Shares in Spectra Systems Corporation (AIM:SPSY, OTC:SCTQ) rose 8% to 136p after the AIM-listed banknote authentication and security technology company reported a doubling of adjusted earnings per share following the first deliveries under a major sensor contract.
Revenue rose 30.7% to $64.3 million for the year ended 31 December 2025, while adjusted EBITDA (earnings before interest, tax, depreciation and amortisation, adjusted for non-cash items) surged 82.9% to $27.3 million and adjusted profit before tax and amortisation more than doubled to $25.2 million.
Adjusted earnings per share rose 100% to 37.8 US cents, with chief executive Nabil Lawandy noting that, including stock compensation adjustments the increase was 133%.
The step-change in profitability was driven by partial completion of a sensor order for a long-standing customer, which generated $5.7 million in payments during 2025, with further cash expected as remaining sensors are delivered in 2026.
A sensor maintenance contract worth approximately $6.7 million covering 2026 to 2030 has also been executed, providing additional revenue visibility.
The company's gaming software security business produced record revenues and profitability during the year, while its UK secure printing subsidiary was awarded a $4 million, four-year hybrid stamp contract.
The board declared an annual dividend of $0.136 per share, up from $0.116 in 2024, to be paid in July 2026.
Looking ahead, Spectra identified near-term opportunities including qualification of its polymer substrate with a second central bank, expansion of hybrid stamp sales to additional postal authorities and potential adoption of its smartphone authentication technology for tax stamp programmes.
Cash stood at $14.8 million at year's end, with debt of $3.3 million.