Srt Marine Sys. Share Chat (SRT)

Isn't Nexus a while away yet?

Tried to buy some more in the Fund Rase, I have these shares with IWEB and they said they could not do this as this is not a Corporate Action and they do not get involved in Retail offers.

Have raised a complaint as this is clearly rubbish and not happy as I will miss out with my holding diluted. Company should have put this offer on Primary Bid.

Positive result. £10 Mill should see us to a milestone payment. Looking forward to Simon's next webcast say mid/late Jan or so.

Hi Bull38, I think your view re Simon not having a clue in delivering on the order book re-writes history. He has previously delivered 4 Marine Domain contracts. All have been on time and all have come back for repeat business.

When this £140 Mill contract was announced I did think it was a massive step. The initial milestone payment is dependant on the control room kit delivered and to be up and running and in this case there's an awful lot of it! I thought it might be a close run thing and so it is proved. Yes more could have been raised earlier but it might not have been needed.

You say that to get £70 Mill from from next to nothing is a major task. But I don't think £30 Mill last year is next to nothing! I see it this way. We've 3 months to get the first milestone payment on the new contract which will be around half of that £70 Mill. Add in a smaller milestone from another contract. Add in transceiver revenue which last year was £12.5 Mill and is expected to increase and your country mile is shortening. Our new product Nexus is about to launch and the ordering of this may well have contributed to the need for funds.

The timing of the big contract was unfortunate and a couple of smaller ones would have been more manageable. In addition the timing of launch of Nexus was unfortunate. This was caused by the inevitable project setbacks that you mentioned.

All in all I'm a pretty happy bunny!!

PS HI sam4224 - perhaps my view is different from yours but it is factual.

.."I suspect they did substantial due diligence on SRT including their technology and also speaking to customers.."

That's a first, where it's the hedge-fund manager who asks 'where are the customers yachts'?

I'll get my coat.

GLA

I suspect that Ocean Infinity/Clake's attention is elswehere atm

https://www.msn.com/en-gb/news/world/colombia-will-try-to-raise-objects-from-a-1708-shipwreck-believed-to-have-a-cargo-worth-billions

and that SRT is a relative 'divertissement'.

Season's greetings.

I don’t usually post on these forums, however this move by SRT has driven me to comment. For me this is far from a strategic investment , if it where then it should have been at a price that Is not dilutive to the existing shareholders, many like myself who have held shares since the beginning of this journey.

My view is that our jam tomorrow CEO does not have a clue in delivering on the fantastic order book we have. It shows that the payment milestones are not being met, that cash is not flowing into the business in line with the projections made and as such the working capital is depleted. Either that or the CFO cannot project working capital and cash accurately, I now expect an RNS in 2024 stating that the previously repeated guidance of £70m sales for 24YE will be missed by a country mile.

Lets remember that the AIS side of SRT is a box shifting exercise, manufacturing of which is sub-contracted. SRT itself now has to deliver the Systems side of the product offer and appears to be failing. Ramping up from next to nothing to £70m is a major task that cannot be under estimated, there will always be project setbacks, they are inevitable, I have a feeling that SRT have totally underestimated the task at hand, and is now floundering around, burning cash and not hitting the milestones.

My confidence in the CEO and CFO is now pretty damn low. A truthful explanation relating to this raise and some honesty in the progress to the previously repeated year end guidance is now required.

Sorry for the repeat message - pressed the wrong button.

Like you I'm disappointed at the proximity of this raise to the previous, but they are in a (good) situation that is new to them. Having so much work on, with the project payments triggered by milestone achievements. I'm sure this is just a question of needing more ackers in the bank so they can carry on working without worrying about the exact timing of payments or having to take out new loans. They should probably have raised more in the past.

Another possibility is that Ocean Infinity approached them wanting a sizeable stake & they did not want to dilute existing shareholders' holdings too much, hence the Placing and retail offer on top of the subscription offer. (I always have to stop & think which is which.)

Will do more research on Ocean Infinity. The last high profile deep sea investigator died near the Titanic. Let's hope this guy is better prepared.

Thanks for the link - well found. It's the first time a related business has taken an active interest in SRT, could a bid follow?

Thanks for the link - well found. It's the first time a related business has taken an active interest in SRT, could a bid follow?

I can understand your emotions, but not your planned course of action. If you think the shares will recover - why not buy more under the retail offer? The share price has not gone down to the offer price which is a good sign. So you'd be buying at a discount.

Ugh!

Here's a good write-up on Ocean Infinity/ Clake

https://blog.geogarage.com/2023/11/hedge-fund-tycoon-anthony-clake-doubles.html

'Underwater' MDA ....coming to a business near you ?

GLA

Up to now thought this company was well run. Coming begging so quickly after the last fund raise in my view shows appalling planning. Will not be taking part and likely to sell rest of holding….. when and if share price recovers . Turning opportunities into contracts in the mid and far east is difficult . The CEO has over egged the opportunity pot in my book

If this is the future, it looks good.

SRT Marine Systems (LON:SRT) – The Buyers Are Returning

Yesterday I noticed that in a much busier dealing counter the shares of this group topped at 46.55p before closing 2.75p better at 45p.

SRT develops, manufactures and supplies maritime tracking technology and turn-key system solutions to marine stakeholders across the globe with a particular expertise in AIS.

The company’s products and solutions are used by individual vessel owners, port authorities, maritime infrastructure owners, coast guards and national security agencies to enhance their maritime domain awareness.

Applications include the tracking of commercial and leisure vessels; sustainable fishery; illegal fishing detection; law enforcement; anti-collision; search and rescue; waterway management, port and coast security; pollution management; and environmental management.

Analysts Kimberley Carstens and Michael Hill at Cavendish Capital rate highly the group’s shares, pitching for 100p a share in due course.

They see the £0.3m loss of last year turning into a massive £7.2m profit in the current year to end March 2024, worth 3.8p in earnings per share.

For the coming year they go for £11.8m profits, worth 6.2p in earnings.

Regular readers will know just how keen I am on these shares, I am convinced that its potential will shine through glaringly in 2024 (mark my words).

Check out my Profile piece on the company on the 13th September https://masterinvestor.co.uk/latest/srt-marine-systems-these-shares-could-double/

I would have thought that SRT's customers would decide that. We provide the surveillance and monitor the situation and the customer decides how they respond to any given situation.

In the automated vehicle market / EV space there are regulatory requirements for remote monitoring and control centres - for example, see Guident - https://guident.co/

So I was just wondering if MASS might assist SRT's business.

Not really - But we are able to track them

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

Https://masterinvestor.co.uk/equities/small-cap-catch-up-srt-marine-sanderson-design-and-some-stakes/

On Nexus, Simon said at the Open Day that the margin planned is 30-50% retail vs wholesale, blended 40%.