Spectra Systems Share Discussion Threads

[cp42kx07] 23/5/2025 09:47:28

Indeed, no real news since last July. This certainly doesn't support the idea of SPSY as a growth investment.

[pj 1] 16/5/2025 20:54:39

The main issue to me isn't who is selling or not, its the total lack of RNS news flow.

[nico115] 16/5/2025 14:47:27

I'm patient .Not me selling .Maybe Close as last holding rns ?

[harrogate] 16/5/2025 12:31:46

Very quiet here as we wait for news. Clearly been a seller for a week or two as possible to buy at £2 with almost no spread. Looks to have been cleared now

[harrogate] 15/4/2025 13:31:55

They do a bit in China which might be impacted but it is really small. They could put stuff through their U.K. sub maybe anyway. They have a small amount of licence revenue with DLAR. It is about 10% of what it used to be and can't see why it would be impacted The key dynamic is any impact on DLAR and its position in the polymer bank note market where Spectra is trying to h hard to enter. Who knows but gut feel is that better for us that DLAR goes to PE than a strategic trade buyer.

[davidosh] 15/4/2025 13:19:34

I have been nibbling away at this £2 level and Spectra has now moved into my top five.

Does anyone see any headaches caused by tariffs or DLAR changing ownership?

[boonkoh] 15/4/2025 09:10:15

Surprised that despite the bidding war for De La Rue this morning, no reaction to the Spectra share price...(I hold in the Boon Fund)

[harrogate] 14/4/2025 07:55:00

Thanks very much

[zho] 14/4/2025 07:46:15

Harrogate,

[harrogate] 14/4/2025 07:41:37

Hi. Is it possible to post the text. I can't seem to see the article? Thanks

[nico115] 14/4/2025 07:11:29

Great write up.Soectra such a quality company. If we break into the substate market I can see us multi bagging.

[death by donut] 13/4/2025 10:28:33

Sorry pressed button early :-)SPSY mentioned first.DbD

[death by donut] 13/4/2025 10:27:06

https://newspaper.mailplus.co.uk/data/5905/reader/reader.html?#!preferred/0/package/5905/pub/20128/page/61/content/966959

[zho] 04/4/2025 08:07:59

Paul Scott and Paul Hill on SPSY from 23:30

"The acquisition of Cartor has dramatically sped up the product innovation cycle from 2-3 years to 3 months"

[welsheagle] 01/4/2025 18:50:51

How much does the £8.5mn cash work out per share.

[leedsu36] 01/4/2025 14:50:17

• 2024 revenue rises 142 per cent to $49.2mn

• Underlying pre-tax profit up 46 per cent to $12.1mn

• Earnings per share (EPS) of 18.9¢ ahead of 18¢ estimates

• Annual dividend of 11.6¢

• Net cash of $8.5mn exceeds forecast of $6mn

Aim-traded technology company Spectra Systems (SPSY: 205p) has reported annual revenue and earnings ahead of upgraded forecasts with net cash also comfortably ahead of the expectations I outlined ahead of the results (‘This company’s strong earnings are woefully underrated’, 20 February 2025). The company is a specialist in banknote authentication, brand protection technologies, security printing and gaming security software.

Part of the $3.7mn outperformance of Allenby Capital’s revenue estimate reflects the pull forward of a huge $39.6mn (£30.6mn) contract Spectra was awarded (in July 2024) to manufacture advanced high-speed banknote sensors for a central bank. However, the majority of revenue from the contract will be booked between 2025 and 2027. So, although analysts at both Zeus Capital and Allenby clipped in their 2025 revenue estimates by a similar amount to $52mn, the impact on earnings forecasts is minor with both broking houses still expecting pre-tax profit and EPS to more than double to $25mn and 38.1¢ (29.5p), respectively. Moreover, analysts expect net cash to increase to $10-11.5mn by the year-end, a healthy sum in relation to Spectra’s £99mn market capitalisation.

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The other key take from the results were the comments from chief executive Nabil Lawandy on Wolverhampton-based Cartor Security Printers. Acquired in December 2023, Castor has advanced Spectra’s position in the $1bn global polymer substrate market for banknotes and strengthened its competitive position against incumbents De La Rue (DLAR), Crane NXT (US:CXT), and CCL Industries (CA:CCL). Lawandy notes that through efforts at Cartor “we have continued our progress with a major central bank to achieve qualification and near-term participation in a tender for polymer banknote substrates.” Upside from any contract award is not embedded in earnings forecasts.

In addition, Lawandy notes that “the business brings many optical materials opportunities through Castor’s existing sales pipelines and has provided Spectra with rapid access to a number of large corporate partners, which can adopt and drive sales of our cutting-edge authentication technologies.”

Potential for further outperformance is certainly not being reflected in Spectra’s current valuation as the shares trade on a forward price/earnings (PE) ratio of 6.9, less than half the rating of CCL Industries and a 46 per cent discount to Crane NXT. Spectra’s shares also offer a 4.3 per cent dividend yield and are priced on material discounts to analysts’ fair valuations of 355p (Allenby) and 280p (Zeus). Please note that Spectra has two classes of shares, and the unrestricted ones (AIM:SPSY) are the most liquid. Buy.

[leedsu36] 01/4/2025 14:49:22

• 2024 revenue rises 142 per cent to $49.2mn

• Underlying pre-tax profit up 46 per cent to $12.1mn

• Earnings per share (EPS) of 18.9¢ ahead of 18¢ estimates

• Annual dividend of 11.6¢

• Net cash of $8.5mn exceeds forecast of $6mn

[death by donut] 01/4/2025 10:23:23

Thanks ZhoDbD

[zho] 01/4/2025 10:20:45

Well, you can read part of it:

A business with a licence to print money

Simon Thompson: The banknote manufacturer is delivering on a huge contract and is set to be a disruptor in a growing market

• 2024 revenue rises 142 per cent to $49.2mn

• Underlying pre-tax profit up 46 per cent to $12.1mn

• Earnings per share (EPS) of 18.9¢ ahead of 18¢ estimates

• Annual dividend of 11.6¢

• Net cash of $8.5mn exceeds forecast of $6mn

Aim-traded technology company Spectra Systems (SPSY: 205p) has reported annual revenue and earnings ahead of upgraded forecasts with net cash also comfortably ahead of the expectations I outlined ahead of the results (‘This company’s strong earnings are woefully underrated’, 20 February 2025). The company is a specialist in banknote authentication, brand protection technologies, security printing and gaming security software.

Part of the $3.7mn outperformance of Allenby Capital’s revenue estimate reflects the pull forward of a huge $39.6mn (£30.6mn) contract Spectra was awarded (in July 2024) to manufacture advanced high-speed banknote sensors for a central bank. However, the majority of revenue from the contract will be booked between 2025 and 2027. So, although analysts at both Zeus Capital and Allenby clipped in their 2025 revenue estimates by a similar amount to $52mn, the impact on earnings forecasts is minor with both broking houses still expecting pre-tax profit and EPS to more than double to $25mn and 38.1¢ (29.5p), respectively. Moreover, analysts expect net cash to increase to $10-11.5mn by the year-end, a healthy sum in relation to Spectra’s £99mn market capitalisation.

[death by donut] 01/4/2025 10:18:33

I take it the article was +ve ?DbD

[reapz2345] 31/3/2025 17:14:15

https://www.investorschronicle.co.uk/content/a2985d7c-ec4c-445b-b4bf-c007c2cd1234

[zho] 31/3/2025 13:39:17

Paul Scott likes the results and is mystified by the market's reaction.

His article is behind a paywall but it looks as if there is a 7 day free trial:

[harrogate] 31/3/2025 11:49:38

I think the reaction is fair. This year's beat is just pull forward from next year which has been downgraded. Dividend unchanged and actually now reduced for next 2 years Also wording to me suggests that we have missed the tender opportunity for Fusion this year and taking a knife to Cartor suggests that there are few growth opportunities there. Been amazing and I will hold on but new contract wins have been way too few and far between period

[fozzie] 31/3/2025 11:44:00

Great results from Nabil and the Spectra team, quite ridiculous share price reaction but this is typical of the UK market which is just plain daft. ST should be out with an update in good order.

[shanklin] 31/3/2025 11:21:50

Both Allenby and Zeus notes this morning saying revenue and earnings ahead of forecast