Srt Marine Sys. Share Chat (SRT)

Thanks for that. I looked on the website but could not find it. I try to keep track of shareholders, and some of the %s I quoted may be quite old - the last time I'd seen an RNS about the shareholder's holding.

A lot of Private Investors - ith HL & II up there.

Hi Hardboy,

SRT's website shows shareholdings as :

Significant Shareholders

Mr and Mrs Persey Ordinary Share: 30,726,184 Holding: 13.56%

Hargreaves Lansdown, stockbrokers (EO) Ordinary Share: 24,796,425 Holding: 11.14%

Ocean Infinity Group Limited Ordinary Share: 19,800,000 Holding: 8.89%

Mr & Mrs Brierwood Ordinary Share: 20,558,567 Holding: 9.23%

Directors Ordinary Share: 18,366,999 Holding: 8.25%

Interactive Investor Ordinary Share: 15,603,468 Holding: 7.01%

Mr Ian Michael & Mrs Caroline Elizabeth Laing Ordinary Share: 7,867,570 Holding: 3.53%

Mr J M Horne Ordinary Share: 7,740,100 Holding: 3.52%

The first named (as opposed to nominee) II appears to be Toscafund, on about 1%

Chair is Kevin Finn, Rogers is a (founder) NED.

AFAICS

Ownership is mainly British individuals and funds. Ocean Infinity who recently bought nearly 9% is American. 2 Black Rock Funds each have over 6% of the company. I believe Simon Rogers the chairman is the largest shareholder with 11.7%.

So no obvious links with Israel. The Houthi Rebels could benefit from SRT's technology so they could identify what vessels they were firing at.

But any sort of major naval disruption like this (or the Sudanese Pirates) should help SRT. The more authorities can identify and track vessels the more secure their vessels and waters can be.

Thanks to LaValmy for this :

hTTps://globalnation.inquirer.net/226476/ph-looks-to-3-key-allies-for-external-defense

Two trillion PHP is about £28 billion.

.."UK ventures

Earlier last week, Teodoro [Defence Minister] met with Richard Graham, the UK Prime Minister’s trade envoy, and their discussions included “the South China Sea, and potential avenues for collaboration in defense and investment,” under a memorandum of understanding on defense cooperation signed in January by Manila and London.

Teodoro and Graham “expressed interest in exploring joint ventures with British investors and other forms of cooperation to support” the revised AFP modernization program..." etc.

Let's hope, meanwhile, that the UKEF paperwork for Indonesia is indeed all very close to being completed – hopefully this month or just the other side.

GLA and ATB

Is SRT Israel owned?I wonder if the sad troubles in the area are making a difference regarding the delays.Any thoughts on this?

Hi Truro

The 160m was stated in £, whilst the 'aggregated value of 220m' stated in todays RNS is in $,

Todays exchange rate does not quite compute the difference, but is pretty close, there may have been some amendments or an additional $15m ish additional contract come in.

Either way the forward order book value remains strong.

Thanks Bull. However at the September AGM Simon said they were dealing with 160 Mill of contracts. Todays update stated projects worth an aggregate of 220 Mill! Any body know what I missed?

At least we now know the real reason for the so called 'strategic investment' from Ocean Infinity, with the delays know about by the BOD and clear visibility of running out of cash, more capital was needed, resultant from the lack of invoicing on the large projects.

Whinge over.

I have just been sent a research note from Cavendish which show the now 15 month revenue holding as previous forecast, though with a marginally reduced EBITDA of 11.4m (was 12.4m) new PBT of 5.7m (was 7.2m) and negative FCF of 20.4m and net debt of 10.6m, which I guess is inevitable given that to achieve the top line the required invoicing is going to be close to the new YE date. -

2025 YE (12 months now July 24 to June 25) forecasts of Revenue 104.8m, EBITDA of 17.5, PBT of 11.9, with FCF close to 30m and net cash close to 19m.

Please do your own research, the above is only one financial institutions view, other may think differently.

If we are to believe the companies communications, everything is now in place for SRT to finally achieve the undoubted potential it has.

Over to you Mr Tucker, all I ask is that you now deliver on your statements and forecast numbers.

The problem of dealing with governments, Hardboy. I note that SRT now anticipates 15 months revenue expectations corresponding to previously anticipated 12-month figures (so 3 months lost?)

I hate it when strategic decisions have to be made because of bean counters' arbitrary rules and regulations rather than sound business reasons. Unless you're about to run out of money whether a payment comes in in March or April does not really matter.

I don't think ST has over cooked anything - after all the Letter of Intent was signed a year ago so I think it was justifiable to assume the first milestone would have been in by now and for all we know it might have been? Please!!

Been in close to 10 years now and I have usually bought on the dips as I trusted the process and ST.

However I’m beginning to just get a little bit jaded.

The strategic investor added confidence and I took up my entitlement but if ST has overcooked the H2 expectations we’re looking at mid 20’s at best.

I see the vision and get it but the market is getting tired of waiting for the jam….

Again! We're where we were well over a year ago and without £160 Mill of contracts! Some 7 weeks to go to the year end. As the song says 'I'm hoping and praying'.

I do appreciate that at some point we should hit milestone payments but if the £140 Mill contact doesn't start in this financial year then not only will the markets possibly react badly but we may need another cash call!

Only 7 weeks to go folks!!

Hi to Truro Trader and thanks for your thoughts.

Contracts of this nature are lumpy by nature, I have spent many years in manufacturing, building 'custom' power equipment, which can be subject to all sorts of delays, resulting in invoicing rolling from this to next month and making a mockery of revenue forecasting, particularly when the role over is to the next financial year.

So long as the funding actually comes through, then the revenue will be generated at some point in the future, however the markets do not react well to such peaks and troughs and we are seeing this all the more right now.

Right now, I would appreciate Simon Tucker either confirming the previously published guidance, or providing a more realistic end of year outlook.

I am also concerned that as SRT transitions from developing the MDA solution to actually delivering in the field, that the company is in need of new skill sets that are more operational focussed. I see many AIM companies who struggle to make a smooth transition to the delivery stage and I suspect SRT are suffering also. With such a large contract on the opposite side of the world as the first really big one, I hope we have an experienced Project Manager / Operations Manager in place to focus on it, and one who has the authority to make decisions in relation to its delivery.

Looking forward to this current down trend reversing !!

Hi Bullwinkle, Crashcat and Hardboy.

Thanks for the excellent posts. I did think that the UKEF arrangement was ready to rock but I didn't allow for further admin but I suppose they do seem to make certain things are as the original agreement stated.

I guess the size of the contract is in fact a problem. If it had come after say 2 or 3 smaller ones then the lumpiness of the milestone payments would have been smoothed out. I've been here some 8 years now and have always had confidence in the way things have been progressed and improved.

My only puzzlement is Ocean Infinity. It seems dynamic and has a feel not unlike SRT. I know undersee cable and pipelines are of course extremely vulnerable and protection is important. I can see our growing customer base being useful to Ocean Infinity but the only advantage to SRT as far as I can see is is if we act as an introducer or indeed as a sales arm?

Oh well, time will tell all I expect. Onwards and upwards!

I did think thst thr EKEF

Hi Crashcat and Bullwinkle,

Thanks for the posts

I really do not wish to sound like I am bashing this stock, I have held it for several years and nothing would please me more than to see it thrive. I believe in the MDA concept and the AIS boxes are excellent.

That said, SRT clearly do not yet have the funding in place to proceed on the current large contract, and having guided much of that revenue into this year, I am fearful that the end of year results will be a massive under-performance. I recall reading that the company has also commenced the purchase of much of the hardware for it, which means cash tied up, cash which the recent investment by Ocean Infinity and the small public offer has plugged for now.

The recent Investor Presentation was more notable for what Simon Tucker did not say as opposed to what he did say. If we are on track for the previously stated year end guidance, I am sure it would have been re-stated during the presentation and it wasn't.

I shall be continuing to hold SRT in my portfolio, and trust that the current down trend reverses pretty soon. Currently it looks like an easy acquisition target.

Happy to hear other peoples views

This is a reply to email I sent to SRT a few days ago

I’m pleased to say that everyone is super busy. Hope all is well and happy new year.

We are not directly part of the inter-gov loan process, so I can’t say anything for certain. However the UK inks billions of pounds of these every year and in fact we are one of three in process. This is normal stuff. We are also told that the process is right at its end with final reviews of the agreement being undertaken prior to signing - exactly as I hopefully indicated in my web cast last week. Therefore I think the chances of it not being concluded as extremely slim - it’s just a time thing.

If I’m the seemingly very unlikely event the loan agreement didn’t proceed they would not have the cash to pay us and so we would not start the project. It would leave us and the customer in a funny situation of having a contract with no cash to pay for it - on this case I expect the customer would apply for budget from internal sources which would likely take at least a year for such a budget cycle. But I reiterate that UKEF is extremely positive and it’s very unlikely.

Regards

Simon

Hi Truro,

with the current workload of projects, management have had to go through a shift in focus. We've basically gone from a sales business to an operational business, so focus & priorities have to be different. I wonder how they are all coping.

And almost every Day! Not to sure what's happening , You'd think Infinity Ocean and other major shareholders would have had some sort of update. Although ST's Webcast gave us a run down there was no real heads up on the big contract, he didn't say how the delivery of it was actually going.

I'm wondering if the size of it has contributed to a delay. We need the first Milestone to come in before March end if we are going to hit our revenue forecasts. I'm not exactly in full panic mode but in spite of my confidence in SRT (both the man and the company) I am beginning to get a little concerned. Hopefully there's nothing serious - just a bit of market nerves showing. Onwards and upwards?

I assume this is mainly due to people selling of their new 35 shares for a small profit.

Interesting webcast. We learned a bit more bout Ocean Infinity. It doesn't sound as if they want to buy SRT (if Simon has read them correctly.) But it sounds as if it is opening up a new area for SRT products: sub sea surveillance. No idea what the potential is for that.

Excellent RNS and a favourable SP reaction. I must admit the slow SP decline was a bit of a concern. ST's webcasts often result in a positive boost - here's hoping for a repeat!

Hardboy

Thanks for the info, as I explained to IWEB it is an action by a company so therefore by it's nature a corporate action and a retail offer is an offer open to retail investors which they do as a matter of course, will wait and see how they respond to the complaint and may take to the Ombudsman. I have also taken this up with SRT in the hope this may be averted in the future.

I am also with II for my SIPP and use IWEB, HL and Fineco (now withdrawing from the UK). IWEB are owned by Lloyds and are a cheap option and in the past have been fine but now I am less than happy with them. The reason I would like this to be handled by Primary Bid is that it is open to all with preference for existing shareholders so someone like me does not miss out. Also now applications to Primary Bid can be made from an ISA or SIPP for participating brokers which include HL and II but at present you can only apply with II and HL if you already have shares in the company, not sure about other participating brokers.

Hi Terry, not sure who IWEB are, but interactive investor classed this as a corporate action. Everything went through very well.

As for Primary Bid. Please No! Not unless they do it in conjunction with brokers. I hold my SRT in my ISA, and I do not want my holding in 2 different accounts.

It seems to have gone through in full, and the share price has recovered quickly. Just waiting for the new shares to land in my account now.

I must say that A J Bell were very efficient and put out an email very promptly allowing an order to be placed immediately following the announcement. Might be worth changing brokers.