7th Sep 2020 13:17
(Alliance News) - Spectra Systems Corp on Monday said annual earnings will beat market expectations as it reported a decent set of first half results amid the Covid-19 pandemic.
Chief Executive Nabil Lawandy said: "Spectra Systems is on track to deliver an excellent performance for the full 2020 financial year and expects to significantly exceed market expectations for 2020, in spite of the Covid-19 pandemic."
Spectra Systems shares were up 14% at 151.00 pence each in London on Monday afternoon.
The technology-based security solutions provider posted pretax profit of USD2.0 million for the first half ended June 30, broadly flat with the year prior.
Revenue rose to USD6.5 million from USD6.4 million the year before.
The company said first half performance was in line with its expectations and the prior year period.
Annual revenue will be weighted towards the second half as the company focuses on both brand authentication and a "robust effort" to commercialise its security technologies with an emphasis on polymer banknotes and technology driven existing central bank customers, Lawandy said.
In the short term, Spectra Systems' brand authentication sector offers good growth potential with some "very large" opportunities for smartphone-based technology.
The company's covert banknote security sector will provide a more stable long-term, multi-decade revenue once new contracts are signed, Lawandy said.
By Greg Roxburgh; [email protected]
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