Spectra Systems Confident For 2019 As Annual Profit Climbs 30%

LONDON (Alliance News) - Banknote security firm Spectra Systems Corp on Monday said it has ...

Alliance News 25 March, 2019 | 11:17AM
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LONDON (Alliance News) - Banknote security firm Spectra Systems Corp on Monday said it has "excellent" prospects after a good annual performance in 2018.

Revenue for 2018 increased 3% on the prior year to USD12.5 million, with pretax profit rising 30% to USD4.0 million.

Spectra will pay a dividend of 7 US cents per share, 17% higher than what it paid for 2017.

Spectra said growth was driven by large orders from a G7 government customer and increased royalties from a covert technology licensing deal with a worldwide banknote supplier.

The core Authentication Systems division increased revenue 3.7% to USD11.2 million from USD10.8 million, and adjusted earnings before interest, tax, depreciation, and amortisation 21% to USD4.6 million from USD3.8 million.

This performance was driven by the sale and royalties from covert materials.

In Secure Transactions, Spectra posted revenue of USD1.3 million, flat on the prior year, while adjusted Ebitda fell 17% to USD461,000 from USD555,000, a result in line with expectations.

"The board believes the company, by achieving key business milestones, will continue to perform well and has excellent prospects for maintaining strong earnings in 2019," said Chief Executive Nabil Lawandy.

Shares were 4.0% lower on Monday at 119.10 pence each.

By George Collard; georgecollard@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Spectra Systems Corp 110.00 GBX 0.92 -

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