Srt Marine Systems Share Discussion Threads

[yump] 05/12/2023 19:01

You're right. I'll go and argue with my wife about the position of the Christmas decorations instead ;-)
I'm 6ft 3in and the she insists on hanging the little snowmen on a string, across the top of the kitchen doorway.

[pldazzle] 05/12/2023 18:49

yump - EC may be overreacting a bit, but it's understandable - perhaps you should have filtered pinkfoot yonks ago (as many/most of us did)rather than trying to argue the toss with him/her/it.

[pinkfoot2] 05/12/2023 11:16

Yump-you are out of your depth.Why did the company try to raise £20m of equity in the summer?Sensible in my view but timing was poor in this market.

[effortless cool] 05/12/2023 10:44

I'm sick of the two of you - both filtered.

[yump] 05/12/2023 10:16

You do realise that it is possible to build a substantial business from a small start don’t you ?

Even in a bedroom.

The biggest and best didn’t chicken out and aim to be taken over.

[pinkfoot2] 04/12/2023 12:53

Global footprint isn’t a cliche-the issue with SRT is execution if you believe sales pipe.That means troops on the ground in local jurisdictions.

SRT claims to be a global player-the numbers suggest it should be but not yet

[extrader] 04/12/2023 12:20

Interesting tweet!

Apart from attendees all practicing their 'haka' poses, the backdrop event 'sponsors' appear to be UNODC's Global Maritime Crime programme, HMG's (?)Joint Maritime Security Centre and a flag 'from the people of Japan' (??)....

UNODC is the United Nations Office on Drugs and Crime.

Hmmm...

[baynet] 04/12/2023 12:07

Aviation Reconnaissance Sensors to Maritime Domain Awareness (MDA) training starts today

Not related but new gallery post

hxxps://srt-marine.com/gallery/#group-1

[yump] 04/12/2023 09:33

That deep pocket comment could apply to any SME in growth phase with working capital demands.

You can say goodbye to any benefit from SRT share price growth if it gets taken over. Surely thats not what you want - unless you bought all your shares at 50p.

Don’t know what you mean by the cliche of “global footprint”. Surely SRT has enough of a global footprint. “IF” governments were signing up rapidly for systems and SRT couldn’t physically meet demand, that might be different.

Where are all the contracts being given to competitor systems, because another business has a global footprint ? How much more global can SRT get ?

If they were losing contracts because clients weren’t confident in their ability to deliver, that might be different.

However a larger business would still have to scale up.

The possibility of being invested in a substantially more valuable business like SRT carries investor risks.

I certainly didn’t invest in a small company to see it taken over.

[pinkfoot2] 04/12/2023 07:58

No I haven’t actually Yump-this company is hungry for working capital.The balance sheet also looks stretched.

Obviously milestone payments are the way forward, backed by Regulatory guarantees.But the two go hand in hand and we await news on both fronts

I still think SRT would be best owned by someone with deep pockets and a global footprint

[yump] 03/12/2023 19:08

I think you’re deliberately missing the point so I give up. I guess the bee in your bonnet is so loud that you can’t really hear anything else with any accuracy.

[holdon56] 03/12/2023 16:52

hxxps://www.philstar.com/headlines/2023/12/02/2315913/philippines-installing-monitoring-station-west-philippine-sea

[pinkfoot2] 03/12/2023 16:14

I haven’t missed the milestones payment point at all-but SRT have.Reference the RNS warning in March 2023 where milestone payments were deferred to the ‘early part of next financial year’

Then look at the latest ‘gross cash’ figure which includes a new loan drawn down in September.



I’ve looked down the back of the sofa and can see nothing on the aforementioned milestone payments but let me know if you can see them.

To pick up your most businesses point, most actually generate sales and yes, you’ve guessed it,cash which exceeds costs.In this case, we are running on shareholder injections, and several loan facilities.

We have 4 months to year end-we must stop meeting like this

[yump] 02/12/2023 18:37

O/T Anyway, while everyone has been worrying about cash here over the last year, I’ve been buying BTC and ETH. Failed to cash in the first time around so looking forward to fund demand pushing the prices up to a sustained new level.

Cash in or not to cash in - exactly the same as likely decisions to be made here in a year or so if SRT hits the headlines as the next big UK success story.

[yump] 02/12/2023 07:50

Pinkfoot
Surely you are boring yourself by now.
You’ve missed the point completely about the effect of milestone payments on cash.

How on earth do you think most businesses actually run ?

[holdon56] 02/12/2023 07:38

hxxps://www.philstar.com/headlines/2023/12/02/2315913/philippines-installing-monitoring-station-west-philippine-sea

[pinkfoot2] 01/12/2023 22:37

That would be why the company took out a covid related loan in September-in the ‘gross cash’ and of course the ever increasing loan to the alternative lender.

The balance sheet needs repair-you don’t need a calculator to figure that one out

[yump] 01/12/2023 18:25

So who has done the calculation on the cash requirements (or not !) that result from the milestone payments coming in, in the second half.

Clearly if none come in then there may be a problem.

However the assumption that more cash will be needed if forecasts turn out to be correct is just daft in the extreme without going through the financials.

If nobody here has the financial ability or inclination to do that, then commenting on cash is at best pointless guesswork.

[pinkfoot2] 01/12/2023 17:46

Let’s call that an academic’s ramp CM-you ignore the cash position, and the rather weak balance sheet at your peril.

Once again, we are looking at the proverbial rabbit in hat in last quarter.

At this juncture, 120p per share looks optimistic

[countryman5] 01/12/2023 11:18

As we approach the end of the first financial year providing a substantial profit, it is a good time to take stock of progress and any potential weaknesses. This year’s systems revenue forecast is based on signed and announced contracts.
The company is led by a very able management team, which is focused on the way forward.
They have developed a range of AIS transponders which are global leaders, with a reputation for quality. Some of the AIS components are incorporated as OEM modules in various maritime brands, such as Raymarine, but increasingly the SRT branded EMTRAK is driving sales via over a thousand dealers, worldwide.
The recently launched DAS products fit onto buoys and have enormous potential where they deliver and receive AIS signals to assist the management of ports and waterways around the world.
The next product to be launched is NEXUS. This is considered to be a revolutionary development by linking voice communication with AIS.
The company has various revenue streams including transceiver and system sales to an increasing number of Countries for both coastguard and fisheries departments. These customers are ‘sticky’, meaning once they have bought into an initial contract, future bolt-ons need to come via SRT, in order to be compatible.
This is a fast-growing company which needs financial resources to fund ever larger contracts. One contract has the potential for being $1 billion. The company has access to two UK banks but these are reluctant to lend money without collateral. Some funding has come from the issue of new shares and also borrowing from a group of private investors. The most recent contract for £145 million was underwritten by a loan agreement with the UKEF.
The transceivers business has good YOY growth, but the dramatic growth is coming from the systems business, with an increasing number of countries needing SRT systems. It does not appear that there are any effective competitors for these contracts, but other companies are looking to compete. The other option for them is to buy SRT!!
SRT is unusual with its shareholder base. There are no institutions with over 3% but there are 6 or 7 shareholders who control over 50% of the stock. I understand that the CEO has a close relationship with these shareholders and knows their thoughts on a possible takeover.
Where to from here.? I am sure that the CEO has a pretty good road map but some of this growth will be restrained by cash. The company currently focuses on surface water activities but the countries buying the SRT system will increasingly want to monitor activities just above sea level (drones?) and beneath sea level (submarines?). Can SRT address these markets?
If the company believes that it must make some quantum leaps in moving forward, would shareholders support a strategic partner taking a possible 20% stake in the company? If this were to be considered, there would need to be synergy with the product offering of the proposed company. Many of the coastguard contracts offer the potential for patrol boat / armament suppliers. How about a company which could monitor activities above or below sea level?
If a cash rich company is interested in taking a strategic stake, shareholders, especially the few major ones, would need to buy into the offering? Would major shareholders accept 120p a share to a allow for the necessary dilution?

[lavalmy] 27/11/2023 17:48

BTW re the Philippines, this confirms what I mentioned a short while ago about the PCG/AFP.



'The PCG is working with the Armed Forces of the Philippines in finalizing a comprehensive modernization roadmap...'

[lavalmy] 27/11/2023 17:25

CliffPeat

You see the intelligence, risk and compliance professionals is all about the big boats and sanctions etc (e.g ship owners have to be careful about charters, oil producers about who is buying/shipping their production). The global enterprises angle is more where exactEarth hope to compete, how much oil is on its to way to xxx, how much sugar, where is my stuff and when will it get to whereever, that kind of analysis.

SRT cannot sell their data as it is not theirs to sell - one of their major USP's is that it is under the unique control of the customer, as is any analysis performed by the SRT system they have bought.

I don't know about super-profits or indeed any at all. They warned on their outlook two or three weeks after listing which gives an indication of what sort of people they are.

[cliffpeat] 27/11/2023 17:03

Windward Ltd is an Israeli company and listed on the London Stock Exchange WNWD.L

Half year figures:

T/O US$12.8m and operating loss of $5.9m (Which is about the same amount as R&D costs not capitalised)

Accumulated losses $74m

More at



The Dec 21 placing document includes this:

"Background on Windward

Windward was founded in Israel in 2010 by Ami Daniel and Matan Peled, ex-navy officers who identified that although maritime risks pose a major threat to many participants, they had not identified a solution that offered the fusion of multiple data sources and analytics to provide understanding of insights and actionable recommendation to the various stakeholders in the maritime eco-system.

By combining maritime expertise, big data tools, AI and machine learning, the Directors believe that Windward has built a world class, patented Predictive Intelligence Platform that is now powering some the world's leading intelligence, risk and compliance professionals and has also now been applied by blue chip global enterprises. With strong belief in transparent feedback loops, including exchange of both data and insights, the Predictive Intelligence Platform is based on the real-time, market-sourced data, and Windward's customers can benefit from insights tailored to their controls and workflows."

So a fusion of "market-sourced data" but (presumably) SRT is not selling their own sourced data at the moment.

It operates on a SaaS subscription basis - which means recurring income. I guess the medium term attraction is that when (if) they get to break-even point the high marginal benefit of additional subscriptions sold will/might produce "super-profits" in a short time frame.

Just a guess