LONDON (Alliance News) - Spectra Systems Corp on Monday said it believes it continues to have "excellent prospects" as it reported a more than halving of pretax profit in 2015.
For 2015 the company reported a pretax profit of USD705,000, down from USD1.8 million in 2014, as revenue fell to USD14.1 million from USD16.9 million.
Spectra attributed the fall in revenue to an exceptional year in 2014 for its Authentication Systems business. Elsewhere revenue was partially driven by a major hardware sensor programme, and Spectra said that an order for hardware of this magnitude is unlikely in 2016. However, it is nearing the closure of a "significant" renewal contract with a major central bank customer, it said.
The company noted that there had been no revenue contribution from its banknote cleaning business line in 2015 or 2014, but said it continues to be "particularly excited" about this technology. Additionally, Spectra said its prospects have increased due to the growth of its authentication business outside of banknotes.
Spectra started a number of customer trials for its Trubrand smartphone authentication technology which it said it is confident will lead to sales in 2016.
"We are delighted that the overall business continues to create profits and has developed a number of new revenue sources that will sustain growth in between lumpier central bank contract wins. The board therefore believes that the company continues to have excellent prospects," said Chief Executive Officer Nabil Lawandy in a statement.
Shares in Spectra were up 12% at 23.00 pence Monday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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Spectra (unres) (SPSY)