Firering Strategic Minerals: From explorer to producer. Watch the video here.
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Interesting company, very hyped to make sure the 50p capital raise was fully subscribed before the results. The results show just how small this company actually is (Lots of jam tomorrow words). No room for project cancellations or errors in project pricing and on a higher P/E than all the top NASDAQ FANGS companies. High historic cash burn. This will be range bound between 52p to 58p for a year or maybe more is my feeling. 51p a good entry point for me…Keeping on my watch list.
Hi Monty, A little pessimistic view perhaps? The sales team are, unusually, not proactive. Their initial decision is to decide which enquiry's are worth engaging with. Do they actually have a budget? Are we talking to the organ grinder? Is there a need that we can address? There are other criteria as well. The £1.4 Billion VSP is doing exactly what it says on the tin. Verified Sales Pipeline.
I don't know how the times article was actually initiated but I would be surprised if we called them. I would put money on the Border Force/Government contacting us.
As for Jam tomorrow - well yes. I reckon it's the next financial year that will deliver this. My guess is that this half year will match our full last year. The only uncertainty is the ability to deliver the escalating order book. I'm confident they'll manage it !
Cheers.
Monty:
The directors have a sense of humour - several years ago at an AGM, aware of the accusation of Jam tomorrow they gave all attenders a pot of jam. (And it was very tasty.)
As for your projection of it being range bound between 52 & 58p for a year or more. I would say you're in cloud cuckoo land - even if the next year's share price average as somewhere between those 2 prices - it does not need a lot of research - just look at the graph - it is a volatile share and can do that range in a week. Also this is driven by news - with a £1.4b pipeline, there is a lot of scope for very significant news to come in the next year. And that news will take the sp outside your range.
Half year results tomorrow.
Let's hope that they increase the S/P.
My mistake.
Got mixed up with another of my holdings, SMS.
SRT's AGM next Tuesday
That's a week tomorrow. Strictly speaking next Tuesday is tomorrow.
They usually release an update the morning of the AGM
Hardboy - Data is showing me to be lot more correct than you pal.
Revenue is nothing without bottom line profit sooner or later. Look at THG, investors thought it would very profitable very quickly was 800p now less than 100p. I might be deluded, my fair value estimates way above current SP might be too high. (Old adage “Revenue is vanity, profit is sanity”. Can the revenue create a really good bottom line, I hope so. But I will be doing is looking at the cash burn vs the bottom line and the EPS. Not emotionally ramping what are very good RNS’s but till it passes break even it jam tomorrow, when does it’s jam on the bread. The MM’s are doing their best to keep the SP at 50p to match the cash raising whilst they wait for the next results (Note the nasty spread).
If I meant tomorrow, I'd have said tomorrow.
Monty,
Don't think you've quite taken in the value of the recent contracts in relation to our past. The VSP is now really starting to build. It's been a long old haul. This financial year should see the breakthrough into profits.
The star of the show is the Marine Domain contracts but the transponder business is also making strong growth now. Last (and also Least!) Data sales should become meaningful in the next financial year.
Our costs are largely fixed with the main exception being wages. It won't surprise me that in the next 3/5 years the transponder and Data business's will actually provide the revenue and profits to run the business on their own.
Monty I don't really want to get into an argument about something fairly trivial, but you said:
"This will be range bound between 52p to 58p for a year or maybe more"
I said the share price was more volatile than that and it would trade outside that range over the year. The sp is now 47.5 - way outside your predicted range and you are claiming to be more right than me. You've not gone to the Putin/Trump/Johnson school of truth have you?
let's all see what Simon has to say on Friday
Hardboy,
In the past the SP has often had a few pence rise following the webcast. My guess is that both the webcast and the AGM will be good news and a good chance of an associated rise!
Not to sure why the webcast is just a couple of days before the AGM though? The AGM is usually filmed and broadcast anyway.
SRT Marine Systems – These Shares Could Double
https://masterinvestor.co.uk/latest/srt-marine-systems-these-shares-could-double/
Hi Truro,
Yes I've noticed we fen get a short boost from webcasts, today is was a few hours only.
I can't be bothered to check back at the webcast but I think Simon said he wouldn't be there at the AGM. That would explain the webcast/AGM proximity but not coincidence.
Hoping to make the AGM (it's an early start for me, and sure we'll learn a bit more there.
The AGM will not be broadcast (difficult to do properly apparently) hence the webcast. Shame about the SP but the outlook is very promising. I too will be at the AGM. Might meet?
Hope So - I'm coming with a friend who's also a share holder. we're both in our 70s (I like to think I don't look it and am only just there.) I'm tall and used to be blonde. My friend is more average height and usually bespectacled.
Discreet badges might be handy :-)
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.
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.
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.
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.
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
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.
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.
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!!!