BIG litigation | Big margins | Big dividends
News covered here includes our coverage of excellent results from a specialist medical device company, which continues to accumulate plenty of cash. Elsewhere, an international animal health business is also performing well and committing to greater investment in new product development. Those interested in dividend income might be attracted by the near 10% dividend yield on offer from one company here, but we have our doubts about its business model.
Spectra Systems: shares dive on downgrade Despite announcing seemingly excellent interim results, shares in Spectra Systems (AIM:SPSY), a leader in machine-readable high speed banknote authentication and security printing, took a tumble on contract delays. For the six months to the end of June revenue climbed 54% to US$35m helped by the continued “cost accounting-based revenue recognition” on a US$39.6m manufacturing contract – essentially this brings forward the recognition of sales ahead of final completion and cash therefore cash receipts. This saw $11.3m of sales relating to this recognised in the period and an aggregate 49.2% of the contract accounted for…