Spectra Systems Corporation (AIM:SPSY, OTC:SCTQ) has reported an increase in revenue and earnings for the year on the back of strong demand for its covert materials, used in the likes of bank notes.
Revenue jumped 3.4% to US$20.29 million (£16.08 million) for the year, with adjusted EBITDA climbing 3.9% to US$8.39 million, the firm reported.
This rise was “primarily driven by pre-production development contracts as well as strong demand for our materials to meet production requirements of our long-standing central bank customer”, chief executive Nabil Lawandy explained.
Spectra had penned its largest order yet from a central back in October, while opportunities to qualify as a supplier for a Middle Eastern bank remain, the firm said.
Cash sat at US$13.25 million as of December, from US$17.50 a year earlier, while debt amounted to US$5.58.
An annual dividend of US$0.116 per share was declared, against US$0.115 last year.
Adjusted per-share earnings slipped 4.1% to 13.9 cents meanwhile, which Lawandy said related to the issuance of shares during its takeover of Cartor Holding Ltd and increased taxes.
“The combination of the sensor revenues, expected to begin with the execution of the manufacturing contract, as well as the increased opportunities for optical materials and downstream polymer substrate sales are expected to result in record revenues, cash generation, and continued long-term growth,” Lawandy added.
“The board therefore believes that the company is on track to achieve record earnings in 2024.”