by 1.2%, notably in the Frames and Optics division.

  • The lens manufacturing business (Norville) was discontinued, incurring a £4.9m loss including a £3.8m remeasurement charge.

Financial highlights

  • Gross profit margin declined to 51.8% from 52.6% in H1 2024.

  • Diluted underlying EPS dropped to 2.08p from 3.94p year-over-year.

  • Net debt (excluding lease liabilities) increased to £23.6m from £22.9m at year-end 2024, mainly due to acquisition payments and discontinued operations funding.

  • Cash generated from operations was £11.2m, down from £12.5m in H1 2024.

  • Finance costs fell by 20% due to a shift to Euribor-based debt and an interest rate swap covering 50% of borrowings.

Outlook and guidance

  • Trading in early H2 is slightly behind expectations, but order book growth and cost savings are expected to drive a stronger H2.

  • The Vietnam facility is expected to boost throughput and sales in H2.

  • Full-year underlying EBITDA guidance of £18.7m (excluding Norville) is reaffirmed.

  • Medium-term targets include organic revenue CAGR 40% above market rate, double-digit underlying EBITDA margin, and net debt at 40%-75% of underlying EBITDA.

  • The Board remains focused on medium-term targets and expects to complete European subsidiary amalgamation by end-2025.

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