Srt Marine Systems Share Discussion Threads

[crystball1] 27/1/2024 17:24

Thank you LaValmy.

[lavalmy] 27/1/2024 17:03

Crystal

By plane.

[crystball1] 27/1/2024 17:02

Does anyone know if deliveries of SRT hardware to the middle east and far east are shipped through the Suez canal or would it be done by using the long route around South Africa?

[pinkfoot2] 26/1/2024 20:28

‘A contract with no cash to pay for it’

Whatever next!

Same problem for me-SRT needs a parent with a big balance sheet as too many moving parts in these big contracts

[lavalmy] 26/1/2024 17:35

Yes Extrader but if it takes a year longer to finalize? Maybe they could do one short-term self financed and get the rest together later but I get the feeling that these are binary people.

[extrader] 26/1/2024 16:33

.."If, and it is a big if, the UKEF is contemplating stepping up to the plate to concertina a large PCG project into three/four years as opposed to ten or so..."

Well, it would make a nice change from the run of 'bad breaks' SRT seems to have had so far..

It was certainly the snippet from last week's presentation that got my attention!

'Dum spiro, spero'.
ATB

[lavalmy] 26/1/2024 16:27

I note the comment that they would otherwise have to apply for a budget from internal sources which would take at least a year.

This is very true of those countries with transparent budgeting processes such as Indonesia and the Philippines. My point is that if a project is not currently in a 2024 budget it has no chance of happening in 2024, e.g. the PCG. If they are to do something in 2025, then that something has to be scoped and decided on in the next couple of months to make it into the budget process on time. Same applies to the BFAR.

I don't think that there is even a remote chance of this loan agreement not being signed though it might have been already if SRT had sorted out their balance sheet earlier.

If, and it is a big if, the UKEF is contemplating stepping up to the plate to concertina a large PCG project into three/four years as opposed to ten or so, it would most likely take longer for the scope, planning and paperwork to be done than smaller projects done year by year. The huge benefit to SRT of a UKEF funded big project would be the absence of domestic political change whereas any series of projects over a longer timescale would come to a halt next Presidential election cycle.

[extrader] 26/1/2024 15:46

This from 1st time poster Crashcat200 on lse, FWIW ;

This is a reply to email I sent to SRT a few days ago

I’m pleased to say that everyone is super busy. Hope all is well and happy new year.

We are not directly part of the inter-gov loan process, so I can’t say anything for certain. However the UK inks billions of pounds of these every year and in fact we are one of three in process. This is normal stuff. We are also told that the process is right at its end with final reviews of the agreement being undertaken prior to signing - exactly as I hopefully indicated in my web cast last week. Therefore I think the chances of it not being concluded as extremely slim - it’s just a time thing.

If I’m the seemingly very unlikely event the loan agreement didn’t proceed they would not have the cash to pay us and so we would not start the project. It would leave us and the customer in a funny situation of having a contract with no cash to pay for it - on this case I expect the customer would apply for budget from internal sources which would likely take at least a year for such a budget cycle. But I reiterate that UKEF is extremely positive and it’s very unlikely.

Regards

Simon

Long-timers will know better than me if this is Simon's style of communicating.

ATB

[lavalmy] 26/1/2024 11:47

I suspect that they will wait until the two signed contracts have both commenced before thinking about warning. Obviously it is quite tight, but I think they need two shipments to Bakamla to make the numbers work and the first one to be invoiced and paid (through a mechanism as yet untested) in order to make the second one - unless more generous terms have been agreed.

There is the possibility of Bahrain but nothing will be ordered for them until a contract is signed so no revenue for that this year but good news nonetheless. They are perennial flipflopers though.

I think in the next couple of weeks we should have good news on both so a warning will probably be ignored.

[yumyum] 25/1/2024 21:44

I am seeing a small but steady stream of sellers who think a profit warning is rapidly approaching. Myself, I still hope that SRT finds an active contract in the next few weeks (as a reminder they have zero systems contracts operationally active at the moment). Hope over experience for this bunch of ....

[pinkfoot2] 25/1/2024 19:08

What does that mean

[lazyj] 25/1/2024 18:48

I wonder how many of us see are seeing a strategic squeeze being applied to the S.P.?

[yumyum] 25/1/2024 17:05

....anyway the share price is going down.

[pinkfoot2] 25/1/2024 16:59

£2 per share would be at least £450m exit value-pipedream in my opinion given the absence of recurring profit

[crystball1] 25/1/2024 15:38

Don't you mean 35p investors?

[boadicea] 25/1/2024 14:19

Looks like some of our recent 40p investors may be getting impatient already.
If so, they clearly hadn't done their homework on what to expect at SRT!

EDIT: As crystball1 notes below, that should read 35p.

[extrader] 25/1/2024 14:11

Hi Countryman5,

.."Why wait for news of impending contracts which will only drive share price higher..."

If the key shareholders want, say 200p (even though that's less than ST's 350p options) or £ 400m, even a wealthy hedgefund manager might want some reassurance re contract delivery...and a narrower gap between that 200p and the current 40p,which would be a very public 'bet', IMO.

But I'm not a hedgefund manager, so wtfdik?
:->

[yump] 24/1/2024 17:38

I once swam in part of that sea, so I wish to lay claim to my bit.

[countryman5] 24/1/2024 08:52

I find it interesting that there has been little comment / speculation about the presence of Ocean Infinity within SRT. Here is a company with an incredibly rich owner that just happens to want to invest in our company. Don't forget that AC approached SRT. Let us not forget that Anthony Clake has enormous research facilities at his disposal. I suspect that he approached ST with a view to buying the company. ST would have told him that he knows the views of the few major shareholders who own 50% of the company and SRT would not be for sale for less than £000 million. I suspect that AC might have said 'How about we make an investment (you need the money!)and we get to know you better and see if we can justify the exit price that you want.
The stock market ignores minnows like SRT, but I suspect that the likes of Airbus are certainly aware of Ocean Infinity and their probable intentions. If I was AC and I wanted SRT I would come in very soon with a knockout bid and reverse Ocean Infinity into SRT thus giving him his stock market listing and avoiding due diligence which would expose his shipwreck activities. Why wait for news of impending contracts which will only drive share price higher.

[pinkfoot2] 23/1/2024 08:51

It’s not a lot of stock-200k in a placing isn’t a big line but the price suggests someone was keen to sell stock.

[supernumerary] 22/1/2024 21:36

'can only be flippers' - no, it can't - 'flippers' with half a million shares?

For example, there are probably people thinking 'Oh, the fart in a lift scenario'. You know, the one in which it's always the one who asks the question...

Life, even on advfn, can't always be reduced to banality.

[pinkfoot2] 22/1/2024 18:38

Strange given the company has never been in a healthier position-can only be flippers