Srt Marine Sys. Share Price (SRT)

Some reasonably chunky sales today. Not to sure why though. Current MC is £60 Mill. If all goes well and contracts come through, sure I know - counting chickens etc., but if they do, then our revenue will be above that!

So where would that put the MC. Bear in mind the contracts are typically for 2 years or so and as we've seen with Bahrain there's top-up business to follow plus the data satellite re-occurring revenue stream to add on.

I've got a feeling that there is real value here as I've always been impressed by the foresight that ST has shown and the way his webcasts have been both positive and as factual as he could make them but with no promises. Rather looking forward to the next couple of years!!

Hope I'm not jumping the gun but this years revenue could be a real showstopper if current contract expectations come to fruition. Just put my remaining SRT shares into my ISA to avoid tax on any divis. I think there is a real possibility of a divi being announced in the current years accounts which will be announced in say July 2022. By then the following years revenue will also be high and visible. Obviously depends on the timing of any contract starts but definitely a real possibility!

Wow extrader what a post! Many many thanks for the info. No idea about countryman5 but he sure seems to be able to give definitive analysis. This year to next March is pivotal. I see a total transformation to a cash rich high margin company with an acknowledged USP. What will they do with all the money!?

This comment from countryman5 elsewhere may help explain

.."The headline figures look terrible, but what is the real story? There is £13 million from systems business received in cash but nothing declared as revenue. This anomaly is based on the initial BFAR contract which was to be funded by the French Government but was stopped when the contract was awarded to a UK company, instead of French CLS.
The money the had to come from Philippine budgets. The contract was underpinned by two sets of milestones. Delivery and payment, The payment milestones were done on time periods, to match with budget availability. The delivery milestones were based on actual completed stages. When the contract was signed it was anticipated that the payment milestones would lag delivery. However, because of Covid the payment milestones have been ahead of delivery.
The Company used to need about £10 million of turnover, at about 45% margin , to cover overheads. Because the overheads have grown in recent years to underpin the systems business, it now requires about £20 million of turnover. This last year there was £8 million from transceivers and £13 million of cash from systems. You could argue that the company broke even last year.
Despite Covid, the systems business managed the same T/O of last year. I am expecting (Hoping for) 20 to 25% growth. ATON sales should be motoring (think Suez canal), a lot of the initial Class A's need replacing and increasingly countries are mandating boats over a certain size to have AIS. I believe Canada might be in that category.
Turnover this year?
I am assuming £10 million from transceivers.
The BFAR contract will be completed this year, which will allow the £13 million of undeclared cash to be recognised plus the further £5.7 as identified in this statement. That is £28 million, without anything from the £125 million which is identified in the statement.
Can we believe the figures in the statement?
At the time of writing those figures must be true, because they will have been scrutinised by the Nomad, the bank and also the Company solicitor.
It is interesting to note that the Bank has taken on the CBILS loan. The company has no assets and banks don't like lending to companies, without fixed assets that can be sold. The bank must have seen the contract documents before agreeing to the loan extension.
If we accept the figures in the statement as being true, we are talking about £125 million of extra revenue over the next 24 months.
If we assume £50 million of this in the current year, this would make T/O of £78 million this year. After servicing overheads, this could provide for a profit of £25 million!
My concern was that the company might run out of cash. This is not an issue.
A cynical soul might suggest that the bad headline figures today allow for Directors and shareholders in the know, to have a buying opportunity, assuming Directors are allowed to buy. Don't be surprised to see Director buying today..."

NAI, H

Hi TraderJones, Yes I too have no idea. My guess is it's the Philippine contract Perhaps because our milestone criteria has not been reached we can't recognise the payment. But then if so why would they pay us?

The only explanation I can think is that the payments were made because of timing milestones built into the contracts but our delivery/instillation was delayed by Covid.