4th Jun 2015 15:13
LONDON (Alliance News) - OpSec Security Group PLC Thursday reported a pretax profit in its recently-ended financial year, swinging from a loss in the prior year as revenue rose in its Transaction Card and Government Protection sectors.
OpSec, which provides anti-counterfeiting products and services, said it made a pretax profit in the year to March 31 of GBP121,000, after making a pretax loss of GBP3.2 million the year before.
Revenue rose to GBP61.3 million from GBP55.5 million, as sales in the Transaction Card operations increasing by more than half to GBP16.3 million from GBP10.7 million. OpSec said this reflected strong demand in North America as the market transitions to 'chip and pin' cards together with re-stocking at a major customer following a supply chain disruption in the prior period.
Sales were also boosted by an 11% increase in the Government Protection sector to GBP13.8 million from GBP12.4 million, due to contracts secured in the prior year and strong demand from its Asian currency customer offsetting reduced orders from an Eastern European government.
Revenue in the Brand Protection sector declined, however, by 4% to GBP31.3 million from GBP32.5 million, due to a price reduction at a major Asian tobacco customer and lower volumes in the football-related apparel business where the prior year benefited from the World Cup.
"We are starting the current financial year with a healthy order book but also with the knowledge that two of our current customer programmes are coming to an end and that the re-stocking at one of our major transaction card customers will not repeat in the current financial year. The rationalisation of the group's production facilities scheduled to be completed in the first half of the new financial year should be a significant benefit to the group's profitability," Chairman Richard Fuller said in a statement.
Shares in OpSec were trading up 3% at 34.50 pence Thursday afternoon.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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