West Country-headquartered eyewear firm Inspecs says Donald Trump's tariffs are not expected to impact consumer demand and it is monitoring the situation "closely".
The Bath-based company said its non-US-based businesses were not currently affected by the recent changes announced by the US President and that selective pass-through of cost increases would "largely mitigate" the situation. It also said it was focused on delivering operational efficiencies.
Inspecs designs and manufacturers eyewear, frames and lenses, with many produced in countries such as China, which have been slapped with high tariffs by President Trump. The company only opened a new factory in Vietnam last year.
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"Notwithstanding the recently announced tariffs and caution in relation to market conditions, compelling new projects in the pipeline give us confidence in delivering on market expectations for 2025," said chief executive Richard Peck.
In a set of unaudited preliminary results for the year ended December 31, 2024, Inspecs reported a group revenue decrease of 2% to £198.3m.
Total operating expenses were reduced by 0.3% despite inflationary pressures, the firm said on Thursday, while underlying EBITDA - a measure of performance - reduced by 2.2% to £17.6m.
Inspecs said it expected a "significant drop" in net finance costs in 2025 amounting to around £700,000 and that trading was in line with market expectations.
"Inspecs demonstrated resilience in 2024 despite challenging macroeconomic conditions," said Mr Peck. "However, our continued focus throughout the year on the integration and simplification of our business has been significant.
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"We successfully got our new factory in Vietnam up and running, which has significantly improved our capacity. We also strengthened our brand portfolio by introducing several new brands and expanding our existing ones, all the while working on our supply chain and efficiencies.
"Additionally, we have focused on growing our customer base in key markets. These strategic initiatives allowed us to improve our margins, maintain our administrative costs in an inflationary environment, and reduce our net debt, setting us up well for the future."
Mr Peck said the first quarter of 2025 had "laid the groundwork" for a "pivotal" year for the company. He added: "As we move forward, the focus remains on sharpening efficiency, streamlining operations, and advancing key initiatives."
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