Spectra (unres) Share Price (SPSY)

A nice step forward for the share price today. It’s not obvious why. No news. No RNS.

STONKING not stinking thanks Google for the wrong correction always

Victim if their own success. So this years figures measured by the one off stinking last year make it look like a profit warning. Lumpy contract syndrome the market doesn’t like or understand

They won a very large contract a couple of years ago that significantly boosted revenues and so now that that project is nearing conclusion revenues are lower than recent years. At the interims, the shares dived and have continued until the year end results because the company noted that clients had pushed back decisions on a couple of significant contracts.

As one can see from the final results the business has a good array of significant opportunities in the pipeline. Should some of these come to pass I’d expect this to rerate.

I see below concerns about debt and cash flow.

I see that accruals have risen sharply but with operating cash flow of $10m and debt of $1m cash flow is obviously very strong.