Inspecs Share Discussion Threads

[pireric] 29/1/2024 09:32

Bookbroker then why on earth did you answer me this when I asked less than 3 weeks ago and flagged up the SDRY issues.

"bookbroker8 Jan '24 - 11:05 - 1024
Imagine SDRY largely irrelevant now, likely to be more focused on getting rid of quilted jackets than specs for some time now. This company’s fortunes lie in emerging markets now!"

Vs today

"Expect SDRY in part to blame for revenue miss, for an account it is screwed, and likely has been a major one!"

[bookbroker] 29/1/2024 09:00

Expect SDRY in part to blame for revenue miss, for an account it is screwed, and likely has been a major one!

[pireric] 29/1/2024 08:57

How can you determine if it's a huge overreaction until we see the new set of broker forecasts. They are out there, but it's Peel Hunt so very hard to get them.

I wouldn't be surprised if its a huge shadow profit warning that ends up in their EPS forecasts being in that $0.06c/share range I was talking about

In which case I'm not sure you can really argue this is anything but justified.

Eric

[bookbroker] 29/1/2024 08:54

Be inclined to agree, if ebitda expected to be £18m for Yr Ending 12/23 then maybe market just crushing the minnows. Efficiencies seem to be ongoing, not sure why Norville still not profitable, and not sure why they continue with the plant unless solely for R&D. I don’t think ebitda a reliable indicator of anything, but that is what accounting standards allow. Maybe this still work in progress, no consolation to investors at the outset!

[gkace] 29/1/2024 08:42

Huge overreaction. Not a bad update, just not the growth expected. Debt being reduced and investing for the future

[ny boy] 29/1/2024 08:15

These types of stocks are just not investments, trap door events are all too common imo

[pireric] 29/1/2024 07:37

It will be interesting to see where exactly the new broker forecasts land over the next hour once it becomes clear

If we are anywhere in the realm of $0.06/share, then you do wonder if this could trade into the 50-60p range today

Eric

[dr biotech] 29/1/2024 07:22

Well that’s not great. Was hoping debt would be less than 1x Ebitda and it’s 1.3

Another duff scsw tip

[masurenguy] 29/1/2024 07:07

Full Year Trading Update

Inspecs Group plc announces a trading update for the year ended 31 December 2023 ahead of reporting its final results on 17 April 2024. The Group has maintained its focus on margin improvement through 2023 and expects to report a 16.1% increase in unaudited Adjusted Underlying EDITDA to £18.0m (2022: £15.5m). Despite this, financial performance is below the market expectations due to softer trading in December.

Highlights

· Operational efficiencies have driven an increased EBITDA margin on sales in the year, with continual progress expected in 2024.

· Vietnam expansion remains on track and budget, and provides enhanced sustainability, with first production in H1 2024.

· Norville losses continue to reduce with new management growing sales and improving performance.

· Skunk Works continues to drive innovation and commercial revenues.

· Global launch of licenced eyewear brand secured during 2023 with launch in spring 2024.

· Integration of US businesses commenced in 2023 to generate synergies within the Americas during 2024.

· Reduction in net debt despite capex expenditure in Vietnam and deferred acquisition consideration, with significant cash generation in 2023.

Revenue

Group revenue of £200.3m was broadly flat on 2022 (£201.3m), below our expectations, however the Board remains positive for 2024 with new accounts and distribution in place. On a constant exchange rate basis1, revenue decreased by £3.2m to £197.8m (2022: £201.0m).

Financial position

The Group's net debt (excluding leases) decreased by £3.3m during the year to £24.3m (31 December 2022: £27.6m). The Group invested £3.0m in the new Vietnam factory to provide additional capacity, and a further £2.2m on deferred acquisition consideration. Leverage has reduced in line with Board expectations.

Acquisitions

Post period end, on 22 January 2024, the Group acquired Norwegian distributor, A-Optikk AS, for a nominal sum. This acquisition marks a resumption of strategic acquisitions which increase the Group's vertical integration. It will strengthen our Nordic business expansion plans and gives the Group a new distribution hub in the Norwegian market.

Financial liquidity

In December, the Group exercised its option to extend its facilities with HSBC for 12 months to October 2025, keeping the same margin. The Board expects to further extend its facilities during the forthcoming year.

Outlook

The Group will continue to focus on delivering further operational efficiencies and reducing costs, while also reducing net debt and leverage. The new Vietnam facility is scheduled to come onstream in H1 2024, further enhancing the Group's competitive position. The Group remains focused on driving sales across all our operating businesses in 2024 and continuing to develop Group synergies to enhance performance.

Richard Peck, Chief Executive Officer commented: "Whilst our revenue performance was affected by a soft market in December, I am encouraged that our focus on operational efficiencies in 2024 delivered an improvement in our margins. The Group has also reduced its net debt while investing in significant additional manufacturing capacity for the future, with our new Vietnam facility coming onstream in H1 2024. Having further strengthened the balance sheet and extended the maturity of our financing facilities, I look forward to driving sales in 2024, whilst continuing our programme of improving operational efficiency and continuing to develop Group synergies to enhance our performance."

[masurenguy] 18/1/2024 07:15

Vox Markets interview with Judith McKenzie of Downing Asset Management. Inspecs @ 15.35.

[ppmm] 18/1/2024 03:28

Fingers crossed for management's confidence in the full year outlook to be rwflected in the latest return due out around 26 Jan

[ppmm] 18/1/2024 03:22

Downing Asset management, with their insight into hop Inspecs business works and reacts rather than wanting to reduce their holding are activly adding and consider thw current valuation low that is until they convince the markets that their business plan is giving results (vox markets interview) this confirms markmarkmark974 that you may have read something that simply is not there, in fact seems the opposite.

[marcu saurelius] 16/1/2024 16:10

Highest level for 4 months

[masurenguy] 11/1/2024 16:31

Nice rise on a below average daily trading volume, on down day in the markets.

[markmarkmark974] 11/1/2024 16:14

looks like i may have been slightly wrong here. RNS today says Downing have increased their position. The RNSs for Downing Strategic Micro-cap Investment Trust definitely suggest the Inspecs position has reduced, so my only guess is that some of the other Downing funds (they have an AIM estate planning fund) are included in the overall holding they have in Inspecs. Something is awry because the Downing Strategic Micro-cap Investment Trust is being wound down and doesn't look to own 6m shares because that would make Inspecs about 20% of the company. Either way today's RNS suggests Downing own more Inspecs than they previously did

[value viper] 10/1/2024 17:53

Seller cleared and up she goes

[masurenguy] 10/1/2024 10:26

Thanks for that insight markmarkmark.

[markmarkmark974] 10/1/2024 08:46

regarding superdry, the admission doc said that the 5-year licence went until 2023 and it also says they typically aim to renew the licence 12-24 months before expiry. so you would expect it to have been renewed maybe, but this not certain.
more generally, i think that Downing Strategic Micro cap is an ongoing seller. they said recently that they aim to wind the whole fund down by the end of H1 2024. When you look at their SPEC position in late Nov 23 vs end of Dec 23, it has reduced by c. 500k shares, I think. They still have roughly 1m shares to go I think. So that is no doubt not helping at the moment in the absence of buyers and they're not finished yet. But this purely them winding their whole fund down and not really a reflection on SPEC.

[masurenguy] 09/1/2024 14:32

There should be a Y/E trading update later this month/early February. They reported a return to profit at the half year, positive cashflow increased by 30% and net debt was down by 20%. At that stage (September), CEO Richard Peck stated: "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."

[weaverbeever] 09/1/2024 14:18

Even in the good times I would think super dry would account for thousands or 10s of thousands in sales valume. Not millions.

[bookbroker] 09/1/2024 12:42

But it would nice or not to get a statement from them, big gap to 60p to close, maybe that is where it is heading. Better off private to my mind!

[bookbroker] 08/1/2024 11:05

Imagine SDRY largely irrelevant now, likely to be more focused on getting rid of quilted jackets than specs for some time now. This company’s fortunes lie in emerging markets now!

[pireric] 01/1/2024 13:33

In the Inspecs admissions document, Superdry was one of the group's biggest customers. Given Superdry looks like a basket case, does anyone know how much exposure Inspecs has to SDRY now? I see in the 2022 Annual Report they are still mentioned as a 'key brand'

Eric

[halfpenny] 02/12/2023 14:36

Oh dear as Spec Struggle again!!

Sad day as further LOSSES FOR SPEC. On the way with No Improvements !!

More issues as falling knife cuts and more losses. Next week looks sad as Money issues increase..55p soon be prepared as larger Risks return ....