REMINDER: Our user survey closes on Friday, please submit your responses here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
It's a long time since I've looked in here. Please can someone tell me, is MASS (Maritime Autonomous Surface Ships) relevant to SRT's business?
Interesting tweet courtesy baynet elsewhere
https://twitter.com/HumasBakamlaRI/status/1731595341877924049/photo/4
Aviation Reconnaissance Sensors to Maritime Domain Awareness (MDA) training starts today
Apart from attendees all practicing their 'haka' poses, the backdrop event 'sponsors' appear to be UNODC's Global Maritime Crime programme, HMG's (?)Joint Maritime Security Centre and a flag 'from the people of Japan'....
UNODC is the United Nations Office on Drugs and Crime.
Hmmm...
Simon announced at the Sept AGM that we were working on total contract value of £160 Mill. This was the big contract announced in May and the tail end of a previous contract.
If we've had milestone payments on both then that's some 70 Mill say which will make our year end pretty damn good. I'd also like to know when Nexus will actually launch as this should give the transceiver business a real boost.
The October update was fairly short. I do appreciate that the events I refer to will actually happen - but it would be wonderful if we could be told!
New pictures on SRT Gallery. Soft launch of Nexus going well apparently.
This is a cross-post , prompted by comment elsewhere.
... taking a fresh look at things from a different perspective, that of dilution.
SRT started life with 69m shares and an implied MCap of £24m after issuing 11.5m shares @35p.
It now has an MCap of £85m, based on 192m shares and a 44p shareprice.
The history of placings - total 95m shares, raising £ 31.05m at an average of 32.7p- is
-5/2006 9m @47p = £4.25m
-3/2007 9.5m @42p = £4.0m
-4/2012 9.5m @27p = £2.5m
-7/2014 8.5m @ 18p = £1.5m
-5/2018 12m @25p = £3.0m
-1/2019 13.4m @30p = £4.0m
-4/2020 6.0m @25p = £1.5m
-3/2022 16.4m @30p = £4.9m
-6/2023 10.7m @50p = £5.4m
There's been further dilution of (192 -(69+95)= 28m shares, through a mix of options and warrant exercise that will have raised a bit more cash.
Meanwhile, the Loan Note Facility has grown progressively, from an initial £ 10m in 9/2017 to the recently-increased (3/2023)£ 40m.
As shareholders/owners - we should recognise that the LNF has so far reduced the immediate need for further dilution.
OTOH, these secured loans come at a price, not only in interest but also operational flexibility : the March 2023 breach of covenants in relation to debt service cover and gearing was only cured, AFAICS , by the latest placing.
SRT reported gross cash balances of £3.9m @ 30 September 2023 (historically about £900K of this has been restricted), at 3/2023 it was £ 2.2m gross and the LNF stood at £ 7.7m.
On the face of it, this affords reasonable headroom, depending on covenant test definitions.
Timely progress re: project execution, client acceptance, invoicing and payment - all remain pretty critical, though.
Corrections and clarifications more than welcome!
ATB
ATB
On Nexus, Simon said at the Open Day that the margin planned is 30-50% retail vs wholesale, blended 40%.
Hi wishing,
Yes and the Software is delivered in the first couple of milestones. I think the market's caution in the SP is to do with SRT's ability to actually manage the delivery of this large contract in a timely manner. My impression from the AGM was that the first few months since the contract was signed have been taken up by setting up the whole of the contract delivery.
I personally believe that SRT will be able to deliver on time. I think this means that this financial year will see the start of multiple milestones as more contracts are signed. I think that the current contract is big enough to see us through both this and the next financial years anyway. Bear in mind that the transponder business is now in a very strong position to raise it's revenue over the next two financial years with the help of Nexus, plus of course organic growth which is rising even as we speak.
We have some 20 Mill to come this year as the other contract we have is finalising so I can see this is going to be far and away a record year. Looking forward to Simon's next webcast possible in December when all will be revealed!!!
It was mentioned by Simon at the AGM that margins vary on each milestone payment. Very low on hardware delivery milestones, much higher on software delivery.
Thanks HoundDog, well a revenue delay and no mention of bottom line but cash dropping quickly. I do still think it will be a good investment t but needs 2 to 3 years and now it’s getting closer to a realistic SP until it’s proven to be a Velcro become cash accretive. They were very clever at doing a 50p rights issue, it would need to be a 35p to 40p now for a copy and paste.
33% - 36%. See top of page 8. I think it is roughly the same for the transceiver and systems business. They don’t make any split out but 2021/22 (33%) mainly had transceiver revenue, while 2022/23 (36%) mainly was systems. Of course revenue quite low and bumpy and so may not be a reliable guide to the future, particularly for systems which are bespoke projects.
https://srt-marine.com/wp-content/uploads/2023/08/Annual-Report-2023.pdf
Can anyone find the gross margin on their projects and products anywhere. Revenue growth excellent as said, however are these various projects highly profitable, are they being paid on time (eg: Philippine government project). It’s really hard to value until net profit and more importantly cash shows growth. (If not this surely will down to around 30p next results).
As of 31 March 2023, the outstanding balance of loan notes amounted to £7,690,000. These all relate to drawdowns on a secured note programme which has been arranged by LGB Capital Markets and which is secured by a floating charge over the Group's assets. The loan notes have terms of up to 3 years and an interest rate of 8%-12%. Subsequent to the year end, the capacity on the secured note programme has been increased from £20 million to £40 million.
During the year ended 31 March 2023 the covenants in relation to debt service cover and gearing were breached and a waiver from loan note holders was obtained subsequent to the year end on May 2 2023. Due to the waiver not being received prior to the year end and the covenants being re-tested on 30 September 2023, IAS 1 requires that the loans are all classified as being repayable in less than one year, despite their maturity dates.
Hardboy - I assume you think my range bound numbers are too high as data now shows them to be. You seem to be either disillusioned or a troll. What do you think the average SP will be between over the next 18 months. You’re quick to comment but add no value to this BB.
Interesting snippet ex-Bahrain, from a source new to me (and can't find out much about it).
hxxps://nationalsecuritynews.com/2023/09/us-bahrain-seek-to-build-on-historic-pact-to-help-peace-across-the-middle-east/
Dated 2 weeks ago, Bahrain’s Prime Minister is expected to visit the Pentagon next week, putting the seal on a historic and far-reaching security and economic pact agreed between the two nations.
Secretary of State Antony Blinken and Prime Minister Salman bin Hamad Al Khalifa signed a Comprehensive Security Integration and Prosperity Agreement, which spans “defense and security to emerging technology, trade, and investment,” according to the State Department.
and goes on to say
.."The agreement is seen as an opportunity to integrate the region’s air and missile defense systems and increase “maritime domain awareness,” according to a White House fact sheet..."
Harbinger of things to come- cf Kenya.....?
ATB
Hi extrader. My post was actually on the 16th of August which I forgot to mention. Not to sure about ECOB - haven't posted there for many a moon - to much negativity for me - mind you it could be valid!
Hi extrader. My post was actually on the 16th of August which I forgot to mention. Not to sure about ECOB - haven't posted there for many a moon - to much negativity for me - mind you it could be valid!
The govt know all about SRT and it's capabilities. Just chose not to use them. I expect the backhanders are too small.
Amor,
I had meant to reply to your post yesterday, but Truro did an excellent job. The fact is SRT are very stretched with our sales effort - $1.4b pipeline, which has approximately doubled in the last year. We don't need to go cold calling, There was an article in the Times which someone posted on here a few weeks ago which suggested SRT could help stop the boats crossing the channel. I'm not exactly sure that the journalist knew what he was talking about, (I hope no one on here is a journalist - not my favourite profession) but you'd think someone in Government would have read that and checked the story out.
Thanks for taking the time to respond TruroTrader.
Not in any way meaning to argue/tell SRT how to do its business but wouldn't just one well put together cold call to UK Gov be worth the investment?
In asking, I'm reflecting on the essential long standing uselessness of the UKGov and Civil Service in identifying good solutions to any sort of meaningful issue. Unless being hit brutally over the head with the solution :)
As an external third party, I am also thinking that SRT's truly excellent technology is somewhat "hidden under a bushel" (no negative reflection on SRT intended) outside the fisheries/navigation sector. And as someone in international business myself, I have certainly experienced some benefit from UKGov getting behind quality British products and raising their profile a bit.
Anyway, just asking here as I haven't had the opportunity to attend any shareholder meetings. But meanwhile am continuing to invest in line with my modest means - in what I think is an excellent company.
Hi Monty, not questioning your logic or analysis, just the predicted range. In the last year the share price has been as low as 26 & high as 63. It's a volatile share price. as it gets bigger and has more stable income this should reduce, though the nature of their project work is such that timing of invoices/milestones can have a significant effect on annual figures.
Hi TruroTrader,
I looked for your post - it's on 16th Aug, not Sept and appears to have been posted on the ECOB board, not here.
It's worth a read, hence my observation ;->
HTH
Hi amoti_fati
I briefly explain how the sales cycle works in my post of the 16th. If the UK appropriate government bodies approached SRT I'm sure they would be welcome. But, as I said, they come to us.
The reason is that we don't have the resources to cold call. Our resources are concentrated on those customers that we judge, after discussions, to be eventual purchases. It's not the standard business model but then we don't have a standard product!
Hi Hardboy,
I stand corrected on your point re 'my company'. Maybe/I hope SRT is the exception that proves the rule, but I've found over the 40 years or so I've been investing that it's usually better for my wallet - and peace of mind - not to fall in love with a share ;-<
As regards future business, eagle eye over on advfn has posted his understanding of the situation (with a lot more other good stuff), which reflects my view
.."New System Pipeline.
I will provide a link to the presentation when it becomes available.
Following conversion of £180m (£40m+£140m) contracts over the past 12 months, the near term pipeline now stands at £380m. £260m is expected to be follow on business from existing customers, plus balance of £120m from three new customers. [Ed.: M East and Far East, IIRC].
Kenya is new on the block and it would like the project to commence in 2024.
SRT has pushed this into the £1.02bn medium term pipeline as delivery in such a short-time frame is unlikely."
Buses, eh!
ATB
Hardboy - If I’m in cloud cuckoo land per your comment on my post. Do you mean my rangebound comment is too high or too low must admit in hindsight I would adjust my range bound to 45p to 55p for the next year. If the current contracts do show a huge cash uplift from profits and payments then it could go higher. This is sold as great technology, revenue increasing but from a bottom line perspective it’s unproven - There is certainly no room for any banana skin slips on a P/E greater than a 1000. There we very good at up selling all the prospects ahead of the 50p cash raising. Own the share can be purchased for lower and could well drop further. I brought at 43p sold at 58p. Got it on my watch list. But won’t be 50p or higher if I do decide to have a VIX style dabble.
Extrader,
Thanks for such a detailed report of your opinions from the AGM. The 140m mentioned is work in progress (projects) - orders SRT already have. I think the 3 projects which Simon expects to land soon (& in the time I've been involved with the company he has begun to realise how long Government organisations take to make decisions) were worth around 380m (not checked exact figure) and a further 1b+ of real live detailed projects in negotiation. So lots of future earnings.
I think the board would be happy with the attendance - they like to have a ratio of about 1:3 senior manager to shareholder to allow good networking over lunch.
And (I'm probably guilty of this too) but Simon would give you a good verbal slapping if he heard you talking about SRT in the third person. You're a shareholder - it's your company - so talk about it in the first person!