INSPECS Group (SPEC) H2 2024 earnings summary

Executive summary

• FY24 revenue decreased by 2% to £198.3m, with constant currency revenue flat at £203.2m compared to FY23.

• Gross profit margin improved by 130bps to 52.2%, and operating profit rose 17% to £3.4m year-over-year.

• Underlying EBITDA declined 2.2% to £17.6m, in line with prior guidance.

• Net debt (excluding leases) reduced by £1.3m after investments and acquisition-related payments.

• Integration of US subsidiaries completed, operational efficiencies delivered, and new Vietnam facility expanded capacity.

Financial highlights

• Revenue: £198.3m (down 2% year-over-year); constant currency revenue £203.2m.

• Gross profit margin: 52.2% (up 130bps year-over-year).

• Underlying EBITDA: £17.6m (down 2% year-over-year); EBITDA margin 8.9%.

• Operating profit: £3.4m (up 17% year-over-year).

• Diluted underlying EPS: 3.36p (down 31% year-over-year).

• Cash flow from operating activities: £14.2m (down 16% year-over-year).

Outlook and guidance

• Trading to date in line with management expectations; confidence in meeting 2025 market expectations.

• Net debt reduction expected to continue in 2025; significant drop in net finance costs anticipated.

• New brand launches and expanded distribution planned, including Tom Tailor in H2 2025.

• Tariffs not expected to significantly impact end-consumer pricing; focus on supply chain efficiencies.