18 sep 25   inspecs group plc - interim results inspecs group plc | spec | 43.0 0 0.0% | mkt cap: 43.7m    rns number : 7655z inspecs group plc 18 september 2025   18 september 2025 inspecs group plc ("inspecs", "the company" or "the group")   interim results   inspecs group plc, a leading designer, manufacturer, and distributor of eyewear (sunglasses, optical frames and low vision products) presents its unaudited interim results for the six months ended 30 june 2025. the financial review results below are reported with norville classified as a discontinued operation. for the six months to 30 june 2025, norville generated revenue of £2.4m (h1 2024: £2.4m) and an underlying ebitda loss of £0.7m (h1 june 2024: £0.9m loss). financial review: ·     delivered revenue in the first half of £97.6m (h1 20241: £100.6m) ·     on a constant exchange rates basis2, revenue was £99.3m (h1 20241: £100.6m), a decrease of 1.3% ·    gross profit margin decreased 80 basis points to 51.8% (h1 20241: 52.6%) ·    operating expenses of £47.8m  down by 1.2% (h1 20241: £48.4m) ·    underlying ebitda3 reduced to £9.0m (h1 20241: £11.0m) following a decrease in revenue in the period ·    diluted underlying eps4 of 2.08p (h1 20241: 3.94p) ·    profit before tax of £2.4m (h1 20241: £2.6m) ·    continued improvement in working capital, reduced by £3.3m (h1 2024: reduced by £2.4m) ·    cash generated from operations £11.2m (h1 20241: £12.5m) ·   net debt excluding leases5 increased by £0.7m in the six months to 30 june 2025 to £23.6m (31 december 2024: £22.9m) due to final payments on deferred consideration in relation to acquisitions and the funding of our discontinued operation ·    finance costs reduced by 21% in h1 2025 compared to h1 2024, aided by switching to euribor based debt. this is protected by an interest rate swap on circa 50% of the group's borrowings operational review: ·    successful launch of tom tailor eyewear brand on 1 july 2025 with initial sales ahead of target ·    operating efficiencies continue to be delivered, with a £1.1m reduction in operating expenses within the frames and optics division in h1 2025 compared to h1 2024 ·    norville, our lens manufacturing site, discontinued as rationalisation across the group continued ·    amalgamation of selected european sales businesses is on track to be completed by the end of 2025 ·    ongoing tariff disruption continues to affect our manufacturing exports from china to the us ·    optics division in the usa affected by reduced government expenditure on low vision owing to the changing political landscape ·    successful implementation of new erp systems completed in our us and uk businesses board update: ·    following a comprehensive recruitment process, andrea davis has been selected to be the company's next non-executive chair with effect from no later than 31 december 2025   current trading and outlook: ·    current trading in the first two months of h2 is slightly behind plan, however, the growth in our order books and increased cost savings are expected to deliver a stronger performance in the remainder of the year. the board, therefore, has a reasonable expectation that the group will meet its guidance6 for the full year ·      we remain committed to delivering on our medium-term targets: o  cagr organic revenue growth 40% above the market rate, which is currently forecast to grow at 3% cagr o  double digit underlying ebitda % o  net debt to be 40% - 75% of underlying ebitda.   1         the results for the period ended 30 june 2024 have been re-presented to reflect the classification of norville as a discontinued operation. 2        constant currency exchange rates: figures at constant currency exchange rates have been calculated using the average exchange rates in effect for the relevant comparative period (h1 2024). 3         refer to table 'underlying ebitda and underlying pat'. 4         refer to note 5. 5         refer to note 9. 6         guidance is for underlying ebitda of £18.7m, excluding norville, for the year ending 31 december 2025.   richard peck, ceo of inspecs, said: "as a global eyewear business, we have experienced first-hand the widely reported macro-challenges, including ongoing tariff disruption and subdued consumer confidence. as a result, group sales in the first half are slightly behind last year. despite this, i am encouraged by the achievements that have been within our control including the successful amalgamation of our two us frame businesses, which has delivered increased sales demonstrating what can be achieved from operational efficiencies within the group. we are undertaking further efficiency initiatives in the second half of the year and look forward to updating the market on that progress. "based on the growth in our order books as at the end of august 2025 and planned increased cost savings the board has a reasonable expectation of meeting full year guidance. we continue to believe in the fundamental strengths of the business and the management team remains focused on the delivery of our medium-term targets."   for further information please contact: inspecs group plc richard peck (ceo) chris kay (cfo)   via fti consulting tel: +44 (0) 20 3727 1000 peel hunt (nominated adviser and broker) george sellar andrew clark     tel: +44 (0) 20 7418 8900 fti consulting (financial pr) alex beagley harriet jackson amy goldup    tel: +44 (0) 20 3727 1000     about inspecs group plc inspecs is a leading provider of eyewear solutions to the global eyewear market. the group produces a broad range of eyewear frames and low vision aids, covering optical, sunglasses and safety, which are either "branded" (under licence or under the group's own proprietary brands), or "oem" (unbranded or private label on behalf of retail customers). inspecs is building a global eyewear business through its vertically integrated business model. its continued growth is underpinned by increasing the penetration of its own-brand portfolio, worldwide distribution, growing retail presence, maximising group synergies and its global network, expanding its manufacturing capacity and scaling the research and development department as it develops new and innovative eyewear products. the group has operations across the globe: with offices and subsidiaries in the uk, europe, the us and china (including hong kong, macau and shenzhen), and manufacturing facilities in vietnam, china, the uk and italy. inspecs customers are global optical and non-optical retailers, global distributors and independent opticians. its distribution network covers over 80 countries and reaches approximately 75,000 points of sale. more information is available at: www.inspecs.com  chief executive review   as previously communicated, revenue and ebitda in the first half of 2025 was lower than initially expected largely as a result of slower trading in europe and the uncertainty stemming from us tariffs. the group delivered revenue of £97.6m (h1 2024: £100.6m) and underlying ebitda of £9.0m (h1 2024: £11.0m). with our continued focus on delivering operational efficiencies, we reduced operating expenses by £0.6m to £47.8m (h1 2024: £48.4m) despite inflationary pressures. we continue to prioritise achieving our medium-term targets of accelerated revenue growth, operational strength and sustainable leverage through a number of key areas of focus. frames and optics revenue in our frames and optics distribution business fell by 3.0% to £91.4m (h1 2024: £94.2m). operational efficiency initiatives led to a £1.1m reduction in operating expenses to £42.1m (h1 2024: £43.2m), which helped to mitigate the impact of the revenue decline. as a result, underlying ebitda decreased to £10.5m (h1 2024: £11.3m).  this period has been particularly challenging for our us low vision business. tariffs have increased product costs, prompting some customers to delay purchasing decisions until there is greater certainty on tariff policy. at the same time, several key customers have faced delays or reductions in government funding due to the changing political landscape. these factors have collectively slowed demand and disrupted our sales pipeline. on a positive note, the amalgamation of our two us frame businesses, completed in 2024, has been a notable success. the combined business has delivered increased sales with lower operating expenses. in addition, our group procurement activities have now covered 40%-50% of all new skus across some of our subsidiaries, with purchase price improvements expected to yield improved margins in 2026. in europe, frame and low vision optic sales continue to face headwinds, with trading being slower than anticipated. however, we are pleased to report the successful launch of our tom tailor eyewear collection. this collection was launched in july 2025 and has shown promising sales to date. additional brand highlights include the launch of gwen stefani's l.a.m.b. brand via a direct-to-consumer website, and our proprietary brand titanflex and licensed brand marc o'polo are continuing to perform well as a result of new technologies and evolving fashion trends. further work on the amalgamation of our european sales businesses is on track and expected to be completed by the end of 2025, with associated cost savings expected to be delivered from q4 2025. manufacturing revenue from the manufacturing business for h1 2025 was £7.9m, compared to £9.0m in h1 2024. gross profit margin decreased by 630 basis points to 39.9% due to reduced factory throughput leading to a £1.2m reduction in underlying ebitda to £0.4m (h1 2024: £1.6m). our chinese factory has been heavily impacted by us tariffs, with a considerable number of customers delaying orders whilst they wait for more tariff certainty. we are pleased with the performance of our new vietnam factory which is operating well and scaling up. although current sales levels are not yet where we would like them to be, we are encouraged by the positive momentum in our order pipeline (up by 3.9% for the business segment 31 august 2025 versus 31 august 2024), which supports our expectation of stronger sales and margin performance in the second half of the year. esg during the period, we made progress in electrifying our car fleet at eschenbach, helping to reduce fuel costs and emissions while supporting our broader sustainability goals. at neo, our vietnam factory, we are installing solar panels, expected to lower energy costs and enhance energy resilience. we are pleased to report that our 2023 emissions data received external limited assurance, providing a strong foundation for future carbon reduction. we've also initiated packaging and scope 3 projects to advance the use of sustainable materials and strengthen our carbon management across the group. we remain committed to executing our esg targets and driving measurable impact for our people, planet, and communities. board update after an extensive recruitment process, the company has selected andrea davis to be its next non-executive chair. after a successful career as a managing director and cfo, andrea became an operating partner at investcorp and has acted as director and chair for many of its investee companies.  she has been chosen for her extensive experience in a wide range of industries and geographies especially in consumer products across continental europe, recruiting management teams, running and supervising investments. it is expected that andrea will take up her new position by 31 december 2025. outlook despite ongoing macroeconomic headwinds, the optical market remains resilient. we have continued to deliver additional operational efficiencies, of which we will see further benefit in the second half of this year. current trading in the first two months of h2 is slightly behind expectations, however the growth in our order books and manufacturing pipeline (up 3.3% 31 august 2025 versus 31 august 2024) is expected to result in stronger performance in the next four months. we therefore have a reasonable expectation of meeting full year guidance and reiterate our commitment to delivering on our medium-term ambitions. i would like to take this opportunity to thank all of our teams worldwide for their continued efforts and commitment to growing inspecs group into a leading name in global eyewear. richard peck 18 september 2025     financial review   revenue revenue was £97.6m in the half, down from £100.6m in h1 2024, a decrease of 3.0%. on a constant exchange rate basis revenues decreased 1.3% to £99.3m from £100.6m (h1 2024).   gross profit margin the group's gross profit margin decreased to 51.8% in h1 2025 from 52.6% in h1 2024, driven by reduced sales from our asian manufacturing businesses and reduced sales from our low vision optics business.   operating profit the group's operating profit decreased to £2.7m (h1 2024: £4.5m).   administrative expenses administrative costs decreased by £0.5m to £45.2m in h1 2025 from £45.7m in h1 2024, a result of the group's continuing focus on operational efficiency.   underlying ebitda the group's underlying ebitda decreased from £11.0m in h1 2024 to £9.0m in h1 2025. underlying ebitda margin decreased from 11.0% in h1 2024 to 9.3% in h1 2025.   discontinued operation the group's operating loss for the period from its discontinued operation was £0.9m (h1 2024: £1.2m). the total loss for the period from discontinued operations amounted to £4.9m (h1 2024: £1.3m) as a result of a £3.8m (h1 2024: £nil) remeasurement charge recognised on the valuation of the disposal group at fair value less costs to sell.       finance expenses net finance costs have reduced from £1.9m in h1 2024 to £1.5m in h1 2025, reflecting the lower euribor interest rates charged on the group's facilities entered into in december 2024. net finance costs include £0.1m (h1 2024: £0.1m) relating to the amortisation of capitalised loan arrangement fees. in july 2025, the group entered into an interest rate swap to hedge a portion of its loan balance, this mitigates the risk of interest rate rises over the loan term.   depreciation and amortisation  period ended 30 june 2025 £m period ended 30 june 2024  £m depreciation 2.8 2.7 amortisation 3.3 3.2 total 6.1 5.9   profit before tax profit before tax for the period was £2.4m (h1 2024: £2.6m), after a £1.4m gain on exchange relating to borrowings, compared to a gain of £0.1m in h1 2024.   tax charge the tax charge for the period of £2.1m (h1 2024: £2.4m) comprises a current tax charge of £2.6m (h1 2024: £2.3m) and a deferred tax credit of £0.5m (h1 2024: £0.1m charge). the credit in h1 2025 is a result of the unwinding of deferred tax balances arising on acquisitions.   other comprehensive loss the exchange adjustment loss on consolidation of £5.3m (h1 2024: £0.8m) reflects the loss arising from the translation of our foreign operations. during the period the loss in particular was driven by the strengthening of the pound against the us dollar since the previous year end.   cash generation the group continued to have strong cash generation from operations of £11.2m (h1 2024: £12.5m).   net debt net debt (excluding leases) increased by £0.7m to £23.6m as at 30 june 2025 (31 december 2024: £22.9m). during the period, the group invested £1.1m on the purchase of tangible and intangible owned assets and paid a further £0.7m of deferred consideration relating to the ego acquisition.   financing the group finances its operation through the following borrowings and facilities.   expires balance at 30 june 2025 £m balance at 31 december 2024 £m group revolving credit facility  december 2027 29.1 28.2 term loans  december 2027 9.0 9.9 revolving credit facility usa  1-year rolling 6.7 7.5 invoice discounting  1-year rolling 2.0 1.7 total   46.8 47.3       leverage (using debt to equity ratio) the group's leverage position is shown below:  30 june 2025 actual ratio 1.63 covenant ratio 2.25 the group remains within its banking covenants and forecasts that it will continue to remain within banking covenants for the length of the arrangement.   inventory our revenue to inventory ratio has remained fairly consistent compared to 30 june 2024.  period ended 30 june 2025 £m period ended 30 june 2024 £m revenue 97.6 100.6 inventory   40.6 39.7 revenue to inventory ratio 2.4 2.5   current asset ratio the current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations, or those due within one year. this has remained consistent on the comparative period.  period ended 30 june 2025 £m period ended 30 june 2024 £m current assets 97.8 97.3 current liabilities   67.4 67.3 ratio 1.5 1.4   quick ratio the quick ratio is an indicator of a company's short-term liquidity position and measures a company's ability to meet its short-term obligations with its most liquid assets. this has remained consistent on the comparative period.  period ended 30 june 2025 £m period ended 30 june 2024 £m current assets 97.8 97.3 less inventory (40.6) (39.7)  57.2 57.6 current liabilities   67.4 67.3 ratio 0.8 0.9           net working capital  period ended 30 june 2025 £m period ended 30 june 2024 £m period ended 30 december 2024 £m trade and other receivables 34.4 33.0 39.8 inventory 40.6 39.7 42.8 trade and other payables (36.9) (35.5) (41.3) net working capital 38.1 37.2 41.3 working capital as a percentage of 12 month rolling revenue 20.0% 19.5% 21.3%     earnings per share the group's diluted underlying eps for the 6 months to 30 june 2025 was 2.08p compared to 3.94p for the 6 months to 30 june 2024. the group's diluted eps was a loss of 4.54p for the 6 months to 30 june 2025 (h1 2024: loss 1.01p)   dividend the group does not currently intend to pay a dividend in relation to 2025. the board continues to review its dividend policy on a regular basis.    underlying ebitda and underlying pat   the below table shows how underlying ebitda and underlying pat are calculated:      6 months ended 30 june 2025   6 months ended 30 june 2024          (re-presented1)   12 months ended 31 december 2024 (re-presented1)       £'000   £'000   £'000   revenue  97,623  100,606  193,345  gross profit  50,570  52,947  101,382  operating expenses  (47,834)  (48,435)  (95,479)   operating profit   2,736   4,512   5,903  add back: amortisation  3,270  3,212  6,785  add back: depreciation  2,758  2,707  5,465   ebitda  8,764   10,431   18,153  add back: share based payment expense    277    206  371  add back: earn out on acquisition  -  380  981  underlying ebitda  9,041   11,017   19,505  less: depreciation  (2,758)  (2,707)  (5,465)  less: net interest (excluding amortisation of loan arrangement fees)    (1,433)    (1,868)  (3,562)  underlying profit before tax (pbt)  4,850   6,442   10,478  current tax charge  (2,627)   (2,233)   (4,176)  underlying profit after tax (pat)  2,223   4,209   6,302                underlying eps  pence   pence   pence  basic underlying eps for the period attributable to the equity holders of the parent    2.19     4.14     6.20     diluted underlying eps for the period attributable to the equity holders of the parent      2.08       3.94      5.90     (1)  the results for the periods ending 30 june 2024 and 31 december 2024 have been re-presented to reflect the classification of norville as a discontinued operation.    underlying ebitda segmental information underlying ebitda by reportable segment for the six months ended 30 june 2025 is as follows:  frames &  manufacturing  total before  adjustments     total  optics    adjustments &  & eliminations        eliminations              £'000                £'000  £'000  £'000   £'000 revenue 91,398  7,869  99,267  (1,644)  97,623           operating profit/(loss) 5,117  (410)  4,707  (1,971)  2,736 add back:          amortisation 2,957  313  3,270  -  3,270 depreciation 2,297  413  2,710  48  2,758 share based payments 96  57  153  124  277 underlying ebitda 10,467   373   10,840   (1,799)   9,041     underlying ebitda by reportable segment for the six months ended 30 june 2024 is as follows:   frames &  manufacturing  total before  adjustments     total  optics    adjustments &  & eliminations        eliminations          (re-presented1)  (re-presented1)  (re-presented1)          £'000                £'000  £'000  £'000   £'000 revenue 94,169  9,028  103,197  (2,591)  100,606           operating profit/(loss) 5,586  1,222  6,808  (2,296)  4,512 add back:          amortisation 2,897  43  2,940  272  3,212 depreciation 2,374  250  2,624  83  2,707 share based payments 39  90  129  77  206 earn out on acquisitions 380  -  380  -  380 underlying ebitda 11,276   1,605   12,881   (1,864)   11,017     (1)  the results for the period ended 30 june 2024 have been re-presented to reflect the classification of norville as a discontinued operation.      interim consolidated statement of comprehensive income                                                                                                                                                                    for the period ended 30 june 2025  notes unaudited 6 months ended 30 june 2025       unaudited 6 months ended 30 june 2024 (re-presented1)                         £'000                      £'000   revenue 4 97,623  100,606 cost of sales  (47,053)  (47,659) gross profit   50,570  52,947       distribution costs  (2,656)  (2,777) administrative expenses  (45,178)  (45,658)      operating profit   2,736  4,512      non-underlying costs  (247)  (94) exchange adjustments on borrowings  1,399  155 share of profit/(loss) of associates  6  (2) finance costs  (1,612)  (2,027) finance income  72  94      profit before income tax   2,354  2,638 income tax  (2,087)  (2,350)      profit for the period - continuing operations   267  288   loss for the period - discontinued operation 12 (4,879)  (1,315)         loss for the period   (4,612)  (1,027)   other comprehensive loss:     exchange adjustment on consolidation  (5,250)  (756)      total comprehensive loss for the period   (9,862)  (1,783)        (1)  the results for the period ended 30 june 2024 have been re-presented to reflect the classification of norville as a discontinued operation.     interim consolidated statement of comprehensive income (continued)                                                                                                                               for the period ended 30 june 2025  notes unaudited 6 months ended 30 june 2025       unaudited 6 months ended 30 june 2024 (re-presented1)             profit per share from continuing operations     pence                         pence                     basic eps for the period attributable   to the equity holders of the parent 5 0.26  0.28 diluted eps for the period attributable   to the equity holders of the parent 5 0.25  0.27   loss per share                                basic eps for the period attributable   to the equity holders of the parent 5 (4.54)  (1.01) diluted eps for the period attributable   to the equity holders of the parent 5 (4.54)  (1.01)   (1)  the results for the period ended 30 june 2024 have been re-presented to reflect the classification of norville as a discontinued operation.   interim consolidated statement of financial position     as at 30 june 2025     note  unaudited as at 30 june 2025 £'000  unaudited as at 30 june 2024 £'000   as at 31 december 2024 £'000   assets           non-current assets           goodwill    55,741  55,743  55,741   intangible assets    20,504  26,930  23,406   property, plant and equipment    25,310  34,718  32,648   investment in associates    70  97  70   deferred tax    1,993  2,576  1,738      103,618  120,064  113,603   current assets           inventories    40,576  39,679  42,753   trade and other receivables  6  34,397  32,974  39,825   tax receivable    184  74  107   cash and cash equivalents  7  22,667  24,616  23,960      97,824  97,343  106,645   assets held for sale  12  2,392  832  -   total assets       203,834   218,239   220,248             equity           shareholders' equity           called up share capital    1,017  1,017  1,017   share premium    89,508  89,508  89,508   foreign currency translation reserve    (409)  4,679  4,841   share option reserve    3,847  3,428  3,570   merger reserve    5,340  5,340  5,340   accumulated losses    (10,202)  (2,032)  (5,590)   total equity    89,101  101,940  98,686              liabilities         non-current liabilities           financial liabilities - borrowings                 interest bearing loans and borrowings    43,902  45,605  44,505   deferred tax    1,673  3,427  1,968      45,575  49,032  46,473   current liabilities           trade and other payables  8  36,923  35,463  41,269   right of return liability    10,527  11,222  10,608   financial liabilities - borrowings                 interest bearing loans and borrowings    12,725  14,276  16,185    invoice discounting    2,012  1,804  1,777   deferred and contingent consideration    991  1,231  1,873   tax payable    4,237  3,271  3,377      67,415  67,267  75,089   liabilities held for sale  12  1,743  -  -   total liabilities    114,733  116,299  121,562   total equity and liabilities        203,834   218,239   220,248   interim consolidated statement of changes in equity for the period ended 30 june 2025           called up share capital share premium foreign currency translation reserve share option reserve accumulated losses merger reserve total equity  £'000 £'000 £'000 £'000 £'000 £'000 £'000         six months ended 30 june 2025        balance at 1 january 2025 1,017 89,508 4,841 3,570 (5,590) 5,340 98,686         loss for the period - - - - (4,612) - (4,612) other comprehensive loss - - (5,250) - - - (5,250) total comprehensive loss - - (5,250) - (4,612) - (9,862)                 share-based payment charge - - - 277 - - 277 balance at 30 june 2025 (unaudited) 1,017 89,508 (409) 3,847 (10,202) 5,340 89,101                 six months ended 30 june 2024                 balance at 1 january 2024 1,017 89,508 5,435 3,222 (1,005) 5,340 103,517                     loss for the period - - - - (1,027) - (1,027)   other comprehensive loss - - (756) - - - (756)   total comprehensive loss - - (756) - (1,027) - (1,783)                     share-based payment charge - - - 206 - - 206   balance at 30 june 2024 (unaudited) 1,017 89,508 4,679 3,428 (2,032) 5,340 101,940                     interim consolidated statement of cash flow                                                                                                                                                                        for the period ended 30 june 2025     note   unaudited 6 months ended 30 june 2025     unaudited 6 months ended 30 june 2024 (re-presented1)           £000   £000 cash flows from operating activities     profit before income tax  2,354  2,638 adjustments for:       depreciation charges  2,758  2,707   amortisation charges  3,270  3,212   share based payments  277  206   exchange adjustments on borrowings  (1,399)  (155)   share of (profit)/loss from associate  (6)  2   finance costs  1,612  2,027   finance income  (72)  (94)   8,794   10,543 decrease in inventories2  529  1,233 decrease in trade and other receivables2  4,332  3,221 decrease in trade and other payables2  (2,424)  (2,464) cash generated from operations  11,231   12,533 interest paid  (1,576)  (1,962) tax paid  (1,852)  (783) cash outflows from discontinued operations  (1,586)  (623) net cash flow from operating activities  6,217   9,165      cash flows used in investing activities         purchase of intangible fixed assets  (504)  (631) purchase of property plant and equipment  (563)  (868) acquisition of subsidiary, net of cash acquired  -  (129) cash paid in relation to deferred consideration  (700)  (700) interest received  72  94 cash inflows/(outflows) from discontinued operations  265  (338) net cash flows used in investing activities  (1,430)   (2,572)      cash flow from financing activities     bank loan principal repayments in period  (1,474)  (1,712) proceeds from borrowings  -  1,265 movement in invoice discounting facility  235  917 loan transaction costs  (568)  (224) principal payments on leases  (1,755)  (1,849) net cash flows used in financing activities  (3,562)   (1,603)      net increase in cash and cash equivalents  1,225   4,990 cash and cash equivalents at beginning of the period  23,960   20,070 net foreign currency movements  (2,361)  (444) cash and cash equivalents at end of period 7 22,824   24,616   (1)  the cashflows for the period ended 30 june 2024 have been re-presented to reflect the classification of norville as a discontinued operation. (2) the movement in working capital excludes the classification of the discontinued operations working capital as held for sale.   notes to the interim consolidated statements for the period ended 30 june 2025   1.      general information inspecs group plc is a public company limited by shares and is incorporated in england and wales. the address of the company's principal place of business is kelso place, upper bristol road, bath ba1 3au. the principal activity of the group in the period was that of design, production, sale, marketing and distribution of high fashion eyewear and oem products worldwide. 2.      accounting policies going concern based on the group's forecasts, the interim financial statements have been prepared on the going concern basis as the directors have assessed that there is a reasonable expectation that the group will be able to continue in operation and meet its commitments as they fall due over the going concern period to 30 september 2026. the assessment has considered the group's current financial position as follows: •    the group further improved its cash position during the period with net debt including leases decreasing to £36.0m from £38.5m at 31 december 2024. •      cash generated from operations in the period amounted to £11.2m (2024 h1: £12.5m). •      the group balance sheet has net assets of £89.1m and net current assets of £30.4m. the assessment has considered the current measures being put in place by the group to preserve cash and ensure continuity of operations through: •      ensuring continuation of its supply chain, building on the benefit of having its own manufacturing sites and by securing alternative third-party supply lines. •      maintaining geographical sales diversification, focusing sales to online customers and seeking new revenue streams around the globe. •      ability to service both the major global retail chains and significant distribution to the independent eyewear market. •      following the announcement of the intended sale of norville, we have strengthened our forward-looking position, reinforcing confidence in the group's ability to continue as a going concern. basis of preparation the interim consolidated financial statements for the six months ended 30 june 2025 have been prepared in accordance with ias 34 interim financial reporting and with accounting policies that are consistent with the group's annual report and financial statements for the period ended 31 december 2024. accounting policies are included in detail within the latest annual report. the financial information for the period ended 30 june 2025 and the comparative financial information for the period ended 30 june 2024 in this interim report does not constitute statutory accounts for either period under section 434 of the companies act 2006 and are unaudited.     notes to the interim consolidated statements (continued) for the period ended 30 june 2025   3.     critical accounting judgements and key sources of estimation uncertainty the preparation of the group's historical information requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and their accompanying disclosures, and the disclosure of contingent liabilities. uncertainty about these assumptions and estimates could result in outcomes that could require a material adjustment to the carrying amounts of the assets or liabilities in the future. estimation uncertainty in addition to the going concern section of note 2, the key assumptions concerning the future and other key sources of estimation uncertainty at the end of the reporting period, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial period, are described below. right of return liability management applies assumptions in determining the right of return liability and the associated right of return asset. these assumptions are based on analysis of historical data trends but require estimation of appropriate time periods and expected return rates. the right of return liability at the period end is £10,527,000 (31 december 2024: £10,608,000) in line with the calculation methodology used as at 31 december 2024. discontinued operations management applies judgement in the classification of the norville (20/20) limited business as a disposal group held for sale and as a discontinued operation. this judgement is based on management's assessment that it is highly probable that a sale of the disposal group is expected to occur, with active marketing of the business ongoing. management is also required to estimate the fair value less costs to sell of the disposal group which as at period end was £423,000 and resulted in a remeasurement charge of £3,765,000. this estimate involves inherent uncertainty, and management has relied on preliminary discussions held with third parties in making its estimate.     4.      segment information during the current period, the previously reported lenses segment, which consisted entirely of norville (20/20) limited, has been classified as a discontinued operation and is therefore excluded from the segmental analysis presented below. the group now operates in seven operating segments, which upon application of the aggregation criteria set out in ifrs 8 operating segments results in two reporting segments: • frames and optics product distribution. • manufacturing - being oem and manufacturing distribution. the criteria applied to identify the operating segments are consistent with the way the group is managed. in particular, the disclosures are consistent with the information regularly reviewed by the ceo and the cfo in their role as chief operating decision makers, to make decisions about resources to be allocated to the segments and to assess their performance. segment asset and liability information is not provided to the chief operating decision makers.   notes to the interim consolidated statements (continued) for the period ended 30 june 2025   4.      segment information (continued) the reportable segments subject to disclosure are consistent with the organisation model adopted by the group during the six months ended 30 june 2025 are as below:  frames and  manufacturing  total before  adjustments     total    optics    adjustments &  & eliminations        eliminations      £'000  £'000  £'000  £'000    £'000 revenue             external 90,404  7,177  97,581  42  97,623    internal 994  692  1,686  (1,686)  -  91,398  7,869  99,267  (1,644)  97,623 cost of sales (44,145)  (4,727)  (48,872)  1,819  (47,053)           gross profit 47,253  3,142  50,395  175  50,570           expenses (42,136)  (3,552)  (45,688)  (2,146)  (47,834) operating profit/(loss) 5,117  (410)  4,707  (1,971)  2,736   non-underlying costs           (247) exchange adjustment on borrowings         1,399 share of profit of associates         6 finance costs         (1,612) finance income         72 taxation         (2,087) profit for the period - continuing operations         267      notes to the interim consolidated statements (continued) for the period ended 30 june 2025   4.      segment information (continued) the reportable segments subject to disclosure are consistent with the organisation model adopted by the group during the six months ended 30 june 2024 are as below:  frames and  manufacturing  total before  adjustments     total    optics    adjustments &  & eliminations        eliminations      £'000  £'000  £'000  £'000    £'000      (re-presented)  (re-presented)  (re-presented) revenue             external 92,009  8,453  100,462  144  100,606    internal 2,160  575  2,735  (2,735)  -  94,169  9,028  103,197  (2,591)  100,606 cost of sales (45,379)  (4,859)  (50,238)  2,579  (47,659)           gross profit/(loss) 48,790  4,169  52,959  (12)  52,947           expenses (43,204)  (2,947)  (46,151)  (2,284)  (48,435) operating profit/(loss) 5,586  1,222  6,808  (2,296)  4,512   non-underlying costs           (94) exchange adjustment on borrowings         155 share of loss of associates         (2) finance costs         (2,027) finance income         94 taxation         (2,350) profit for the period - continuing operations         288   non-underlying costs, finance costs and income, and taxation are not allocated to individual segments as the underlying instruments are managed on a group basis. adjusted items relate to elimination of all intra-group items including any profit adjustments on intra-group revenues that are eliminated on consolidation, along with the profit and loss items of the parent company. the revenue of the group is attributable to the one principal activity of the group.    notes to the interim consolidated statements (continued) for the period ended 30 june 2025   4.      segment information (continued) geographical analysis the group's revenue by destination is split in the following geographic areas:      unaudited 6 months ended 30 june 2025    unaudited 6 months ended 30 june 2024 (re-presented)     £'000  £'000   united kingdom   10,001  10,673   europe (excluding uk)   46,120  48,424   north america   35,780  35,358   south america   1,113  822   asia   2,045  1,830   australia   2,403  3,342   other   161  157     97,623   100,606       5.      earnings per share basic earnings per share ("eps") is calculated by dividing the profit or loss for the period attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the period. diluted eps is calculated by dividing the profit or loss attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the period plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares, to the extent that the inclusion of such shares is not anti-dilutive. during the period to 30 june 2025 the group made a reported loss for the period; therefore, diluted eps is not applicable as the impact of potential ordinary shares is anti-dilutive. reported basic earnings per share is (4.54)p (30 june 2024: (1.01)p), with reporting diluted earnings per share of (4.54)p (30 june 2024: (1.01p). the below table reflects the income and share data used in the basic and diluted eps calculations. earnings for the underlying eps are the 'underlying profit after tax' as shown in the table 'underlying ebitda and underlying pat'.             notes to the interim consolidated statements (continued) for the period ended 30 june 2025   5.      earnings per share (continued) 6 months ended 30 june 2025 basic weighted average number of ordinary shares ('000)   total earnings (re-presented) (£'000) earnings per share (pence) basic eps 101,672  (4,612) (4.54) diluted eps 101,672  (4,612) (4.54) basic eps from continuing operations 101,672  267 0.26 diluted eps from continuing operations 107,058  267 0.25 basic underlying eps 101,672  2,223 2.19 diluted underlying eps 107,058  2,223 2.08   6 months ended 30 june 2024 basic weighted average number of ordinary shares ('000)   total earnings (re-presented) (£'000) earnings per share (pence) basic eps 101,672  (1,027) (1.01) diluted eps 101,672  (1,027) (1.01) basic eps from continuing operations 101,672  288 0.28 diluted eps from continuing operations 106,824  288 0.27 basic underlying eps 101,672  4,209 4.14 diluted underlying eps 106,824  4,209 3.94      notes to the interim consolidated statements (continued) for the period ended 30 june 2025   5.      earnings per share (continued)   12 months ended 31 december 2024 basic weighted average number of ordinary shares ('000)   total earnings (re-presented) (£'000) earnings per share (pence) basic eps 101,672  (4,608) (4.53) diluted eps 101,672  (4,608) (4.53) basic eps from continuing operations 101,672  (2,018) (1.98) diluted eps from continuing operations 101,672  (2,018) (1.98) basic underlying eps 101,672  6,302 6.20 diluted underlying eps 106,824  6,302 5.90   within inspecs group plc, each ordinary share carries the right to participate in distributions, as respects dividends and as respects capital on winding up.   6.     trade and other receivables      unaudited as at 30 june 2025    unaudited as at 30 june 2024    as at 31 december 2024                   £'000            £'000               £'000 trade receivables   25,286  24,717  28,297 prepayments   3,347  1,984  3,154 other receivables   5,764  6,273  8,374            34,397   32,974   39,825      notes to the interim consolidated statements (continued) for the period ended 30 june 2025   7.    cash and cash equivalents  unaudited  unaudited  as at     31 december 2024  as at  as at   30 june 2025  30 june 2024   £'000   £'000   £'000 as presented in the consolidated statement of financial position 22,667  24,616  23,960       cash and cash equivalents of discontinued operation 157  -  -       as presented in the consolidated statement of cash flows   22,824     24,616     23,960     8.    trade and other payables  unaudited  unaudited  as at     31 december 2024  as at  as at   30 june 2025  30 june 2024   £'000   £'000   £'000 trade payables 21,087  22,901  25,994 social security and other taxes 3,092  3,143  2,862 royalties 2,127  2,669  2,974 accruals 10,617  6,750  9,439        36,923  35,463   41,269     9.    net debt  unaudited  unaudited  as at     31 december 2024  as at  as at   30 june 2025  30 june 2024   £'000   £'000   £'000   cash and cash equivalents 22,667  24,616  23,960 interest bearing borrowings excl. leases   (44,213)    (42,628)    (45,059) invoice discounting (2,012)  (1,804)  (1,777) net debt excluding leases (23,558)   (19,816)   (22,876)       lease liability (12,414)  (17,253)  (15,631) net debt including leases (35,972)  (37,069)   (38,507)   notes to the interim consolidated statements (continued) for the period ended 30 june 2025   10.    non-underlying costs non-underlying costs during the six months to 30 june 2025 relate to legal costs incurred in relation to the defence of a requisition for a general meeting (£137,000) and the amalgamation of european subsidiaries (£110,000).   11.    share-based payments certain employees of the group are granted options over the shares in inspecs group. the options are granted with a fixed exercise price. options granted on 4 june 2025 are also subject to a performance condition in relation to the growth of underlying eps during the vesting period. the group recognises a share-based payment expense based on the fair value of the awards granted, and an equivalent credit directly in equity to share option reserve. on exercise of the shares by the employees, the group is charged the intrinsic value of the shares by inspecs group plc and this amount is treated as a reduction of the capital contribution, and it is recognised directly in equity. share options outstanding at the end of the period have the following expiry dates and exercise prices: grant date vesting date expiry date exercise price per option (£) number of share options  10 december 2019 1 july 2022 10 december 2026 1.01 412,102  27 february 2020 27 february 2023 27 february 2030 1.95 1,923,110  22 december 2020 22 december 2023 22 december 2030 2.10 890,000  26 february 2021 26 february 2024 26 february 2031 3.25 641,036  21 june 2021 21 june 2024 21 june 2031 3.51 60,000  31 august 2021 31 august 2024 31 august 2031 3.70 275,000  23 december 2021 23 december 2024 23 december 2031 3.70 279,999  28 february 2022 26 february 2025 28 february 2032 3.75 641,036  4 june 2025 1 may 2026 1 may 2031 0.01 250,000  4 june 2025 1 may 2027 1 may 2032 0.01 1,410,000       notes to the interim consolidated statements (continued) for the period ended 30 june 2025   12.    discontinued operations as at 30 june 2025, norville (20/20) limited was classified as a disposal group held for sale and a discontinued operation.  the group has engaged deloitte to support efforts to sell the business or assist with implementing alternative outcomes should a sale not be possible. the business is the sole entity within the lenses reporting segment. the assets and liabilities of the disposal group have been classified as held for sale at fair value less costs to sell with a value of £423,000. the fair value of the disposal group represents the group's best estimate based on information held to date. this resulted in a remeasurement charge of £3,765,000. this remeasurement charge has been allocated to property, plant and equipment (£2,652,000), intangible assets (£40,000), trade and other receivables (£583,000) and inventories (£490,000). one property, which is not part of the disposal group but is still being actively marketed, has been separately classified as an asset held for sale at a value of £226,000. it has been measured at the lower of its carrying amount and fair value less costs to sell. the operating profit of the discontinued operation, along with the profit or loss arising from remeasurement of assets and liabilities classified as held for sale, is shown below:     unaudited 6 months ended 30 june 2025     unaudited 6 months ended 30 june 2024                         £'000     £'000   revenue 2,405  2,441 cost of sales (1,622)  (1,376)     gross profit 783  1,065     distribution costs (159)  (167) administrative expenses (1,563)  (2,094)     operating loss (939)  (1,196)     non-underlying costs (56)  - finance costs (119)  (119)     loss for the period (1,114)  (1,315)     loss on the remeasurement of disposal group (3,765)  -     loss for the period - discontinued operation (4,879)  (1,315)     loss per share for discontinued operations pence                      pence                     basic eps for the period attributable to the equity holders of the parent (4.80)  (1.29) diluted eps for the period   attributable to the equity   holders of the parent (4.80)  (1.29)   notes to the interim consolidated statements (continued) for the period ended 30 june 2025   12.    discontinued operations (continued) the carrying amounts of assets and liabilities held for sale are summarised as follows:  unaudited as at 30 june 2025   unaudited as at 30 june 2024   £'000     £'000         property, plant and equipment 226   832 inventories 918  - trade and other receivables 1,091  - cash and cash equivalents 157  - assets held for sale 2,392  832     financial liabilities - borrowings 246  - trade and other payables 1,478  - right of return liability 19  - liabilities held for sale 1,743  -   a reconciliation between the group's continuing results and it's like-for-like results (i.e. including norville) for the 6 months ending 30 june 2025 is show below.  total   discontinued      total  (continuing)   operation   (like for like)    £'000   £'000    £'000 revenue 97,623  2,405  100,028       operating profit/(loss) 2,736  (939)  1,797 add back:      amortisation 3,270  11  3,281 depreciation 2,758  278  3,036 share based payments 277  -  277 underlying ebitda 9,041   (650)   8,391   13.    post balance sheet events since the end of the interim period on 30 june 2025 there were no material events that the directors consider material to the users of these interim statements. this information is provided by rns, the news service of the london stock exchange. rns is approved by the financial conduct authority to act as a primary information provider in the united kingdom. terms and conditions relating to the use and distribution of this information may apply. for further information, please contact rns@lseg.com or visit www.rns.com.  rns may use your ip address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. for further information about how rns and the london stock exchange use the personal data you provide us, please see our privacy policy.   end   ir sflfmweisesu return to news summary

Label: Gesunken