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(Sharecast News) - Spectra Systems said on Friday that it has been informed by HM Revenue and Customs that its security printing subsidiary, Cartor Security Printers, had been selected as the winning bidder for a contract to produce and supply vape duty stamps, subject to finalisation of the agreement.
The AIM-traded company said the bid was submitted by a CSP-led consortium alongside a global provider of tax stamp track-and-trace technology.
While the award notice had been received, the contract was yet to be formally signed, with Spectra saying that was expected shortly and that a further update would be provided upon completion.
The estimated contract value is 38.4m, or $51.84m, including VAT, based on an initial five-year term with an option for a further year.
Spectra said it expected to receive around 15% of the total five-year revenue.
"We are pleased to have received the contract award notice for what is a major contract in our home country and look forward to supporting HMRC in achieving its objectives," said Andrew Brigham, managing director of CSP.
"The award notice underscores the breadth and depth of Spectra's expertise in security printing and authentication, reflecting the company's many years of proven experience in the field."
Under the consortium structure, CSP would be responsible for the production and supply of the stamps, as well as authentication features and related devices provided by Spectra from Rhode Island in the US, while its partner would handle ordering, payments, stamp management and the collection of supply-chain data for HMRC.
"We are delighted to have been selected, along with our partner, by HMRC particularly as there were other major players competing with us," said chief executive Dr Nabil Lawandy.
"This award highlights the seamless product development and sales process between the USA and UK organisations in Spectra.
"Our reorganisation of CSP continues to progress following the actions initiated in 2025."
At 1147 GMT, shares in Spectra Systems Corporation were up 1.23% at 156.9p.
Reporting by Josh White for Sharecast.com.