Agm15 Jul 2014 19:08
quick over-view and a few thoughts....
General feeling amongst investors I spoke to today was the current sp represents a good risk/reward.The presentation outlined the ever-expanding uses for AIS, how SRT's products fit in and what the opportunity was in terms of ££££'s.
Understandably, ST/SRT are taking a different tack this year when it comes to putting forecasts out into the market. A forecast will be issued 'in due course', and it will consist of core business and projects underway/in hand, so they will be low-risk forecasts which can get upgraded as more work comes in. The forecasts won't, for example, include the USA even though ST's presentation gave an outline of why they think this time its different wrt to the mandate being issued this year.
The £200m+ of opportunities was gone through in some detail.These are not 'flakey' projects including every country who has vaguely said at some time they might be interested in installing an AIS system, but solid mapped out opps where SRT are 'embedded'. An example was given of a M.East country where the total project value is over $120m (this includes everything, SRT's bit is relatively small in comparison).Think I heard correctly that said country had already shelled out over a third of that, so these projects are very serious.
Ok, when will it all happen? You ain't going to pin them down exactly after last year, but the chairman, not known for his exuberance, expressed the view it would be this year.
full report to follow.... C/O TP