Member Info for JRC1000

Possibly one of the most anticipated quarterly updates? Perhaps awaiting confirmation of Nexus shipments?

Yes, there’s only Sunday and Monday left of ‘the month’ so here’s hoping. I don’t have a problem with SRT being linked to the Defence Sector - several more Gulf States and Baltic States must be eyeing the possibilities.

I’m not a day trader but I’ve many years of active investing under my belt. I’ve had my successes and failures along the way, and know from painful experience that soundly based expectations can’t be guaranteed to survive world events.

And, after all these years, I still don’t understand why prices sometime move the way they do (or don’t), and SRT is proving to be one such stock.

The Company is currently delivering on over £300m worth of systems orders due for completion within 2 years. And the claimed market transforming Nexus product is near launch. One unknown factor is net margin, but it would seem that a minimum of 20% would be a realistic expectation. So ignoring conversion of any of the other £1.2B order pipeline, there is a minimum of circa £70m net margin to be booked over the next 2 years - say £35m in the next year alone.

On a very conservative sector P/E of 10, this would translate to a capitalisation of £350m - equivalent to an SP of £1.40. Yet here we sit with an SP representing a 50% discount to a nailed on near term expectation. What am I missing?

I presume this means that Barclays have advanced against the Guarantee and therefore it will be unrealistic to expect any income to be declared against the contract in the YE data. But would point to an even more impressive set of 2025/26 results. Perhaps we need to to temper our SP expectations accordingly.

Agreed, Hardboy. I’m guessing that it’s only good news from this point on - YE results, more signed contracts, Nexus deliveries, significant positive cash balances etc. I’m adding to my not insignificant holdings at these price levels.

Haven’t seen this level of trading for a while - hopefully onwards and upwards!

I have a good feeling about the Year End results and likely analysis which will be included. The positive spin on the Indonesian Contract delay is that other contracts may have had more attention and be further down the road than would have been expected. Additionally, we should have a far better indication of the likely margins being achieved, allowing a better understanding of going forward.

As far as the current SP is concerned, I think that its level takes no account whatsoever of the much improved confidence we can now attribute to such a defined Order Book and potential revenue projections. Consequently, I would be disappointed if we didn't see 80p being tested in the run up to the Results with a sharp rise thereafter. The added interest is whether a suitor decides that the 4-10 year potential makes it too tempting to resist for much longer.

Well said, Bullwinkle - finally! But could someone comment on the Euro167m valuation, which seems a low proportion of total sales compared to previous analysis for which I seem to remember total sales of £338m (Euros, USD?) over 3 years being bandied about. Whatever, the immediate reaction in the SP seems very subdued.

Someone’s playing with the SP now!

Assuming a P/E of 10, then the Market seems to be discounting any income from Indonesia this financial year.

What a strange UT.

In the webcast we were told to expect Indonesian contract initiation ‘in a week or two’. That promise ends today. So as far as ‘summer’ is concerned I suppose we should be asking ‘which year?’.

Same old, same old I’m afraid. The handsets were supposed to make a splash at November’s exhibition and didn’t. Dealers told to expect them in February, then March and now “sometime in the Summer”. Always the same explanation which is now stretching credibility. Completion of the Indonesian finance arrangements were supposed to be ‘imminent’ last December, but here we are with the same message four months later. The share price seems to be reacting positively but is likely to reverse quickly if these expectations are not realised soon.

Presumably just an update as anything significantly affecting the Company’s performance would require issue of RNS?

Hi Bumblebee. Quite right - more a spike than a bubble. Managed to cash out in 3 tranches at 584-585. The price then floated lower by more than that following tariffs. The secret now is to try and judge the correction point before buying back in.

Gorka simply reflects the odious attitude of most of the Trump team taking their ill mannered, bullying, one-sided signals from their leader (I think that Rubio might be the exception). Derbyshire, in my view, remained professional in the face (literally) of a person who was obviously chosen by the programme’s producers to act exactly as expected for viewing impact. Certainly, the constant justification claimed by the Trump cabal becomes more and more irritating - particularly that they represent the majority of Americans. Trump was elected by just 31% of Americans qualified to vote - in other words two-thirds of Americans either specifically voted against him or chose not to give him their support (coincidentally, the same metric as the Brexit vote).

Rant over - back to investing. Many of my investment decisions have not been ones I’m proud of, but the potential Trump effect was so well projected that I threw caution to the wind and cashed out all my main-stream investments two weeks ago. This meant I forfeited some substantial dividend payments in expectation of major buying opportunities which, for once, appears to be working. The Phoenix price bubble recently is providing the best result having sold at the very top of the spike.

I think these ‘ bugs’ must be on a similar scale to those ‘I’s and ‘t’s which needed attending to!!

Any update on Nexus deliveries yet?

The Market doesn’t seem to share this view.

Have we ever seen any sort of assurance that this debacle is not what is delaying completion of UKE funding?