Market cap £1.97m
Shares issued @ 46p
Directors Own 53.4%
BAE Systems own 20%
Current price & spread 13.5p-14.5p
traded on Ofex with 3 market makers.

Established in 1989, Spectrum Technologies is a world leader in the design and
manufacture of specialised state-of-the-art industrial laser systems.
Spectrum's flagship product is CAPRIS, a family of ultraviolet (UV) laser wire
marking and processing systems, developed principally for the international
aerospace market, for use in the manufacture and maintenance of complex
aircraft electrical systems. The Company has almost every major aerospace
manufacturer on its customer list and further expanded its activities in 2001
through the acquisition of its main competitor, Vektronics Inc of Vista, USA,
and also RtMc Inc of Phoenix, USA, which manufactures a range of complementary
infrared laser wire stripping products which are offered primarily to the
medical and other non-aerospace industries including the IT and telecoms,
consumer electronics, and computer industries. The Company won three export
awards in 2000, including the Queen's Award for Enterprise for International
Trade. Spectrum is 20% owned by BAE Systems.






Their website i reguarly updated & a superb place for research.

www.spectrumtech.com



Statement on the 25th August headed AGM...


The Chairman gave the following statement to the meeting:

Chairman's Statement

Over the last year the World economic situation and the aerospace industry
position have generally improved. The USA, the UK and the Asian economies,
particularly China, have been performing positively, although continental Europe
has remained relatively weaker. The effects of the Iraq war and SARS dissipated
by the end of 2003 and the aerospace industry has moved forward, with airlines
and cargo companies placing orders for new aircraft, although there is still
some weakness in the airline sector and there may yet be further rationalisation
within the market, particularly in the US. However, Airbus is moving toward the
final phase of its new A380 super-jumbo development, with first flight due next
year, while Boeing earlier this year launched the new 7E7airliner, its first all
new jetliner for 10 years. The aerospace industry is well known for working on
long cycles and after a hard landing post 9/11 the industry is perceived to be
in a recovery phase which is gathering strength.


The Company made important progress during 2003, developing its own purpose
designed industrial UV laser and introducing a new range of CAPRIS wire markers,
including the World's first bench top system. These new products have
effectively halved the price of the technology and resultantly the Company has
had strong interest from the market with good levels of order intake for the new
products. In these circumstances the Company has faced new sets of challenges as
it embarked on rebuilding its business, launching multiple new products,
supporting its extensive customer base and managing its working capital.


Following on from rebuilding its base in its wire marking activities, Spectrum
reorganised its US Operations at the start of 2003 into a single operating
company, Spectrum Technologies USA Inc. and has started on new laser wire
stripping product developments at its Phoenix, USA, facility. Spectrum's markets
for laser wire strippers in the electronics and telecoms markets have similarly
shown an upturn and the Company is likewise working to rebuild this business
activity to restore turnover and profits.


As the recovery in the global economy and key sectors of the aerospace and
electronics industries continues to build, the Company expects sales to grow.
With the end of the royalty payments to BAE Systems at the end of 2004
Spectrum's business position and profitability should be positively enhanced.
The board therefore continues to regard the longer term prospects for the
Company with confidence.


Dr. P.H. Dickinson
Chairman






This share has made a false start last year share price wise, but was very illiquid then with just one market maker, now with three market makers, that has clearly improved & should take out some volatility.


This share is profitable as it made £80,000 in the second half of last year, the outlook looks ever improving and the interims were announced on the 9th September last year.



Importantly they have tax losses c/f; & upto £200,000 of royalty payments cease to be due each year to 20% shareholder BAE Systems after 31st December 2004.



There is no dilution, it is trading at below NAV & indeed just one third of the price it came to market at.



Not a share to trade, but looks a quality long term recovery stock.

08/09/2003 11:50

The time & date of the interim results last year, so if last year is anything to go by, maybe the interims will be announced this week.

You may find with Ofex starting to pick up strongly, Spectrum will be at least worth a bagger from the current price.

For example Appian results announced today, have half the turnover of Spectrum.

They have twice the losses.

& Appain are valued at £4.3m
Spectrum just £1.4m

Both have leading technology, in Spectrums case World leading technology with 85% of their market & with blue chips worldwide.

An excellent time to buy, as Ofex continues to pick up, this shareprice just won't last in my opinion.

Interesting news 7th March as BAE are one of Spectrum's customers and a 20% shareholder in Spectrum......they have completed a massive aquisition of Bradley of the US for a huge $4.1 billion.


Spectrum's Sienna wire stripping system could (my speculation) benefit.

Oh Results to keep an eye on, should be in anytime in the next 3 weeks or so if last year is anything to go by.

I see they went from a profit to a "bigger loss than expected" at the September results.

Hopefully they can deal with the cash negative situation, (following a troublesome acquisition which goes back to just before 9/11 - not their fault) and get back in the black this time. Good management and quite a strong cashflow company so could become a decent recovery play if they can - and the airline industry picks up.

On my watchlist, as a possible speculative punt if the numbers show a profit this time.

Good luck to holders.

Think that's more than fair - especially after these September numbers!

Post I did recently on http://www.finfoex.com

Tried to rally last year but failed & dropped to circa 9p, despite Winterfloods marking them up to 16.5p on the interim results, I guess a seller(s) wanted out & hence the drop to an all time low of circa 9p.


However this hasn't fazed me, I have built up my stake to six figures & remain confident, you do have to exercise patience with some Ofex stocks but they often do reward you big style in the end.


Now at last it looks like they have bottomed, so what do you get for your money?




Well you get at least £4.0m+ worth of sales (orders up 15% at interims) for your pro-rata £1.5m.



You indeed still get a loss making company, but it strongly looks as if figures are turning round, losses reduced in the latest interims & results are skewed towards the second half ( a profit last year of £80k)




Also results will relate to 2004, when I think Spectrum got all the bad news out the way, lets face it, I suspect higher royalty payments are due in 2004 if Spectrum do well, but hey the 10 year period of royalty payments has now ended.....for good.....and in 2005 Spectrum should be upto £200,000 better off.




Furthermore, you get a niche business, 85% of the world market for their main product.....think what that means....



1) Little competition on product

2) Probably 100% of the market on spares

3) Probably 100% of the market on consumables.



If you check the website some spares certainly in the US are up to $16,000 & payable by credit card.....that's good for cash flow.





& perhaps what investors haven't clocked yet, Is Spectrum have made their prices much cheaper, some may think that's bad, but they are probably selling twice as much product now & according to the last interims when old stock was still being shifted results related to 2003 prices.......but think on, all these extra machines in the market, mean:-


Increasing consumable sales & regular revenue.

Increasing parts & spares sales.



Furthermore, Spectrum have developed all their new products in the UK, costing profit & cash flow, while they were still due to pay royalties...hmmm.



And indeed Spectrum have the same guy leading the company that was so successful before 9/11, who has steered the company through an absolutely awful period in the sector, without dilutuion & even managed all the investment & R&D for new product, ready for well looks to me like 2005.



Aquisitions have been made in the USA, & they too look to have been turned around & indeed Spectrum even paid cash in the final instalment when they could have issued shares.





Because we have the same management new product etc & now no royalties for the first time, it is interesting to look at past results to see what has been achieved in the past....in 1997 for instance Spectrum made £557,000 on £5.3m of turnover & that included royalties.






So in conclusion, it looks to me as if the bottom of a long cycle (read newsflow) has been touched last interims & we are now at the start of a long cycle upwards.....Yes got in too early before, but now I think the timing is dead right & indeed Ofex itself is looking much healthier & gathering more interest each week....In my opinion, paying pro-rata £1.5m for this share that floated at £6.5m (46p) is an absolute snip......You can buy at the top middle or bottom of a cycle & I know which is best!



The cautious may want to wait for results they should be anytime in the next month if last year is an indication.

Been going up every day for about a week now.

I'm hoping it will settle at about 20p before results due, anytime in the next 3-4 weeks & then 2005 should be an excellent year with an extra £200,000 odd to add onto profits, which have been paid in royalties for 10 years, but now that is no longer & that agreement has expired for ever.

Looks like someone was waiting for a seller to appear today, but there just aren't any at this price, before buying 5 minutes before the bell.

Up again today

Phoned the company also today.

Results should be out anytime in the next 1-3 weeks. Being audited as we speak.

Up again first thing.
If I am right this stock is almost at the bottom of a new cycle.

Just tried to buy another 15000 after the short pullback, but quoted 0.5p over the offer, stock isn't as available as I thought.

well guys just earnt 1.82p eps at interims.


p/e of 15 = 54p share price on an annualised basis

Delighted to see Peter Dickinson making a comeback! Well done to holders.

This will be significantly higher than 19p in the next two weeks barring any major international market setback.

the very conservative Peter Dickenson Chairman buys at 21p

that really should be your indicator.

-----------------------------------------------------------------

Spectrum Technologies plc Newstrack Announcements 13/07/2005

DIRECTOR'S SHARE DEALINGS

In compliance with its ongoing obligations under the Ofex Code Spectrum
Technologies PLC wishes to announce Director's dealings in the Company's shares
as follows.


The Director affected and his purchase and new holding is:

Dr Peter Dickinson, Managing Director, who has purchased on 13 July on his own
behalf 10,000 5p ordinary shares; previous holding 7,461,900, new holding
7,471,900 (52.97% of the issued stock).


The shares were acquired through the Ofex market at a price of 21 pence.

Other Directors' share holdings remain unchanged.

Spectrum is pleased to note the Directors' confidence in the future business
prospects of the Company as reflected in their share acquisitions and holdings.

Cracking numbers make Spectrum a "buy"

http://www.unquoted-analyst.com/article.asp?id=100877

There are some companies that are overly reliant on good fortune in order to carve out value for their shareholders. There are others, however, where the management makes a determined effort to make their own luck. Spectrum Technologies* on OFEX is one such company. It is a stock that we rated as a hold two months ago, following an upbeat set of results, but one which now without hesitation, we recommend as a “buy”, with a strong possibility that this company could deliver earnings of over 3p in the current year.

Results today for the six-month period to end of June, showed a near doubling in revenues to £3.705 million as pre-tax profits of £257,000 were recorded. With earnings of 1.82p generated in the first half alone, the historically stronger second half could yield further progress, which could make today’s closing 21p offer-price look plain silly. Either way, a weaker second half could still see strong profitability, with a conservative estimate of 1.2p in earnings in the six months to end of December taking the year total to 3p. Adopting these conservative forecasts would put the stock on a prospective PE of just 6.6 for this year. For a business that is set to benefit from the start of a new cycle. This is far too low.

Glamorgan based Spectrum is a curious company. Having historically been a business that generated significant profits and offered the prospect of spectacular growth, Spectrum saw its short term prospects tumble on the back of the September 11th attacks and subsequently, the events in Iraq, which in turn preceded SARS. With good institutional backing in the form of BAE’s 20% holding and Scottish Value Management’s 2.4% stake, this company is now firmly back on the road to growth.

The global economy and the aerospace industry in particular have made excellent progress over the past 18 months. Indeed, today’s spectacular numbers should hardly come as a surprise, as Spectrum had been forecasting an upturn in business towards the end of 2004 for some time and today it was finally able to report that this had occurred bang on cue. The company’s strong first half benefited from a string of key orders against the competition, as sales of its new CAPRIS 60-200 wire marker took off, including a major order from Boeing for 5 fully automated systems. Sales of its other laser wire marking and stripping products have also continued at good levels. Such is this company’s grasp of its market, that it can now brag that over 75% of the 515 kilometres of wires on the new Airbus A380 are processed through its equipment, as is also the case on the new Being 787.

Established in 1989 by FTSE 100 aerospace giant, BAe Systems, Spectrum later succumbed to a management buy-out. The systems that it sells are largely focussed on the laser wire marking market, with its products typically used by aerospace firms. The company's flagship product, Capris, is used to mark electrical and aerospace marking. You might well question the need for such a product, but with 180 miles of wiring on a Boeing 747 and 515 kilometres of wires in the new 800 seater, Airbus A380, Spectrum's product is designed to prevent confusion. With the aerospace sector taking off once again following a number of challenging years, Spectrum looks set to continue growing its order book at an impressive pace.

The Company started the year with a firm order book, set at £1.1million. However, overall total order intake for the first half was over £4.5million, up 230% over the same period last year. In fact, so significant has the growth in new orders been, that the total intake for the first 5 months of the year exceeded those booked for the whole of 2004. Whilst Spectrum is unlikely to bring in as much new business in the second half, it started July with an order book worth £2.0million. With the company projecting sales of at least £6.5 million for the year as a whole, chairman Peter Dickinson is apparently remaining overly cautious. Indeed, this £6.5 million assumption assumes absolutely no further new orders will be received between now and the end of December. Bearing in mind Spectrum has historically generated the lion’s share of revenue and profitability in the second half, this would seem an unlikely eventuality. Rather, we believe that the prospects for sales for the year as a whole to be double the first half number, despite the company’s caution, appear to be good.

Never the man to over promise, and up until today, certainly not one to over-deliver - Spectrum's executive chairman was uncharacteristically upbeat today, intimating his expectation that sales would be “significantly” above last years group sales. With orders in hand already guaranteeing that forecast, Dickinson is hardly making a bold statement. Indeed, the man perhaps best known for his cautious statements, went on to caution investors not to expect the second half order intake to be as robust as the first. Still, this does not exclude the possibility that sales will come in at double the first half number - indeed, with only a further £900,000 in new business requred in the second half to deliver revenues of £7.4million, this is unlikely to prove a stretch.

The nature of OFEX occasionally conceals the true value of its constituents, with the apparent illiquidity in a minority of stocks, sometimes leading to overly depressed share prices. Whilst a frustration for those left holding the baby whilst the market remains oblivious to the prospects, it is also an opportunity to capitalise on the inherent value of some of the more interesting propositions. Even after today’s spectacular 66.7% rise, Spectrum's shares remain an excellent speculation, with the potential for further growth in both sales and profitability.

With the dollar now trading at a level which could further positively enhance the numbers, coupled with the fact that Spectrum no longer has to pay the £200,000 royalty fee to Bae Systems, we conservatively estimate earnings will hit 3p this year. The following year should see further significant progress and possibly the first dividend in a number of years, although we will keep our powder dry with regards to 2006 projections for the moment. Dickinson made his first on market share transaction today, buying 10,000 Spectrum shares at 21p. Unquoted-Analyst was told that he had wanted more, but due to heavy investor buying he was unable to achieve his fill. This is a bold statement. At 20p, Spectrum trades on a forward PE of just 6.6, which will fall the following year. For a company in this sector, with Spectrum’s growth prospects, an earnings ratio of 12 would not be overly demanding. We advise following Dickinson’s lead - at 21p, the company is capitalised at £2.9 million and is one to “buy

Interesting regarding forecasts:

Indeed, this £6.5 million assumption assumes absolutely no further new orders will be received between now and the end of December.

And a signal that they are dirt cheap when you hold 7m shares:

Dickinson made his first on market share transaction today, buying 10,000 Spectrum shares at 21p. Unquoted-Analyst was told that he had wanted more, but due to heavy investor buying he was unable to achieve his fill.

Up 3p much more to come.

added more this pm. will be in the money in 6 months at this level.

added yet more. bound to get profit taking after such a rise, superb opportunity to get stock while available, it's all backed by solid fundamentals & momentum.

the actual interim results, earning 1.8p eps at the half way stage, share price 21.5p.


Spectrum Technologies plc Newstrack Announcements 13/07/2005



SPECTRUM TECHNOLOGIES PLC
HALF YEAR STATEMENT TO 30 JUNE 2005


----------------------------------------------------
| |6 MONTHS TO |6 MONTHS TO |
| |30 JUNE 2005|30 JUNE 2004|
| |GBP 000'S |GBP 000'S |
----------------------------------------------------
|TURNOVER | 3,705 | 1,878 |
----------------------------------------------------
|GROSS PROFIT | 1,185 | 582 |
----------------------------------------------------
|INTEREST RECEIVED | 0 | 0 |
----------------------------------------------------
|PROFIT BEFORE TAX | 257 | (332) |
----------------------------------------------------
|PROFIT PER SHARE (PENCE)| 1.82 | (2.35) |
----------------------------------------------------
|NET CASH | 26 | (512) |
----------------------------------------------------
|ORDERS RECEIVED | 4,535 | 1,955 |
----------------------------------------------------
Note: The above figures are unaudited

As noted in the Spectrum Technologies' 2004 report and accounts, the global
economy and the aerospace industry in particular have been making good
progress. We had been forecasting a turn up in business toward the end of 2004
for some time and I am pleased to be able to report that this has indeed
occurred on cue. The Company has had a strong first half winning a string of
key orders against the competition as sales of its new CAPRIS 60-200 wire
marker took off, including a major order from Boeing for 5 fully automated
systems. Sales of our other laser wire marking and stripping products have also
continued at good levels.

The Company started the year with a firm order book, set at GBP1.1M. Overall
total order intake for the first half was over GBP4.5M, up 230% over the same
period last year. In fact new orders for the first 5 months of the year
exceeded those booked for the whole of 2004; the order book at the end of the
first half stood at GBP2.0M. However, while the current business climate
continues to be positive, we believe we have captured a significant proportion
of the major orders available this year and would caution investors not to
expect the second half order intake to be as robust. Nevertheless we are well
positioned to exceed last year's full year sales total significantly and expect
to make group sales of at least GBP6.5M (GBP4.6M 2004).

I am particularly pleased to be able to announce that, following on from a
profitable second half last year, the Company booked first half profits of
GBP257K in the period to 30 June and that it is set to maintain profits
throughout the second half of this year, completing a transition back to
overall profitable business.

The company has continued to maintain tight control over cash. As we have
ramped up production to meet demand, this has resulted in an increasing working
capital requirement. However, with the increasing shipments and sales proceeds
I am pleased to report that the company was back in the black at the end of
June with a small positive balance of GBP26K. Bar the occasional fluctuation we
currently expect our cash position to continue to improve through the second
part of this year and to maintain a cash positive position as we progress
toward the year end.

Outside of the aerospace industry the electronics, telecoms and IT sectors have
continued to make progress. The Company has embarked upon the development of a
range of new laser wire stripper products aimed at the electronics and
aerospace markets. As we progress through 2005 and approach the year end the
current expectation is for a continued steady progress in both the these
sectors and to maintain a significant order book through into 2006 while
improving margins as the costs associated with recent new product introductions
reduces.

As royalties of up to GBP200,000 per annum are no longer payable to BAE Systems
after 31 December 2004 this will also benefit the company's future performance
and we anticipate an improving bottom line.

Peter Dickinson
CEO

On a prospective p/e of 5 or 6, this world leader may get it's 'second wind' over the next few weeks to a more realistic rating a prospective p/e of 15 would be realistic.

interesting stuff! Thinking of picking up a few Datum today but now not sure whether to go for spectrum instead! Any thoughts EC and Third Eye?

Spectrum are earning now & you can't go wrong in my opinion other than a severe general market setback. I'd say you are almost guaranteed a 100% gain, barring that.

Datum are more speculative at this stage, but could do very well too.


I'd choose Spectrum & have indeed bought 30,800 over 20p.


Spectrum also have more momentum right now, Director has just bought too.

with the dollar hitting $1.745 today down from a peak of $1.93 this benefits Spectrum hugely.

added another 9200 @ 21p

DIRECTOR BUYS AGAIN.

Spectrum Technologies plc Newstrack Announcements 21/07/2005


DIRECTOR'S SHARE DEALINGS


In compliance with its ongoing obligations under the Ofex Code Spectrum
Technologies PLC wishes to announce Director's dealings in the Company's shares
as follows.


The Director affected and his purchase and new holding is:

Dr Peter Dickinson, Managing Director, who has purchased on 21 July on his own
behalf 10,000 5p ordinary shares; previous holding 7,471,900, new holding
7,481,900 (53.04% of the issued stock).


The shares were acquired through the Ofex market at a price of 20.25 pence.

Other Directors' share holdings remain unchanged.

Spectrum is pleased to note the Directors' confidence in the future business
prospects of the Company as reflected in their share acquisitions and holdings.


The directors of the issuer accept responsibility for this announcement.

For further information, please contact:

Peter Dickinson
Spectrum Technologies PLC
Tel: 01656 655437
Fax: 01656 655920
e-mail: pdickinson@spectrumtech.com

I think it's fair to say after chatting with PD today that Spectrum are at the very start of a cycle that can last between 4-6 years, the last one being about 6 years.


Also it was confirmed that the stronger $ is beneficial.



Furthermore I think Spectrum may explore other markets in due course, I don't think they are happy with Ofex, the share price I would guess is the main reason for this.


For those who don't mind long term buy & hold, this is share that you really should be looking at, as I said at 10p. 3.3p eps this year puts the p/e at 5.6

Following year p/e could be circa 3, far too low for a niche world leader.

Upto 26p now & results should be soon

First highlighted on www.finfoex.com at 10p & 14p here

Spectrum certainly beat my expectations today with a small rise in eps and turnover, and on a p/e of 9 looks excellent value. The cash situation seems to be improving and the shares are excellent value imho.
Opening a new office in HK has been done without impacting eps.
Of course the fly in the ointment is the dollar and with the pound now above $2 it is hard to envisage significant growth in the short term.

Nevertheless a fine tuckaway imho, and were the dollar to strengthen, they would be a strong buy I think. No current position but thinking about it!

Results well worth a read and on the Plus-Quoted site; not to confuse with Spectrum Interactive.

http://www.plusmarketsgroup.com/story.shtm...mp;NewsID=24865

No dollar recovery but I have been reading the last results again and I reckon this stock is simply too cheap; some snippets that have hitherto I think gone unnoticed:

The most significant one by far being this, as in my many years of following the company it is a break from the management norm to talk about organic growth from new products, which now appear to have been established.

'The Board is pleased with the general progress made
during the year and believes that the actions taken in 2006 have positioned the
Company to take advantage of the significant potential for organic growth in
the future based on new product development and market development and
diversification.'

While this suggests this is a recovery stock now through that long phase and back into growth mode:

'It has been a key goal to rebuild Spectrum's financial strength and the Company
has maintained tight control over cash while it has ramped up production to
meet the continuing demand from the market. The cash position strengthened
noticeably as we approached the year-end and moved into the 2007 with strong
positive inflows.'

And confidence from a superb and very experienced management, who historically have a history of erring on the sude of caution:
'Spectrum has maintained its position as the clear leading global supplier of
laser wire marking and stripping equipment throughout 2006 and fully expects to
do so throughout 2007.'

This next bit needs reading twice, imho, because it is truly extraordinary on reflection just how this stock is so lowly priced;

With net current assets of over 2 million and a market cap under 3 million, on a (historic) p/e of 9; despite the weaker currency, I personally rate Spectrum as once again a buy, with a 10 month (results time 2008) price target of 34p, putting it on a rating (based on last year, not envisaged growth) of 16, deliberately very modest given the turnaround, its global leading product and the current strength of its target markets.

I have just picked up a small number of shares.

Further to my above post of today, just had a look at the website; at the Paris Air Show in June the company launched its latest laser-wire product and won three orders for it, all for export, and thew CEO said the company is 'on target' to meet its 2007 sales budget.
http://www.spectrumtech.com/news/index.htm#news1

Added again today, but very hard to get stock. Really good value though at these levels.

After a 40% gain last week a 2 day pullback hardly surprising; but imho offers a good second chance (with now some stock around) for anyone interested.

Strong looking AGM statement, detailed looking, all very positive, but basically a regurgitation of the results statement, with a bit more detail on operational changes in the US and UK as well as more detail on new products and appointments.

Perhaps the result, 'within the next month' will be more illuminating.

Results should be out this week; worth watching out for imho.

Well worth it!

Superb.

Last year they made 2.2p for the full year, all of it in the second half; this year interims producing 1.86p eps in the first half.

A repeat of last year's second half would see around 4p for the year, At 26.5p the shares are surely great value, especially as the company has gone cash positive, and as all small companies should, they realise how important that is.

'Solid', Peter? (He is one of the most cautious managers I have ever come across by the way!).

I'd like to see 'good' then!

'The Company has had a solid first half with strong order intake of over GBP4M,
up approximately 10% on the first half for 2006. Sales for the half were
GBP3.82M, up 17.5%, with profits of GBP262K in contrast to a GBP13K loss
compared to the same period last year. This performance has been achieved
despite the continuing weakness of the US dollar against the UK pound sterling
throughout the whole of the period.

The Company has continued to maintain firm control over cash. Despite ramping
up production to meet demand with the resultant increase in working capital
requirement the Company has managed to maintain good progress in strengthening
its cash position with cash at the half-year point firmly positive at GBP319K
compared to last year's deficit of GBP568K.

Orders for CAPRIS wire markers, which are sold into the aerospace market, have
been strong, particularly for the top of the range CAPRIS 60-200 wire marker.
Orders for these units have been received from a number of key customers who
have started replacing their older equipment with fully automated systems. This
replacement process with major OEMs has been underway now for about 24 months
since Boeing Commercial started to replace their older generation laser wire
markers. There have since been a number of other key aerospace manufacturers
who have also started ordering equipment to replace ageing systems with the
latest customer to embark on this process being Boeing Military. We see this as
an ongoing progression as customers upgrade to the newer 4th generation solid-
state laser powered equipment.

Sales of our other laser wire marking systems have also continued at overall
good levels. Orders for SIENNA wire stripping products have initially been a
little slow. However, having set relatively challenging targets for sales of
the new SIENNA 200 products, orders have recently started to accelerate and the
overall picture is satisfactory. At this stage it is a little early to forecast
precisely the level of business in the 2nd half of the year. However, present
expectations are for further significant order intake for all main products in
the coming months.

Given the overall positive situation within the aerospace and electronics
sectors, which are our key markets, we anticipate a continued generally good
trading situation into the medium term. The Company's engineering and
development activities have now been consolidated within the UK and we have
started a process of increased research and new product development. We expect
this to result in an increasing flow of new products in the coming months and
years and that this will underpin the further growth in sales and profits.
While there remain plenty of challenges in the future the Board are satisfied
with the progress being made at present.'

Decent balance sheet and based on first half eps, this is on a current year of about 6. Despite the weaker dollar they made 1.86p in the first half, and last year they made over 2p in the second half. At 23p this is valued at barely 3 million.

Too cheap in my view.

Looking back through the post on this thread amused to see this one from Mid 2005:


Bit of deja vu!

Would be a candidate for my PLUS share, but for the fact that it's a company with one string to its bow. I've been caught out so many times with innovitive tech companies, Oystertec, Inditherm, Millbrook, and some watchlist favourites Oxonica, Straight, Mastermailer, etc. I prefer a bit more product diversity to reduce the risk.

Hi Taylor, while Spectrum have broadened their product range over the last 12 months, I have always felt that one product companies rely on their market. in Spectrum's case they provide laser wire products to airlines and as long as that market remains buoyant I think there are comparatively few concerns. Also they have been around for a long time with the same management who survived 9/11's fallout.

BA have 30% of the equity and therefore help underpin Spectrum's market.

My concern is more with the dollar which Spectrum do not hedge, despite which they made 1.8p in the first half bringing the total to around 4p for the last 12 months. Also the company has strong cashflow and a resolute balance sheet.

However your basic point I think is a very good one and one product companies in general carry greater risks.

If you are looking for a diversified Plus company, I would personally look to CEGO.

Little up tick in the shareprice recently, final results expected this week I think. One of competition picks, so hoping for good things!

Yes Taylor hope the numbers are good, I think their order book and expanded product range should mean a solid set of numbers. A big time of year with some of P-Qs best (imho ) including GSC, Fidelity and Spectrum all likely to deliver numbers in the next few sessions.

Looks pretty good to me, plenty of 'Dickinson speak' - he's a cautious man, and in the current climate probably right to be.

'I am pleased to
report that the Company has again been able to increase sales and profits with
sales rising to a new record of GBP8.38M (GBP7.34M - 2006), up 14.2%, and
profits before tax increasing to GBP566K (GBP438K - 2006), up 29.2%.....'

BUT - why the astronomical tax charge??

ROFIT ON ORDINARY ACTIVITIES
BEFORE TAXATION 566,171
Tax on profit on ordinary activities 310.900

PROFIT FOR THE YEAR 255,271

With a normal charge the profit of around 400k would make these look fantastic value. As it is diluted eps slips to under 2p.

Shocked to see this one delisting, profitable with BAE as a 30% shareholder, mixed recent trading update but nothing untoward.

Was absolutely nothing to indicate this that I can find, yet they claim to have been considering it for a year. Given the low cost of a Plus listing and its importance to small shareholders I am at a loss to fathom it.