Spectra Systems (SPSY)

Spectra Systems SPSY Logo

A leader in machine-readable high speed banknote authentication and brand protection technologies.

16-Oct-2017 – 81.5p – £36.5m

Trading Update For The 12 Months To End December 2017 – Profit will significantly exceed market expectations. Next year the Chief Exec states “we expect the royalties to be somewhat higher than average next year although not necessarily at these record levels”.

Quite like the look of this – As does Stockopedia, StockRank 93.

1-Feb-2018 – 103.5p – £45.3m – PER 15.6

Trading Update – Licensee for covert materials supplied to 18 central banks, royalty will be higherthan previously expected for 2017. Profits for the year ended 31 December 2017 will exceed market expectations.

A nice update which seems like confirmation of the previous note. Not sure how much of this is in the price already. I remain Neutral here for now (need to research more) as I am not sure what exactly they do.

19-Mar-2018 – 115p – £51.5m – PER 18.0

Preliminary Results For The 12 Months To End December 2017 – Revenue up 9% to US$12,170k (2016: US$11,122k), Adjusted EPS of US $8.8 cents (2016: US 4.4 cents), Strongdebt-free balance sheet, with cash of US$11,181k (2016: US$8,808k). The annual Dividend is up 20% to US$0.06.

I just don’t truly understand what this company actually does. As attractive as some of the fundamentals are I just have to remain Neutral, it’s still on my look into more list.

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