Inspecs says positive momentum maintained despite shrinking revenue

(Alliance News) - Inspecs Group PLC on Friday reported that it had "maintained positive momentum" ...

Alliance News 18 June, 2021 | 10:50AM
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(Alliance News) - Inspecs Group PLC on Friday reported that it had "maintained positive momentum" in 2020, despite a sharp drop in revenue and swinging to a pretax loss for the year.

The manufacturer and distributor of eyewear posted revenue for the year ended December 31 of USD47.4 million, a significant 23% drop from USD61.2 million the year before.

It swung to a pretax loss of USD11.2 million loss from a USD7.3 million profit the year prior.

"Despite what has been an extraordinary period for the business, we have maintained positive momentum in 2020 creating a strong platform for growth in 2021," commented Chief Executive Robin Totterman.

Inspecs highlighted how forced store closures during global lockdowns had badly affected trading and the company had turned to online sales to close the revenue gap. Its supply side was also heavily impacted, with factories unable to deliver pre-ordered stock due to distribution depots being shut.

A cost-cutting programme was put in place to minimise losses.

The Bath, England-based firm saw a significant improvement in the second half with revenue of USD30.7 million as the company better adjusted to the pandemic.

Looking ahead, Inspecs said it had started the year strongly with first quarter revenue of USD67 million. Its June order was higher on a like-for-like basis compared to last year's equivalent in another sign of improvement, it said.

"I am pleased to report that the group has performed well in the first five months of 2021 despite continuing restrictions caused by Covid-19. Whilst I remain cautious on future months while uncertainty remains surrounding the pandemic and its effects, our trading has been encouraging," added Totterman.

As with the previous year, Inspecs opted against paying a dividend, "due to the economic landscape".

Shares in the company were 3.7% lower at 339.00 pence each in London on Friday morning.

Inspecs listed on AIM back in February 2020.

By Will Paige; willpaige@alliancenews.com

Copyright 2021 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Inspecs Group PLC Ordinary Shares 380.00 GBX 0.00 -

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