Inspecs Group Plc (SPEC) AI Stock Analysis

• Market Cap: £47.28M
• Dividend Yield: N/A
• Average Volume (3M): 111.19K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.98
• Revenue Growth: -2.48%
• EPS Growth: -362.24%
• Country: UK
• Employees: 1,654
• Sector: Healthcare
• Sector Strength: 37
• Industry: Medical - Instruments & Supplies
• EPS (TTM): -0.04
• Shares Outstanding: 101,671,524
• 10 Day Avg. Volume: 63,042
• 30 Day Avg. Volume: 111,190
• 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: £49.00
• Price Target Upside: 5.38% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 52 Neutral
• Price Target: 48.00p ▲(3.23%Upside)

The overall score is primarily influenced by financial performance challenges, including declining revenues and negative profitability. Technical indicators show neutral market conditions, while valuation metrics suggest potential overvaluation. Positive corporate events provide some optimism regarding governance and leadership stability.

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
EBITDA	15.75M	17.27M	12.06M	6.05M	―
Net Income	-4.61M	-997.00K	-7.82M	-5.43M	-8.91M
Balance Sheet
Total Assets	220.25M	221.91M	292.68M	326.36M	310.45M
Cash, Cash Equivalents and Short-Term Investments	23.96M	20.07M	26.80M	29.76M	32.67M
Total Debt	62.47M	62.12M	84.42M	84.92M	79.86M
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: Negative
• Last Price: 46.50
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SPEC, the sentiment is Negative. The current price of 46.5 is below the 20-day moving average (MA) of 48.45, below the 50-day MA of 46.61, and below the 200-day MA of 47.73, indicating a bearish trend. The MACD of 0.31 indicates Positive momentum. The RSI at 38.37 is Neutral, neither overbought nor oversold. The STOCH value of 20.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:SPEC.

Inspecs Group Plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TSTL	82 Outperform	£198.00M	32.15	19.61%	4.07%	10.32%	1.25%
CTEC	71 Outperform	£5.32B	35.82	11.12%	2.10%	3.94%	41.63%
AMS	67 Neutral	£441.19M	61.78	2.93%	1.27%	40.66%	-55.09%
Sector *	57 Neutral	£4.74B	6.48	-61.44%	5.43%	33.02%	6.17%
SPEC	52 Neutral	£47.28M	―	-4.56%	―	-2.48%	-362.24%
SBTX	40 Underperform	£43.02M	―	-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.