Spectra Systems, a leading provider of technology for banknote and product authentication, announced a significant rise in pretax profit for the first half of the year. The company’s strong performance can be attributed to higher demand for banknotes from central-bank customers.
In the first half of 2022, Spectra Systems’ pretax profit surged to $5.5 million, compared to $3.3 million in the same period last year. Moreover, the adjusted pretax profit increased to $5.8 million, up from $3.7 million.
The company’s total revenue also witnessed a notable growth, reaching $11.6 million, compared to $9.3 million previously. This increase was primarily driven by pre-production development contracts and a rise in demand for materials to meet the growing banknote requirements of one of its existing central-bank customers.
Furthermore, Spectra Systems’ adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) experienced a substantial rise of 55%, reaching $5.9 million.
Looking ahead, Spectra Systems is confident that it will achieve record earnings for the full year and meet market expectations. According to a market consensus provided by Factset, the company is projected to achieve sales of $20.0 million and a pretax profit of $7.6 million.
As of 0741 GMT, Spectra Systems’ shares were up 2.50 pence, or 1.5%, at 168.50 pence.