Shares have jumped 10% as Management says FY 17 profit is likely to "significantly exceed market expectations."
Companies: Spectra Systems Corporation
Spectra's (LON: SPSY) share price rally has continued with today's positive trading update, sending shares up 10% in early morning trading.
Management announced that royalties from its licensee, who supplies covert materials to 18 central banks would reach a "record level" in 2017 and as a result...
"Spectra expects that its profits for the year ending 31 December 2017 will significantly exceed market expectations."
Today's announcement by the company, who specialise in banknote authentication technology, is the second in two months after management raised profit guidance in August sending shares up 25%.
Spectra's CEO Dr. Nabil Lawnady was expectedly pleased, commenting:
Typically the final royalty, determined by the number of printed notes containing our materials, is not available until year-end. This year, we have visibility that it is already significantly above expectations for the full year. Based on our licensee's projections for material purchases, we expect the royalties to be somewhat higher than average next year although not necessarily at these record levels."
The stock began its rally at the beginning of 2017, growing from a January 3 price of 25p to an all-time high of 108p in September. With today's jump, the share price hovers around 87p.
SPSY trades at a PE ratio above the industry median, 16x versus 14x respectively, and has a market cap of c. £37m. After turning its first Net Profit in 2014, TTM Net Profit is currently £4m, up from FY16's £1.1m.
