Inspecs Group Plc (SPEC) AI Stock Analysis

• Market Cap: £48.29M
• Dividend Yield: N/A
• Average Volume (3M): 383.40K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.95
• Revenue Growth: -2.48%
• EPS Growth: -362.24%
• Country: UK
• Employees: 1,654
• Sector: Healthcare
• Sector Strength: 58
• Industry: Medical - Instruments & Supplies
• EPS (TTM): -0.04
• Shares Outstanding: 101,671,524
• 10 Day Avg. Volume: 252,792
• 30 Day Avg. Volume: 383,404
• PEG Ratio: -0.16
• Price to Book (P/B): 0.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 62.75
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 58 Neutral
• Price Target: 51.00p ▲(8.51%Upside)

Inspecs Group Plc's stock score is driven primarily by its challenging financial performance, with key issues in profitability and cash flow management. The positive technical analysis provides some optimism, as market momentum remains strong. However, the weak valuation due to ongoing losses and negative P/E ratio is a significant downside. Corporate events contribute positively by indicating efforts to stabilize leadership and align interests, but the financial challenges remain the most significant factor.

Inspecs Group Plc Business Overview & Revenue Model

Company Description

Inspecs Group Plc (SPEC) is a global eyewear company that designs, manufactures, and distributes a comprehensive range of spectacle frames and lenses. Operating within the optical and fashion eyewear sectors, the company caters to a diverse customer base, including major retail chains, independent opticians, and branded eyewear companies. Inspecs offers an extensive portfolio of licensed and owned brands, appealing to a wide array of style preferences and consumer demographics.

How the Company Makes Money

Inspecs Group Plc generates revenue primarily through the sale of eyewear products, including spectacle frames and lenses. The company operates a vertically integrated model, overseeing the entire production process from design to distribution. This allows Inspecs to maintain control over quality and costs while providing competitive pricing. Key revenue streams include wholesale distribution to optical retailers and direct sales to consumers through owned retail outlets. Additionally, Inspecs benefits from strategic partnerships and licensing agreements with renowned fashion and lifestyle brands, enabling them to expand their brand portfolio and attract a broader consumer base. The company's global distribution network and manufacturing facilities in Asia and Europe further enhance its ability to efficiently serve international markets, contributing to its overall earnings.

Inspecs Group Plc Financial Statement Overview

Summary

Inspecs Group Plc is facing profitability challenges, with declining revenues and negative net income. The balance sheet reflects manageable leverage but shows a declining equity base. Cash flow generation needs improvement, as indicated by reduced free cash flow. Overall, the company needs to address its profitability and cash flow issues to enhance financial stability.

Income Statement

Inspecs Group Plc experienced a decline in revenue over the past year, with a negative revenue growth rate. The gross profit margin stands at approximately 52.2%, indicating decent production efficiency. However, the company is facing challenges in profitability, as reflected by a negative net profit margin and a declining EBIT margin. The EBITDA margin of 7.9% suggests some operational efficiency, but overall profitability remains under pressure.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.63, suggesting manageable leverage levels. However, the return on equity is negative, indicating a lack of profitability with respect to shareholder investments. The equity ratio of 44.8% reflects a reasonable proportion of equity financing, but the declining equity position over recent years raises concerns about financial stability.

Cash Flow

The company's free cash flow has decreased year-over-year, reflecting challenges in cash generation. The operating cash flow to net income ratio is positive, indicating that the company generates cash from operations despite reporting losses. However, the decline in free cash flow growth rate highlights the need for improved cash flow management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
198.26M	203.29M	248.58M	246.47M	47.41M
	Gross Profit
103.45M	103.55M	122.29M	115.77M	20.52M
	EBIT
3.41M	2.89M	-4.81M	-4.25M	-2.94M
	EBITDA
15.75M	17.27M	12.06M	6.05M	―
	Net Income Common Stockholders
-4.61M	-997.00K	-7.82M	-5.43M	-8.91M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
23.96M	20.07M	26.80M	29.76M	32.67M
	Total Assets
220.25M	221.91M	292.68M	326.36M	310.45M
	Total Debt
62.47M	62.12M	84.42M	84.92M	79.86M
	Net Debt
38.51M	42.05M	57.62M	55.16M	47.19M
	Total Liabilities
121.56M	118.39M	162.59M	181.13M	164.64M
	Stockholders Equity
98.69M	103.52M	130.09M	145.22M	145.82M
Cash Flow		Free Cash Flow
4.28M	6.92M	842.00K	12.37M	-3.37M
	Operating Cash Flow
7.20M	12.66M	5.08M	20.02M	-748.00K
	Investing Cash Flow
-2.52M	-6.18M	-4.19M	-15.66M	-104.40M
	Financing Cash Flow
-426.00K	-8.84M	-4.40M	1.70M	128.71M

Inspecs Group Plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 47.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SPEC, the sentiment is Positive. The current price of 47 is below the 20-day moving average (MA) of 47.13, above the 50-day MA of 43.82, and below the 200-day MA of 48.34, indicating a neutral trend. The MACD of 1.30 indicates Positive momentum. The RSI at 54.61 is Neutral, neither overbought nor oversold. The STOCH value of 10.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SPEC.

Inspecs Group Plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CTEC	80 Outperform	£5.98B	40.25	11.12%	1.86%	3.94%	41.63%
TSTL	78 Outperform	£181.31M	29.24	19.61%	5.98%	10.32%	1.25%
AMS	72 Outperform	£465.91M	65.26	2.93%	0.72%	40.66%	-55.09%
SPEC	58 Neutral	£48.29M	―	-4.56%	―	-2.48%	-362.24%
Sector *	54 Neutral	$5.41B	3.27	-45.10%	3.29%	16.81%	0.02%
SBTX	49 Neutral	£40.67M	―	-63.28%	―	1557.07%	24.70%

Inspecs Group Plc Corporate Events

Inspecs Group Plc Grants CEO Share Options to Align Leadership Interests

Inspecs Group Plc has announced the grant of options to acquire 400,000 Ordinary Shares to its CEO, Richard Peck, under the Inspecs Long Term Incentive Plan 2020. This move is part of the company’s strategy to incentivize leadership and align executive interests with shareholder value, potentially impacting the company’s operational focus and market positioning.

Inspecs Group Faces Tariff Challenges, Seeks New Leadership

Inspecs Group plc announced at its Annual General Meeting that US tariffs are affecting sales, but European demand is improving and projects in North America are progressing well. The company is conducting a strategic review of its lens business, Norville, and is searching for a new Independent Non-Executive Chair and Chief Financial Officer. Despite challenges, Inspecs is focused on operational efficiency and cost-saving measures, expecting flat revenue for 2025 compared to 2024. Robin Totterman will step down as Chair, ensuring a smooth transition for the new leadership.

Inspecs Group Announces Board Changes and Governance Update

Inspecs Group plc announced updates on its Board composition and the withdrawal of a requisition notice for a general meeting. The company is in the process of appointing a new Independent Non-Executive Chair to replace Robin Totterman, who will step down as Executive Chair at the upcoming AGM. Christopher Hancock will serve as Interim Chair until a new appointment is made. Additionally, the search for a new Chief Financial Officer is progressing well. Downing LLP has withdrawn its requisition notice for a general meeting, indicating a stabilization in the company’s governance. These developments suggest a focus on ensuring leadership stability and continuity, which could positively impact Inspecs’ operational performance and stakeholder confidence.

Inspecs Group PLC Announces Change in Major Holdings

Inspecs Group PLC has announced a change in its major holdings, with Luke Johnson acquiring a significant increase in voting rights, now holding 5.86% of the total voting rights. This acquisition highlights a shift in shareholder dynamics, potentially impacting the company’s strategic decisions and influencing its market positioning.

Inspecs Group Rejects Board Changes Proposed by Downing LLP

Inspecs Group plc has received a requisition notice from Downing LLP to convene a general meeting to vote on the removal of Robin Totterman as a director and the appointment of Rocco Benetton as Executive Chairman. The Board unanimously rejects these proposals, emphasizing the importance of an independent chair and the ongoing search for a new Non-Executive Chair. The Board advises shareholders to await further announcements and highlights Robin Totterman’s continued value to the company.

Inspecs Group PLC Announces Change in Major Holdings

Inspecs Group PLC has announced a change in its major holdings, as Luke Johnson has acquired or disposed of voting rights, resulting in a 3.79582189% shareholding. This adjustment in voting rights may influence the company’s governance and decision-making processes, potentially impacting its strategic direction and stakeholder interests.

INSPECS Group Announces AGM and Annual Report Release

INSPECS Group plc has announced the posting of its Annual Report and Accounts along with the Notice of its Annual General Meeting (AGM) to shareholders, with the AGM scheduled for June 3, 2025, in Bath, Somerset. This announcement reflects the company’s ongoing commitment to transparency and stakeholder engagement, as it continues to expand its global footprint and enhance its product offerings in the competitive eyewear industry.

INSPECS Announces Board Update as Director Departs

INSPECS Group plc announced that Hugo Adams, a Non-Executive Director, will not seek re-election at the upcoming Annual General Meeting due to his new role as CEO of Kelpi, a sustainable materials company. The board expressed gratitude for his contributions and plans to provide further updates on board composition in the future.

INSPECS Group Confirms Unchanged Audited Full-Year Results for 2024

INSPECS Group plc has released its audited full-year results for the year ending December 31, 2024, confirming that there are no changes from the previously announced unaudited results. This announcement underscores the company’s stable financial performance and transparency, which may reassure stakeholders and investors about its market position and operational consistency.

INSPECS Group Reports Resilient 2024 Results Amid Market Challenges

INSPECS Group plc announced its preliminary unaudited results for 2024, highlighting a 2.5% decline in revenue to £198.3m due to softer consumer demand and competitor consolidation. Despite this, the company improved its gross profit margin by 130 basis points to 52.2% and reduced net debt by £1.3m. Strategic initiatives, including the completion of a new manufacturing facility in Vietnam and the launch of new products, have enhanced operational efficiency and expanded the brand portfolio. The company remains optimistic about its medium-term targets, aiming for significant revenue growth and improved EBITDA margins, while addressing tariff-related uncertainties through supply chain efficiencies and cost management.

Inspecs Group Announces CFO Succession Plan

Inspecs Group plc announced that its Chief Financial Officer, Chris Kay, will step down after a successor is appointed, marking a significant leadership change. Chris Kay has been instrumental in the company’s strategic growth, particularly during its IPO and through mergers and acquisitions, which expanded Inspecs’ global reach and capabilities.