Proactive Investors - Spectra Systems Corp (LON:SPSY), the specialist in banknote authentication, is set to post record earnings for the year, buoyed by a strong first-half performance.
The company reported a 25% increase in revenue to $11.6 million in the six months to 30 June 2023 and a 59% surge in profit before tax and amortisation (PBTA) to $5.9 million compared to the same period last year. Its cash position remained solid at $16,582,000, with no debt on its balance sheet.
Spectra attributed its robust financials to pre-production development contracts and increased demand for materials from an existing central bank customer.
It has also made significant progress in its sensor development contract, moving into the final phase with preproduction units expected in the fourth quarter of 2024. The central bank customer is slated to provide a draft manufacturing contract in the second half of this year.
Spectra said its "proactive approach" to potential supply chain issues has paid off, resulting in enhanced revenues for the first half.
On the optical materials front, revenue from K-cup printers has grown substantially, with a new customer in Canada expected to place an order in the first quarter of 2024.
Additionally, the company has initiated a testing programme for smartphone-based authentication solutions with a UK passport firm and is awaiting approval for holographic labels to protect physical non-fungible token (NFT) artwork.
Spectra Systems' gaming software operation has also gone live with the New York State lottery, and a new managing director with expertise in software management has been appointed.
Chief executive Nabil Lawandy said the "company is on track to achieve record earnings and meet market expectations for the full year".