Srt Marine Sys. Share Chat (SRT)

You will still be waiting for these contracts to be signed in two years from now , never mind new fundraising wont be far away

So putting it bluntly - would there be any unusual factors which would deter the SP achieving £3 in the next 3 years (ignoring WW3, customer default, meteor strike, new pandemic etc)?

Welcome aboard Hounddog10, well thought out post I must say. I've been here 8/9 years now and been to the last 2 AGMs I intend to go to the next one. The current spate of 'nearly there' contracts is purely down to admin delays out of SRT's control and although almost to good to be true it is the culmination of the hard work put onto the VSP and has built up since the days of the Pandemic.

Once the first 2 or 3 are commenced and up and running I would expect the VSP to deliver in more a more regular fashion.

Interesting point re the transceivers delivering enough revenue to run the whole company. Simon mentioned this some 5/6 years ago. Now the dealership is up to 4,500 and Nexus is being pre ordered this could well come to pass. We may need to increase the head count a bit and keep more stock n the warehouse but nothing else will be needed.

Thanks and Cheers

Good summation Hounddog, I think your £40m profit equates to an EPS of around 19p. With transceivers contributing too, and further contracts coming in in the next 3 years, then it should be way above that in 3 years' time. Give it a PE of 15 and we're looking at share price of 285+.That would be nice. from here.

They do need some working capital, if just for stock, Project orders when they do come can come needing big lumps of equipment, and with shipping problems around the world (Houthi rockets, and striking Americans to name 2) a good stock is very sensible.

Been following this for a while and have now bought in. I would have a slightly different cut to JRC but end up with about the same result. There seems to be four near term contracts totalling $420m, one of which is for $200m, for an unspecified client and is moving much faster than anticipated. Two of the contracts are follow on and I think in the June webcast Simon mentioned that one of these contracts was worth $9m. I expect the other one will be relatively small. So I would guess that most of the remaining $220m relates to the Indonesian contract (say it is worth $150m). That is backed by a UK government loan and so SRT should not have payment problems as, when they reach milestones, there will be direct dispersal of loan amounts.

Overall the four contracts seem highly likely, albeit timing may take longer than wanted and care has to be exercised with the contract that is moving much faster than expected. Customers in, particularly, Asia/ME often demand suppliers move at pace but then rarely apply that attitude to their own decision making.

So say $420m over 3 years. Difficult to know gross margin but the 2017 annual report says that their long term target is 50%. So assume $200m gross profit over three years and knocking off 25% tax that is around $50m per year (around £40m). I think for a tech company one might be quite ambitious on p/e multiple. Certainly 15 and for UK companies 20 seems the norm (Sage is on a p/e of nearly 50!). So £600m - £800m m/cap. A straw man I know, but even discounting for very significant uncertainty that should support the current market cap.

Then there is the transceivers which now seem to pay for all of SRT’s overheads (except borrowing costs - but that is covered by the R&D tax credit) and probably means that that business alone can generate a profit for the whole company. Particularly so if NEXUS does reasonably well.

There is also the question of what SRT might do with significant cash inflows. They don’t seem to need significant working capital.

Could all be a bit too good to be true but there is a reasonable chance that SRT’s time may have come and, with luck, there is no significant downside (hopefully not cursing the share).

Hi JRC, Yes it is difficult to assess how things will go. Your calculations are is good as any I guess. One thing I like about the business model is using Flex to manufacture our hardware - all we have to do is order it with no upfront expensive production facilities to finance.

Once we get over this delay hump - perhaps by the end of the year - then timings of contracts should start to be more regular and our revenue will rocket.

I was concerned that whatever it is that the ombudsman is investigating re Simon was putting off new orders but no it's just admin delays re future contracts. Onwards and Upwards folks!!!

Hi TT,

Googling the X100, there's a European stockist called vetus who are quoting €1819.35

I don't think any stock is being shipped just yet, but Simon has said there is a forward order book.

Thanks goodapple, impressive specification (even if I only understand some of it!) Didn't see a price though. At the last AGM Simon seemed to think around £1500.00 which I thought was a little low?

The long awaited launch is due shortly. Online search for em-trak X100

Good to see a gentle SP uplift over the last fortnight or so. Anybody any info on the May '23 contract or the investigation into Simon and others as per the RNS 24/04/24. I've said before I totally support Simon. In think that maybe this cloud is one reason we've no new contracts - very frustrating!!!

👍

Simon.tucker@srt-marine.com

Has anyone got Simon Tuckers email address ?

Hat tip to LaValmy for sharing this

..."The broker's view seems about right.

'SRT Marine Systems has announced it has signed two follow-on SRT-MDA System support contracts with two sovereign agency customers in Asia worth in aggregate $4.6m to be recognised over the next 12 months. These wins highlight the repeatable nature of critical maintenance and support contracts that follow, and subsequently scale, as customers build up their sovereign maritime surveillance and monitoring capabilities once SRT has initially implemented its mission-critical SRT-MDA Systems for sovereign Coastguards and Fisheries customers.'

One small caveat is 'with one of the contracts including some existing functionality refinements' which would not be recurring, but the balance would seem to be. BFAR and Bakamla's little installation must be the customers.

....

I wouldn't treat this news quite so flippantly given that we have been waiting for recurring revenues for far longer than the Indonesian contract.

It is a bit of a shame that the recurring part is not quantified but I would guess

$2.5-3 million at 40% margin. If ever SRT is valued partially on a revenue multiple for the recurring part, then even this modest start would account for a decent chunk of the current market cap. Five times sales or ten times EBIT, $12 million or so?

I should have added that this news also strongly suggests that relationships at the BFAR and Bakamla are still good, particularly important for the former..."

GLA

Agreed TT.

I like his approach to share holders when this first came to light. Good comms is crucial and addressing the concerns as well as possible to settle nerves says a lot about him. I wish there was similar leadership at Tek and the Tek portfolio.

Hi giancotti, Yes the cloud needs to be cleared. The May '23 contract is stalled because of the funding delay. We've no new contracts since. The 2 contracts announced today amount to £3.4 mill over a year - just not enough to make a company profit.

It's worrying me that since the May '23 contract was signed no new ones have come in. We should have had a couple since then. The Nexus delay means we have missed this season and possibly missed getting in the European boat chandlers brochures for next season.

I've said before that I think that the CEO, Simon, is fundamentally honest and to astute to get mixed up in any thing dodgy. We need this clearing up quickly.

Hi Monty888,

Not to sure about your comparison re Harland & Wolf. We have just one contract signed that is stalled because the customer, unexpectedly, has no money.

Its building up, even with out RNS, and now we have nealry $5 new contract

I expect push here over 30p today

its multi day runner usually.

dirt cheap based on business growth, no personal issues - thats just silly

Can’t see it growing until it makes so retuned profit and gets generating bottom line cash. Harland & Wolf kept announcing big revenue deals before collapsing - This reminds me of them on a smaller scale. Very wary but will watch to see it looks like it could be profitable.

Getting coverage. This dirt cheap under .5 now.

Only a dummy would sell here now...:)

Many think, can't see this one under 50p for long.

looking for some cheapies to long hold this, but any thing undr 35p is damn low here

I think it's a mistake by them. My understanding is that Nexus will be getting shipped from October, so Dansk Marine Center can't have access to them yet.

I'm sure SRT will announce when the wonder product is launched.

Hi goodapple, I've looked on the UK website and there's no mention of nexus there. I wonder if it's a regulatory thing as you'd have thought an RNS reach would be in order if it's actually for sale?

Nexus:

( in the absence of big contract news, this is at least a morsel of interest )

I had an email today from Dansk Marine Center, who are a Danish distributor/stockist for emTrak.

The headline product mentioned was emTrak Nexus and the details for availability were:

"In remote storage, delivery within 2-7 working days"

Here's hoping this bit of the long SRT wait may be justified...

Good post extrader. There are a couple of loose ends that concern me. The first is the allegations a few months ago r e the Company, the Chairman and Simon. From the info on here I'm guessing it was to do with the last completed contract and the various machinations concerning the government and the fishing families. The allegations re the Chairman and the company have apparently been resolved. However Simon's is still outstanding. Could this be the reason for the delay in the loan? I think Simon is to astute to get involved in dodgy dealings but could this also be the reason for no new contracts being announced since May '23? All very puzzling.

SRT's s/p hasn't shown much volatility in the recent market-wide turmoil, perhaps it generates enough of its own ?

Looking at the June 7 trading update, some news ought to be 'imminent' :

- Customer 1 the total project is worth a gross value of £40m, and we have successfully delivered and completed Phase 1 which was worth £16m. Phase 2 is worth £12.5m and Phase 3 worth £11.5m. Phase 1 was completed in 2023, and Phase 2 was expected to commence during the second half of our current financial year. The process of finalisation and award has taken longer than expected due to a combination of the customer amending the exact scope of the project on several occasions along with the required redrafting and internal verification of formal project documentation. However, we are pleased to advise that the scope of Phase 2 has now been formally agreed and confirmed and the customer has advised that they expect the formal documentation and notice to proceed to be issued within the next few weeks.

-With regard to Customer 2, in May 2023 we signed a binding project contract worth £140m to deliver an SRT C5iSR system with a sovereign Coast Guard. Since then, much preparation has taken place, including project planning, surveys, and procurement. The project is financed by an inter-government loan between the UK Export Finance ("UKEF") and the country in question, the framework terms of which were agreed by the parties in early 2023 prior to the project contract. At the time of signing the project contract [Ed.: May 2023] we were advised that such inter-government loans usually take around 6 to 9 months to complete, following a well-worn process and thus we expected completion in early 2024. However, it has become clear that such inter-government interactions, move steadily but slowly according to a defined process. Whilst SRT is not party to this process, we, along with our project customer are passive observers and maintain close contact with the UKEF and the co-lending bank. In March it was indicated to us that the expected completion should be achieved in May however, whilst there has been material recent activity and progress in the documentation finalisation process, with both UK and Customer representatives indicating a June completion target, we feel that it is more realistic to expect completion early in the new financial year...."

We're now mid August....

As the Cindy Crawford Omega Constellation ad has it ...'Just ask yourself, if not now, when?'

GLA and ATB

Thanks Tru. Food for thought and more research.

GLA

OK jaz, The steady small rises over the last week or so may be due to some news coming on down the turnpike - if it's any thing positive to do with funding for the large contract signed in May 23 this could move quickly. Plus we must be due a new contract from the pipeline by now anyway which will also move the SP upwards.

Thank you Tru. I will check the fundamentals but charts are saying a clear BUY.

If you go to the website under 'about SRT' and then 'Investors' you can click on past webcasts made by the CEO. If/when the funding comes in for the $180 Mill contract signed in May last year then the SP will rise significantly.

Hi. I have come across this company by accident and what I have read has interested me especially about that 7th June RNS and the new contracts in the pipeline. I am considering investing.

Would anyone care to brief me on the short to medium term prospects and what you expect the SP to behave in the run up to 12th July full year results. Thank you in anticipation.

Congratulations everyone who got in at 16p. I wasn't brave enough. Bought at 22+ on Tuesday, sold at just over 26 today. Made 16.5% in a day. Nice (If anyone is interested that's equivalent to around 100 trillion trillion % per annum. That is a nice return!)

This is great - the more green boxes that appear - the higher we go. Google Finance currently showing over 17 per cent up today.

"Just as well your anonymous or your 'untoward shenanigans' comment could be actionable". Pmsl. For heavens sake, stop embarrassing yourself .

Tucker sucker 😂😂. Have you not heard he's being investigated? I know you won't bin me.lol

Good Lord. Have I touched a nerve or what!! The truth hurts. Just as well your anonymous or your 'untoward shenanigans' comment could be actionable.

Anyway your rant is over for me as your being green boxed

Srt-marine.com > investors> corporate governance

Can anyone point me to where I can find a list of shareholders?

Hi Monty,

Just querying your "one mini disaster after another." Apart from the Philippines, what other min disaster have we had? And we're not sure that is a disaster - indications were that it was still on schedule and still going to profitable.

Hi TT, well let’s see if Simon redeems himself by posting some net profits in the next results. I have a much higher level of cynicism that you regarding smooth talking Simon. I think a lot of investors that supported the cash raising just ahead of one mini disaster after another are probably on same page. I am invested and hope your optimism comes through in the SP in a few months time.

Hi Monty, I've been to a couple of AGM's at which Simon is the main spokesperson and I've viewed countless webcasts he presents - all available on the website.

I don't know your experience of him but he's definitely in the top draw for me. If he has a fault, he has admitted to being little too positive at times. However he is an excellent communicator as evidenced by the said webcasts.

I thought the upselling of prospects was quite sharp to get the 35p cash injection away. No we have this Philippines issue with CEO trying to clear his name. If we assume he will and SRT are totally innocent of any tendering malpractices then they should issue a much more comprehensive RNS that answers the following: If Philippines don’t pay after alleging illegal tendering what would be the effect on revenue and bottom line? Is SRT smart enough to set up their contracts ideally with advanced stage payments to minimize payment risks. The fact that these 2 simple easy to update shareholders data is missing is very concerning and I think understandably until much greater P&L clarification is forthcoming it make SRT almost non-investable. Whilst there is a most explanation, changing their Y/E strategically right now stinks as well. I don’t think Tucker is the great CEO some believe him to be. Anyway time will out as always. (I’m watching might invest but need data on liabilities from current events).

Monty, not to sure about your "the whole company tricked up from top to bottom" means but that is not what the latest RNS reported. It's only Simon and others outside the company who appear to be involved.

Simon is one of the best CEO's I've come across on the AIM and I've held some 60 odd companies in my time (some of them very odd!) Can't see him deliberately being corrupt but his loss would be a big loss to the company. For what it's worth I would support him.

Read extraders posts some three weeks ago for background. I think they explain the situation very well

PS. Thanks extrader for your efforts..

What’s all this BS got to do with SRT?

Apols for the somewhat O/T , but it IS the weekend.

It may be cold comfort for SRT investors, but we're not alone in being caught up in domestic Philippine politics, where this time it seems ideology, rather than financial gain, is frustrating a public good that would benefit the poor.

It concerns the recent prohibition on Golden Rice, a genetically-engineered rice that can materially reduce blindness in children caused by Vitamin A deficiency.

The case FOR is here :

hxxps://www.nnc.gov.ph/regional-offices/mindanao/region-ix-zamboanga-peninsula/5767-golden-rice-a-staple-food-with-precious-benefits

The background is here :

hxxps://geneticliteracyproject.org/2019/11/08/golden-rice-the-gmo-crop-loved-by-humanitarians-opposed-by-greenpeace/

"Note that because the two academic scientists who developed the original Golden Rice stipulated that it be made available to poor farmers for free Syngenta, or any other corporation, does not own the intellectual property in developing countries and therefore cannot charge royalties. According to IRRI (the International Rice Research Institute) the terms of the licenses in place in the Philippines and elsewhere ensure that Golden Rice varieties will cost no more than their conventional equivalents. This means that farmers will be able to save and replant Golden Rice seeds."

The benefits are clear :

.."Vitamin A deficiency (VAD) is one of the most important issues in terms of global public health, according to the World Health Organization. It is a leading cause of childhood blindness in the developing world, and weakens the immune system, increasing vulnerability to illnesses such as measles, respiratory infections and diarrhea, often leading to death.

The condition affects more than 140 million pre-school children in 118 nations, and more than seven million pregnant women. UNICEF estimates that 1.15 million child deaths are precipitated by vitamin A deficiency each year..."

The recent judgment by the Court of Appeals - to put a moratorium on the use of Golden Rice- is applauded by Greenpeace in these terms

ttps://www.greenpeace.org/philippines/press/63501/greenpeace-statement-on-peoples-win-against-genetically-modified-rice/

.."We reiterate our stance: the involved companies and agencies have yet to show concrete evidence that these crops would be in the best interest of Filipinos, our environment, and our agricultural sector..."

It's not quite clear who benefits from this verdict - apart from being a 'win' for Greenpeace's worldview, which seems to be that 'the environment' matters more than the people (witness its IMO equally irrational stance against nuclear energy, even more bizarre considering its potential as a transition contributor to 'net zero').

This is all sadly redolent of the apocryphal comment after the My Lai massacre in VietNam in 1968

'In order to save them [Ed.: from Communism] we had to kill them'.

Shame on you, Greenpeace!

Rant over.

Hi Ecologist - that was the point of my earlier post about my discussion with the FD - your experiences echo mine; I was concerned that SRT would be getting into that to win contracts, but he was adamant that all there has been a culture shift and most emerging nations try to be squeaky clean. (Not sure about Nigeria!)

"If the EU flexes its muscles, this mess may get sorted out, AFAICS."

Shame we're not still a member.

Extrader, thank you for passing that on, it is very helpful.

Simply my take:

Having worked in Africa and Asia for a combined 35 years, doing business is never simple and too frequently there is someone attempting to be 'on the take'. Some people / companies are ready to grease palms (= graft or bribes or dash or bakhsheesh) in order to win contracts with the cost of bribes being factored into the contract costs.

All that said, I am in no way suggesting that our company is in anyway involved in corruption. Indeed the RNS, tells us that SRT, the company, has been exonerated. But the sword is hanging over Simon's head and I cross fingers that he is soon exonerated too. (And I have a problem understanding how Simon alone can be under suspicion).

Meanwhile, the sp will continue to suffer until the situation is cleared up.

See also part 2

https://www.rappler.com/newsbreak/investigative/big-fishers-close-in-small-filipino-fisherfolk-battle-municipal-waters/

If the EU flexes its muscles, this mess may get sorted out, AFAICS.

NAI, DYOR etc

With the slow release of the rns coupled with the earlier change in reporting date I decided to fully get out . Very disappointed if honest but as others have said there seems to be a history here not withstanding this mess of talking big but not delivering. Good luck to all who remain, I hope it comes good for you.

The fact that this all started two years ago and this is the first we are hearing of it is not on , so I've sold most of my shares , I'll keep a few in case it all comes good .

I had a chat to the FD at one of the AGMs some time ago. I had done a lot of business in the Middle east, and was interested in what doing business was like in smaller, growing countries these days. He reassured me that most countries were desperate to show they were ethical places to do business that there was no back handers or late payments these days.

P/ E of 500 and a spread of 10%. Shame but I think SRT is uninvestable. They were very naughty over spinning prospects when they did a 40p p/s capital raise. No they have consigned themselves to the serious investors rubbish bin.

Silence, especially in that region , implies guilt. You need a response that your supporters can get behind. At the minimum you need to stabilise the share price. No rns, further falls

So business is “in line with market expectations”. Market expectations as declared by SRT were that, when y/e was March 31, H2 would shoot the lights out.

I assume the same applies to the H2 + 3 period….?

Be interesting to see if he clears his name, in the shirt time I've seen SRT mentioned he seems to over promise and under deliver

After series allegations that in my opinion will affect other opportunities I am surprised given the share price fall that there has been no response from a company that is normally so good at talking itself up . Concerning

Something weird here. The contract was announced over 2 years ago and we have been led to believe that installation has been in progress since then. If, as seems to be the case, the issue is that various individuals have conspired to get the contract awarded to a UK company by creating a dummy French company to qualify for French government funding it doesn’t seem credible that the contract would have lasted 2 days never mind 2 years before someone was asking questions.

Tucker needs to explain before the markets open tomorrow.

I think Simon has to provide an explanation to shareholders as soon as he is able

While the sp languishes awaiting news of UKEF or other positive contract developments, I offer a little shaft of sunlight from across the Pond.

I mentioned a while back that SRT's new main distributor in the USA has a website which provides daily updates of best selling brands and products.

SRT transceivers have featured fleetingly (yes, yes..) a couple of times over the last couple of months, but this week is the first time they have held on to top spot for a couple of days.

If you check it now you will see Em-trak A200 Class A in pole position.

And next on the grid is a SI-TEX model which is clearly SRT rebranded.

It's just nice to see something dynamic reported in the otherwise silent SRT world. ( Yes it's time for another Gallery photo at least )

So for those still interested - and awake, I offer:

CWRdistribution.com

>Marine Navigation & Instruments > AIS Systems

Enjoy the moment - I did.