- Banknote and product authentication technology group Spectra Systems Corporation posted a 30% rise in annual profit, as it earned more royalties and cut operating expenses.

Pre-tax profit for the year through December rose to $4.0m, as revenue climbed 3% to $12.5m.

The company declared an annual dividend of 7c per share, up 17% on-year.

Chief executive Nabil Lawandy said growth was driven by large orders of covert materials by a G7 customer and increased covert technology royalty payments from a major worldwide supplier of banknotes.

'The delivery of two quality control devices to a tobacco manufacturer and the adoption of TruBrand smartphone authentication technology to protect a top cigarette brand in China has increased our chances of expanding the use of this product to the billions of packs in the market over time,' Lawandy said.

'We continue to make significant headway on the polymer banknote side of the industry with the initiation of a G20 central bank funded four phase program to qualify a new ink based covert feature as well as by forging a relationship with a global supplier of polymer which is expected to eventually allow us to sell specialty covert banknote substrates and drive up our revenues significantly over time.'

'The board therefore believes that the company, by achieving key business milestones, will continue to perform well and has excellent prospects for maintaining strong earnings in 2019.'

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