LONDON (ShareCast) - (Sharecast News) - Eyewear and lens designer and producer Inspecs reported a 9.8% uplift in total revenue at constant currency for the first nine months of the year on Thursday, to $203m.
The AIM-traded firm said group revenue was ahead 3.7% at constant exchange rates, at $191.8m, while acquisitions from last December contributed $11.2m.

It said it had seen sales growth across Europe, the UK and the US during the nine months ended 30 September, as well as in its manufacturing businesses in Vietnam and China.

As it said in its interim results, however, that growth was impacted by "unfavourable" foreign exchange movements, particularly with the euro weakening against the dollar.

In Europe, particularly Germany, both the macroeconomic climate and consumer confidence had deteriorated "sharply" since September.

"German consumer confidence is now at a 25-year low and this is reflected in the order intake that is significantly down on the previous year," the board said in its statement.

"The group's expectation is that the German and French markets will remain weak into the first half of 2023."

In the US, the directors said the order book remained at a similar level to last year, while in the UK, its frame business had shown growth year-on-year.

"The group's Vietnamese and Chinese manufacturing business, which is affected by the European market, has seen a decrease in its order book."

Overall, Inspecs said its order book was down 13% as at 30 September, compared to last year.

"Due to the reduced order book, the board has decided to delay the expansion of the existing Vietnamese factory and the investment in a new factory in Portugal until at least the third quarter of 2023.

"As set out in the group's interim results, it took longer than expected to complete Norville's new state-of-the-art manufacturing facility, but the investment is still expected to deliver a return in 2023.

"The factory is working with the group's 'Skunk Works' to continue developing ground-breaking lens technology for smart eyewear, along with other revolutionary lens-related projects."

Looking at the board's composition, Inspecs said Lord MacLaurin had notified it of his intention to retire as chairman on 1 December.

As a result, Robin Totterman, chief executive officer and founder, would move to an executive chairman role from 1 December.

At the same time, non-executive director Richard Peck, former managing director of Luxottica Retail northern Europe and managing director of David Clulow, would become the group's chief executive officer.

"The board is currently in advanced stages of the take on process to appoint two new additional non-executive directors to the board, and an update will be provided in due course."

Looking at its finance function, Inspecs announced that Matthew Loran would become its new group finance manager in November.

"It is clear that Inspecs is not immune to the macro environment or the downturn in consumer confidence, particularly in Europe, and this is expected to impact the remainder of this year and into the first half of 2023," the board said of the company's outlook.

"That said, Inspecs continues to increase its market share and the group is well placed to return to growth as and when its core markets return.

"The board will provide a full-year trading update in January 2023 when it will look to give further guidance on the outturn for 2022 and the year ahead."

At 1314 BST, shares in Inspecs Group were down 54.06% at 52.83p.

Reporting by Josh White for Sharecast.com.

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