LONDON (Alliance News) - SRT Marine Systems PLC on Monday swung to a loss from a profit in its most recent year due to revenue being hit by a contract delay.
In its financial year ended March 31 the maritime technology company recorded a drop to a GBP5.8 million loss from a GBP1.2 million profit the year before.
SRT's swing to a loss was mainly due to a halving of the company's revenue to GBP5.3 million from GBP11.0 million.
Revenue decreased 12% year-on-year in its Transceiver business due to stock shortages in the company's second half. Its Systems business registered revenue of just GBP300,000 compared to GBP5.3 million the prior year because a new contract was delayed.
"I am very disappointed with the shortfall in our revenues for the year, which was caused by an unexpected contract change," said Chief Executive Simon Tucker.
SRT is awaiting a revised contract with a south-east Asian government customer, which was cancelled in July when the government changed its funding source. The cancelled contract would have been worth EUR28.5 million to SRT. Nonetheless, SRT Marine was optimistic about the future.
"Whilst I understand that these results are disappointing, during the year the group has made very significant operational progress, in particular with its system sales discussions," said Chairman Kevin Finn.
"These are very significant sales opportunities...The potential value of these contracts to SRT of these over the next few years is in excess of GBP400 million," Finn added.
Shares in SRT Marine were down 3.5% at 25.32 pence on Monday.
Srt Marine Sys. (SRT)