Inspecs shares slide as interim earnings fall, H2 outlook weakens

(Sharecast News) - Shares in eyewear manufacturer Inspecs slumped nearly 10% on Thursday after it posted a drop in interim earnings and flagged weaker-than-expected trading in early H2, citing ongoing tariff disruption, subdued consumer confidence, and reduced government spending in the US.

Inspecs said revenue for the six months ended 30 June fell to £97.6m, down from £100.6m a year earlier, while underlying earnings declined to £9.0m from £11.0m. Gross margin narrowed to 51.8% from 52.6%, and diluted underlying earnings per share dropped to 2.08p from 3.94p. Pre-tax profits were broadly flat at £2.4m.

The AIM-listed group also said its Chinese manufacturing operations continued to face delays due to US tariffs, while European trading was said to have remained sluggish. Net debt excluding leases rose by £700,000 to £23.6m, driven by deferred acquisition payments and funding for discontinued operations.

However, despite the weaker start to the second half, Inspecs said growth in its order book and planned cost savings were expected to support a stronger performance in the remainder of the year. It also reiterated full-year guidance for underlying EBITDA of £18.7m.

CEO Richard Peck said: "As a global eyewear business, we have experienced first-hand the widely reported macro-challenges, including ongoing tariff disruption and subdued consumer confidence. As a result, group sales in the first half are slightly behind last year.

"Based on the growth in our order books as at the end of August 2025 and planned increased cost savings the board has a reasonable expectation of meeting full year guidance. We continue to believe in the fundamental strengths of the business and the management team remains focused on the delivery of our medium-term targets."

As of 1030 BST, Inspecs shares had sunk 9.53% to 38.90p.

Reporting by Iain Gilbert at Sharecast.com