An anti-counterfeiting technology specialist is on the acquisition trail after narrowing losses in its last financial year.
Sunderland-based Opsec Security Group reported an operating loss of £2.2m in the year to 31st March 2014, an improvement on the £2.5m loss posted the previous year.
The recent loss was attributed to lower than expected orders from key Government protection customers and several one-off costs, including legal expenses and professional fees relating to a corporate transaction and non-payments from a customer in South America.
Turnover rose by 7% to £55.5m due in part to revenues generated by JDSU, the US-based holographic business acquired by Opsec for £7.5m in 2012.
The Sunderland business, which makes holographic products that help to combat conterfeiting and fraud, said it would continue to look for acquisitions that add value to its technology portfolio.
David Mahoney, chairman of Opsec, said: “The markets we serve continue to grow and we are well placed to benefit from the opportunities this presents, as demonstrated by a number of major contracts secured in the prior year.
“Our strengthened balance sheet means we are able fully to proceed with the rationalisation of our facilities and this, when completed, will be of significant benefit to the group.”
Opsec operates in several countries including the UK, US, Germany, Hong Kong and the Dominican Republic. Its customers include Government agencies, Mastercard, Visa and American Express.
In recent years the company has grown revenues organically and by making acquisitions. As well as the purchase of JDSU, Opsec also bought Delta Labelling, a supplier of brand protection labels based in the UK and Hong Kong, in April 2012.
Holographic protection – in which OpSec is regarded as a world leader – is used in the production of passports, concert and sports tickets, banknotes, driving licences and national ID cards.
The wafer-thin images help to protect the integrity of the products and deter fraudsters and counterfeiters.
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