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A supernumerary has pointed out elsewhere ..Surely the salient fact is that he [Hurd] doesn't seem to be selling any to cover his tax bill, which is the usual procedure?
I've spoken to Hurd at an AGM and he seems a practical kind of guy - as you would expect of course. If we sign one contract before March and one in the first quarter of the next financial year and add in the transponder revenues then that's the next financial years revenue sorted! Not many companies have that visibility.
Late RNS suggests CFO agrees with you !
.."Richard Hurd, Chief Financial Officer of the Company exercised share options over a total of 500,000 ordinary shares of 0.1p each in the Company ("Ordinary Shares") at a strike price of 20p each. These share options were due to expire on December 18, 2022, being 10 years from the grant date.
Following this acquisition, Mr. Hurd is interested in 600,000 Ordinary Shares, representing approximately 0.3 per cent of the Company's issued share capital."
£100k is probably a material outlay from the CFO and is usually a good sign : 'follow the money'....
Exercise of zero cost options is tokenism ; Hurd has actually put more of his financial eggs in the SRT basket.
;->
Hi Hardboy, I think we are on the edge of great things and while you're right re the timing of milestone payments this will become standard fare as new contracts are signed.
There were three things holding us back. 1. Is the various governmental bureaucratic delays t 2 Was the Covid delays which compounded the governmental delays. However both have combined to create a backlog of approaching contracts. 3. The 'chip' delays which, although we have increased transponder revenue, has in fact also created a 'bonus' backlog order book. Once the 'chip' shortages decline we will have increased order book income plus the new Nexus.
The good news is that this years revenue to March is in and we have some 15 months to build next years revenue. We only need one new contract before March to improve the SP. The current MC is 85 Mill and the potential in the VSP is far greater than that. Buying and selling is all about timing and if I'm right below 50P will seem a snip in 12 months!
I sold a tranche at 53 and expected it to slowly slide back to more usual levels until the next major contract is announced with the intention of spending some of my sale proceeds on more shares than I bought, and the share price seemed to be moving that way, till Shares magazine tipped it and keep tipping it, which presumably is resulting in a fair few Private Investors buying and pushing the sp back up. As a shareholder I don't mind magazines tipping my shares, but what they've printed is very misleading. The reason for such a large improvement in Interims against the previous year, was to a large part down to timing of project invoices; not because the business has suddenly made a huge improvement from loss maker to giantly profitable.
...and a recent interview with IG.Com
https://www.youtube.com/watch?v=qYneH6iKZf4
No new disclosures, obviously, but a good story told well.
Simon stands by his expectation of 'pretty close' - later defined as within this FY ie March 2023 - signature of 5 contracts, total £ 230m, for delivery within 1 to 2 years of signature. And delivery on the existing £70m.
Hat tip to Baynet.
An upbeat assessment of SRT's prospects from one of its main funders
https://www.lgbco.com/news-srt-marine-systems-plc/
Hat tip to DJTrading.
Hi extrader - you seem to spot stuff! I've just reread your 23rd of May post re Quad. But the time Quad get themselves to a tender stage (2-3 years if they ever do!) then SRT will be the only game in town anyway. All is grist to the mill!
..of the wider significance and marketing impact of a contract award in Indonesia (from this week's Economist 'taster') :
"Our cover in Asia featured the most important country that people routinely overlook. The last time Indonesia’s economy and politics were in the global spotlight was during the mayhem of the 1990s when a crony-capitalist system collapsed amid the Asian financial crisis, causing the fall of the 32-year dictatorship of Suharto.
A quarter of a century on, Indonesia matters once again. It was the venue for this week’s G20 summit. It is the world’s largest Muslim-majority state, its third-biggest democracy and its fourth-most-populous country. With 276m people spread across thousands of islands that stretch from the Indian Ocean to the Pacific, it is caught up in the strategic contest between America and China. And like India and other emerging markets, it is adapting to a new world order in which globalisation and Western supremacy are in retreat. Perceptions often lag behind reality. We felt that it was time to catch up."
GLA and ATB
Quite right Starman. Come the next financial year we should develop a steady flow of contracts which will attract both follow on orders and recurring Data Sales - never mind the transponders! Because we don't manufacture, and therefore not need the premises, we only have to facilitate the onward forwarding to our installation partners around the world. It's a good business model and our costs are never going to be high compared to our revenue.
Never quite understand rounding up or down silly amounts Truro. I hold more than enough (round number) in my SIP account and will be part of my wider portfolio. Will obviously be monitoring company but see this as up to a five year growth stock and therefore will only comment again if something dramatic happens. Good luck with your holding……..
Come on now, own up - Who bought three and sold two!?
A good presentation from ST today with another tick up on sp. All aspects of SRT are now in place for a potential world dominance. This business will take time knowing how long it can take for the larger contracts with governments. I believe this company is far stronger now and has tremendous profit growth in 1 to 5 years and bought more yesterday. GLA
Well impressed. How does ST do it? What a professional performance. He has such a grasp of the current situation plus the ability to look ahead. He has himself said he is sometimes too optimistic - let's hope his optimism re new contracts is justified. Announce 2 systems contracts before the March year end and the SP will double.
I hope you've all watched today's "investor meet the company" presentation today - very informative, and it may result in a further push up in the sp tomorrow
https://presentations.investormeetcompany.com/investor-meet-company/SRT-MARINE-SYSTEMS-PLC-Interim-Results?bmid=9c630ccf0817
Not sure that link worked but it should if you have to copy & paste.
Quite right hardboy - I stand corrected! We are increasing head count and when I was at the 2020 AGM there was talk of increasing warehouse stock but we don't hold much equipment so costs will rise more slowly than revenue. Debt of 6.9 Mill should not be a problem to clear in a year or two and then roll on the divis!
From advfn, hat tip to owenski and baynet : here's an interview with Bakamla at IndoDef , showcasing their new kit.
Https://www.youtube.com/watch?v=oGZxdcgMOGA
At min 1:23 you can see (bottom left) 'powered by SRT'.
Pleased with figures announced. I will be interested to hear Q&A’s tomorrow with ST in the chair again. Just got a feeling this time that another contract is imminent. See Hargreaves’s clients hold around 15% of assets so plenty of private clients onboard….. Anyone know the institutions now investing? Let’s see if we can read anything from meeting tomorrow. GLA
I'm splitting hairs slightly, but SRT have reported Full Year Profits quite often. 2011, 2012, 2013, 2016,2017, 2019. All profitable years. I always used to reckon day to day cost were around £10m, so if they could get income above that they'd edge in to profit. That cost has increased a bit of late, but one of the beauties of the business is that incremental orders does not materially increase the costs. Because the project income tends to be significant when it comes and in large payments, timing of invoices can make significant differences on profits for a specific year. But, yes, let us hope for a more significant profit this FY and that the conversion of contracts in the pipeline ensures regular FY profits thereafter.
Good news given. Good chance I think of making a (small?) maiden profit this year - icing on the cake would be a new contract this calendar year but not crucial to break into profit I think. Interesting to see tomorrows presentation with perhaps a further SP uptick with a new audience? Might get some figures as well!
Hi TruroTrader,
Yes although needed that £4 mln placing did not help at 30p. That aside systems have been improved and contracts are now coming. Let’s see what ST has to say next week. Enjoy rest of your weekend.
Hi Starman, Not too sure of any benefit to the Coastguard from SRT products re illegal boats with no AIS. However, you would think, that both the Webcast and the Presentation will have positivity to encourage a further SP rise. Three years ago we were at 55p but a couple of months later this had halved. The situation is now totally different. The new small contract is actually a free bonus. I would like to see a VSP contract with a milestone payment before the March year end. I think this would guarantee our maiden profit. The VSP should then guarantee a conveyor belt of contracts for future years.
Hope for more information/updates by ST together with good figures. Wonder if U.K. contract has been requested for our channel crossing issue……. Thought price would ease a bit but a steady upward trend.
I'm very optimistic re this new contract. There is a £1 Mill contract in the VSP so this is less than that I guess. However it concludes this financial year so that helps. But more importantly it is the lead for other governmental agencies. The advantage of this is that maybe each agency is able to approve its own section and that avoids a full governmental approval and the associated bureaucracy that goes with it.
Had a good sp rise this week on the back of comments last Sunday. This company has been very rocky for some shareholders but think we’re through the turbulence now and look forward to more good news - let’s see possible pointers from ST soon. Fingers crossed for a continued uptick on our sp.