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Good to see the publicity. Not to sure what regular viewers to SRT's usual webinars will gain but I'm looking forward anyway. Now wouldn't it be good if we announced a new contract before the 18th.....
SRT CEO, Simon Tucker and CFO, Richard Hurd will present the company, the opportunity, how they are executing on strategy and the outlook.
Wednesday, 18 May, 4:00pm
Join us here: https://attendee.gotowebinar.com/register/2786437765213338893
You may have caught it by now but if not it's typical SRT (as I now call him!) A really good take on the situation - no showstoppers but he doesn't do that - so no SP action. A really good heads up on a very positive situation once supply chains are sorted. A straight forward presentation.
Did anyone catch the webcast ?
I'll get the replay later, but wondered if there were any quick take-aways ?
S/p (in)action suggests not....
TIA
I too intend to go this year - thoughely enjoyed my first last year, there was a good feel/atmosphere. Should be a really positive AGM with any luck! Because of the small numbers it was actually held at the premises which I thought was a bonus.
That's right SRT runs SRT - I think that was one of the motivations of the name change from Software Radio.
I agree the company is very open with shareholders: possibly the best shareholder involvement I've ever come across - whenever I have had a query, I'll email the website & usually Simon replies personally in a matter of minutes. I think maybe part of the reason for this is there is a very heavy shareholder base among the employees & ex-employees (which is why we often see price moves & volumes moving before RNSs. Bit naughty , but hard to prevent it.
I will try to get to the AGM again this year.
Yes Simon is perhaps a little optimistic but he does do his best to temper it with a dose of realism. I guess it's one reason he does the webcasts which is one of the reasons I'm here as a shareholder.
At the last AGM he said (anonymously) that one of the chief negotiators of one the 'imminent ' contracts told him, at the beginning of the month (September) that the decision to proceed would be made within 10 days. He then said that was 3 weeks ago but that the guy was serious. Should he have shared that - perhaps not - but it's because he tries to be as open as possible that he did. Personally I appreciate this trait.
PS. I only recently realised the ST's middle name is Richard - now that's what I call Cool!
Historically, if Simon has a problem it is in being over optimistic, so in some ways it's nice to see a more cynical view. I think it's important to watch the webcast on Friday. They usually give far more detail than the official RNSs.
Of course one problem with last year's results is one of timing. Project payments are large but are well spread, so the timing of invoices either side of a period end can make a big difference the the figures.
The potential is still huge. It would just be nice to see a bit more of it getting realised.
Simon might have been disappointed with the results but now that's all done with he's bought himself another 61, 122 shares. Would seem fair to infer confidence.
Hi Ecologist, I think it's pretty much as expected but a 7 Mill loss is perhaps a disappointment? All of the potential contracts seem bogged down and the VSP grows all the time but surely they must free up at some point. I hadn't realised the higher effect with slow supply issues on the transceiver business.
I intend to buy into my ISA tomorrow so I've got mixed feeling about the update. However as the song says "What's another year?" Rodney time must surely come!
The update seems to be pretty positive given the pressures that Covid placed on the world economy, including supply issues. I felt quite optimistic reading through the text. That is until I got to Simon Tucker's contribution of " ... I am disappointed with the poor financial results."
Hey ho, spanner in the works by the CEO.
price action shows some of those sells are likely buys
Yes, I noticed that. Two big purchases this morning. I wonder if someone knows something?
Fair bit higher than normal
UPDATED FEB 2022
Aim-traded SRT Marine Systems (SRT:44p), a global leader in AIS, an advanced identification communications technology used to track and monitor maritime vessels, has now signed a £40m contract with a national coastguard for a national scale marine domain awareness (MDA) system to track, monitor and manage all maritime activity in their territorial waters. A further £30mn of contracts are expected to be signed imminently, too. These awards not only put the business firmly back on track after Covid-19 travel restrictions delayed contract implementation, but support a major ramp up in SRT’s profits to reverse three years of losses.
To put this into perspective, house broker finnCap expects annual revenue to rise seven-fold to £56mn in the 12 months to 31 March 2023 to produce a cash profit of £11.1mn and pre-tax profit of £6.8mn. On this basis, expect earnings per share (EPS) of 4.1p. Moreover, operating cash flow is forecast to rise 13-fold to £7.8mn which should produce free cash flow of £2.5mn after accounting for interest payments (£0.7mn) and capital expenditure (£4.6mn). The estimated free cash flow is forecast to slash net debt from £6mn to £3.5mn by 31 March 2023, thus transferring more of the economic value from debt to equity holders.
Furthermore, profit forecasts are conservative as they exclude “several additional significant contracts from the current pipeline that management expect to sign”. In fact, SRT’s directors have increased their validated sales pipeline from £550mn to £600mn since I highlighted the investment case (‘Making waves’, 6 January 2022) even though the £40mn major contract has now been converted. Please note I still believe that SRT could be making £10m of annual pre-tax profit if three other contracts (two in the Middle East and one in Asia) are converted. These are worth worth £54m of additional revenue.
It’s worth noting, too, that the electrical component supply chain issues that have held back deliveries in SRT’s smaller transceiver business are expected to ease in the next 12 months, thus enabling the group to fulfil its growing order back log and ongoing end-user demand. For example, SRT’s em-trak marine electronics subsidiary has just received a contract to supply commercial AIS Class A transceivers to the Panama Canal.
Trading on a modest price/earning (PE) ratio of 11 for the 2022/23 financial year, and with major MDA contracts now being converted, I am raising my target price from 55p to 65p with the investment firmly risk skewed to the upside. Buy.
Simon Tucker, Chief Executive Officer bought today at 33.1p , approx 9k worth takes his holding to approx 2.8 million
The Placing document says they were willing to take up to £ 7m, but as it turned out they only placed £5m. So institutions somewhat 'underwhelmed'.
PI's buying now , of course, benefit the seller's cash position, not SRT's.....
The placing price pretty much always becomes available to the PI , as it is now
Not pleased that this shafted the private investor.
Market cap 50 million - profit forecast 10 million - seems like a pretty good price
prior to placing so more money to do projects but 10% - so maybe just about even
Aim-traded SRT Marine Systems (SRT:47p), a global leader in AIS, an advanced identification communications technology used to track and monitor maritime vessels, has been awarded the first of four systems projects in its near-term validated sales pipeline (all in South East Asia and Middle East), which combined are worth £71m over a two-year delivery period.
The contract from a national coastguard is worth £40m over two years for the installation of a national scale marine domain awareness (MDA) system that will track, monitor and manage all maritime activity in their territorial waters in real time from multiple command centres across the country. The system incorporates a range of sophisticated functionalities such as vessel information and identification, and AI analytics that automatically detect, alert and categorise suspicious and illegal activities.
The other three contracts (worth £31m in total) are all expected to close before the 31 March financial year-end. SRT’s chairman, Kevin Finn, also notes that three other contracts worth £54m (two in the Middle East and one in Asia) have “unexpectedly progressed and could materialise during the current financial year”. These potential contracts form part of SRT’s validated systems contract opportunity pipeline which has an aggregate value of £550m.
Importantly, the group is well funded for the accelerated project roll-out. Net debt of £5.4m includes a low-cost £2.2m bank loan (2.84 per cent interest rate), and SRT has drawn down £5.3m from a £20m secured loan note programme. Upfront payments on new contracts and further milestones on SRT’s flagship Philippines project (installation of monitoring systems, coast stations, vessel transceivers and satellite data feeds) will boost the group’s cash position.
House broker finnCap plans to relaunch forecasts once the other contracts in the near-term pipeline close, but I maintain the view that SRT could be making annualised revenue of £50m in calendar 2022 through a combination of transceiver sales (annual revenue of around £8.4m) and MDA systems contracts. Based on a gross margin of 40 per cent, and factoring in annual fixed overheads of £8m, the ramp up in revenue could deliver annual pre-tax profits north of £10m, a hefty sum for a £79m market capitalisation company.
I last rated the shares a buy, at 37p (‘Set fair for a profitable voyage’, 29 July 2021), and can see material upside beyond my 55p target price, assuming the other six near-term contracts (worth £85m) are landed, as seems highly likely. Buy.
16,365,000 new Ordinary Shares to institutional and other investors (the "Placing Shares") at 30 pence per Placing Share
10 % increase in shares in issue
Some well-informed person dropped 111K shares at 38 at 14:03, when the spread was 39-40...
The placing is at an s/p we haven't been near in 9 months.
OK, it's in the middle of a war, but one that we are better-placed than most to 'benefit' (ugh) from.
Shameful.
30p placing tonight to raise £4.9m for gearing up for new orders. Can't see that taking long to fill. Wish I could have some.
https://www.zerohedge.com/geopolitical/saudis-uae-refuse-speak-biden-over-ukraine-situation
With Iran potentially coming in from the cold , with a new nuclear deal......and their OPEC cartel associate Russia facing sanctions......and the West wanting Gulf States to up production, Saudi, the UAE, Bahrain and Qatar must be in a bit of a pickle : who's the policeman in their 'bad neighbourhood' ?
The geopolitics must be a nightmare.
Can't harm SRT's business prospects, I'd have thought.
Well spotted Goodapple. Article published in IC this evening. Target price raised to 65p from 55p.