Spectra (unres) Company Research (SPSY)

Finals from Spectra Systems, the leader in machine-readable high speed bank note authentication, brand protection technologies, secure printing, and gaming software, represented the highest level of profitability since its inception with the partial completion of the sensor order for its long-standing Central Bank customer, good covert material and optical material sales, and a strong performance from the gaming software group. The company continues to progress a number of commercial opportunities with Central Banks and major government organisations and has started FY26 well with the recent multi-year contract win with HMRC for the production and supply of vape duty stamps. The timing of revenue recognition related to the sensor project resulted in a substantial beat against revenue forecast ($64.3m vs $51.8m) but profit was in line. Given the momentum in the business, we upgrade FY26 forecasts that were reduced at the time of the interims. Fair value retained at 233p/share.