Spectra Systems Share Discussion Threads

[argylerich] 23/3/2025 19:16:41

The last two years they've given us a "notice" of results for 1-2 weeks subsequently. That's what hopefully should come this week 👍

[3800] 23/3/2025 16:58:37

Investors, especially PI's get very easily bored. Lots are itching to seek out the next 'hot stock'. It is easy to conclude that the share price decline/ stagnation is down to Investor boredom.

lets hope you are right about that PJ1, as we both know sometimes a declining share price coming up to the results means someone knows rather more than we do.

[death by donut] 23/3/2025 16:29:05

Sounds like this week then , at some point.Been here since '17 , just hoping / looking fwd to , the next leg up in the SPSY story.Happy holderDbD :-)

[harrogate] 23/3/2025 15:59:15

I have heard it is 31st March for results

[zho] 23/3/2025 15:35:02

Last year results were announced on 27th March, the year before on the 20th March, so hopefully this week.

[pj 1] 23/3/2025 15:34:44

This is rather subjective but I have used the same criteria for each year.

The number (imo) of news worthy RNS each year, including FY and HY.

2020 10
2021 15
2022 12
2023 7
2024 4
ytd 0

Investors, especially PI's get very easily bored. Lots are itching to seek out the next 'hot stock'. It is easy to conclude that the share price decline/ stagnation is down to Investor boredom.

This is hightened by the fact that Nabil assured that there would be more good news to come following on from the large $38m sensor contract win back in July 2024,Before that we were given hints of tenders to new bank customers, and all we got was silence.

[death by donut] 23/3/2025 15:00:55

Results this week?Got Est of 27th Mar in Sharepad.DbD

[death by donut] 03/3/2025 10:27:25

Apologies, just sat on site having a tea break.DbD :-)

[death by donut] 03/3/2025 10:22:15

Come on Nabil , give us a boomer RNS to the upside.DbD :-)

[leedsu36] 21/2/2025 12:41:23

Strong earnings growth profile
So, with interim results de-risking full-year earnings estimates, analyst David Johnson at joint brokerage Allenby Capital pencils in 41 per cent growth in Spectra’s pre-tax profit to $11.7mn on 124 per cent revenue of $45.5mn in 2024. On this basis, earnings per share (EPS) rise 30 per cent to 18.7¢ (14.9p), implying the shares are rated on a trailing price/earnings (PE) ratio of 14.4.

Furthermore, although Spectra had net borrowings of $0.3mn on 30 June 2024 due to the working capital build in relation to the July 2024 contract, the central bank subsequently made an initial cash down payment of $9.4mn which supports Allenby’s closing net cash estimate of $6mn. Net cash could more than double to $13.7mn by the 2025 financial year-end as Spectra is expected to more than double pre-tax profit and EPS to $25.3mn and 39.4¢ (31.3p), respectively, on revenue of $54.8mn. On this basis, the shares trade on a miserly forward PE ratio of 6.9. Prospective dividend yields of 4.5 per cent (2024) and 4.8 per cent (2026) add to the attraction.

Spectra shares have delivered a total return (TR) of 71 per cent since I suggested buying at 135p (‘Alpha Research: Don’t miss out on the authentication boom’, 22 August 2022), during which time the FTSE Aim All-Share TR index has shed 16 per cent of its value. However, the share price has dipped 13 per cent since the interim results (‘This stock's earnings upgrade cycle will keep turning’, 2 October 2024). The de-rating is wholly unwarranted and offers a repeat buying opportunity with 50 per cent upside to my target price of 325p. Please note that Spectra has two classes of shares, and the unrestricted ones (AIM:SPSY) are the most liquid. Buy.

[leedsu36] 21/2/2025 12:40:26

Banknote manufacturer could double earnings this year with a prospective dividend yield of 4.8 per cent.

Aim-traded technology company Spectra Systems (SPSY:215p) is forecast to report record annual results at the end of March and double earnings in 2025.

It’s not wishful thinking, nor is it being priced into the valuation of the £105mn market capitalisation company that makes its money from banknote authentication, brand protection technologies, security printing and gaming security software. That’s because Spectra was awarded a massive $39.6mn (£31.4mn) contract to manufacture advanced high-speed banknote sensors for a central bank in July 2024. The majority of revenue will be booked between 2025 and 2027, with a trailing manufacturing agreement worth $4.5mn per year thereafter likely to be secured in the current quarter, but the contract will still make a material contribution to last year’s result.

In addition, the acquisition of Wolverhampton-based Cartor Security Printers is working out well. Earlier this month, Castor announced a five-year contract (worth $3-4mn) to produce definitive postage stamps for a European Union postal stamp supplier. Castor’s technology incorporates 2-D barcode serialisation to significantly reduce losses from counterfeiting and the reuse of stamps. The acquisition of Cartor in December 2023 has also substantially advanced Spectra's position in polymer substrate for banknotes and strengthened its competitive position against incumbents De La Rue (DLAR), Crane NXT (US:CXT), and CCL Industries (CA:CCL). I understand that a second prospective Middle Eastern central bank has approached Spectra about its Fusion polymer banknote substrate. Potential polymer banknote substrate contract awards are not embedded into analysts forecasts, so offering scope for upgrades if they materialise, as seems likely.

[leedsu36] 21/2/2025 12:39:11

Record results expected to be announced in late March
Earnings set to double in 2025
2025 forward PE ratio of 6.9 and dividend yield of 4.8 per cent
Net cash forecast to double in 2025
$3-4mn recent contract win

[zho] 21/2/2025 08:17:15

Yes - well spotted.

This company’s strong earnings are woefully underrated
Simon Thompson: Banknote manufacturer could double earnings this year with a prospective dividend yield of 4.8 per cent

[bazzer1000] 21/2/2025 08:07:11

I think this might have been tipped by ST yesterday? It does seem crazy cheap down here.

[leedsu36] 18/2/2025 14:32:26

Sector ; Computer programming service ?

What do these people actually do ?

[harrogate] 06/2/2025 08:32:28

I think it is very significant. Cartor's key market is barcoded stamps and this shows us that the growth story outside the Royal Mail business into other countries is real. I agree won't move the dial in any financial forecasts but very good news

[cp42kx07] 06/2/2025 07:56:33

It's decent of them to make the effort but it's not really a significant announcement so I wonder whether it will get the share price out of the current stop-loss doom loop... I certainly hope so.

[death by donut] 06/2/2025 07:03:02

Like I said.DbD :-)

[pj 1] 05/2/2025 20:24:48

Falling off the edge of a cliff. Chart wise I wouldnt be surprised if we see 170p.

Im not sure Nabil is the CEO we really need.

News flow has been declining year by year....and any tranfoemational news hasnt really landed depsite SPSY inferring it would for over 8 years now.

[cp42kx07] 05/2/2025 16:46:06

Clearly the lack of positive news since the interims is (unfortunately) doing the company no favours in these uncertain times.

[fft] 05/2/2025 15:55:57

Definitely out of favour at the moment. Lowest price for over a year. Didn't think I would see this price again. Wish I hadn't bought more in the middle of 2024 !!

[pj 1] 28/1/2025 19:37:50

Meanwhile in the UK, the number of people seeking help with debt issues in January this year is at an all time high.

Part of the advice from specialists including Citizens advice centres....... is to use cash and stop usisng bank and credit cards.

This is in contrast to our area, where we have a number of cash only outlets stagnant but growing number of busines's refusing to take cash, and on-line and/or card only.

[3800] 28/1/2025 19:22:20

Thanks for the link and he did seem pretty positive to me too. I'm not too sure how accurate his statment of "use of banknotes globally is on the wane" actually is. The info I gleaned from a gloogle search would lead me to belive the opposite hxxps://www.cranecurrency.com/news-insights/the-role-of-cash-is-changing/ I found this among others.
3800

[cp42kx07] 28/1/2025 18:09:06

This may point you in the right direction:https://substack.com/home/post/p-154372813