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(Alliance News ) - Spectra Systems Corp on Monday reported a rise in revenue and profit for 2020 as demand for banknote materials and equipment increased.
The Rhode Island-based company generated revenue of USD14.7 million, up 11% from USD13.2 million the prior year. Pretax profit increased 20% to USD5.4 million from USD4.5 million. The firm declared an annual dividend of USD0.095 per share and said share buybacks will continue.
Shares were up 1.5% at 170.00 pence in London on Monday.
Spectra Systems said the growth was driven by higher demand for its materials and equipment from one of its existing central bank customers. The customer also provided more funding to develop new manufacturing and security technology.
Chief Executive Nabil Lawandy raised the prospect of "explosive growth in the coming years" as Spectra Systems develops new products.
It is currently developing smartphone-readable packages for the brand authentication market, which are being marketed to brands including Apple Inc and British American Tobacco PLC. The company expects to sell more of its banknote cleaning equipment as Covid-19 becomes endemic, and said the product is being targeted at casinos and central banks.
"Our two decade long relationship with a major world central bank continues to drive the introduction of more advanced products and an increasingly steady stream of hardware sales," Lawandy said.
"These highly stable revenues underpin our growth and enable us to continuously innovate with products that could lead to more explosive growth in the coming years."
By Ivan Edwards; ivanedwards@alliancenews.com
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