Spectra Systems ups dividend as major contract boosts revenue

Secure transaction and banknote technology firm Spectra Systems reported an increase in first-half revenue on Monday on the back of a large customer order.

For the six-months ended 30 June, the company’s revenues increased by 11% compared to the same period last year, jumping to $8m after the delivery of a large G7 customer order and license revenue from a major banknote supplier, driving a 38% rise in operating profit to $3.3m.

Consequently, the AIM-traded company increased its annual dividend by 20% to $0.06 per share.

The company had cash and cash equivalents of $12.3m at 30 June, up from $9.5m from the period last year.

Nabil Lawandy, chief executive of Spectra, said: "The delivery of two quality control devices to a tobacco manufacturer has increased our chances of introducing our TruBrand smartphone authentication technology in China. This is in addition to the recent allowance by the United States patent office of our patents on this technology."

Elsewhere, the company has near-term opportunities to work on polymer banknote technology with a G20 central bank and a major Asian central bank.

"The board therefore believes that the company, by achieving key business milestones, will continue to perform well for the remainder of 2018 with excellent prospects for ongoing earnings growth thereafter," said Lawandy.

Spectra’s shares were up 5.92% at 103.80p at 1109 BST.