TIDMSPEC
RNS Number : 0187L
Inspecs Group PLC
08 September 2021
8 September 2021
INSPECS Group plc
("INSPECS", "the Company" or "the Group")
Interim Results
INSPECS Group plc, a global eyewear and lens design house and
manufacturer, presents its interim results for the six months ended
30 June 2021.
Financial highlights:
-- Revenue increased to $125.7m (H1 2020: $16.7m)
-- Gross profit margin 44.9% (H1 2020: 44.5%)
-- Underlying gross profit margin* 49.8% (H1 2020: 44.5%)
-- Underlying EBITDA* increased to $17.7m (H1 2020: $0.7m)
-- Underlying basic Earnings Per Share (EPS) of $0.17 (H1 2020:
$0.01), with underlying diluted EPS of $0.16 (H1 2020: $0.01)
-- Reported loss before tax of $2.6m (H1 2020: $8.3m)
-- Reported loss after tax of $3.2m (H1 2020: $7.5m)
-- Reported basic EPS of $(0.03) (H1 2020: $(0.12)), with
diluted EPS of $(0.03) (H1 2020: $(0.12))
-- Strong balance sheet with cash at 30 June 2021 of $37.7m (30 June 2020: $28.6m)
-- Cash flow from operating activities $15.4m (H1 2020: $(2.5)m)
*Underlying gross profit margin for H1 2021 excludes $6.1m
purchase price allocation adjustment relating to inventory
valuation following the acquisition of Eschenbach on 16 December
2020. Underlying EBITDA excludes this purchase price allocation
adjustment and share based payment expense for the period. See
'Underlying EBITDA' table below for reconciliation to operating
profit as shown below.
Operational highlights:
-- Despite the restrictions of Covid-19, operations have
remained fully functional and the business is currently
transitioning from a work at home basis to a flexible
office/home-working environment where applicable.
-- Construction work on our Vietnam plant has been completed,
despite Covid-19 related restrictions, production is at good
levels.
-- Further land acquired in Vietnam allows an additional expansion of manufacturing capacity.
-- New B2B digital platform increases revenues.
-- Eschenbach integration continues across the Group.
-- Launch of new in-house designed and manufactured sustainable
frames "Botaniq (TM) " continues to prove successful.
-- Development of antiviral and antibacterial products for healthcare markets.
-- Norville appointed UK sales distributor for "LEICA Lenses".
-- Construction of new Norville production facility underway, completion expected Q4 2021.
-- ESG teams working to move Group's offices to carbon neutral.
Robin Totterman, CEO of INSPECS, said:
"I am pleased to report our underlying EBITDA increased from
$0.7m for the 6 months to 30 June 2020 to $17.7m for the 6 months
to 30 June 2021. These are good results for the Group that
demonstrate its trajectory following the acquisition of Eschenbach
on the 16 December 2020.
"These results reflect the hard work that our employees have put
in to ensure that the Group can operate despite Covid-19
restrictions. My thanks for the flexibility our teams have
displayed across the globe. Our factories have managed to carry on
producing in what has been an extraordinarily difficult time and
all our factory workers in Vietnam have been vaccinated to enable
them to carry on production. Our plant in China has continued to
operate despite Covid-19 difficulties throughout the period. Our
teams across the globe continue to drive new innovation, explore
opportunities and expand into new markets through integration,
organic growth and acquisitions.
"We have strong order books and notwithstanding the potential
future disruption from Covid-19 our full year expections remain
unchanged. We look forward to providing a further update with our
Q3 trading update at the end of October."
For further information please contact:
INSPECS Group plc via FTI Consulting
Robin Totterman (CEO) Tel: +44 (0) 20
Chris Kay (CFO) 3727 1000
Peel Hunt (Nominated Adviser and Broker) Tel: +44 (0) 20
Adrian Trimmings 7418 8900
Andrew Clark
FTI Consulting (Financial PR) Tel: +44 (0) 20
Alex Beagley 3727 1000
Fern Duncan INSPECS@fticonsulting.com
Alice Newlyn
About INSPECS Group plc
INSPECS is a Bath-based designer, manufacturer and distributor
of eyewear frames and optically advanced spectacle lenses. The
Group produces a broad range of frames and lenses, covering
optical, sunglasses and safety, which are either "Branded" (either
under licence or under the Group's own proprietary brands), or
"OEM" (including private label on behalf of retail customers and
un-branded).
In December 2020, INSPECS acquired Eschenbach, a leading,
global, eyewear supplier headquartered in Nuremberg, Germany, which
includes the American company Tura. The acquisition extended the
Group's presence internationally in key global markets. This
followed the acquisition of lens maker Norville in July 2020,
whereby INSPECS combined two heritage brands in British optical,
Savile Row frame maker, and Norville lens maker, further enhancing
its vertically integrated business model. As one of only a few
companies that can offer this one-stop-shop solution to global
retail chains, INSPECS is well positioned to continue to take
market share in the globally expanding eyewear market.
INSPECS customers include global optical and non-optical
retailers, global distributors and independent opticians, with its
distribution network covering over 80 countries and reaching
approximately 70,000 points of sale.
INSPECS has operations across the globe: with offices in the UK,
Portugal, Scandinavia, the US and China (Hong Kong, Macau and
Shenzhen), and manufacturing facilities in Vietnam, China, the UK
and Italy. With the acquisition of Eschenbach, the Group's
international reach further extends across Europe and the American
markets.
The Group's growth strategy going forward is to: (i) continue to
grow organically; (ii) undertake further acquisitions (and drive
value through leveraging the Group's internal capabilities); and
(iii) extend the Group's manufacturing capacity.
More information is available at www.INSPECS.com .
CHIEF EXECUTIVE REVIEW
I am pleased to present our first full 6-month interim results
following our acquisition of Eschenbach on 16 December 2020. The
Group has performed well in the first 6-months with sales of
$125.7m. The Group made an underlying EBITDA of $17.7m.
The Group continues to deliver despite Covid-19 restrictions
around the globe. As we move towards the end of our financial year,
I remain cautious but believe that we have developed over the last
12-months the ability to quickly change both our working and
trading patterns to be able to continue to achieve solid results
despite the challenging environment.
In Vietnam, unlike many other factories, our team has adapted to
the complex Covid-19 restrictions. We quickly built new dormitories
and shower facilities allowing our workforce to remain on-site and
continue production.
We have sourced a new factory for Norville, and this move to a
state-of-the-art production facility should be completed by the end
of Q4. Norville has been appointed as the sole UK lens distributor
for "LEICA Lenses".
Eschenbach has traded ahead of expectations, and it is great to
see the collaboration of the Eschenbach teams with the other Group
members around the globe taking shape. This continues to drive new
and innovative ideas to further grow the Group.
We continue to work on further acquisitions with our advisors,
as the enlarged Group now has many additional opportunities
available to it.
Our new in-house innovation development team, 'Skunk Works', has
been busy, and I hope to announce further advanced innovation in
the near future.
Despite Covid-19, the Group continues to trade well post 30 June
2021. The global eyewear market has proved to be resilient over the
last 18 months. However, current trading patterns can be quickly
influenced by governments around the world responding to the
Covid-19 pandemic, which could see some of our markets
affected.
Our order books continue to grow, and I am excited about new
opportunities across the Group. Assuming current conditions
prevaiI, I expect that we will continue to build on our results for
the first 6 months of the year.
During the period we have worked hard across the Group on
unifying ESG policies, with teams in place around the globe,
targeting new environmentally friendly products for the market and
a constant reduction in our waste, energy usage and carbon
emissions.
Finally, I would like to thank all of our staff and advisors who
have worked tirelessly in challenging circumstances to produce
these results and have the passion and skills to continue the
Group's growth.
Robin Totterman
8 September 2021
FINANCIAL REVIEW
The Group has produced a good financial performance despite
Covid-19 restriction for the first 6-month period of 2021. The
results include the first full six month period of Eschenbach
GmbH.
Revenue
Revenue increased to $125.7m from $16.7m in H1 FY20 driven by
the continuing integration of Eschenbach and volume growth across
the diversity of markets that we now operate in.
Underlying Gross Margin
The Group's underlying gross margin increased from 44.5% to
49.8%.
Underlying EBITDA
The Group underlying EBITDA increased from $0.7m in H1 2020 to
$17.7m in H1 2021.
Finance Expenses
Our net finance cost reduced from $1.6m in H1 2020 to $1.1m.
Loss Before Tax
Loss before tax for the period of $2.6m is after charging $1.2m
of non-underlying costs and a foreign exchange loss on borrowings
of $3.6m, being a non-cash item.
Cash Generation
The Group generated a net cash inflow from operating activities
of $15.4m in H1 2021 compared to a net outflow of $(2.5)m in H1
2020.
Cash Position
The Group's cash at 30 June 2021 was $37.7m compared to $28.6m
at 30 June 2020.
Net Assets
The Group's net assets increased from $58m at 30 June 2020 to
$147m at 30 June 2021.
Net Debt
The Group's net debt excluding leasing has decreased from $26.9m
as at 31 December 2020 to $16.9m as at 30 June 2021.
Earnings Per Share
The Group's underlying basic earnings per share of the 6 months
to 30 June 2021 was $0.17 compared to $0.01 for the 6 months to 30
June 2020.
Underlying EBITDA
The below table shows how Underlying EBITDA is calculated:
6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
2021 2020 2020
$'000 $'000 $'000
Revenue 125,746 16,727 47,415
------------------ -------------------------- -----------------------------------------
Gross Profit 56,498 7,439 20,522
Operating expenses (53,157) (9,167) (23,462)
Operating profit/(loss) 3,341 (1,728) (2,940)
Movement in fair value on derivatives - (727) (740)
Operating profit/(loss) after
movement in derivative 3,341 (2,455) (3,680)
------------------------------------------ ------------------ -------------------------- -----------------------------------------
Add back: Amortisation 3,452 484 1,607
Add back: Depreciation 4,131 1,155 2,299
------------------ -------------------------- -----------------------------------------
EBITDA 10,924 (816) 226
Add back: Share based payment
expense 680 766 1,706
Add back: Restructuring costs - - 185
Add back: Foreign exchange
on funding for acquisitions - - 1,085
Add back: Post acquisition
insurance costs - - 563
Add back: Movement in fair
value on derivatives - 727 740
------------------ -------------------------- -----------------------------------------
Add back: Purchase price allocation
(PPA) adjustment on Eschenbach 6,104 -
inventory -
------------------ -------------------------- -----------------------------------------
Underlying EBITDA 17,708 677 4,505
Underlying Earnings per Share
$ $ $
Basic underlying Earnings per
Share for the period attributable
to the equity holders of the
parent 0.17 0.01 0.07
Diluted underlying Earnings
per Share for the period attributable
to the equity holders of the
parent 0.16 0.01 0.06
Underlying EBITDA segmental information
Underlying EBITDA by reportable segment (as defined in note 4) for
the six months ended 30 June 2021 is as follows: Frames Wholesale Lenses Total Adjustments Total
and before
Optics adjustments &
& elimination
eliminations
$'000 $'000 $'000 $'000 $'000 $'000
Revenue 110,449 13,643 4,278 128,370 (2,624) 125,746
Operating
profit 1,996 2,213 (793) 3,416 (75) 3,341
-------- ---------- ------- ------------- ------------ --------
Add back:
Amortisation 2,928 524 - 3,452 - 3,452
Depreciation 3,182 699 250 4,131 - 4,131
Share based
payments 401 279 - 680 - 680
PPA
adjustment
Eschenbach
inventory 6,104 - - 6,104 - 6,104
------- --------
Underlying
EBITDA 14,611 3,715 (543) 17,783 (75) 17,708
-------- ---------- ------- ------------- ------------ --------
INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the period ended 30 June 2021
---------------------------------------------------------------------------------------------------------------------------------------------------
Unaudited Unaudited
6 months 6 months
ended ended
Notes 30 June 2021 30 June 2020
$'000 $'000
REVENUE 4 125,746 16,727
Cost of sales (69,248) (9,288)
GROSS PROFIT 56,498 7,439
Other operating income - 27
Distribution costs (1,774) (239)
Administrative expenses (51,383) (8,954)
OPERATING PROFIT/(LOSS) 3,341 (1,728)
Movement in fair value
on derivatives - (727)
Initial public offering
costs - (2,442)
Non-underlying costs 9 (1,248) (91)
Exchange adjustments on
borrowings (3,619) (1,774)
Finance costs (1,123) (1,570)
Finance income 19 19
LOSS BEFORE INCOME TAX (2,630) (8,312)
Income tax (533) 823
LOSS FOR THE PERIOD (3,163) (7,489)
OTHER COMPREHENSIVE INCOME:
Exchange adjustment on
consolidation 3,796 (1,490)
TOTAL COMPREHENSIVE PROFIT
/(LOSS) FOR THE PERIOD 633 (8,979)
========================== =========================================
Earnings per share
Basic EPS for the period
attributable
to the equity holders
of the parent 5 (0.03) (0.12)
-------------------------- -----------------------------------------
Diluted EPS for the period
attributable
to the equity holders
of the parent 5 (0.03) (0.12)
-------------------------- -----------------------------------------
INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2021
Notes Unaudited Unaudited Audited
As at As at As at
30 June 30 June 31 December
2021 2020 2020
$'000 $'000 $'000
ASSETS
NON-CURRENT
ASSETS
Goodwill 69,961 11,982 69,087
Intangible
assets 50,738 15,930 56,305
Property Plant
and equipment 42,620 11,980 42,839
Investment in
associates 57 53 57
Deferred tax 12,569 1,167 12,995
---------- -------------- --------------------------
175,945 41,112 181,283
---------- -------------- --------------------------
CURRENT ASSETS
Inventories 50,639 8,450 59,294
Trade and other
receivables 6 34,498 8,731 35,648
Tax receivable 246 - 1,556
Cash and cash
equivalents 37,718 28,589 32,672
--------------
123,101 45,770 129,170
---------- -------------- --------------------------
TOTAL ASSETS 299,046 86,882 310,453
---------- -------------- --------------------------
EQUITY
SHAREHOLDERS'
EQUITY
Called up share
capital 1,384 968 1,384
Share premium 121,940 35,138 121,940
Foreign
currency
translation
reserve 3,697 (1,385) (99)
Share option
reserve 1,547 564 867
Merger reserve 7,296 7,296 7,296
Retained
earnings 11,266 15,853 14,429
---------- -------------- --------------------------
TOTAL EQUITY 147,130 58,434 145,817
---------- -------------- --------------------------
LIABILITIES
NON-CURRENT
LIABILITIES
Financial liabilities
- borrowings
Interest
bearing loans
and borrowings 8 63,191 17,401 70,391
Deferred tax 21,421 2,762 24,694
--------------
84,612 20,163 95,085
---------- -------------- --------------------------
CURRENT LIABILITIES
Trade and other
payables 7 38,542 5,611 42,895
Right of return
liability 13,015 454 12,824
Financial liabilities
- borrowings
Interest
bearing loans
and borrowings 8 10,191 599 6,830
Bank overdrafts 8 - - 2,642
Invoice discounting 8 - 47 -
Tax payable 5,556 1,574 4,360
--------------
67,304 8,285 69,551
TOTAL LIABILITIES 151,916 28,448 164,636
---------- -------------- --------------------------
TOTAL EQUITY AND
LIABILITIES 299,046 86,882 310,453
---------- -------------- --------------------------
INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the period ended 30 June 2021
Called Share Foreign Share Retained Merger Total
up premium currency option earnings reserve equity
share translation reserve
capital reserve
$000 $000 $000 $000 $000 $000 $000
SIX MONTHSED 30
JUNE 2021
Balance at 1 January
2021 1,384 121,940 (99) 867 14,429 7,296 145,817
Loss for the period - - - - (3,163) - (3,163)
Other comprehensive
income - - 3,796 - - - 3,796
-------------- --------- -------------- --------- ---------- --------- --------
Total comprehensive
loss - - 3,796 - (3,163) - 633
Share-based payments - - - 680 - - 680
Balance at 30 June
2021
(unaudited) 1,384 121,940 3,697 1,547 11,266 7,296 147,130
-------------- --------- -------------- --------- ---------- --------- --------
SIX MONTHSED 30
JUNE 2020
Balance at 1 January
2020 62 21,628 1,031 2,840 5,787 - 31,348
Loss for the period - - - - (7,489) - (7,489)
Other comprehensive
loss - - (1,490) - - - (1,490)
-------------- --------- -------------- --------- ---------- --------- --------
Total comprehensive
loss - - (1,490) - - - (8,979)
Issue of share
capital 187 32,413 - - - (22) 32,578
Exercise of share
options 99 2,725 - (3,140) 2,973 - 2,657
Share-based payments - - - 830 - - 830
Share for share
exchange
and
creation of merger
reserve 620 (21,628) (926) 34 (46,902) 68,802 -
Capital reduction - - - - 61,484 (61,484) -
-------------- --------- -------------- --------- ---------- --------
Balance at 30 June
2020
(unaudited) 968 35,138 (1,385) 564 15,853 7,296 58,434
-------------- --------- -------------- --------- ---------- --------- --------
INTERIM CONSOLIDATED STATEMENT OF CASH FLOW
For the period ended 30 June 2021
----------------------------------------------------------------------------------------
Unaudited Unaudited
6 months 6 months
ended ended
30 June 2021 30 June
2020
$000 $000
Cash flows from
operating
activities
(Loss)/profit before
income
tax (2,630) (8,312)
Depreciation charges 4,131 1,155
Amortisation charges 3,451 484
Share based payments 680 766
Movement in fair
value of
derivatives - 727
Exchange adjustments
on borrowings 3,619 1,774
Finance costs 1,123 1,570
Finance income (19) (19)
10,355 (1,856)
Decrease in
inventories 9,406 266
Decrease in trade and
other
receivables 1,600 4,143
Decrease in trade and
other
payables (4,869) (4,605)
Cash generated from
operations 16,492 (2,051)
Interest paid (1,115) (481)
Tax paid - -
-------------- ---------------------
Net cash flow from
operating
activities 15,377 (2,532)
-------------- ---------------------
Cash flows (used
in)/from
investing activities
Purchase of
intangible fixed
assets (86) (72)
Purchase of property
plant
and equipment (2,697) (265)
Interest received 19 19
Net cash flows (used
in)/from
investing
activities (2,764) (318)
-------------- ---------------------
Cash flow from
financing
activities
Bank loan principal
repayments
in year (3,102) (2,307)
Repayment of other
loans - (2,530)
Inflow from Initial
Public
Offering - 30,313
Principal payments on
leases (1,920) (590)
Net cash flows used
in financing
activities (5,022) 24,886
-------------- ---------------------
Net
increase/(decrease)
in
cash and cash
equivalents 7,591 22,035
Cash and cash
equivalents
at
beginning of the
period 30,030 6,502
Net foreign currency
movements 97 52
-------------- ---------------------
Cash and cash
equivalents
at end of period 37,718 28,589
============== =====================
NOTES TO THE INTERIM CONSOLIDATED STATEMENTS
For the period ended 30 June 2021
-----------------------------------------------
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 considered in the light of the
Covid-19 situation, the Directors have adopted the going concern
basis in preparing the interim financial statements.
The assessment has considered the Group's current financial
position as follows:
-- The Group improved its cash position during the period with
net cash inflows from operating activities of $15.4m compared to an
outflow of ($2.5m) for H1 2020.
-- The Groups net assets were $147m at the end of the period compared to $58m at 30 June 2020.
-- The Group has significant headroom with its current and projected covenants with HSBC.
30 June 2021 31 December 2020
Actual Required Actual Required
------ --------- ------- ---------
Leverage (excl. leasing) 0.6 Below 2.5 1.6 Below 2.5
------ --------- ------- ---------
Interest cover 21.0 Above 4.0 17.1 Above 4.0
------ --------- ------- ---------
Leverage is calculated on a rolling 12 month historical EBITDA
against current net debt excluding leasing.
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 buildings 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 acquisition of Eschenbach on 16 December 2020.
Basis of preparation
The interim consolidated financial statements for the six months
ended 30 June 2021 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 2020.
The comparative financial information for the period ended 30
June 2020 in this interim report does not constitute statutory
accounts for that period under 434 of the Companies Act 2006 and is
unaudited.
Accounting policies are included in detail within the latest
Annual Report.
NOTES TO THE INTERIM CONSOLIDATED STATEMENTS (continued)
For the period ended 30 June 2021
---------------------------------------------------------
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 impact of Covid-19 discussed within 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.
Uncertain tax positions
Tax authorities could challenge and investigate the Group's
transfer pricing or tax domicile arrangements. As a growing,
international business, there is an inherent risk that local tax
authorities around the world could challenge either historical
transfer pricing arrangements between other entities within the
Group and subsidiaries or branches in those local jurisdictions, or
the tax domicile of subsidiaries or branches that operate in those
local jurisdictions.
As a result, the Group has identified it is exposed to uncertain
tax positions, which it has measured using an expected value
methodology. Such methodologies require estimates to be made by
management including the relative likelihood of each of the
possible outcomes occurring, the periods over which the tax
authorities may raise a challenge to the Group's transfer pricing
or tax domicile arrangements; and the quantum of interest and
penalties payable in addition to the underlying tax liability. As a
result, the Group has made a provision of $3,067,000 as at 30 June
2021 ($2,603,000 as at 30 June 2020), in line with the accounting
methodology used as at 31 December 2020.
Right of return
Under IFRS15 a sale with right of return is recognised if the
customer receives any combination of a full or partial refund of
any consideration paid, a credit that can be applied against
amounts owed, or another product in exchange. The Group includes
within the liability arrangements where the Group has historically
accepted a right to return. The Group estimates the impact of
potential returns from customers based on historical data on
returns, with a liability recognised for the goods expected to be
returned. Calculations of this liability require estimation to be
made by management as to the expected level of returns. The right
of return liability as at 30 June 2021 was $13,015,000 (30 June
2020: $454,000) with Eschenbach accounting for $12,344,000 of this
balance as at 30 June 2021.
4. SEGMENT INFORMATION
The Group operates in three operating segments, which upon
application of the aggregation criteria set out in IFRS 8 Operating
Segments results in three reporting segments:
-- Frames and Optics (previously Branded) product
distribution.
-- Wholesale - being OEM and manufacturing distribution.
-- Lenses - being manufacturing and distribution of lenses.
The acquisition of Norville (20/20) Limited during H2 2020 has
led to an additional operating and reporting segment of 'Lenses' in
2020. In addition, the acquisition of Eschenbach Holdings GmbH also
in H2 2020 has resulted in a change to the 'Branded' reporting
segment, to form the 'Frames and Optics' reporting segment of which
Eschenbach is a part during the period to 30 June 2021.
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
The reportable segments subject to disclosure are consistent
with the organisation model adopted by the Group during the six
months ended 30 June 2021 and are as below:
Frames Wholesale Lenses Total before Adjustments Total
and
Optics adjustments &
& elimination
eliminations
$'000 $'000 $'000 $'000 $'000 $'000
Revenue
External 109,233 12,261 4,252 125,746 - 125,746
Internal 1,216 1,382 26 2,624 (2,624) -
----------- ------------------- -------- ----------------- ------------ ----------
110,449 13,643 4,278 128,370 (2,624) 125,746
Cost of sales (59,588) (9,442) (2,473) (71,503) 2,255 (69,248)
----------- ------------------- -------- ----------------- ------------ ----------
Gross profit 50,861 4,201 1,805 56,867 (369) 56,498
Expenses (48,865) (1,988) (2,598) (53,451) 294 (53,157)
-------- ----------
Operating
(loss)/profit 1,996 2,213 (793) 3,416 (75) 3,341
--------
Exchange
adjustment
on borrowings (3,619)
Non-underlying
costs -
acquisitions (1,248)
Finance costs (1,123)
Finance income 19
Taxation (533)
----------------
Loss for the
period (3,163)
----------------
Reported segments relating to the balance sheet as at 30 June
2021 are as follows:
Frames Wholesale Lenses Total Adjustments Total
and before
Optics adjustments & elimination
&
eliminations
$'000 $'000
$'000 $'000 $'000 $'000
Total assets 390,712 74,917 7,285 472,914 (186,437) 286,477
Total
liabilities (302,660) (7,056) (6,837) (316,553) 264,996 (51,557)
------------------- -------------------- -------- ----------------------- -------------------- ---------------
88,052 67,861 448 156,361 78,559 234,920
------------------- -------------------- -------- ----------------------- --------------------
Deferred tax
asset 12,569
Deferred tax
liability (21,421)
Current tax
liability (5,556)
Borrowings (73,382)
-------------------
Group net
assets 147,130
-------------------
Total assets are the Group's gross assets excluding deferred tax
asset. Total liabilities are the Group's gross liabilities
excluding loans and borrowings, and deferred tax liability.
The reportable segments subject to disclosure are consistent
with the organisation model adopted by the Group during the six
months ended 30 June 2020 and are as below:
Branded Wholesale Total before Adjustments Total
adjustments & elimination
&
eliminations
$'000 $'000 $'000 $'000 $'000
Revenue
External 8,627 8,100 16,727 - 16,727
Internal 1,104 894 1,998 (1,998) -
-------------------- ----------------- ------------- -------------- ----------
9,732 8,994 18,726 (1,998) 16,727
Cost of sales (5,886) (5,167) (11,053) 1,765 (9,288)
-------------------- ----------------- ------------- -------------- ----------
Gross profit 3,845 3,827 7,672 (233) 7,439
Expenses (5,205) (4,153) (9,358) 191 (9,167)
----------
Operating (loss)/profit (1,360) (326) (1,686) (42) (1,728)
Exchange adjustment
on borrowings (1,774)
Movement in derivatives (727)
Initial Public
Offering costs (2,442)
Non-underlying
costs - restructuring (91)
Finance costs (1,570)
Finance income 19
Taxation 823
----------
Loss for the period (7,489)
----------
Reported segments relating to the balance sheet as at 30 June
2020 are as follows:
Frames Wholesale Total Adjustments Total
and before
Optics adjustments & elimination
&
eliminations
$'000 $'000 $'000 $'000
$'000
Total assets 75,019 63,259 138,278 (52,564) 85,714
Total
liabilities (63,712) (4,654) (68,366) 62,255 (6,111)
------------------- ------------------- ------------------- ------------------- -----------------
11,307 58,605 69,912 9,691 79,603
------------------- ------------------- ------------------- -------------------
Deferred tax
asset 1,167
Deferred tax
liability (2,762)
Current tax
liability (1,574)
Borrowings (18,000)
---------------
Group net
assets 58,434
---------------
Total assets are the Group's gross assets excluding deferred tax
asset. Total liabilities are the Group's gross liabilities
excluding loans and borrowings, and deferred tax liability.
Acquisition costs, finance costs and income, and taxation are
not allocated to individual segments as the underlying instruments
are managed on a Group basis.
Deferred tax and borrowings are not allocated to individual
segments as they are managed on a Group basis.
Adjusted items relate to elimination of all intra-Group items
including any profit adjustments on intra-Group sales that are
eliminated on consolidation, along with the profit and loss items
of the parent company.
Adjusted items in relation to segmental assets and liabilities
relate to the elimination of all intra-Group balances and
investments in subsidiaries, and assets and liabilities of the
parent company.
The revenue of the Group is attributable to the one principal
activity of the Group.
Geographical analysis
The Group's revenue by destination is split in the following
geographic areas:
Unaudited
6 months ended
30 June 2021
Unaudited
6 months ended
30 June 2020
$'000s $'000s
United Kingdom 12,339 3,253
Europe (excluding
UK) 68,721 6,726
North America 40,968 3,617
South America 169 278
Asia 2,369 1,939
Australia 1,180 914
125,746 16,727
================= ================
5. EARNINGS PER SHARE
Basic Earnings per Share ("EPS") is calculated by dividing the
profit for the year attributable to ordinary equity holders of the
parent by the weighted average number of ordinary shares
outstanding during the year.
Diluted EPS is calculated by dividing the profit attributable to
ordinary equity holders of the parent by the weighted average
number of ordinary shares outstanding during the year 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 periods ended 30 June 2021 and 30
June 2020 the Group made a loss; therefore, diluted EPS is not
applicable as the impact of potential ordinary shares is
anti-dilutive. Basic earnings per share is therefore $(0.03) (30
June 2020: $(0.12)), with diluted earnings per share $(0.03) (30
June 2020: $(0.12)). The following table reflects the income and
share data used in the basic and diluted EPS calculations:
30 June 30 June
2021 2020
SHARES
$'000 $'000
(Loss)/Profit attributable
to the
equity holders of the parent
for basic earnings (3,163) (7,489)
----------------- -----------------
Number Number
of shares of shares
Weighted average number
of
shares for basic EPS 101,290,898 61,384,358
Effect of dilution from:
Share options 4,211,782 4,423,633
Weighted average number
of shares
adjusted for the effect
of dilution 105,502,680 65,807,991
----------------- -----------------
6. TRADE AND OTHER RECEIVABLES
Unaudited Unaudited As at
As at As at 31 December
30 June 2021 30 June 2020 2020
$'000 $'000 $'000
Trade receivables 27,000 6,707 25,149
Prepayments 3,552 959 6,419
Other receivables 3,946 1,068 4,080
------------------
34,498 8,731 35,648
================== ================== ==================
7. TRADE AND OTHER PAYABLES
Unaudited Unaudited As at
31 December
2020
As at As at
30 June 30 June
2021 2020
$'000 $'000 $'000
Trade payables 19,678 2,857 22,404
Amounts owed to related
parties 147 201 169
Other payables 614 277 1,435
Social security and
other taxes 6,380 100 5,422
Royalties & provisions 2,453 690 5,911
Accruals 9,270 1,486 7,554
38,542 5,611 42,895
========== ========== =============
8. NET DEBT
Unaudited Unaudited As at
31 December
2020
As at As at
30 June 30 June
2021 2020
$'000 $'000 $'000
Cash and cash equivalents 37,718 28,589 32,672
Interest bearing borrowings
excl. leasing (54,630) (17,182) (56,947)
Bank overdrafts - - (2,642)
Invoice discounting - (47) -
---------- -------------- -------------
Net debt excluding leasing (16,912) 11,360 (26,917)
---------- -------------- -------------
Lease liability (18,752) (818) (20,274)
Net debt including
leasing (35,664) 10,542 (47,191)
========== ========== =============
9. NON-UNDERLYING COSTS
Non-underlying costs in the period relate to the accounting of
the acquisition of Eschenbach. Prior period non-underlying costs
relate to redundancy costs of Algha Group Limited employees, with
the site ceasing trading during the period as part of a planned
movement of production to Italy.
10. 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 and have vesting dates of between one and three
years after date of grant.
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 year have the
following expiry date and exercise prices:
Grant date Expected life Exercise price Number of share
of per option options
options $
11 October 2019 1-3 years 1.27 824,197
27 February
2020 3-5 years 2.52 1,923,110
22 December
2020 3-5 years 2.87 1,460,000
21 June 2021 3-5 years 4.86 90,000
The exercise price under each option agreement is denominated in
GBP, with the USD balance shown above converted at the rate the
option was issued.
11. POST BALANCE SHEET EVENTS
Since the end of the interim period on 30 June 2021 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 SSDFLWEFSESU
(END) Dow Jones Newswires
September 08, 2021 02:00 ET (06:00 GMT)
Inspecs (LSE:SPEC)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Inspecs (LSE:SPEC)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024
