Srt Marine Systems Share Discussion Threads

[pugugly] 22/1/2024 17:51

There is the damage today - Late mark of 591,179 shares sold at 37:25p sold at 12:23.

[pinkfoot2] 22/1/2024 17:13

Sorry Yump-I’m sticking to the facts.Revenue was booked in 2017 then impaired in 2020.

The reason for the impairment was explained at the time by the company.There was no loss on it because it was in and out-but it clearly enhanced the 2017 numbers and impaired the 2020 numbers, presumably because they received no cash.One assumes the revenue sat in debtors for 3 years.

[yump] 22/1/2024 16:51

He's a total idiot. On about booking revenue only when cash is received. Clearly doesn't understand business in general, or project work, or impairments, or accounts etc. etc.

I don't think there's a business in the world that only books revenue on a project when cash is received. (Joe down the market perhaps.)

Pinkfoot just needs to admit an area of ignorance and look up accounting standards. There are loads of references.

If you book revenue at any time on a project, its based on work done and milestones, NOT cash received. If you don't get the cash, or there is a dispute about quality or whatever else, that may result in an impairment charge to accounts.

The assumption on all projects is that you will get paid according to whatever is agreed in the project timetable and milestones.

Pinkfoot why don't you just look it up. You don't have to believe me although I have actually run a project business. You think you know something, but you don't. More fool you - it will trip you up.

Talking to yourself from now on.

[lavalmy] 22/1/2024 16:20

I have him on mute AE so I don't know what he is on about.

I think it was Kuwait and the equipment was moved to their local partner who was expecting to sign the contract, with SRT as subcontractor. Revenue was recognised and then backed out.

Indonesia too was similar with Qnective, though that was written off. What happened to the equipment and whether any was sent remains unclear. But at least they perservered with Bakamla and now have the contract directly, albeit pending UKEF/MOF final signing, and payments to be made by Santander. Most of the Ministers from Indonesia for the signing with Qnective have since been done for corruption so it is probably a good thing that SRT got out of that relationship before even bigger amounts might have been at stake and possibly lost.

[alter ego] 22/1/2024 15:48

My memory is unclear but I think you are referring to Qatar(?) where equipment was shipped and billed but the client had a change of mind and SRT recovered the kit. LaV explained this at the time IIRC. Technically SRT booked revenue on invoicing and before cash was received but the impairment was made to reverse it. As I say this is a distant memory and details may be adrift but my recollection is that no actual loss occurred. Maybe, someone has a better recall than me?

[pinkfoot2] 22/1/2024 15:17

Sorry Yump-do your homework

On 30/3/17, the company announced a contract win in the Middle East and it was booked as revenue.

In the 2020 accounts, the company impaired £3.9m from the ME contract-all in the RNS.

Check it out-the dangers of booking revenue without receiving cash

[yump] 22/1/2024 14:41

“Sigh”. You are talking very tiresome rubbish.

Since when did signed contract project revenue not get booked until cash was in, in any project based business or indeed any business.

A client not paying in a timely manner is nothing to do with when you book the revenue. A common way of booking the revenue is in the period when it is earned, not when you get the cash.

Occasionally businesses like Enron book revenue from entire undelivered projects way ahead and then they get into trouble.

SRT book revenue when the work is done and milestones are complete. That’s why first half was just transceivers revenue.

You need to be clear about this for your own sake or you’ll never really know what is going on.

[pinkfoot2] 22/1/2024 09:04

In the bad old days, the company’s accounting policy meant that revenue was recognised before receipt of cash-then impaired in a couple of cases.Not anymore.

Let’s just see some commercial transactions with cash coming in please

[extrader] 22/1/2024 02:19

Hi pug

Your observation was the thrust of my closing observations - let the local partner make the local arrangements..
;->

[yump] 22/1/2024 00:04

No its not strictly policed.

[pugugly] 21/1/2024 21:02

Extrader - Good points - The point you do not mention & possibly the most important one is the "encouragement in the pocket one" for those actioning the payments.

Unfortunately now for Western based companies this "usual business practice" is now forbidden and strictly policed - Result in many cases western business lose revenue/payments/cash-flow. Also if used through the "back-door" and found out personal job lost.

[extrader] 21/1/2024 13:36

Not strictly comparable, of course, but this experience may be 'tweakable' in some way.

The problem is usually that there's a disconnect between the people using the system and the people administering the payments.

I uses to deal with contractors in Saudi Arabia, including those working for the Ministry of Construction (this was a long time ago), a notoriously slow payer.

My(Greek/Cypriot- so presumably used to this sort of thing)customer used to build and bill the 95% of its several hundred Km road contract, but left installation of the 5% bridges component to last...and only did those when payments for the rest had caught up to an acceptable level.

The thereby inconvenienced road users eventually formed an informal lobby of local tribal leaders who would agitate until something was done.

Mind you, this was also in an environment where the prudent lender looked on the 5 or 10% Performance Bond as a form of 'deferred discount', since it was quite likely to be called, either for genuine or spurious reasons.

I suppose it's easier with the benefit of experience/hindsight to know what to include in your contract payment terms and more charitable to accept that SRT is paying the price of its 'first mover' success....maybe it needs to give more prominence/responsibility to its 'local' partner/representative - who is likely to be 'connected' in all sorts of ways that SRT isn't?

[lavalmy] 21/1/2024 12:52

I get that they have to have everything ready to be sent out to these customers if they are to meet their revenue targets, but I srikes me as a daft way of managing scarce working capital to have a stack of equipment paid for and sitting for months in their warehouse pending the arrival of some piece of paper from a customer they already know from experience to be extremely dilatory.

[extrader] 19/1/2024 22:26

A good presentation, IMO.

One for me interesting snippet was ST's aside that UKEF capacity/appetite might eventually make a complete systems package possible (ie multi-year, as compared to the current, necessarily 'phased' approach.

Meanwhile, another nail-biting quarter to FYE....

[supernumerary] 19/1/2024 18:08

Obviously got time now, so here goes:

[pinkfoot2] 19/1/2024 18:02

Was busy so missed the webcast Alter

[yumyum] 19/1/2024 17:38

thank you goodapple. I did earlier listen three times and I must admit not clear even then. You are probably right. That would be a very nice order indeed. Fingers crossed.

[goodapple] 19/1/2024 16:05

YUMYUM - I think if you listen carefully ST says "North of five million"

[yumyum] 19/1/2024 13:22

I heard zero to five million for Middle East DAS. Zero to xx is rather meaningless, especially in ST's case.

[yumyum] 19/1/2024 13:20

PENDING current trials at sea, Nexus will start shipping Sept 2024. Previous iterations were obviously woefully inadequate.

PENDING financing finally agreed then Indo will start shipping Feb 2024.

PENDING signing of ME contract then start shipping in Feb or latest mid-March.

No rabbits, although an East African lure (funding might get easier with Houthi pirates on one side and Somali pirates on the other).

No profit warning, which is both encouraging but par for course with this lot in SRT.

[countryman5] 19/1/2024 11:08

Obviously Nexus and Das have the potential to substantially increase transceivers sales which should be between £12 and £15 million this year.I understand that profits from transceivers currently covers more than half of the company's overheads of about £900,000 per month. Obviously increasing head count will raise overheads.

[goodapple] 18/1/2024 21:27

Sorry to bang on about Nexus all the time but..

Good to see that ST has nailed down a first "shipping date" as September '24

Also, my recall of conversations at the AGM was that OEMs wouldn't be getting the identical product as the item being offered by emtrak.
This would appear to be borne out by ST's comments today that the "Nexus" offering to OEMs will be in a different physical form to what we have been shown or seen at MSN.

Given the step change demonstrated in SRT's new website, I expect the 'retail' launch of Nexus to be a very polished affair and I trust a makeover of emtrak's own website will accompany it.

Glass definitely half full, or should that be jar of jam?

Yet another large spoonfull of patience.

[countryman5] 18/1/2024 17:56

I believe that ST mentioned the first DAS potential order for a ME Country. He mentioned the size as being in excess of $5 million. I suspect that this would be just the first order for this country. The global potential is enormous. Think of the US and EU inland waterways. Think also about shipping canals (Suez and Panama) and all of the ports around the world that need to get organised for the digital revolution. I suspect that the recent fundraising is helping to fund a reservoir of DAS systems to meet anticipated demand.

[alter ego] 18/1/2024 14:34

pinkfoot2 Everyone has the opportunity to ask questions on the web cast. I'm surprised you didn't do so as you clearly want to know the answer.

[pinkfoot2] 18/1/2024 13:45

I like numbers Yump-black rather than red ones and it’s been rather important over the years