INSPECS Group (SPEC) H2 2025 earnings summary

Executive summary

• Revenue remained stable at £191.7m, down 0.8% year-over-year, with constant currency revenue flat at £193.4m.

• Gross profit margin declined by 70bps to 51.7% due to inflation and US tariffs.

• Underlying EBITDA fell 9% to £17.7m, and operating profit before non-underlying items was £5.7m.

• The Norville lens business was closed, simplifying operations and improving capital allocation.

• A takeover offer by Bidco 1125 Limited became unconditional in March 2026.

Financial highlights

• Net loss for the year was £9.6m, compared to £4.6m in 2024.

• Loss from continuing operations was £3.3m, with discontinued operations (Norville) contributing a £6.3m loss.

• Underlying EBITDA margin decreased from 10.1% to 9.2%.

• Net debt (excluding leases) increased to £32.3m from £22.9m.

• No dividend declared for 2025.

Outlook and guidance

• Board expects to deliver results in line with 2026 expectations, with European markets showing momentum.

• Ambition to achieve annual organic revenue CAGR at least 40% above market growth (market forecast ~3% CAGR).

• Targeting double-digit underlying EBITDA margin and net debt of 40%-75% of underlying EBITDA by 2027.

• Continued focus on operational efficiency, margin improvement, and ESG integration.