10 September 2024
INSPECS Group plc
("INSPECS", "the Company" or "the Group")
Interim Results
Delivering operational efficiencies
INSPECS Group plc, a leading designer, manufacturer, and distributor of eyewear (sunglasses, optical frames, lenses and low vision products) presents its unaudited interim results for the six months ended 30 June 2024.
Financial review:
·
|
As previously guided, revenue in the first half was below last year, decreasing by 7.3% to £103.0m (H1 2023: £111.2m) due to the one-off elevated level of sales in Q1 2023
|
·
|
On a constant exchange rates basis1, revenue decreased by 5.2% to £105.4m (H1 2023: £111.2m)
|
·
|
Gross profit margin significantly improved by 100 basis points to 52.4% (H1 2023: 51.4%)
|
·
|
Operating expenses decreased by 3.6% to £50.7m (H1 2023: £52.6m) due to the delivery of operational efficiencies
|
·
|
As previously guided, Underlying EBITDA2 reduced to £10.1m (H1 2023: £12.1m) following a decrease in revenue in the period, partially offset by cost savings
|
·
|
Diluted Underlying EPS3 of 2.72p (H1 2023: 4.28p)
|
·
|
Strong cash generation, with cash generated from operations £12.0m (H1 2023: £11.5m)
|
·
|
Continued improvement in working capital, reduced by £2.4m (H1 2023: increased by £0.6m)
|
·
|
Net debt excluding leases4 reduced by £4.4m in the six months to 30 June 2024 to £19.8m (31 December 2023: £24.2m)
|
·
|
Whilst overall market conditions remain soft, H2 trading to date has exceeded the prior year, with the order book as at 31 August 2024 7% higher than 31 August 2023
|
·
|
The Board is confident in meeting market expectations for the full year
|
Operational review:
·
|
Successful launch of a key eyewear brand into all stores of a major global retailer
|
·
|
Two major retail chains in the United Stated distributing additional brands from Q4 2024
|
·
|
Leading optical retailer in Canada distributing a major brand in all stores from Q4 2024
|
·
|
Travel retail revenue increased 45% as a result of a continued push into key global outlets
|
·
|
Further operational efficiency gains through the successful integration of Inspecs USA, including consolidation of warehousing facilities
|
·
|
Construction of the new Vietnam manufacturing facility completed on time and on budget, with fit-out ongoing. The additional facility will enable us to increase manufacturing capacity and ensure better operational efficiencies from existing production
|
·
|
Lenses segment revenue has increased by 22% compared to H1 2023 with an additional key account signed. The new leadership team is now embedded within Norville
|
|
|
1 Constant currency exchange rates: figures at constant currency exchange rates have been calculated using the average exchange rates in effect for the relevant comparative period (H1 2023).
2 Refer to table 'Underlying EBITDA and Underlying PAT'
3 Refer to note 5
4 Refer to note 8
Richard Peck, CEO of INSPECS, said:
"The Group has made steady progress during the period, with significantly improved gross profit margins delivered across all divisions and strong cash generation. We have achieved sustainable cost savings through the ongoing implementation of operational efficiencies, particularly in the US, and we will continue to undertake further initiatives during the second half.
"We have made good progress against our global distribution strategic pillar, evidenced through the agreement of new distribution and the expansion of existing partnerships with global retailers, as well as achieving revenue growth in travel retail. Despite ongoing challenges relating to inflationary pressures and the market readjusting after competitor acquisitions, the optical market remains resilient.
"Trading in the second half to date has exceeded the prior year and our order books are ahead of last year as of the end of August. It is expected that the reduction in net debt will accelerate in the second half due to reduced capital expenditure, following a period of increased investment in the new Vietnam manufacturing facility. Whilst we remain cautious in relation to market conditions and focused on the delivery of our cost saving initiatives and planned shipments in Q4, the Board is confident in meeting market expectations for the full year."
For further information please contact:
INSPECS Group plc
Richard Peck (CEO)
Chris Kay (CFO)
|
via FTI Consulting
Tel: +44 (0) 20 3727 1000
|
Peel Hunt (Nominated Adviser and Broker)
George Sellar
Andrew Clark
|
Tel: +44 (0) 20 7418 8900
|
FTI Consulting (Financial PR)
Alex Beagley
Harriet Jackson
Amy Goldup
|
Tel: +44 (0) 20 3727 1000
|
About INSPECS Group plc
INSPECS is a leading provider of eyewear solutions to the global eyewear market. The Group produces a broad range of eyewear frames, low vision aids and lenses, covering optical, sunglasses and safety, which are either "Branded" (under licence or under the Group's own proprietary brands), or "OEM" (unbranded or private label on behalf of retail customers).
INSPECS is building a global eyewear business through its vertically integrated business model. Its continued growth is underpinned by six core pillars: increasing the penetration of its own-brand portfolio, increasing distribution, growing its travel retail markets, maximising group synergies, expanding its manufacturing capacity and scaling the research and development department as it develops new and innovative eyewear products.
The Group has operations across the globe: with offices and subsidiaries in the UK, Europe, the US and China (including Hong Kong, Macau and Shenzhen), and manufacturing facilities in Vietnam, China, the UK and Italy.
INSPECS customers are global optical and non-optical retailers, global distributors and independent opticians. Its distribution network covers over 80 countries and reaches approximately 75,000 points of sale.
More information is available at: www.INSPECS.com
CHIEF EXECUTIVE REVIEW
As previously communicated, revenue and EBITDA in the first half of 2024 were expected to be lower due to the one-off elevated level of sales in Q1 2023. The Group experienced a more normalised trading pattern in the period, the impact of which was compounded by the widely reported global inflationary pressures as well as the market readjusting to recent competitor acquisitions. As a result, the Group recorded revenue of £103.0m (H1 2023: £111.2m) and an Underlying EBITDA of £10.1m compared to £12.1m for the same period in 2023. Pleasingly, gross profit margin increased to 52.4% (H1 2023: 51.4%) as a result of improved operational efficiency and sales mix, with our continued focus on delivering operational efficiencies also reducing operating expenses by £1.9m to £50.7m from £52.6m.
Frames and Optics
Revenue within our Frames and Optics distribution business decreased 8.5% to £94.2m (H1 2023: £102.9m) however, gross profit margin improved by 150 basis points to 51.8% with increasing synergies being realised.
During the period the Group successfully launched a key brand into all stores of a major global retailer and agreed distribution with two major retail chains in the United States for additional brands from Q4 2024. The Group also agreed distribution with a leading optical retailer in Canada for a further major brand in all stores from Q4 2024.
There is also an opportunity to increase penetration globally though the worldwide distribution network that we are establishing. Notably our push into worldwide travel retail outlets is proving very successful as revenue from travel retail has increased 45% in the period and we will continue to expand our distribution into new global outlets in the second half.
The Group also successfully integrated Inspecs USA's sales and warehousing facilities during the period, streamlining operations within this region.
Manufacturing
Revenue from the manufacturing business for H1 2024 was £9.0m, compared to £9.9m in H1 2023 but we expect to see increased activity in the second half with order books at 31 August 2024 exceeding those at 31 August 2023. Gross profit margin increased by 400 basis points to 46.2% in H1 due to increased sales of patented concept frames and reduced material costs.
Construction of our new manufacturing facility in Vietnam has been completed on time and on budget, and the fit-out of the facility is currently ongoing. Once manufacturing fully commences, this will increase the manufacturing capacity of the Group to circa 12 million units per year in the medium term and enhance the operational efficiency of existing production.
Lenses
Revenue from our lens manufacturing business increased 21.6% to £2.5m (H1 2023: £2.1m) and gross profit margin increased by 220 basis points to 42.3%. The new leadership team is well embedded, and growth has been delivered in both key accounts and independent sales channels, with a significant new key account signed and further negotiations ongoing.
Research and development
Significant progress continues to be made in relation to our smart eyewear range, alongside the development of additional innovative eyewear channels, resulting in further consultancy revenues during H1 2024. A new low vision aid will also be launched in the second half of 2024.
ESG
During the period, we have launched several impactful community projects, including a food bank initiative in Nuremberg, Germany aiming to tackle food waste and food insecurity in the local area, underscoring our commitment to making a meaningful difference in the local communities in which we operate. We also continued to refine our climate approach, holding several Steering Group meetings to enhance our management and reporting of climate-related risks and opportunities. Looking ahead, we remain dedicated to driving progress across our Group ESG Roadmap and continuously improving our strategies to address climate-related challenges and opportunities.
Outlook
As of 31 August, trading in the second half to date has exceeded the prior year and our order books are also 7% ahead. Whilst we remain cautious in relation to market conditions and we remain focused on delivery of our cost saving initiatives, we are confident in delivering on market expectations for the full year.
I would like to thank all our teams across the globe for their continuing hard work and dedication in achieving our long-term goal of developing INSPECS Group into one of the world's leading eyewear companies.
Richard Peck
10 September 2024
FINANCIAL REVIEW
Revenue
Revenue was £103.0m in the half, down from £111.2m in H1 2023, a decrease of 7.3%. On a constant exchange rate basis revenues decreased 5.2% to £105.4m from £111.2m (H1 2023).
Gross Profit Margin
The Group's gross profit margin increased to 52.4% in H1 2024 from 51.4% in H1 2023, driven by margin improvement in each of the reporting segments. The Group continues to actively manage its gross profit margin and is targeting further efficiencies.
Operating Profit
The Group's operating profit decreased 27.2% to £3.3m (H1 2023: £4.6m).
Administrative expenses
Administrative costs decreased by £1.5m to £47.8m in H1 2024 from £49.3m in H1 2023, driven by the Group's focus on operational efficiency.
Underlying EBITDA
The Group's Underlying EBITDA decreased from £12.1m in H1 2023 to £10.1m in H1 2024. Underlying EBITDA margin decreased from 10.8% in H1 2023 to 9.8% in H1 2024.
Finance Expenses
Net finance costs have risen marginally from £2.0m in H1 2023 to £2.1m in H1 2024 reflecting the increase in interest rates versus the prior period. Net finance costs include £0.1m (H1 2023: £0.1m) relating to the amortisation of capitalised loan arrangement fees.
Depreciation and amortisation
|
Period ended 30 June 2024 £m
|
Period ended 30 June 2023
£m
|
Depreciation
|
3.0
|
3.4
|
Amortisation
|
3.2
|
3.3
|
Total
|
6.2
|
6.7
|
The decrease in depreciation is split between owned and right of use assets.
Profit Before Tax
Profit before tax for the period was £1.3m (H1 2023: £3.8m), after a lower £0.2m gain on exchange relating to borrowings, compared to a gain of £1.2m in H1 2023.
Tax charge
The tax charge for the period of £2.4m (H1 2023: £1.7m) is driven by a current tax charge of £2.2m (H1 2023: £2.2m) and a deferred tax charge of £0.1m (H1 2023: £0.5m credit). The credit in H1 2023 is driven by the unwinding of deferred tax balances arising on acquisitions.
Cash Generation
The Group generated cash from operations of £12.0m (H1 2023: £11.5m) reflecting continual improvements in working capital efficiency of the Group.
Net Debt
The Group has again delivered strong cash generation in the first half and as a result, net debt (excluding leases) reduced by £4.4m to £19.8m as at 30 June 2024 (31 December 2023: £24.2m). During the period, the Group invested £1.8m on the purchase of tangible and intangible owned assets, including fit out costs for the new Vietnam facility, and paid a further £1.9m of deferred and contingent consideration relating to the EGO and BoDe acquisitions. The reduction in net debt of the group is expected to accelerate in future periods as cash flows used in investing activities returns to usual levels.
Financing
The Group finances its operation through the following borrowings and facilities.
|
|
Expires
|
Balance at
30 June 2024
£m
|
Balance at
31 December 2023
£m
|
Group revolving credit facility
|
|
October 2025
|
28.8
|
29.2
|
Term loans
|
|
October 2025
|
6.3
|
7.7
|
Revolving credit facility USA
|
|
1-year rolling
|
7.4
|
6.5
|
Invoice discounting
|
|
1-year rolling
|
1.8
|
0.9
|
Other
|
|
|
0.1
|
-
|
Total
|
|
|
44.4
|
44.3
|
Leverage (using debt to equity ratio)
The Group's leverage position is shown below:
|
30 June
2024
|
Actual ratio
|
1.63
|
Required ratio
|
2.25
|
The Group remains within its banking covenants and forecasts that, subject to market conditions, it will continue to remain within banking covenants for the length of the arrangement.
Inventory
Our revenue to inventory ratio has remained consistent compared to 30 June 2023.
|
Period ended 30 June 2024
£m
|
Period ended 30 June 2023
£m
|
Revenue
|
103.0
|
111.2
|
Inventory
|
39.7
|
42.3
|
Revenue to inventory ratio
|
2.6
|
2.6
|
Current asset ratio
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations, or those due within one year. This has remained consistent on the comparative period.
|
Period ended 30 June 2024
£m
|
Period ended 30 June 2023
£m
|
Current Assets
|
97.3
|
107.4
|
Current Liabilities
|
67.3
|
69.7
|
Ratio
|
1.4
|
1.5
|
Quick ratio
The quick ratio is an indicator of a company's short-term liquidity position and measures a company's ability to meet its short-term obligations with its most liquid assets. This has remained consistent on the comparative period.
|
Period ended 30 June 2024
£m
|
Period ended 30 June 2023
£m
|
Current Assets
|
97.3
|
107.4
|
Less Inventory
|
(39.7)
|
(42.3)
|
|
57.6
|
65.1
|
Current Liabilities
|
67.3
|
69.7
|
Ratio
|
0.9
|
0.9
|
Net working capital
|
Period ended 30 June 2024
£m
|
Period ended 30 June 2023
£m
|
Trade and other receivables
|
33.0
|
37.4
|
Inventory
|
39.7
|
42.3
|
Trade and other payables
|
(35.5)
|
(38.9)
|
Net working capital
|
37.2
|
40.8
|
Working capital as a percentage of revenue
|
36.1%
|
36.7%
|
Net working capital has reduced following a reduction of the inventory base and improved receivables collection.
Earnings per Share
The Group's Basic Underlying EPS for the 6 months to 30 June 2024 was 2.86p compared to 4.53p for the 6 months to 30 June 2023.
Dividend
The Group does not currently intend to pay a dividend in relation to 2024. The Board continues to review its dividend policy on a regular basis.
Underlying EBITDA and Underlying PAT
The below table shows how Underlying EBITDA and Underlying PAT are calculated:
|
|
|
6 months ended 30 June 2024
|
|
6 months ended 30 June 2023
|
|
12 months ended 31 December 2023
|
|
|
|
|
|
|
|
|
£'000
|
|
£'000
|
|
£'000
|
|
|
|
|
|
|
Revenue
|
|
103,047
|
|
111,199
|
|
203,292
|
|
|
|
|
Gross Profit
|
|
54,012
|
|
57,147
|
|
103,547
|
|
|
|
|
Operating expenses
|
|
(50,696)
|
|
(52,592)
|
|
(100,659)
|
|
|
|
|
Operating profit
|
|
3,316
|
|
4,555
|
|
2,888
|
|
|
|
|
Add back: Amortisation
|
|
3,221
|
|
3,252
|
|
6,910
|
|
|
|
|
Add back: Depreciation
|
|
2,969
|
|
3,361
|
|
6,129
|
|
|
|
|
EBITDA
|
|
9,506
|
|
11,168
|
|
15,927
|
|
|
|
|
Add back: Share based payment expense
|
|
206
|
|
526
|
|
972
|
|
|
|
|
Add back: Earn out on acquisition
|
|
380
|
|
366
|
|
1,140
|
|
|
|
|
Underlying EBITDA
|
|
10,092
|
|
12,060
|
|
18,039
|
|
|
|
|
Less: Depreciation
|
|
(2,969)
|
|
(3,361)
|
|
(6,129)
|
|
|
|
|
Less: Net interest (excluding amortisation of loan arrangement fees)
|
|
(1,987)
|
|
(1,846)
|
|
(3,774)
|
|
|
|
|
Underlying Profit Before Tax (PBT)
|
|
5,136
|
|
6,853
|
|
8,136
|
|
|
|
|
Current tax charge
|
|
(2,233)
|
|
(2,248)
|
|
(2,932)
|
|
|
|
|
Underlying Profit After Tax (PAT)
|
|
2,903
|
|
4,605
|
|
5,204
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underlying EPS
|
|
Pence
|
|
Pence
|
|
Pence
|
|
|
|
|
Basic Underlying EPS for the period attributable to the equity holders of the parent
|
|
2.86
|
|
4.53
|
|
5.12
|
|
|
|
|
Diluted Underlying EPS for the period attributable to the equity holders of the parent
|
|
2.72
|
|
4.28
|
|
4.85
|
|
|
|
Underlying EBITDA segmental information
Underlying EBITDA by reportable segment (as defined in note 4) for the six months ended 30 June 2024 is as follows:
|
Frames &
|
|
Manufacturing
|
|
Lenses
|
|
Total before
|
|
Adjustments
|
|
Total
|
|
Optics
|
|
|
|
|
|
adjustments &
|
|
& elimination
|
|
|
|
|
|
|
|
|
|
eliminations
|
|
|
|
|
|
£'000
|
|
£'000
|
|
£'000
|
|
£'000
|
|
£'000
|
|
£'000
|
Revenue
|
94,169
|
|
9,028
|
|
2,516
|
|
105,713
|
|
(2,666)
|
|
103,047
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit/(loss)
|
5,586
|
|
1,222
|
|
(1,196)
|
|
5,612
|
|
(2,296)
|
|
3,316
|
|
Add back:
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortisation
|
2,897
|
|
43
|
|
9
|
|
2,949
|
|
272
|
|
3,221
|
|
Depreciation
|
2,374
|
|
250
|
|
262
|
|
2,886
|
|
83
|
|
2,969
|
|
Share based payments
|
39
|
|
90
|
|
-
|
|
129
|
|
77
|
|
206
|
|
Earn out on acquisitions
|
380
|
|
-
|
|
-
|
|
380
|
|
-
|
|
380
|
|
Underlying EBITDA
|
11,276
|
|
1,605
|
|
(925)
|
|
11,956
|
|
(1,864)
|
|
10,092
|
|
Underlying EBITDA by reportable segment (as defined in note 4) for the six months ended 30 June 2023 is as follows:
|
Frames and
|
|
Wholesale
|
|
Lenses
|
|
Total before
|
|
Adjustments
|
|
Total
|
|
Optics
|
|
|
|
|
|
adjustments &
|
|
& elimination
|
|
|
|
|
|
|
|
|
|
eliminations
|
|
|
|
|
|
£'000
|
|
£'000
|
|
£'000
|
|
£'000
|
|
£'000
|
|
£'000
|
Revenue
|
102,876
|
|
9,922
|
|
2,069
|
|
114,867
|
|
(3,668)
|
|
111,199
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit/(loss)
|
7,272
|
|
887
|
|
(1,248)
|
|
6,911
|
|
(2,356)
|
|
4,555
|
|
Add back:
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortisation
|
2,809
|
|
433
|
|
10
|
|
3,252
|
|
-
|
|
3,252
|
|
Depreciation
|
2,663
|
|
347
|
|
336
|
|
3,346
|
|
15
|
|
3,361
|
|
Share based payments
|
198
|
|
161
|
|
-
|
|
359
|
|
167
|
|
526
|
|
Earn out on acquisitions
|
366
|
|
-
|
|
-
|
|
366
|
|
-
|
|
366
|
|
Underlying EBITDA
|
13,308
|
|
1,828
|
|
(902)
|
|
14,234
|
|
(2,174)
|
|
12,060
|
|
INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the period ended 30 June 2024
|
|
|
Notes
|
Unaudited 6 months ended
30 June 2024
|
|
Unaudited 6 months ended
30 June 2023
|
|
|
|
£'000
|
|
£'000
|
|
REVENUE
|
4
|
103,047
|
|
111,199
|
|
Cost of sales
|
|
(49,035)
|
|
(54,052)
|
|
GROSS PROFIT
|
|
54,012
|
|
57,147
|
|
Distribution costs
|
|
(2,944)
|
|
(3,328)
|
|
Administrative expenses
|
|
(47,752)
|
|
(49,264)
|
|
|
|
|
|
|
|
OPERATING PROFIT
|
|
3,316
|
|
4,555
|
|
|
|
|
|
|
|
Non-underlying costs
|
9
|
(94)
|
|
-
|
|
Exchange adjustments on borrowings
|
|
155
|
|
1,210
|
|
Share of loss of associates
|
|
(2)
|
|
(4)
|
|
Finance costs
|
|
(2,146)
|
|
(2,103)
|
|
Finance income
|
|
94
|
|
145
|
|
|
|
|
|
|
|
PROFIT BEFORE INCOME TAX
|
|
1,323
|
|
3,803
|
|
Income tax
|
|
(2,350)
|
|
(1,720)
|
|
|
|
|
|
|
|
(LOSS)/PROFIT FOR THE PERIOD
|
|
(1,027)
|
|
2,083
|
|
OTHER COMPREHENSIVE LOSS:
|
|
|
|
|
|
Exchange adjustment on consolidation
|
|
(756)
|
|
(3,973)
|
|
|
|
|
|
|
|
TOTAL COMPREHENSIVE LOSS FOR THE PERIOD
|
|
(1,783)
|
|
(1,890)
|
|
(Loss)/earnings per share
|
|
Pence
|
|
Pence
|
|
Basic EPS for the period attributable
to the equity holders of the parent
|
5
|
(1.01)
|
|
2.05
|
|
Diluted EPS for the period attributable
to the equity holders of the parent
|
5
|
(1.01)
|
|
1.94
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2024
|
|
|
|
Note
|
|
Unaudited
As at
30 June 2024
£'000
|
|
Unaudited
As at
30 June 2023
Restated
£'000
|
|
As at 31 December 2023
£'000
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
NON-CURRENT ASSETS
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
|
55,743
|
|
55,578
|
|
55,578
|
|
Intangible assets
|
|
|
|
26,930
|
|
32,248
|
|
29,813
|
|
Property Plant and equipment
|
|
|
|
34,718
|
|
33,840
|
|
35,600
|
|
Investment in associates
|
|
|
|
97
|
|
105
|
|
98
|
|
Deferred tax
|
|
|
|
2,576
|
|
2,103
|
|
2,826
|
|
|
|
|
|
120,064
|
|
123,874
|
|
123,915
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
|
|
Inventories
|
|
|
|
39,679
|
|
42,349
|
|
40,848
|
|
Trade and other receivables
|
|
6
|
|
32,974
|
|
37,432
|
|
35,855
|
|
Tax receivable
|
|
|
|
74
|
|
1,719
|
|
386
|
|
Cash and cash equivalents
|
|
|
|
24,616
|
|
25,862
|
|
20,070
|
|
|
|
|
|
97,343
|
|
107,362
|
|
97,159
|
|
Assets held for sale
|
|
|
|
832
|
|
832
|
|
832
|
|
TOTAL ASSETS
|
|
|
|
218,239
|
|
232,068
|
|
221,906
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
Called up share capital
|
|
|
|
1,017
|
|
1,017
|
|
1,017
|
|
Share premium
|
|
|
|
89,508
|
|
89,508
|
|
89,508
|
|
Foreign currency translation reserve
|
|
|
|
4,679
|
|
5,461
|
|
5,435
|
|
Share option reserve
|
|
|
|
3,428
|
|
3,153
|
|
3,222
|
|
Merger reserve
|
|
|
|
5,340
|
|
5,340
|
|
5,340
|
|
Retained earnings
|
|
|
|
(2,032)
|
|
1,698
|
|
(1,005)
|
|
TOTAL EQUITY
|
|
|
|
101,940
|
|
106,177
|
|
103,517
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
NON-CURRENT LIABILITIES
|
|
|
|
|
|
|
|
|
|
Financial liabilities - borrowings
|
|
|
|
|
|
|
|
|
|
Interest bearing loans and borrowings
|
|
|
|
45,605
|
|
51,525
|
|
48,234
|
|
Deferred consideration
|
|
|
|
-
|
|
652
|
|
652
|
|
Deferred tax
|
|
|
|
3,427
|
|
3,969
|
|
3,647
|
|
|
|
|
|
49,032
|
|
56,146
|
|
52,533
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
|
|
|
|
Trade and other payables
|
|
7
|
|
35,463
|
|
38,921
|
|
36,375
|
|
Right of return liability
|
|
|
|
11,222
|
|
11,862
|
|
11,297
|
|
Financial liabilities - borrowings
|
|
|
|
|
|
|
|
|
|
Interest bearing loans and borrowings
|
|
|
|
14,276
|
|
13,140
|
|
13,000
|
|
Invoice discounting
|
|
|
|
1,804
|
|
2,089
|
|
887
|
|
Deferred and contingent consideration
|
|
|
|
1,231
|
|
1,333
|
|
2,111
|
|
Tax payable
|
|
|
|
3,271
|
|
2,400
|
|
2,186
|
|
|
|
|
|
67,267
|
|
69,745
|
|
65,856
|
|
TOTAL LIABILITIES
|
|
|
|
116,299
|
|
125,891
|
|
118,389
|
|
TOTAL EQUITY AND LIABILITIES
|
|
|
|
218,239
|
|
232,068
|
|
221,906
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTERIM CONSOLIDATED STATEMENT OF CASH FLOW For the period ended 30 June 2024
|
|
|
|
Unaudited
6 months ended
30 June 2024
|
|
Unaudited
6 months ended
30 June 2023
|
|
|
£000
|
|
£000
|
Cash flows from operating activities
|
|
|
|
|
Profit before income tax
|
|
1,323
|
|
3,803
|
Depreciation charges
|
|
2,969
|
|
3,361
|
Amortisation charges
|
|
3,221
|
|
3,252
|
Share based payments
|
|
206
|
|
526
|
Earn out on acquisitions
|
|
-
|
|
366
|
Exchange adjustments on borrowings
|
|
(155)
|
|
(1,210)
|
Share of loss from associate
|
|
2
|
|
4
|
Finance costs
|
|
2,146
|
|
2,103
|
Finance income
|
|
(94)
|
|
(145)
|
|
|
9,618
|
|
12,060
|
Decrease in inventories
|
|
1,202
|
|
5,809
|
Decrease/(increase) in trade and other receivables
|
|
2,921
|
|
(5,503)
|
Decrease in trade and other payables
|
|
(1,712)
|
|
(866)
|
Cash generated from operations
|
|
12,029
|
|
11,500
|
Interest paid
|
|
(2,081)
|
|
(1,831)
|
Tax paid
|
|
(783)
|
|
(1,248)
|
Net cash flow from operating activities
|
|
9,165
|
|
8,421
|
|
|
|
|
|
Cash flows used in investing activities
|
|
|
|
|
Purchase of intangible fixed assets
|
|
(631)
|
|
(124)
|
Purchase of property plant and equipment
|
|
(1,206)
|
|
(1,361)
|
Acquisition of subsidiary, net of cash acquired
|
|
(129)
|
|
-
|
Cash paid in relation to deferred consideration
|
|
(700)
|
|
-
|
Interest received
|
|
94
|
|
145
|
Net cash flows used in investing
activities
|
|
(2,572)
|
|
(1,340)
|
|
|
|
|
|
Cash flow from financing activities
|
|
|
|
|
Bank loan principal repayments in period
|
|
(1,712)
|
|
(1,010)
|
Proceeds from borrowings
|
|
1,265
|
|
-
|
Movement in invoice discounting facility
|
|
917
|
|
599
|
Loan transaction costs
|
|
(224)
|
|
(70)
|
Principal payments on leases
|
|
(1,849)
|
|
(1,999)
|
Net cash flows used in financing
activities
|
|
(1,603)
|
|
(2,480)
|
|
|
|
|
|
Net increase in cash and cash
equivalents
|
|
4,990
|
|
4,601
|
Cash and cash equivalents at
beginning of the period
|
|
20,070
|
|
22,153
|
Net foreign currency movements
|
|
(444)
|
|
(892)
|
Cash and cash equivalents
at end of period
|
|
24,616
|
|
25,862
|
|
|
|
|
|
|
NOTES TO THE INTERIM CONSOLIDATED STATEMENTS
For the period ended 30 June 2024
|
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, the interim financial statements have been prepared on the going concern basis as the Directors have assessed that there is a reasonable expectation that the Group will be able to continue in operation and meet its commitments as they fall due over the going concern period to 30 September 2025.
The assessment has considered the Group's current financial position as follows:
• The Group further improved its cash position during the period with net debt including leases decreasing to £37.1m from £42.1m at 31 December 2023.
• Cash generated from operations in the period amounted to £12.0m (2023 H1: £11.5m).
• The Group balance sheet has net assets of £101.9m and net current assets of £30.1m.
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, building 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 acquisitions completed over recent periods.
Banking facilities
The Group's banking facilities are due for renewal in October 2025. The Group is currently discussing with its lender to renew the facilities to mature no earlier than October 2028, with an expectation that the new facility will be agreed by the end of December 2024.
Basis of preparation
The interim consolidated financial statements for the six months ended 30 June 2024 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 2023. Accounting policies are included in detail within the latest Annual Report.
The financial information for the period ended 30 June 2024 and the comparative financial information for the period ended 30 June 2023 in this interim report does not constitute statutory accounts for either period under section 434 of the Companies Act 2006 and are unaudited.
NOTES TO THE INTERIM CONSOLIDATED STATEMENTS (continued)
For the period ended 30 June 2024
|
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 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.
Right of return liability
Management applies assumptions in determining the right of return liability and the associated right of return asset. These assumptions are based on analysis of historical data trends but require estimation of appropriate time periods and expected return rates. The right of return liability at the period end is £11,222,000 (31 December 2023: £11,297,000) in line with the calculation methodology used as at 31 December 2023.
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 product distribution.
• Manufacturing (previously Wholesale) - being OEM and manufacturing distribution.
• Lenses - being manufacturing and distribution of lenses.
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.
NOTES TO THE INTERIM CONSOLIDATED STATEMENTS (continued)
For the period ended 30 June 2024
|
4. SEGMENT INFORMATION (CONTINUED)
The reportable segments subject to disclosure are consistent with the organisation model adopted by the Group during the six months ended 30 June 2024 are as below:
|
Frames and
|
|
Manufacturing
|
|
Lenses
|
|
Total before
|
|
Adjustments
|
|
Total
|
|
Optics
|
|
|
|
|
|
adjustments &
|
|
& elimination
|
|
|
|
|
|
|
|
|
|
eliminations
|
|
|
|
|
|
£'000
|
|
£'000
|
|
£'000
|
|
£'000
|
|
£'000
|
|
£'000
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
External
|
92,009
|
|
8,453
|
|
2,441
|
|
102,903
|
|
144
|
|
103,047
|
|
Internal
|
2,160
|
|
575
|
|
75
|
|
2,810
|
|
(2,810)
|
|
-
|
|
|
94,169
|
|
9,028
|
|
2,516
|
|
105,713
|
|
(2,666)
|
|
103,047
|
|
Cost of sales
|
(45,379)
|
|
(4,859)
|
|
(1,451)
|
|
(51,689)
|
|
2,654
|
|
(49,035)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit/(loss)
|
48,790
|
|
4,169
|
|
1,065
|
|
54,024
|
|
(12)
|
|
54,012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
(43,204)
|
|
(2,947)
|
|
(2,261)
|
|
(48,412)
|
|
(2,284)
|
|
(50,696)
|
|
Operating profit/(loss)
|
5,586
|
|
1,222
|
|
(1,196)
|
|
5,612
|
|
(2,296)
|
|
3,316
|
|
Non-underlying costs
|
|
|
|
|
|
|
|
|
|
|
(94)
|
|
Exchange adjustment
on borrowings
|
|
|
|
|
|
|
|
|
|
|
155
|
|
Share of loss of associates
|
|
|
|
|
|
|
|
|
|
|
(2)
|
|
Finance costs
|
|
|
|
|
|
|
|
|
|
|
(2,146)
|
|
Finance income
|
|
|
|
|
|
|
|
|
|
|
94
|
|
Taxation
|
|
|
|
|
|
|
|
|
|
|
(2,350)
|
|
Loss for the period
|
|
|
|
|
|
|
|
|
|
|
(1,027)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported segments relating to the balance sheet as at 30 June 2024 are as follows:
|
Frames and
|
|
Manufacturing
|
|
Lenses
|
|
Total before
|
|
Adjustments
|
|
Total
|
|
Optics
|
|
|
|
|
|
adjustments &
|
|
& elimination
|
|
|
|
|
|
|
|
|
|
eliminations
|
|
|
|
|
|
£'000
|
|
£'000
|
|
£'000
|
|
£'000
|
|
£'000
|
|
£'000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
325,169
|
|
59,578
|
|
10,329
|
|
395,076
|
|
(179,413)
|
|
215,663
|
|
Total liabilities
|
(183,004)
|
|
(5,107)
|
|
(16,395)
|
|
(204,506)
|
|
156,590
|
|
(47,916)
|
|
|
142,165
|
|
54,471
|
|
(6,066)
|
|
190,570
|
|
(22,823)
|
|
167,747
|
|
Deferred tax asset
|
|
|
|
|
|
|
|
|
|
|
2,576
|
|
Deferred tax liability
|
|
|
|
|
|
|
|
|
|
|
(3,427)
|
|
Current tax liability
|
|
|
|
|
|
|
|
|
|
|
(3,271)
|
|
Borrowings
|
|
|
|
|
|
|
|
|
|
|
(61,685)
|
|
Group net assets
|
|
|
|
|
|
|
|
|
|
|
101,940
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets are the Group's gross assets excluding deferred tax asset. Total liabilities are the Group's gross liabilities excluding loans and borrowings, deferred and current tax liabilities.
NOTES TO THE INTERIM CONSOLIDATED STATEMENTS (continued)
For the period ended 30 June 2024
|
4. SEGMENT INFORMATION (CONTINUED)
The reportable segments subject to disclosure are consistent with the organisation model adopted by the Group during the six months ended 30 June 2023 are as below:
|
Frames and
|
|
Manufacturing
|
|
Lenses
|
|
Total before
|
|
Adjustments
|
|
Total
|
|
Optics
|
|
|
|
|
|
adjustments &
|
|
& elimination
|
|
|
|
|
|
|
|
|
|
eliminations
|
|
|
|
|
|
£'000
|
|
£'000
|
|
£'000
|
|
£'000
|
|
£'000
|
|
£'000
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
External
|
100,220
|
|
9,016
|
|
1,963
|
|
111,199
|
|
-
|
|
111,199
|
|
Internal
|
2,656
|
|
906
|
|
106
|
|
3,668
|
|
(3,668)
|
|
-
|
|
|
102,876
|
|
9,922
|
|
2,069
|
|
114,867
|
|
(3,668)
|
|
111,199
|
|
Cost of sales
|
(51,174)
|
|
(5,731)
|
|
(1,240)
|
|
(58,145)
|
|
4,093
|
|
(54,052)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
51,702
|
|
4,191
|
|
829
|
|
56,722
|
|
425
|
|
57,147
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
(44,430)
|
|
(3,304)
|
|
(2,077)
|
|
(49,811)
|
|
(2,781)
|
|
(52,592)
|
|
Operating profit/(loss)
|
7,272
|
|
887
|
|
(1,248)
|
|
6,911
|
|
(2,356)
|
|
4,555
|
|
Exchange adjustment
on borrowings
|
|
|
|
|
|
|
|
|
|
|
1,210
|
|
Share of loss of associates
|
|
|
|
|
|
|
|
|
|
|
(4)
|
|
Finance costs
|
|
|
|
|
|
|
|
|
|
|
(2,103)
|
|
Finance income
|
|
|
|
|
|
|
|
|
|
|
145
|
|
Taxation
|
|
|
|
|
|
|
|
|
|
|
(1,720)
|
|
Profit for the period
|
|
|
|
|
|
|
|
|
|
|
2,083
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported segments relating to the balance sheet as at 31 December 2023 are as follows:
|
Frames and
|
|
Manufacturing
|
|
Lenses
|
|
Total before
|
|
Adjustments
|
|
Total
|
|
Optics
|
|
|
|
|
|
adjustments &
|
|
& elimination
|
|
|
|
|
|
|
|
|
|
eliminations
|
|
|
|
|
|
£'000
|
|
£'000
|
|
£'000
|
|
£'000
|
|
£'000
|
|
£'000
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
320,836
|
|
64,585
|
|
9,672
|
|
395,093
|
|
(176,013)
|
|
219,080
|
Total liabilities
|
(182,225)
|
|
(5,543)
|
|
(14,408)
|
|
(202,176)
|
|
151,741
|
|
(50,435)
|
|
138,611
|
|
59,042
|
|
(4,736)
|
|
192,917
|
|
(24,272)
|
|
168,645
|
Deferred tax asset
|
|
|
|
|
|
|
|
|
|
|
2,826
|
Deferred tax liability
|
|
|
|
|
|
|
|
|
|
|
(3,647)
|
Current tax liability
|
|
|
|
|
|
|
|
|
|
|
(2,186)
|
Borrowings
|
|
|
|
|
|
|
|
|
|
|
(62,121)
|
Group net assets
|
|
|
|
|
|
|
|
|
|
|
103,517
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets are the Group's gross assets excluding deferred tax asset. Total liabilities are the Group's gross liabilities excluding loans and borrowings, deferred and current tax liabilities.
NOTES TO THE INTERIM CONSOLIDATED STATEMENTS (continued)
For the period ended 30 June 2024
|
4. SEGMENT INFORMATION (CONTINUED)
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 revenues 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 2024
|
|
Unaudited
6 months ended
30 June 2023
|
|
|
|
|
£'000
|
|
£'000
|
|
United Kingdom
|
|
|
12,971
|
|
13,621
|
|
Europe (excluding UK)
|
|
|
48,527
|
|
52,161
|
|
North America
|
|
|
35,398
|
|
37,428
|
|
South America
|
|
|
822
|
|
1,315
|
|
Asia
|
|
|
1,830
|
|
2,993
|
|
Australia
|
|
|
3,342
|
|
3,515
|
|
Other
|
|
|
157
|
|
166
|
|
|
|
|
103,047
|
|
111,199
|
|
5. EARNINGS PER SHARE
Basic Earnings per Share ("EPS") is calculated by dividing the profit or loss for the period attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the period.
Diluted EPS is calculated by dividing the profit or loss attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the period 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 period to 30 June 2024 the Group made a reported loss after tax; therefore, diluted EPS is not applicable as the impact of potential ordinary shares is anti-dilutive.
NOTES TO THE INTERIM CONSOLIDATED STATEMENTS (continued)
For the period ended 30 June 2024
|
|
|
5. EARNINGS PER SHARE (continued)
Reported Basic earnings per share is (1.01)p (30 June 2023: 2.05p), with reporting diluted earnings per share of (1.01)p (30 June 2023: 1.94p). The below table reflects the income and share data used in the basic and diluted EPS calculations. Earnings for the Underlying EPS are the 'Underlying Profit After Tax' as shown in the table 'Underlying EBITDA and Underlying PAT'.
6 months ended 30 June 2024
|
Basic weighted average number of Ordinary Shares ('000)
|
|
Total
earnings (£'000)
|
Earnings per share (pence)
|
|
Basic EPS
|
101,672
|
|
(1,027)
|
(1.01)
|
|
Diluted EPS
|
106,824
|
|
(1,027)
|
(1.01)
|
|
Basic Underlying EPS
|
101,672
|
|
2,903
|
2.86
|
|
Diluted Underlying EPS
|
106,824
|
|
2,903
|
2.72
|
|
6 months ended 30 June 2023
|
Basic weighted average number of Ordinary Shares ('000)
|
|
Total
earnings (£'000)
|
Earnings per share (pence)
|
Basic EPS
|
101,672
|
|
2,083
|
2.05
|
Diluted EPS
|
107,492
|
|
2,083
|
1.94
|
Basic Underlying EPS
|
101,672
|
|
4,605
|
4.53
|
Diluted Underlying EPS
|
107,492
|
|
4,605
|
4.28
|
12 months ended 31 December 2023
|
Basic weighted average number of Ordinary Shares ('000)
|
|
Total
earnings (£'000)
|
Earnings per share (pence)
|
Basic EPS
|
101,672
|
|
(997)
|
(0.98)
|
Diluted EPS
|
107,246
|
|
(997)
|
(0.98)
|
Basic Underlying EPS
|
101,672
|
|
5,207
|
5.12
|
Diluted Underlying EPS
|
107,246
|
|
5,207
|
4.85
|
Within INSPECS Group plc, each Ordinary share carries the right to participate in distributions, as respects dividends and as respects capital on winding up.
|
NOTES TO THE INTERIM CONSOLIDATED STATEMENTS (continued)
For the period ended 30 June 2024
|
|
|
|
|
|
|
|
|
6. TRADE AND OTHER RECEIVABLES
|
|
|
Unaudited
As at
30 June 2024
|
|
Unaudited
As at
30 June 2023
Restated
|
|
As at
31 December
2023
|
|
|
|
£'000
|
|
£'000
|
|
£'000
|
Trade receivables
|
|
|
24,717
|
|
26,298
|
|
24,168
|
Prepayments
|
|
|
1,984
|
|
3,381
|
|
2,193
|
Other receivables
|
|
|
6,273
|
|
7,753
|
|
9,494
|
|
|
|
|
|
|
|
|
|
|
|
32,974
|
|
37,432
|
|
35,855
|
7. TRADE AND OTHER PAYABLES
|
Unaudited
|
|
Unaudited
|
|
As at
31 December
2023
|
|
As at
|
|
As at
|
|
|
30 June 2024
|
|
30 June 2023
|
|
|
£'000
|
|
£'000
|
|
£'000
|
Trade payables
|
22,901
|
|
23,715
|
|
21,368
|
Social security and other taxes
|
3,143
|
|
4,723
|
|
3,379
|
Royalties
|
2,669
|
|
3,216
|
|
4,255
|
Accruals
|
6,750
|
|
7,267
|
|
7,373
|
|
|
|
|
|
|
|
35,463
|
|
38,921
|
|
36,375
|
|
|
|
|
|
|
|
|
8. NET DEBT
|
Unaudited
|
|
Unaudited
|
|
As at
31 December
2023
|
|
As at
|
|
As at
|
|
|
30 June 2024
|
|
30 June 2023
|
|
|
£'000
|
|
£'000
|
|
£'000
|
Cash and cash equivalents
|
24,616
|
|
25,862
|
|
20,070
|
Interest bearing borrowings excl. leases
|
(42,628)
|
|
(46,449)
|
|
(43,383)
|
Invoice discounting
|
(1,804)
|
|
(2,089)
|
|
(887)
|
Net debt excluding leases
|
(19,816)
|
|
(22,676)
|
|
(24,200)
|
|
|
|
|
|
|
Lease liability
|
(17,253)
|
|
(18,216)
|
|
(17,851)
|
Net debt including leases
|
(37,069)
|
|
(40,892)
|
|
(42,051)
|
|
|
|
|
NOTES TO THE INTERIM CONSOLIDATED STATEMENTS (continued)
For the period ended 30 June 2024
|
|
|
|
|
|
|
|
|
|
9. NON-UNDERLYING COSTS
Non-underlying costs during the six months to 30 June 2024 relate to costs associated with the acquisition of A-Optikk AS during the period (£22,000) and restructuring costs in relation to the integration of Inspecs USA with Tura (£72,000).
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 a vesting date 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 period have the following expected lives and exercise prices:
Grant date
|
|
Expected life of
options
|
Exercise price per option £
|
Number of share options
|
|
11 October 2019
|
|
3-5 years
|
1.01
|
412,102
|
|
27 February 2020
|
|
3-5 years
|
1.95
|
1,923,110
|
|
22 December 2020
|
|
3-5 years
|
2.10
|
890,000
|
|
26 February 2021
|
|
3-5 years
|
3.25
|
641,036
|
|
21 June 2021
|
|
3-5 years
|
3.51
|
90,000
|
|
31 August 2021
|
|
3-5 years
|
3.70
|
275,000
|
|
23 December 2021
|
|
3-5 years
|
3.70
|
279,999
|
|
28 February 2022
|
|
3-5 years
|
3.75
|
641,036
|
|
11. RESTATED STATEMENT OF FINANCIAL POSITION
The 2023 Annual Report and Accounts included a restated Statement of Financial Position for the year to 31 December 2022 relating to a prior year adjustment concerning the offsetting of deferred tax assets and liabilities (see note 35 of the 2023 Annual Report and Accounts). The 30 June 2023 comparative Statement of Financial Position has therefore also been restated within these interims, as below. In addition, the treatment of a receivable associated with a sublease has been restated below, such that it aligns with the treatment within the 2023 Annual Report and Accounts.
NOTES TO THE INTERIM CONSOLIDATED STATEMENTS (continued)
For the period ended 30 June 2024
|
|
|
|
As Reported
as at
30 June 2023
£'000
|
|
Adjustments
£'000
|
|
As at 30 June 2023 Restated
£'000
|
|
ASSETS
|
|
|
|
|
|
|
|
|
NON-CURRENT ASSETS
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
55,578
|
|
-
|
|
55,578
|
|
Intangible assets
|
|
|
32,248
|
|
-
|
|
32,248
|
|
Property Plant and equipment
|
|
|
33,840
|
|
-
|
|
33,840
|
|
Investment in associates
|
|
|
105
|
|
-
|
|
105
|
|
Net investment - sublease
|
|
|
675
|
|
(675)
|
|
-
|
|
Deferred tax
|
|
|
6,337
|
|
(4,234)
|
|
2,103
|
|
|
|
|
128,783
|
|
(4,909)
|
|
123,874
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
|
Inventories
|
|
|
42,349
|
|
-
|
|
42,349
|
|
Trade and other receivables
|
|
|
36,647
|
|
785
|
|
37,432
|
|
Net investment - sublease
|
|
|
110
|
|
(110)
|
|
-
|
|
Tax receivable
|
|
|
1,719
|
|
-
|
|
1,719
|
|
Cash and cash equivalents
|
|
|
25,862
|
|
-
|
|
25,862
|
|
|
|
|
106,687
|
|
675
|
|
107,362
|
|
Assets held for sale
|
|
|
832
|
|
-
|
|
832
|
|
TOTAL ASSETS
|
|
|
236,302
|
|
(4,234)
|
|
232,068
|
|
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Called up share capital
|
|
|
1,017
|
|
-
|
|
1,017
|
|
Share premium
|
|
|
89,508
|
|
-
|
|
89,508
|
|
Foreign currency translation reserve
|
|
|
5,461
|
|
-
|
|
5,461
|
|
Share option reserve
|
|
|
3,153
|
|
-
|
|
3,153
|
|
Merger reserve
|
|
|
5,340
|
|
-
|
|
5,340
|
|
Retained earnings
|
|
|
1,698
|
|
-
|
|
1,698
|
|
TOTAL EQUITY
|
|
|
106,177
|
|
-
|
|
106,177
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
NON-CURRENT LIABILITIES
|
|
|
|
|
|
|
|
Financial liabilities - borrowings
|
|
|
|
|
|
|
|
|
Interest bearing loans and borrowings
|
|
|
51,525
|
|
-
|
|
51,525
|
|
Deferred consideration
|
|
|
652
|
|
-
|
|
652
|
|
Deferred tax
|
|
|
8,203
|
|
(4,234)
|
|
3,969
|
|
|
|
|
60,380
|
|
(4,234)
|
|
56,146
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
|
|
|
Trade and other payables
|
|
|
38,921
|
|
-
|
|
38,921
|
|
Right of return liability
|
|
|
11,862
|
|
-
|
|
11,862
|
|
Financial liabilities - borrowings
|
|
|
|
|
|
|
|
|
Interest bearing loans and borrowings
|
|
|
13,140
|
|
-
|
|
13,140
|
|
Invoice discounting
|
|
|
2,089
|
|
-
|
|
2,089
|
|
Deferred and contingent consideration
|
|
|
1,333
|
|
-
|
|
1,333
|
|
Tax payable
|
|
|
2,400
|
|
-
|
|
2,400
|
|
|
|
|
69,745
|
|
-
|
|
69,745
|
|
TOTAL LIABILITIES
|
|
|
130,125
|
|
-
|
|
125,891
|
|
TOTAL EQUITY AND LIABILITIES
|
|
|
236,302
|
|
(4,234)
|
|
232,068
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOTES TO THE INTERIM CONSOLIDATED STATEMENTS (continued)
For the period ended 30 June 2024
|
12. POST BALANCE SHEET EVENTS
Since the end of the interim period on 30 June 2024 there were no material events that the directors consider material to the users of these interim statements.