Spectra Systems receives $1.3m contract from central bank

Banknote authentication and brand protection technologies provider Spectra Systems Corporation has received funding approval for a $1.3m (£1.04m) contract with a G7 central bank to deliver three advanced quality control units used in the manufacturing of banknotes with its materials, it announced on Tuesday.

The AIM-traded firm said the contract and its terms had been fully approved, and its execution was scheduled for later in September.

Engineering design of the units would begin in 2019, and the units would be delivered in 2020.

The company said that, supported by profits from the new quality control hardware contract, it intended to accelerate its G7 material manufacturing throughout 2019 to provide resources for expected material demands related to sample and possible production requirements for a request for proposals from an Asian central bank, which it received recently.

As a result of the G7 contract, Spectra said it anticipated that its profits for the year ending 31 December would “significantly exceed” market expectations.

“We are delighted that our long standing G7 customer has provided us with the opportunity to upgrade and replace the current equipment used in banknote production,” said Spectra chief executive officer Dr Nabil Lawandy.

“This new equipment will support our continued sales of materials to our central bank customer for many years to come.

“We are also delighted that we are able to provide a second positive trading update for 2019 which is both reflective of an increasing product mix and includes new hardware sales which support the long term sales of our consumables.”