INSPECS Group (SPEC) H1 2026 earnings summary

Executive summary

• Revenue grew 1.6% year-over-year to £99.1m in H1 2026, with constant currency growth of 2.0%.

• Underlying EBITDA rose 13.1% to £10.2m, with margin improving to 10.3%.

• Gross profit margin increased by 90bps to 52.7%.

• Operating profit before non-underlying items more than doubled to £5.9m.

• Strategic £7.4m investment from Qualcomm completed, supporting future growth initiatives.

Financial highlights

• Diluted Underlying EPS increased 46% to 3.03p; Diluted EPS loss narrowed to 0.48p from 4.54p.

• Net debt (excluding leases) reduced by £13.6m to £18.7m, aided by new share issue proceeds.

• Cash generated from operations remained strong at £10.8m.

• Operating expenses fell by £1.5m to £46.4m.

• Non-underlying costs of £2.5m mainly related to transaction and advisory fees for the Bidco 1125 Limited offer.

Outlook and guidance

• Management targets organic revenue CAGR 40% above the market rate (market forecast: 3% CAGR).

• Double-digit Underlying EBITDA margin achieved in H1 2026.

• Net debt to be 40%-75% of Underlying EBITDA, on track for 2027.

• Market conditions remain challenging, especially in US optical frames and German low vision markets, but growth in Eschenbach eyewear and UK integration savings support outlook.