Srt Marine Systems Share Discussion Threads

[eagle eye] 08/6/2017 08:22

TP,
Thanks for the presentation link.
Interesting to see hjb1 suggests you take a look at MMX. There is only one problem though.....hjb1 posts over there too LOL.

[visionon] 08/6/2017 08:03

A very professional looking presentation. The best SRT one I have seen to date. Good use of pie graph to emphasise sheer number of fishing boats.

[visionon] 08/6/2017 07:04

Slide 24 is very honest. I like that approach.

[extrader] 08/6/2017 00:12

Hi all,

Aah ! Replacement risk : can we find something as good as / better than, the share we topslice ?

Or, as the poet has it

"...And much as Wine has play'd the Infidel,
And robb'd me of my Robe of Honour-well,
I often wonder what the Vintners buy
One half so precious as the Goods they sell."

ATB

[supernumerary] 07/6/2017 22:25

boadicea - no comment on your sales really - each to his or her own, just a comment about the free carry argument. You hear it everywhere, but really it's just another, somewhat disguised, form of anchoring. Why does it matter that your holding is nominally 'free'? It's reassurance, sure, but that has nothing to do with the investment case, so it's allowing emotion to intrude on what should be an objective analysis.

I could easily run on free carry here but I don't see the point - effectively I'd be writing off 50% of the knowledge I've gained from watching it over quite a few years, and all the trust I've developed in the management for riding out some tough times and still being prepared to be open with investors. Hard to find that on AIM, so if you find something, do let us know...

[hjb1] 07/6/2017 20:46

TP, if you're looking try MMX....things are hotting up there it seems..under the radar atm..

[the prophet] 07/6/2017 20:35

link to AR presentation, as suggested by Countryman

[the prophet] 07/6/2017 20:33

That's a long ride boadicea!
Excellent reply, sensible stuff, hope you do find a good home for the funds, please let us know if you find a good'un, always interested.
Hopefully see you at the agm

[boadicea] 07/6/2017 20:27

Hi TP - Yes - a reasonable profit insofar as I am now in free carry on a fair holding (if one disregards inflation) having been around since Tetra days (2006). It's been a bumpy ride!
I admire their technology, expertise and innovation but my resources are not such as to commit to the extent of the now quiescent LaValmy. I hope to be at the agm in July - missed the cakes and canapes last year due to a conflicting engagement.
The nature and potential magnitude of the opportunities and risks has now changed and they could possibly find themselves in deep water if a major contract goes sour especially if a main contractor folds. From this viewpoint a greater number of smaller contracts is preferable to one or two giant ones.

I manage the risk by trimming back the commitment to a reasonably constant proportion of my portfolio but with no intention of abandoning SRT.

I do appreciate and was broadly aware of the points you raise. I also appreciate that we (including management) have had a painful experience in learning about the glacial rate at which government targets and programmes are likely to be implemented or worse, effectively abandoned.

All of which leaves me wondering where to reinvest the released funds! Most interesting and fast moving technologies have their own risks - Cybersecurity, Energy storage .....? .. and they're usually expensive, sometimes more so, than SRT.

[countryman5] 07/6/2017 19:51

Suggest viewing 'annual report presentation' on Srt website

[the prophet] 07/6/2017 19:28

Hi boadecia

respect your views and hope you made a reasonable profit on your dealings.

If I could just make a few points, the £2.2m debt has been dealt with in the thread, it is the results of the large Asian project being paused in phase 1 whilst the ultimate customer did a significant ' rescoping and planning'. It was not the result of any aggressive revenue recognition and SRT are confident that the monies will be paid, presumably when the project restarts and the phase 1 is finished as a 'deiverable'.

Re the stock situation, which is generally known amongst close observers of SRT, is or was that SRT stocked up on a large amount Class A's several years ago in anticipation of the US mandate. That mandate changed in form, resulting in less Class A's being required and more Class B's as well as an overall reduction in total numbers required.
So SRT have had Class A's sitting on the shelf, but the last time I checked the end was in sight. Numerous other places take Class A's , like Japan, EU inland and EU fisheries and the US but they have taken a while to shift.I have asked the question and the answer is no, there is no risk of obsolescence.

I understand SRT is not for everyone, but I do like to clear up any mis-information , not that I am suggesting that is your aim at all. But I feel it is important for investors to know the situation both wrt the £2.2m debt and with the stock.

As ever, I advise folk to dyor, all info giving in good faith but anyone with doubts should contact SRT direct.

[the prophet] 07/6/2017 18:17

last point for now, worth noting that the VSP has increased by 33% over last year, that is a strong acheivement and I look forwards to the four worth £60m coming to fruition this year.

[the prophet] 07/6/2017 18:13

The progress SRT have made is apparent in the last 6 months of trading, esp as that was done without the benefit of anything or next to nothing from the large Asian contract

[philburt] 07/6/2017 18:00

I like Paul Scott and value his views, but on this he demonstrates the conservatism associated with most accountants. They like to see the money already in the bucket, not a row of empty buckets that are likely to get filled....
By the time we see lots of full buckets, a share of them will cost much more!
OK, enough bucket analogies....
Anyway, very kind of him to help keep us under the radar whilst I accumulate.... :)

[yumyum] 07/6/2017 17:40

I gather Stockopedia do not like the risk/reward profile of SRT.

I am not sure they understand the company ..... and anyway they did not like SRT when they were 42p.

[yupawiese2010] 07/6/2017 17:23

Paul Scott comments.

[visionon] 07/6/2017 14:17

Am I imagining things or did ST in the webcast say that there might be more news before the results ? if so then perhaps we will get some news before the AGM, as we did last year.

[lfc4ever] 07/6/2017 13:55

It would not be unusual in a large scale infrastructure project for the main-contractor/ sub-contractor contract to be on "pay-when-paid" or back-to-back terms so that main-contractor's obligation to pay only arises when the customer has paid.

It's obviously not ideal, but it may be the price of getting the sub-contract.

[yump] 07/6/2017 13:29

Well I have to say that is a big proportion for SRT in revenue terms, of deliverables that have been delivered.

Hopefully, SRT will sort out contracts, so that a pause in deliverables doesn't mean a continuing set of delays to payments for things that have been delivered.

ie.
If the total deliverables in Phase 1 were going to be £20mln, then £2mln is not a very significant proportion to have to wait for and it would not be part of any project milestone payments.

If the total deliverables were going to be £3mln in that part of the contract, then £2mln is a big proportion of the deliverables, which would normally be the subject of project milestone payments.

All I can think is that amount for the customer relative to the grand total is so small, that they wouldn't enter into partial deliverable payment milestones.

[the prophet] 07/6/2017 13:04

DJ
thank you re qnective, couldn't quite remember the name.

Re the Indonesian contract, it is not surprising we have not heard further on it from Qnective, they announced the order and ,like SRT, are not going to give a running commentary on it.

re the debt of £2.2m , this bit in the ar needs to be read carefully:

In March 2016, SRT entered a contract to supply
our MDM system to the prime contractor for
a large integrated maritime monitoring system
in Asia. The contract was expected to be worth
up to $100 million to SRT over three years
across three delivery phases. In accordance
with the contract deliveries started immediately
for phase 1, but were subsequently paused
prior to completion as a result of a significant
rescoping and planning by the end customer,
causing a delay in payments and the completion
of remaining phase 1 deliverables. This rescoping
has now been completed and is in the final
stages of sign-off by the end customer, whereupon
a revised contract is expected to be entered,
the current phase 1 will be completed as originally
defined, and the rescoped project and revised
phasing implemented. Whilst the pause and
consequent delay has been frustrating, such
variability with large projects is common
and to be expected. SRT believes that the
rescoping may result in a significant, but
as yet not confirmed or contracted, increase
in the final value of the contract which we
still expect to have to substantially completed
in phases of variable value and content by
2020.


Quite simply the £2.2m is the part of phase one that was started and then paused, as the AR states, phase 1 will be completed when the expected , improved, revised contract is completely signed off.
There is no concern at all from SRT regarding this debt, so that is a red herring.

[dj trading] 07/6/2017 12:56

"The Prophet7 Jun '17 - 11:56 - 5076 of 5081 0 0
DJ has a point re receivables and it is certainly something to keep an eye on or ask questions about. If it is Indonesia, then the debt will be with the large Swiss company that are the prime contractor for that contract (I forget their name, anyone?)"

TP - Qnective
Here is the press release from 2015

But I have monitored their press releases since SRT contract announced and nothing further relating to Indonesia and their last press release was over 12 months ago.

I suggest you research CEO/Chair (majority shareholder) and dyor re Qnective

It all rings alarm bells for me given other factors that have come to light in annual report. Another one for the AGM, though I suspect the confidentiality card will be played!

[yump] 07/6/2017 12:47

Having said all that, there seems to be plenty of leeway in the levels of revenue likely in the next few years. + or - various amounts paid at different times shouldn't make much difference.