INSPECS (SPEC:AIM) 404P

Gain to date: 49%

Original entry point: Buy at 271p, 23 Dec 2020

Shares in eyewear frames designer-to-optically advanced spectacle lenses maker Inspecs (SPEC:AIM) are up the best part of 50% since we originally highlighted the group’s global growth potential and the scale benefits and synergies to come from the acquisition of eyewear supplier Eschenbach.

The Bath-based group’s reassuring first-quarter trading update (29 April) flagged a strong start to the year despite nationwide lockdowns in the UK, Germany and France and a variety of state lockdowns in the US.

The enlarged group delivered revenues of $67 million, which Peel Hunt estimates marked growth of 5% and leaves Inspecs on track to meet the broker’s $241 million sales forecast for 2021.

‘Whilst this performance marks a positive start to the year, the board remains cautious on 2021 as Covid-19 remains prevalent across the world,’ said Inspecs, also assuring the integration of Eschenbach is ‘progressing to plan and the benefits of the enlarged group working together are starting to be realised, with a number of joint projects underway’.

Peel Hunt estimates that pre-tax profit will rise from $3.6 million to $19.5 million in 2021, ahead of $24.9 million pre-tax profit and $256.5 million in sales for 2022.

SHARES SAYS: Inspecs is trading robustly and will benefit from market recovery and pent-up demand. Keep buying. 

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