(Alliance News) - SRT Marine Systems PLC on Friday said it expects to post a drop in revenue but a narrowed loss for its recently-ended financial year.
SRT said it expects to report revenue of GBP8.2 million and a pretax loss of GBP5.8 million with gross cash of GBP5.3 million for the year ended 31 March 2021. For the 2020 financial year, the firm posted revenue of GBP18.9 million and a pretax loss of GBP6.9 million.
The provider of maritime management systems said existing system contract customers made payments of GBP13 million per agreed project payment schedules in the recently-ended year, with a further GBP5.7 million due in the coming year. However, due to Covid lockdown related delays, no invoice milestones were completed leading to no revenue being recognised during the year.
A fixed one-year CBILS support loan of GBP2.5 million from the company's bankers was drawn down in April 2020.
Despite the bleak outlook SRT Marine confirmed that it expects work worth around GBP71 million - which includes three Asian opportunities and one in the Middle East - to commence during the first half of the current financial year. Further work in Asia worth GBP14 million is expected to commence at the beginning of the second half, and another two Middle East contracts worth a total GBP40 million to start later in the second half.
SRT Marine Chief Executive Simon Tucker said: "At the beginning of the year when Covid restrictions started, we took immediate action to secure the necessary working capital and operational changes to protect and sustain our business.
"These actions have ensured that we are now in a good and secure position to quickly recover and thrive.
"Covid lockdowns have prevented system customers from moving forward with new contracts during the year, resulting in a lost year for SRT financially.
"We now have seven new system contracts worth a total of GBP125 million which are pending commencement as the respective countries relax restrictions and contracting processes catchup and normalise."
Shares in SRT Marine were trading 8.6% higher at 34.20 pence in London on Friday.
By Will Paige; willpaige@alliancenews.com
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Srt Marine Sys. (SRT)