INSPECS Group (AIM:SPEC), the designer, manufacturer and distributor of sunglasses, optical frames and low vision products, grew revenue 1.6% to £99.1m in the six months to 30 June, up from £97.6m a year earlier.
Underlying EBITDA rose 13.1% to £10.2m from £9m, with the margin improving to 10.3% from 9.3%, as gross margin gained 90 basis points to 52.7%.
Operating profit before non-underlying items climbed to £5.9m from £2.7m, while operating expenses fell £1.5m to £46.4m on cost discipline and lower amortisation.
"This performance was achieved despite continued challenging conditions in a number of our markets and reflects the benefit of disciplined cost management, improved manufacturing performance and the operational efficiencies delivered across the Group," said chief executive Richard Peck.
"The Qualcomm investment during the period, combined with strong cash generation and continued focus on working capital and cost control, put the Group in a strong position heading into the second half of 2026."
Net debt excluding leases fell £13.6m to £18.7m, helped by £7.4m in net proceeds from a share issue to Qualcomm, leaving leverage of 1.21x against a covenant maximum of 2.25x.
The AIM-quoted firm noted that it continues to "work closely with Qualcomm to progress strategic projects and identify opportunities to support future growth".
Meanwhile, the results note that the Frames and Optics segments held revenue broadly flat at £91.3m, with European eyewear growth offset by weakness in low vision and German optics markets, while Manufacturing revenue jumped 33.3% to £10.5m on stronger Asian order flow.
The wind-down of Norville progressed substantially, with all remaining employees departed and its inventory and property sold.
Inspecs said the group achieved its double-digit Underlying EBITDA margin target in H1 2026 and remains on track to bring net debt to 40-75% of Underlying EBITDA by 2027.
News Intelligence what this means for the company
Inspecs delivered H1 2026 results showing operational leverage: revenue grew modestly at 1.6% to £99.1m, but underlying EBITDA jumped 13.1% to £10.2m as gross margin expanded 90 basis points to 52.7% and operating expenses fell £1.5m. The company achieved its double-digit EBITDA margin target and reduced net debt by £13.6m to £18.7m, aided by a £7.4m share placement to Qualcomm, positioning it well against its 2027 net debt target of 40–75% of EBITDA.
- Qualcomm's £7.4m investment signals continued confidence in the partnership and Inspecs' ability to scale wearable device manufacturing, reducing refinancing risk and funding headroom for product development.
Margin expansion and cost discipline offset flat-to-weak revenue in core Frames & Optics (£91.3m), while Manufacturing surged 33.3% on Asian orders. Leverage at 1.21x against a 2.25x covenant provides buffer, but the case still hinges on sustaining manufacturing growth and executing the Qualcomm partnership without disruption.
Insights assembled by AI. Editor-reviewed and grounded in tickstock’s coverage and proprietary knowledge graph.
Content is for informational purposes only, not financial advice.
