Srt Marine Systems Share Discussion Threads

[lavalmy] 20/12/2016 16:20

I am not at all convinced of any need for funding. I would put the odds at about 50:50, and anything required would be similar to the last time out, unless the new broker insisted that the shares need more liquidity and therefore £5 million or so of new issuance. 10% of the existing shares or thereabouts. It would provide them with a decent cushion for working capital. As Kalkanite pointed out, it seems unlikely that all, or even any, contracts are cash positive from day one.

If the liquidity of the shares is an issue, it would be nice to see the new broker earn its living by selling the new shares at a premium. Surely if institutions are that desperate to own some ...?

Goodapple, you can always buy some in the market. The new rules about EIS relief mean that, for taxpayers (which from previous posts a lot of you claim not to be!) SRT would be ineligible, which to my mind has always been the attraction of open offers/being included in a placing - unless the placing is done at a huge discount, which would probably crater the share price in any case, allowing you to pick some up even more cheaply.

[crystball] 20/12/2016 16:11

goodapple, I really hope that happens if there is a fundraising! Happy Christmas all patient shareholders.

[goodapple] 20/12/2016 16:00

I recall ST saying that existing shareholders would get a chance to partake in any future fundraising.

[philjeans] 20/12/2016 15:41

I wonder if they have landed one or more additional huge contracts, like the one earlier this year, and realised the working capital to finance all of this is currently beyond their resources, even given the present o/d facility and stage payments.

Not surprising if I am right, since late payments and ever larger stock requirements take very careful cash management.

Rights issue to come possibly but also the prospects of more tasty deals.

DYOR AIMHO

[visionon] 20/12/2016 12:18

Interesting to look at front page of Finncaps website.

"We raise money and advise ambitious growth companies and pride ourselves on our first class service. We are the largest broker on AIM and the LSE raising over £1.6bn to date for our clients."

"We are here to raise capital and advise your growth company, whether public or private, at every stage of your development. As entrepreneurs and owners of our own business we know the many challenges companies face and are here to make the journey easier."

Capital raising does seem to be emphasised. But that could be a pure coincidence.

If there were a raise soon I would like to think that it were to give SRT a stronger hand in contract negotiations. That is not uncommon - and we are after all dealing with contracts which can individually exceed SRT's market cap and relating to national security type projects.

Or is it perhaps to make more jam for the next AGM. They would need more jars as we haven't been given the all-clear to start on the current stock yet. So no current recycling in prospect.

[lavalmy] 20/12/2016 11:33

Well, in the absence of actual deliveries on projects, it would certainly be possible that cash has become tight. There is not much point in over-analysing the balance sheet, but if they are humming along at the same rate as the first half and, crucially, supplying that from existing stock, then they should be fine, particularly with the addition of small contributions from the Panama Canal, Trinity House and the Malaysian port, none of which to my knowledge were recognised in H1. If they aren't, then they will need cash. I am not particualrly bothered, more keen to see real action.

I don't think companies change their broker and then get press-ganged into a capital raise that they don't need. It does happen the other way round, viz that the existing broker gets fed up or offers sub-optimal terms to a client who actually does need the cash. In this case, it could simply be a lack of enthusiasm wrt to whiping up interest, a spat about forecasts.

[kalkanite] 20/12/2016 11:28

Personally I would be pee'd off if their is a fund raising. One of my reasons for investing here is because of the "self funding" nature of their contracts, if the company is as strong as they say then they should finance themselves from FCF and or loans.

My immediate thoughts upon seeing the RNS was exactly that of LaValmy's, that is, a difference of opinion going forward with regards to revenue and profit forecast.

Any fund raising would cause me to sell "at least" half of my holding unless it was backed up with a contract announcement.

[hjb1] 20/12/2016 11:27

as long as the placing is at 45p or above...no probs..He usually throws in a webcast to pacify...not even that this year..as you say TP fund raiser on cards.

[the prophet] 20/12/2016 10:05

change of broker can often herald a fund-raising as the new broker eagerly claims it's pound of flesh.
I hope that won't be the case here and certainly ST is no push-over in these matters.

[countryman5] 20/12/2016 09:47

SRT has moved such a long way from being just a supplier of sophisticated AIS kit. The purchase of 3 D Geovis allowed the company to develop its MDM offering. We should not underestimate the brave bosses of Bahrain who were prepared to put their necks (perhaps literally) on the line and buy the SRT system. Their confidence has been rewarded and they can strut around to their fellow coastguards around the world and say 'Look at our spectacular Rolls Royce of a system'. Envy causes many emotions. However, from SRT's perspective we have this fantastic shop window with Bahrain wanting to show how clever the system is to all and sundry (probably not Iran). The US fleet is based in Bahrain, I wonder what the Yanks think?. Now Bahrain is being offered the Rolls Royce SS (Super Sonic). For a fee it can bolt on Radar and CCTV to the SRT hub. Will it want the ultimate version? By now they have confidence in SRT but do they want to be first? If Bahrain goes for it, it takes SRT into the super league. The SS version of the MDM hub will provide visibility of earnings for many years and makes it an irresistable target for the big players to fight over. Just imagine that you are the seller of missiles. If you own the SRT MDM SS, you offer the complete package. Your customer can identify the bad guys and take them out with your missiles. We all know that fighter pilots are yesterday's people. This is the future of warfare.

[lavalmy] 20/12/2016 07:06

Not quite the sort of RNS I was waiting for.

Probably a spat about forecasts and enthusiasm.

[2vdm] 17/12/2016 23:04

Such cynicism a week before Christmas! The infant Trump will change all that.There will be (if not already on course there)so many boats in the China Sea without AIS but carrying gold, myrrh and unfortunately all sorts of other gifts if he keeps up his comments about Taiwan.

Indian business has always been a closed book. I assume that SRT has decent local distributor(s) that understand the way the market/culture works. It's not just about the kit, that is world class. Look at some of the kit our own services have had to put up with over the last 40 years at least, when there were far better (and often cheaper options) available and the end users all knew/had to put up with it. That's not just bureaucracy! However,even a relatively small chunk of the business there would have a large impact on SRT's bottom line.

What else is out there with Mexico, S. America, the Philippines, Saudi, Oman and the ME generally? No idea where we are with the US and EU mandates. Slow burners? Not even going to consider Russia and China. Is there anything going on in European waters (offshore)? AS ever thoughts welcomed.

[hjb1] 17/12/2016 17:17

still better than being in with and dictated by Merkel ,Juncker.Tusk..anyday!!

[hjb1] 17/12/2016 16:34

it also shows that it ain't gonna happen in India for years, if ever? Just like USA and many others peeps just kick the can further down the road, too much red tape everywhere you look, very worrying for me!

[lavalmy] 17/12/2016 15:12

LazyJ

Your second link is very interesting. It also shows the confusion reigning between satellite tracking and transponder tracking in the minds of some of the bureaucrats.

[lazyj] 17/12/2016 11:40

I do hope that we're not at the back of the queue!!

45 Bills pending in Rajya Sabha, some introduced 30 years ago ...
www.thehindubusinessline.com/news/.../45-bills-pending-in.../article8728489.ece

edit +

[the prophet] 17/12/2016 10:57

oh well, no big surprise there re India. Plenty more fish in the sea, they will get there eventually.

[lavalmy] 17/12/2016 10:43

Nothing doing, TP.

The Indian winter parliament session has ended without the bill being passed. In fact, nothing much did get done, as they were squabbling about other issues. So no dice yet.

[the prophet] 16/12/2016 17:35

good end to the day and a nice 170K buy, LaV found some spare change?!

[2vdm] 16/12/2016 11:11

There currently seems to be resistance at the 40p level. Let's hope that will hold until we get more news.

[eagle eye] 16/12/2016 09:30

The trouble with the word 'will' is that you normally have to die for it to kick in.
Hopefully it doesn't apply here LOL.

[hjb1] 15/12/2016 23:22

take your pick! We all know plenty of others over the years.

[goodapple] 15/12/2016 23:00

hjb1 - riding on which word is that....?
"will"
"Christmas"
"jam"
.........."humbug" ??

[supernumerary] 15/12/2016 21:42

On the other hand, Peter Cook's post-Christmas reflection:

Don't take much interest in Christmas. Used to be great fun in the old days when it was simply an orgy of commercial excess, but now I find that people are tainting the whole thing with a lot of religious mumbo jumbo. Thank the Lord it's over for another year.