Srt Marine Systems Share Discussion Threads

[countryman5] 10/6/2017 17:37

Annual Report. Executive Director's remuneration increased dramatically. This increase would have been authorised by non- executive Directors who are major shareholders in the company. They would be 'insiders' and have known the size and imminence of MDM contracts. Should this be seen as a buy signal?

[countryman5] 10/6/2017 09:14

Philippine gov. is a potential MDM customer. SRT trials have been conducted. Increased urgency for the Country following major ISIS incursion in south of Country. It is no longer just about fishing.

[philburt] 09/6/2017 11:11

thanks astra / loo - seems like a prudent forecast to me with plenty of near term, upside opportunity?

[loobrush] 09/6/2017 10:24

Fincap
These large, high-margin projects are seeing a step-up in revenue and profit. SRT now has £77m of contracted project work and a validated sales pipeline of £270m. The market is yet to appreciate the MDA opportunity leaving the stock deeply undervalued and we initiate with a 75p TP.

[astralvision] 09/6/2017 10:20

I note the 75p target is based on 'very prudent forecasts'.There is the opportunity here to significantly outperform forecasts, but the forecasts themselves show strong sales growth and profitability.

[philburt] 09/6/2017 10:11

Techno - Thanks. Is there a link we can use to access this?

[yumyum] 09/6/2017 09:56

Thank you Techno.

[donemyhomework2] 09/6/2017 08:32

Wont stay low for too long.

[hjb1] 09/6/2017 08:18

top up anyone?? ha ha! Must admit I didn't think this would drop like this just because of the elections..

[techno20] 09/6/2017 07:43

Finncap out with new target of 75p.

[luckymouse] 09/6/2017 01:23

obiterdicta - agree with that - monthly fib target is 175p - but mthly so a slow burn - if 60p goes cld run easily to 100p (50%) - news flow will have to spt
weekly fib target is 113p (so again around 100p+ ish)
so depends if 60p breaks

[obiterdicta] 08/6/2017 14:57

9degrees and lfc

The next 24 months will see this at either £2.00 or 20p.

It will be at £2.00 if the sales order book comes through, some of the pipeline converts and the aged receivable converts into cash.

It will be at 20p if the order book does not convert to cash, the aged receivable is written off, and the validated sales pipeline is a pipe dream.

On balance I think £2.00 is more likely than 20p. I would like to see some Director buying so that everyone can be more confident that the risk of 20p is low.

OD.

[9degrees] 08/6/2017 14:51

Your are right Ifc.
The announcement could take some time to come through though Have just sold out and will come back when it has dropped a bit

[lfc4ever] 08/6/2017 13:37

it's quite finely balanced at this share price level, isn't it.

obviously, on current pe it is pretty toppy, and there must be a real risk of another substantial pull-back. take a bit of profit with a view to buying back in at sub 40 or thereabout?

but, on the other hand, a rescoped (increased) Indonesia contract, or another pipeline to contract conversion could be announced at any time, which could give the share price another substantial squirt ahead. so better to ride the waves with a view to the 125 options target being reached in due course?

[luckymouse] 08/6/2017 13:25

Apart from the debors/sales, debtor days, discussed above, v good numbers from this co.

Guess you have to assess if its genuine one off contract gone wrong (which does happen), or the bod are manipulating. Doesnt sound like an offshore aim scam on the face of it - generally they are out to skank venture capitalists via the lure of the hottest trendiest new fad in business.

Maritime tracking doesnt really fit the profile and theres no hype, warrant, convertible or issuing mania (rinsing).
So if it breaks resistance, and that bad contract is a one off, its prob a buy. As a character read they were pretty upfront about it - as opposed to hiding.

[eagle eye] 08/6/2017 11:24

Fair comment hjb1. It certainly helps when the brain in engaged!

[hjb1] 08/6/2017 10:56

wakey wakey Eagle, ha ha! I never said anything about him being bullish about SRT..I said he was giving MMX the thumbs up especially as they have had several approaches for the business and there might be a buyout coming soon and he reckons at well above the 13p Hony Capital paid last year.

[eagle eye] 08/6/2017 10:47

hjb1,
Since when has Simon Thompson been bullish about SRT and rated it a buy?
He recommended SRT several times between March and July last year, but suggested 'take profit' last August when the shares were 56.5p.
I'm not aware he has written anything since then. Have I missed something?

[yump] 08/6/2017 10:21

TP

So reading between the lines, it seems that if £2mln was booked almost at the start, then £2mln was probably most of the whole of Phase 1 ?

Otherwise if it were a much larger amount, would expect it to be split into milestone payments and hence that £2mln would have been payable before the rescoping, as they said delivery started immediately.

[the prophet] 08/6/2017 09:50

OT:cheers, ST has a decent enough record.


Re the loan, yes, its been rolled over several times before.

[hjb1] 08/6/2017 09:47

no probs TP, it's been covered by Simon Thompson from IC and he is very bullish and says it's a buy..

[sivadnoj] 08/6/2017 09:47

Worth noting that £0.5 million of the bank loan is now shown as a current liability repayable within the next 12 months. Presumably capable of being rolled over.

[the prophet] 08/6/2017 09:43

thanks for the suggestion hjb re MMX, not familair with that one, will take a look.

Yump, the £2.2m definitely does relate to the Indonesian contract.As already explained, it is a partial completion of phase 1. It's all in the results under 'large Asian contract' or something similair.

Here is the relevant bit again:

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.

[hjb1] 08/6/2017 09:22

yes Eagle, I also suggest NIPT but only if they get a good result from the upcoming court case next month, if they do watch it fly!!!