Scottish eyecare company Optical Express has reported a decline in turnover and profits which it blamed on the result of headwinds from the cost-of-living crisis.

In its latest set of annual accounts filed with Companies House, Optical Express parent company Lorena Investments posted revenues of £146.5 million during the year to December 2022, down from £157.4m previously. Pre-tax profits fell to £39.8m versus £52.1m.

Owned by David Moulsdale, who set up the business in 1991, Glasgow-based Optical Express said its financial performance was hampered by the escalation in operating costs linked to higher electricity, supplier and wage bills. Reduced confidence and disposable income among consumers meant fewer patients proceeded with laser eye surgery, which drove a hefty increase in revenues and profits in the previous year.

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Despite these difficulties, Mr Moulsdale said the business continued to invest in diagnostic and treatment technologies from Johnson & Johnson and Carl Zeiss, including the latest operating microscopes used in procedures such as lens replacement and cataract surgery. Optical Express is therefore "well-placed to capitalise on consumer confidence in refractive surgery" as new procedures are introduced to the market.

“Through a combination of continued investment in the latest and most advanced technology and in our people we are reporting reasonable progress during 2022," Mr Moulsdale said.

"Obviously, our [earnings] and profit are down from last year. However, this should be reviewed against the backdrop of the Russian invasion of Ukraine, resulting in a significant reduction in consumer confidence.

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"Nevertheless, our teams across the group have delivered strong numbers in a challenging economic environment.”

The company operates nearly 130 clinics throughout the UK and Ireland, with further outlets in Germany and Croatia. It employs approximately 1,230 people.

Commenting on performance in the current financial  year, directors said the business "continues to trade strongly in a competitive market" and is also controlling its cost base to allow for the generation of "significant profit".

The highest-paid director, presumably Mr Moulsdale, received total emoluments of £501,000 which was unchanged from 2021. Total emoluments for all directors in 2022 amounted to £1.15m, up from £991,000 the year before.