Spectra Systems Corporation (AIM:SPSY, OTC:SCTQ) said buoyant demand for banknotes, anti-fraud sensor systems and optical equipment from its main central bank customer helped revenues rise 13% in the year just ended.
Total revenues rose to US$16.6mln in 2021 helped largely by a 71% leap in service income to US$5.52mln, while profits rose by 10% to US$5.94mln.
Nabil Lawandy, chief executive, said the result underlined the group’s ability to produce high-quality products, something that had been further demonstrated by the award of new contracts recently.
"Our two-decade-long relationship with a major world central bank continues to provide new revenues from the introduction of more advanced products.”
This customer had invested US$8.8mln to help develop these, he added, which is expected to result in sensor sales of approximately US$50mln between 2024-2026.
“In addition, we expect a 10-year service agreement worth over US$8mln to line up with the delivery of the first advanced sensors in 2024.”
The spending was a testament to “our capabilities for producing cutting edge products, as well as the stability of banknote production by reserve central banks”, Lawandy said, adding prospects for the group are for "strong earnings in 2022 and beyond".
The group announced an annual dividend of 11 cents per share, which will be paid in June, while cash at the year-end stood at US$16.8mln or up 17% as operating cash flow over the year rose by 45%.