Record Phosphor sales boosts revenue at Spectra Systems

Spectra Systems said on Tuesday that it increased its revenue 48% in its first half of trading to $7.15m.

Record phosphor sales of $3.34m marked a 75% increase on the same time a year earlier boosted by a near full half of sales from its January acquisition of Key Speciality Phosphor Assets.

Gross margins increased to 75% from 62% as a result of covert materials commencing in-house manufacturing and operating expenses dropping $526,000 due to a planned reduction in research and development.

Spectra reported a 196% increase in EBITDA from $26,000 at 30 June 2016 to an impressive $3.02m a year later.

Pretax profit swung around to $2.83m from a $164,000 loss in its previous interims as cash generated from operations rose 48% to $2.66m.

The company, which provides technology-based security solutions for high-value goods like bank notes and tax stamps, had remained debt free at the half-year stage with cash and equivalents totalling $9.45m to its name.

Chief executive, Neil Lawandy said, "The Company's revenues for the first half of 2017 are nearly 50% higher than 2016 which was largely fueled by phosphor sales to a new central bank through one of our long standing customers. The central bank driving the demand is entering a note redesign and we are hopeful that this increased revenue will continue once that redesign is completed for a significant period of time."

Earnings per share also moved from red to green with a gain of $0.05 each against a $0.01 loss twelve months earlier.

As of 0915 BST, shares had advanced 10.66% to 109.00p.