(Alliance News) - SRT Marine Systems PLC on Friday said it has recently seen "significant progress" on business development but remains a "passive" observer of government decision-making for key new contracts.
The Somerset, England-based company provides maritime domain awareness systems and technologies for surveillance, security, safety and environmental protection.
SRT said it has moved the end of its financial year to June 30 from March 31, extending the current financial year to 15 months.
Explaining the extension, SRT said: "The board believes there is a risk that some existing system project deliveries, expected to be completed in March, will slip into the next quarter due to the time required for governments to complete the necessary processes and paperwork for the deliveries."
If this had happened without extending the financial year, the company's financial ratios would be reduced. This would hinder SRT's ability to bid for new system projects, "in one specific jurisdiction" where it "must meet certain minimum financial ratio criteria".
For the longer 15-month period, SRT said "we prudently maintain our revenue expectations that we previously had for the 12 months that would have ended on [March 31]".
Also on Friday, SRT said it has seen "significant progress across all our system project opportunities, both existing and new prospects, with growing visibility and thus confidence on timescales" over the last three months.
The company is currently implementing a new version of its GeoVS maritime surveillance system. It said its transceivers business has also "performed solidly...as supply chain and market conditions have normalised following Covid", and the order book continues to grow.
SRT also said it has "a strong cash position" having completed a GBP10.5 million equity fundraise in December.
However, SRT is still waiting for government agencies in three countries to enable execution of initial revenue milestones, on projects it said are worth USD220 million in total. Until that time, it remains "a passive, but well informed observer".
SRT shares traded 3.8% lower at 30.40 pence on Friday morning in London.
By Emma Curzon, Alliance News reporter
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Srt Marine Sys. (SRT)