Srt Marine Systems Share Discussion Threads

[philburt] 12/7/2017 20:46

A big 'Thank you' to all that were able to attend the AGM and who have provided some excellent feedback!

[crystball] 12/7/2017 20:18

Just got back home after attending the AGM. I counted 31 people in audience at AGM. Some new faces as well as familiar attendees. All seems to be going well. I particularly liked the new warehouse facility with plenty of room for expansion. There were wonderful cakes as usual and a delicious lunch. The employees and directors looked at ease and content. These things you only pick up by attending AGM's and going on site tours in person. Summaries provided by others are very well done. Thank you.

[goodapple] 12/7/2017 19:51

Even mentioned the possibility of SRT having their own satellite constellation to maximise data revenues, but I think that's one for another time.
SP unmoved by any of today's snippets, but I don't think that will last long.
Very positive, informative, thought-provoking AGM.
Excellent cakes too, thank you.

[alter ego] 12/7/2017 18:57

A few more snippets that occur to me.

- the broker Redmayne Bentley had a rep at the AGM, in a very smart suit. Good to see "City" interest even if RB are headquartered in Leeds
- new display room up and running. All products on display plus active displays of Geo Vs, one live from the Solent. Plus one showing the whole Earth and ability to zoom in on any location. Looked stunning on a big (40 inch?) screen.
- ST showed 3 identical class B units, one a big brand, one. Mid brand, the other Em Trak ( SRT own label for any newbies). Price varied from $900 to $400. Most profit to SRT on the $400 EmTrak unit.
- SRT have long since given up trying to sell into China. Despite spending time some years back, "educating" about the importance of compliance with specs, most units sold are locally manufactured. Also despite having the most extensive and expensive infrastructure, a lots of boats cannot be "seen". SRT have had a number of enquiries from Chinese OEM manufactirers but are not interested in supplying as the price of items bought in China becomes the norm worldwide The China Price.
- Interesting observation that installing the display system is much more satisfying to the customer than other elements of infrastructure. Hence SRT keen to progress to point where customer can "see" what the are getting and importance of getting more data.
- ST sees advantages in SRT having own satellites, via turnkey provider" as cost of data would be significantly lower. Not currently more than a thought but perhaps when selling on satellite data is an important revenue stream we may see some developments.

Dinner beckons. Over and out.

[the prophet] 12/7/2017 17:57

Just back from the agm, good to meet fellow investors again.
Excellent summary by ae, I agree with YUMYUM and C5's comments.

No doubt the AGM presentation booklet will be up on the web-site soon. There is a lot of good stuff in the booklet. For those that like to focus on sales, there is a feast of info on all the goodies that are heading our way.


-14 system sales opps valued at c. £270m in VSP, of these 4 are valued at £60m 'are considered to be in final stages before contracting'

The 14 system sales are broken down into area (eg M.east) a value given, some comments, estimated implementation period and number of vessels. The 14 system sales are in addition to the two current contracted projects.

There are some very interesting opps indeed in the list.

eg Middle east c.$25m. 'Follow on contract with existing customer where SRT supplied an NAIS system inclusive of 7,500 vessel transceivers. Significant upgrade to a full MDM.'
No prizes for guessing who this is!`
SRT emphasised the value of trust and confidence that they build up with customers. This then can lead to follow on projects such as this one.


I've slightly lost track of how many agm's I have attended, I think I'm now up to eight. What I've seen in that time is a company that has transformed itself from the box-shifter of Class B's and not much else into a systems provider that can supply any AIS product required and fuse all the data from multiple feeds into a coherent picture and manipulate that data as required. It is some achievement and the three main guys, Messrs Tucker, Peniket and Hurd deserve a lot of credit for that, with wise counsel from Chairman Simon Rogers. They are a hard-working and talented bunch whose interests are aligned with shareholders. As investors, despite the share price being several multiples up from when I first invested, I feel the best is yet to come. As ever with SRT, timing is a tricky beast, but I firmly believe it's a question of 'when' not 'if' that substantial rewards in the form of a share price a magnitude up from where we are now. That is not to say it will all be plain sailing, but there is a level of activity one rung below 'RNS contract' that means the dam will burst, at some point! I don't think that point is too far away.

Rambled on enough, as ever, please dyor, all looks good here.

[parsons4] 12/7/2017 16:51

alter ego very good I was there and your summary is very full and so quick !! yes I agree a very positive meeting !! they are now under forecasting IMHO. Patience is needed I am now convinced they will start getting the biggies !!!

[alter ego] 12/7/2017 16:37

Just got back from AGM. Not much time to spare as off on holiday now. Please excuse lack of logical order, brevity and notation style.

- Well attended, very informative and optimistic outlook.
- SRT at pains to gain trust of customers, once you have it, everything becomes easier.
- Bahrain is very important as proof that SRT can deliver what customers want.
- Main drivers are security and control of fishing. If a country needs these it is likely to complete the project so becomes part of SRT's evaluation of prospects.
- Very conservative forecasts based on 12% of order book and VSP. Hope is this leaves plenty of scope for upgrade and less risk of downgrade.
- EmTrak business going well, up 45% in last 2 years.
- 300 dealers now, aiming for 500 by end of year. All targeting EmTrack sales. Keen interest in Italy, Croatia and West Marine who have 500 dealerships in USA. Looking at opportunity in Australia too.
- Recording fishing catch is being made easier by providing a mobile phone app that connects via Bluetooth to the transponder to record details and provide date, time and location of catch. Alternative requires fisherman to get home and submit details there - less control of the data quality.
- Manufacturing staying with Flextronics but moving from Hungary to Cork. Saves SRT money, common language and reduced travel time.
- CML microsystems, mentioned recently by Kinbasket, not considered a serious threat. They produce Class B on chip, it's not new, and relies on embedding the data processing on the chip rather than using software as done by SRT. It's a dated design and limited going forward.
- EU Fisheries mandate not enforced properly to date but now there's a 1000 Euro fine for not having a Class A. Goes up to 3000 on second offence. Replacement cycle is 4 years regardless of whether device needs replacing (not sure how they enforce that bit)
- Indonesia project paused because person in charge moved on and replacement wanted to be comfortable with what he was taking over. Revised scope awaiting sign off. No longer 3 phases, just 1. Could be larger value.
- Philippines project, dealing with 4 agencies (Coast guard, Port Authority, Fisheries and Navy) All want same things but each wants to own it's own project. Likely to increase the cost (and SRT revenue).
- £1m loan from Barclays is being repaid over the course of next 2 years. Happy with the amount of cash in the business and see no need to ask shareholder for more unless for investment not currently identified.
- Some new OEM customers already taking delivery of new 5w CSTDA Class B
- Stock of older Poseidon class A down to 3000 (from 5k last year). Ordered in anticipation of USA mandate that is not yet being enforced. Sold 150 last week. This was not typical volume but they are being shifted at a decent rate.
- R&D split 50:50 between GeoVS (mainly adding data analytics and robustness) and hardware. The latter includes new type of antenna for better satellite pick up, a combined transponder and splitter (already have an OEM maker keen to buy) and combined AIS VHF radio. Keen to develop new version of Identifier that cannot be removed from vessel.
- new warehouse, more room for quality control checks, automated test rigs to check samples of all products - some in use now, more planned, and room for customisation from standard product to a branded one. Plenty of office space available too.
- gained impression that Ecuador now closer to contract as elections out of way.
- Other places where SRT involved ( based on clues given in some cases rather than naming them directly) include, Saudi, Oman, Kuwait, Maldives, Vietnam, Quatar (might take a back seat for a while)

That's it. sorry it's just a brain dump. others may be able to fill in missing bits.

[countryman5] 12/7/2017 16:13

Just been to AGM, things are looking very positive.
Market leading products: Large global market to address with Warren Buffet protective moat: Exceptional management with very little churning of staff who appear motivated: enough money in the bank until mega contracts start arriving: large amount of evidence given underpinning VSP. All that is required is patience because contract dates and delivery are decided by customers.

[philburt] 12/7/2017 15:11

Hopefully we will hear from a few more attendees over the coming days, but YumYum's contribution already confirms what I was expecting / hoping.
Personally, I'm happy if it takes another 6 months or so to really take off, as I'm hoping to continue accumulating shares at least through to next spring......

[philburt] 12/7/2017 14:38

Thanks YumYum :)

[yumyum] 12/7/2017 14:34

It was a very good, open and positive open day/AGM. Very upbeat. Underpromise and overdeliver is Simon Tucker's new way.

Indonesia should get sorted in a month (or two). Hopeful it might be bigger. Other contracts not far from signing, but this could be weeks, or months. Impossible to say.

I am feeling very confident about my investment.

[philburt] 12/7/2017 13:39

Indeed!
Might be a very big jar this year....

[fft] 12/7/2017 13:34

Trying to get the top off the jam ?

[philburt] 12/7/2017 13:31

Still at the pub, I would imagine... :)

[ramnik007] 12/7/2017 13:00

Very quiet on AGM day? Nothing exciting compared to last year, it appears

[mikeod] 11/7/2017 20:01

Can't make it this year but looking forward to any announcements in the morning and/or AGM feedback from attendees.
Let's hope for some positive updates.

[eagle eye] 11/7/2017 18:01

Just a reminder for tomorrow.
Open Day at HQ from 9am and AGM commences at 11am.
See you there.
Cheers
Eagle Eye



Directions to SRT:

Wireless House,
First Avenue,
Westfield Industrial Estate,
Midsomer Norton,
Bath BA3 4BS
Telephone: [phone]

Travelling by Road:
• From the centre of Radstock, take the A367 signposted to Wells & Shepton Mallet
• You will go past a Shell garage on your left hand side and after 1.4 miles from Radstock you will see a signpost to “Westfield Industrial Estate”
• Go left into “First Avenue” on the Industrial Estate and continue straight past Integrity Print and straight on as the road bends sharply around to the right
• SRT’s offices are located shortly after on the right hand side


The Centurion Hotel is located within a very short drive of SRT’s offices:

• Turn left out of SRT’s car park
• After approximately 100 yards you will reach a junction. Take the left into second avenue and follow the road for approximately 1/4 mile
• At the junction, turn right and the Centurion Hotel is on your left after approximately 1/4 mile

[philburt] 11/7/2017 12:55

Well, again I fail to make the AGM :(
Hope you all have a great visit and return with lots of news and analysis, and perhaps a jar of marmalade or other conserve this year...
Enjoy!

[goodapple] 11/7/2017 12:49

Well, I'm going.

[parsons4] 11/7/2017 12:42

Yes I am definitely going tomorrow. This is now once again my biggest holding, It should be interesting. I would hope there will be an RNS in the morning !!

[hjb1] 11/7/2017 12:03

anyone going to the AGM?

[piedro] 11/7/2017 11:45

LazyJ,

I can read quite well what is printed on the SRT website but I do not remember having seen "the NAIL system" before.

Have you?