Srt Marine Systems Share Discussion Threads

[lavalmy] 24/4/2024 12:57

I think rwh£ue has got some of the detail mixed up.

Initially, the EU issued a yellow card. CLS, the incumbent provider of tracking mainly for High Seas Pocket 1 tuna fisheries, got busy and managed to get the French Treasury to offer a loan (presumably to the price that they had already specced with the BFAR) which was rapidly accepted by the Philippines. The EU lifted the yellow card very swiftly without anything other than the existence of the proposed loan as proof that the Philippines was taking action about IUU as well as some legal reforms.

SRT meanwhile was pitching their solution to monitoring as preferable as they could monitor large numbers of boats more cheaply using their shore-based systems with supplemental satellite data. The BFAR intended (and presumably still does) to monitor all fishing vessels. And when they issued a tender for the project it was clear that they wanted a system with the performance of SRT's. CLS bid for the project but their bid was rejected because it did not meet those criteria. SRT's French subsidiary's bid was accepted but the French refused to supply the loan even though by the letter of the law it was a French bid. The BFAR got the loan cancelled, a new and larger project approved by all the relevant bodies (including NEDA chaired by the President). We can only assume that the BFAR had to justify why they wanted to do this and why they didn't want CLS's offering.

When the new project was tendered, CLS did not bid as they could not supply what the BFAR wanted.

[pinkfoot2] 24/4/2024 12:57

One for the brave-it’s uninvestable unless you have FOMO which I have

[zingaro] 24/4/2024 12:49

Well, as well as being gutted by the price drop, just when it was all starting to look rosier, I am sad that this has been aimed at ST. It must be awful for him, perhaps like being accused of rape that you didn't commit.

[yumyum] 24/4/2024 12:24

Thank you Extrader, and also to rwh3ue

SRT potentially fill your boots time. I bought some more this morning and likely buy more (I have sold a lot over the last few months).

[extrader] 24/4/2024 12:06

Hi all,

Hat tip to rwh3ue on s'pedia for this.
The link at the end is very informative.

SRT Marine Systems (LON:SRT) I hold

ST is one of my largest holdings and I follow events closely. I too read and contribute on ADVFN where some posters are extremely well informed and their opinions worth listening to.

The current news flow is all about the negative stories of misdeeds around the contract for vessel monitoring in the Philippines. To understand what is going on you need some background. SRT, as is always their modus operandi, spent years gaining the trust of the customer and an understanding of what they required. When the tender for a vessel monitoring system VMS was issued much of the detail was based on the known capabilities of SRT's offering. These included the fact that the operational cost was significantly lower than any competing system and the functionality was superior. In an obvious attempt to influence the contract award, the French government offered a loan to pay for the system as long as it was awarded to a French company. It just so happens that CLS (French) were also keen to provide a system.

When SRT were awarded the contract, the French withdrew the loan offer. Despite this the Philippines stuck by their decision and found it possible to include the cost in their budget. The project went ahead and was successfully implemented while President Duterte was still in post.

The next big step was to be the roll out of transponders to all of the fishing boats in the country, I think up to 50,000. That is when it became a big political issue

There are vested interests that do not want to be regulated. They are the big commercial fishing companies and the families that control them. In essence they want to continue to fish waters within an exclusion zone of 15km. They are able to do so now because there is no official monitoring. The new VMS would change that. Small fishermen depend on the fish that the big boats take and that is why current President Marcos wants to proceed with the rollout. The EU have a role to play here as they can issue a so called red card if fish exported from Philippines cannot be shown to be compliant with IUU regulations.

It looks to those who follow SRT closely that battle lines have been drawn and that the commercial side are using the allegations of impropriety as a weapon to maintain their ability to fish inshore. It is no coincidence that some parties in a position to decide matters are related to people who own the commercial fishing companies.

From my perspective, SRT acted properly and have nothing to hide, but the vested interests will use their power and money to try to prevent a mechanism designed to stop illegal, unreported and unregulated fishing.

Don't just take my word for it. Read this article in Rappler who investigated the story and published on 5 April.

hxxps://www.rappler.com/newsbreak/investigative/officials-private-interests-spoil-effort-track-big-fishers/

See also part 2

hxxps://www.rappler.com/newsbreak/investigative/big-fishers-close-in-small-filipino-fisherfolk-battle-municipal-waters/

If the EU flexes its muscles, this mess may get sorted out, AFAICS.

NAI, DYOR etc

GLA

[fft] 24/4/2024 12:03

Given that no one ever expected the share price to ever get this low again, I hope there are no valuation covenants on any loans.

[extrader] 24/4/2024 11:48

I note that Hurd has been designated as handler of comms addressed to Simon, which I believe is the textbook response in these circumstances.
HMG's 'man in Manila' will/ should have some insight into the underlying,IMO

GLA

[eagle eye] 24/4/2024 10:30

Today's RNS:

SRT MARINE SYSTEMS PLC

Response to reports in Philippine press

SRT notes the recent share price movement and reporting in the Philippine press with regard to the IMEMS fisheries project.

SRT wishes to clarify that the IMEMS contract was won following a competitive international tender, which has been successfully implemented and is operational. On Monday the Ombudsman confirmed that both SRT and Richard Hurd are cleared, but has recommended further investigation into Simon Tucker and other individuals outside of SRT. The Board is fully supportive of Simon who is now working to clear his name.

Our work continues as normal as we carry out our contractual obligations to ensure a first-class fisheries monitoring and management system capability for the benefit of The Philippines.

Trading remains in line with market expectations.

[bagpuss67] 24/4/2024 10:27

Yes. Odd it says that he is working to clear his name not we are

[lavalmy] 24/4/2024 10:27

Hi Kinbasket

It is not really a case that he has brought but more of a complaint which the Ombudsman has looked into. I think it is there that mischief has been made if any, which I take to be local illegal fishermen and not the French. I remember also at the time that SRT said that the French had changed their minds abouit the loan following some brouhaha, but that the BFAR had already asked for the loan to be cancelled.

[yump] 24/4/2024 09:14

Perhaps I’ve watched and read too many bits of corporate conspiracy fiction, but its a long time to wait for a Phillipines lawyer to start on this. ie. Events happened years ago.

“If you want to get SRT and its technology on the cheap, now would be a good time to muddy their waters”

“Have you got a contact ?”

“Lets see what I can arrange”

[sailing john] 24/4/2024 09:00

Anyone who read the article when first published could have sold at around 30p. So SRT needed to issue an RNS as soon as they were aware of the price sensitive news and probably before the article was even published!!!!
It's too late now the damage has been done.

[bagpuss67] 24/4/2024 08:57

Sorry Dave fair point I didn't know the originating papers were public and it isn't just press comment that was being discussed

[pinkfoot2] 24/4/2024 08:54

They should say sometime even if it’s ’we are considering the content with our advisors’ Otherwise the company will become uninvestable

[davemac3] 24/4/2024 08:44

It’s not just press speculation. Why aren’t SRT commenting?

[yumyum] 24/4/2024 08:35

...that Indonesian project being cancelled/retendered is my biggest concern. Not really concerned on the BFAR shenanigans.

[yumyum] 24/4/2024 08:34

at the same time they should come clean and explain at least a little about the problems on the loan for Indonesian project. It is nearly a year of crossing 'i's and 't's. Yeah, right...

[bagpuss67] 24/4/2024 08:32

Yep. It's a "response to press speculation" type RNS...the share price has moved materially as well. They have to RNS I think.

[owenski] 24/4/2024 08:28

Whatever the reality and shenanigans behind that newspaper report, it's an item that's in the public domain and it would be good for the company to communicate something with its shareholders.

[amt] 24/4/2024 08:26

Gone from bad to very bad.

[sailing john] 24/4/2024 08:25

I thought an RNS in these circumstances was a requirement not optional! Failure to do so could have serious conseqences imo.
In the current situation those that read this BB, LSE and others now have an unfair advantage over those in the dark.