INSPECS Group (SPEC) H2 2025 earnings summary

Executive summary

• Revenue declined 0.8% year-over-year to £191.7m, with stable unit volumes but margin pressure from US tariffs and inflation.

• Underlying EBITDA fell 9% to £17.7m, and the group reported a statutory loss before tax of £0.2m, compared to a £1.6m profit in 2024.

• The group closed its UK Norville lens factory, classifying it as a discontinued operation, and incurred £6.3m loss from discontinued operations.

• Board succession and a change of control process occurred, with Bidco 1125 Limited acquiring over 50% of shares post-year-end.

Financial highlights

• Gross profit margin decreased to 51.7% from 52.4% year-over-year.

• Operating profit before non-underlying items was £5.7m, down from £5.9m.

• Net debt (excluding leases) increased to £32.3m from £22.9m.

• Cash flows from operating activities dropped to £8.6m from £15.8m.

• Basic and diluted loss per share was 9.40p, compared to 4.53p in 2024.

Outlook and guidance

• 2026 has started positively, with European sales and order inflow ahead of Q1 2025 and US sales in line with expectations.

• The group expects to deliver results in line with guidance, focusing on operational efficiency, margin improvement, and ESG integration.

• Targets for 2027 include double-digit underlying EBITDA margin and net debt at 40–75% of underlying EBITDA.