Inspecs Share Discussion Threads

[neg] 14/9/2023 09:27

After the interims last week, it looks like the house broker has cut forecasts for this year and next year by 26% (according to Stockopedia).

[bookbroker] 13/9/2023 11:06

Share price not looking healthy at all!

[john09] 07/9/2023 16:27

Lots of churn today, thats healthy

[mortal1ty] 07/9/2023 08:42

Shame its not going up. At this valuation I suspect private equity would he sniffing around. Its cash generative... which they love, cheap, and they could operate a rollup strategy... which they also love.

[mortal1ty] 07/9/2023 07:22

Seriously 12m ebitda in h1. Suppose that is 24m ebitda for the fy. The EV of the business is 120m. That puts it on a 5x ev ebitda. I don't think I've ever seen a business like this so cheap.

[masurenguy] 07/9/2023 07:13

Interim Results

INSPECS Group presents its unaudited interim results for the six months ended 30 June 2023. This is the first set of results in the Group's new reporting currency of GBP.

Financial highlights:

-- Revenue increased by 6.1% to GBP111.2m (H1 2022: GBP104.8m)
-- On a constant exchange rates basis revenue increased 2.3% to GBP107.2m (H1 2022: GBP104.8m)
-- Operating profit increased by 25.1% to GBP4.6m (H1 2022: (GBP3.6m)
-- Gross profit margin 51.4% (H1 2022: 50.5%)
-- Underlying EBITDA(2) increased by 5.4% to GBP12.1m (H1 2022: GBP11.4m)
-- Adjusted Profit Before Tax (PBT)(2) of GBP6.9m (H1 2022: GBP7.5m)
-- Adjusted PBT Basic Earnings Per Share (EPS)(2) of GBP0.07 H1 2022: GBP0.07)
-- Reported Profit Before Tax of GBP3.8m (H1 2022: GBP0.2m loss(3) )
-- Reported basic EPS of GBP0.02 (H1 2022: GBP(0.03), diluted EPS of GBP0.02 (H1 2022: GBP(0.03)
-- Cash generated from operations GBP11.5m (H1 2022: GBP8.7m)
-- Net debt excluding leasing GBP22.7m (31 December 2022: (GBP27.6m)

Operational highlights:

-- 6.9m eyewear frames sold in H1 2023, compared to 6.2m in H1 2022
-- Strong revenue growth in UK (+20%), North America (+9%) and LATAM (+277%)
-- Substantial growth of low vision aids revenue in North America (+19%) to GBP5.9m in H1 2023
-- Construction of the new Vietnam manufacturing with scheduled completion in H1 2024
-- Norville losses reduced substantially compared H1 2022
-- Renewal completed on key licensed brands; Marco Polo and Ted Baker
-- Orders received for a key licence brand by a global retailer to be delivered in Q4 2023
-- Successful launch of a women's Titanflex range in Germany
-- Significant growth in commercial activity within Skunkworks, the Group's R & D division
-- Good progress against objectives outlined in our ESG framework

Richard Peck, CEO of INSPECS, said: "The Group has made steady progress during the period, with an improved trading and cash generation performance. We remain focused on achieving operational efficiency gains and continue to identify integration opportunities across our global trading platform. Construction of our new manufacturing facility in Vietnam commenced in May 2023, with expected completion in H1 2024. Once fully operational, this will increase the manufacturing capacity of the Group to circa 12 million units per year. Trading in the second half to date has been in line with our expectations and our order books remain at a good level. Whilst we remain cautious in relation to global economic and political events, we remain confident with our full year outlook."

[mortal1ty] 07/9/2023 07:04

Wow. The cash generation by this business is insane. H1 was basically 12m CFO, and with a neutral working capital. That is just in 6 months. Compare that to the market cap of 100m...

[john09] 06/9/2023 18:13

I don’t think anything is really going up

Most we can hope for is a good statement to keep the status quo share price wise. It’ll go up at some point . Good prospects and scarcity value

[weaverbeever] 06/9/2023 17:45

Results tomorrow I believe Thought price would have gone up higher prior

[essential] 05/9/2023 16:31

Topped up here

[74tom] 05/9/2023 16:08

I mean the company has already flagged that they generated ~£10m in FCF in H1. The only question is how much of this was generated from working capital. Looking good into close, ticking up with each buy. still ~20% upside to get back to post trading update highs of ~129p.

[nafafa] 05/9/2023 11:44

Looks like there may well be a last minute scramble for stock, unless the mms are expecting a disappointing update

[74tom] 05/9/2023 11:30

Return to the 120's by close of play tomorrow? Would make sense given that's where it traded post trading update 5 weeks ago!

[john09] 01/9/2023 12:20

Small Company Sharewatch
@SCSWSharewatch
·
Aug 30
My diary has suddenly started to fill up with meetings. #SPEC surprisingly quiet ahead of the results on Thursday 7 September. Always tends to move very sharply on results days.

[aishah] 29/8/2023 14:53

SCSW provided an update in their latest issue earlier this month @119p (scsw.co.uk):

"Ahead of reporting on 7 September (in Sterling for the first time), a short update from Inspecs confirmed that the positive trend seen in Q1 continued into Q2. Overall, H1 sales were +6% to £111.1m (+2% constant currency) whilst H2 should benefit from launching Barbour, Superdry, O’Neil and Radley across Eisenbach’s B2B platform allowing opticians to order these brands online.

There was also an improvement in net debt of £5m to £22.6m despite investing in its new facility in Vietnam (operational in Q1 24) and paying £2.2m of deferred consideration relating to the EGO and BoDe acquisitions. Peel Hunt forecasts eps of 13.9 cents for this year to end December and 16.1 cents next. Buy."

It has drifted to below £1 since - Fcst p/e around 10 with a peg of 0.2

[greenhat2] 23/8/2023 20:40

It's near the bottom of a semi established range... Be interesting to see what the update says I've taken a starter position

[deanos31] 21/8/2023 16:18

Lol it's in the first paragraph too. Sorry my mistake. Roll on the 7th

[74tom] 21/8/2023 16:14

Maybe better if you read the RNS;

"INSPECS Group plc, a leading designer, manufacturer, and distributor of eyewear (sunglasses, optical frames, lenses and low vision products), today announces a trading update for the six months ended 30 June 2023 ahead of reporting its interim results on 7 September 2023."

[deanos31] 21/8/2023 14:59

I think your right with the upside but the next update will be October rather than 12 days time. Quarter ends 30th September and we have had the update covering 6 months to end of June already.

[74tom] 21/8/2023 12:31

I mean it's been NT to buy anything for the last 2 hours! 12 trading days until results, a return to the level it was at post trading update on 27th July would see 25% upside...

[jaws6] 21/8/2023 10:38

tick better today

[nafafa] 15/8/2023 20:42

Hopefully, this is now bottomed out before it moves back into the 120’s

[masurenguy] 15/8/2023 14:42

The FTSE AIM All Share Index is down 43% over the past two years, which just illustrates the current undervaluation of UK small caps.

[mortal1ty] 15/8/2023 06:56

Depressing there was no follow through from the trading update. UK market is always so sceptical. Mispricings like this can exist for years.

I do think in this case a huge amount of churn occurred at 50 to 60p. Lots of people on profits. Always profit taking happening.