Srt Marine Systems Share Discussion Threads

[hjb1] 25/7/2017 14:47

yes, and that has turned into a damp squib too and looks like there is trouble brewing with that.Would not be surprised to see it fall flat as we are told these 'contracts' can be cancelled at any time.As I've previously mentioned corruption is a big problem too imo, as didn't one of the top coastguard or navy officers get caught trying it on!?

[astralvision] 25/7/2017 14:43

Funny that, 'the market' didn't see anything the day before the Indonesian contract was announced!

[hjb1] 25/7/2017 14:33

or maybe not! and I don't see anything in the near future either and neither does the market it seems!

[yumyum] 25/7/2017 14:00

timing is everything and now is (almost) the time for SRT. Maybe tomorrow.

[hjb1] 25/7/2017 13:54

I'm not 'in love' with any share and certainly not this one.Who said I wasn't happy?, I am happy!,just not as happy as I want to be..

[extrader] 25/7/2017 13:43

Hi hjb1,

Yes, I've 'fallen in love with a share' once too often myself ;-<<br />
My 'aha' moment came on Bondi Beach a few, well, many years ago, when I was impressed by the longest piece of graffiti I'd ever seen....running the whole length of the sea-wall :

' Life is too short to waste time on anything that doesn't bring happiness'.

ATB

[extrader] 25/7/2017 13:03

Hi hjb1,

...I am now in the believe it when I see it camp...

Sounds like you've always been in the 'sell the rumour, buy the fact' camp.

And since - on your oft-repeated assessment - the 'facts' are that Mr Tucker is 'incurably' optimistic, it would be logical for you to sell up ....and re-visit post release of an RNS'd contract win...or three....

Or is your continued involvement a triumph of hope over experience ?

In which case, your opening claim can['t be true.

'Patience is a beautiful thing' , as the Arab saying puts it.

ATB

[astralvision] 25/7/2017 13:00

hjb

Nothing wrong in being in the believe it when I see it camp, that way you can't get disappointed.
Re laid off, well, if you have any evidence to the contrary I am all ears. On my visit to the AGM the offices were certainly full and from talking to various people SRT is in a good place and they are looking, if anything, to take on more people, but only in a controlled way. They have recently acquired more premises on the same industrial estate (rental, very good deal) and these new premises have existing office space with the possibility of kitting out the mezzanine floor for further offices. I say that not to indicate that overheads will rise , they will only rise as revenues rise and the revenue rise will be much much more than any overhead rise, but to indicate the mind-set at SRT and the view that SRT are not 'laying off' people.

edit
I should just say that for completeness the main use of the new premises is for product testing, a certain amount of packaging/customisation and product storage and despatch.

[astralvision] 25/7/2017 12:53

sorry pi0110 if I didn't make that clear. On the link you have posted reference to the £60m is on page 16

'Of these, 4 are valued at £60m are considered to be in the final stages before contracting '

[pi0110] 25/7/2017 12:41

Ah, ok thnx, that makes sense

[hjb1] 25/7/2017 12:40

pi0110; I think he means £60m in total..not each!

[pi0110] 25/7/2017 12:37

Astralvision

Thanks for the post. Where do you get 4 x £60m possible contracts? pages 19 & 20 of the recent AGM presentation (link below) has a list of the VSPs but not one of them is £60m in value



TIA
PI

[hjb1] 25/7/2017 12:37

yes alter, usually it's you!!

[hjb1] 25/7/2017 12:35

astral; all well and good but I am now in the believe it when I see it camp.You say nobody has been laid off, well, I'm not so sure about that!
As I said without a bit of forward booking they would not have made forecast and certainly missed revenue last year even with a hefty slice upfront allegedly!

I look back at the presentation of Feb 2015 and what was supposed to have happened and banked from vsp etc etc by now..needless to say,we are light years off target.

[alter ego] 25/7/2017 12:16

Very balanced view alstralvision. We also have to be aware that anyone can talk claptrap.

[astralvision] 25/7/2017 11:50

hjb
I hear what you are saying and it's a view that has some credence given SRT's patchy performance over the years.
But I would like to present the case for.

First, re your questions, no-one has been laid off re coping with new contracts. Perhaps it is not generally realised but you can't just turn on a switch when you get a new deal on board and have folks up to speed and dealing with all the detail in the blink of an eye. On the other hand clearly you don't want folks twiddling their thumbs. SRT run a tight ship in that regard, a lot of work has to go into these contracts before you get them. Yes, there is always a risk of not getting them and that will cost money, but that is the cost of doing business. Right now there are a number of staff working flat out on contracts in the Middle east and the Far east and other territories. One particular contract is the Middle east is a follow on contract (actually there are two that fall into this category) and, imo, it is almost inconceivable that SRT won't get these deals barring WW3 or something, but timing is always a tricky beast.

Re Indo deal and 'Tucker clap trap', well, as you probably know, the Indo deal is not directly administered by SRT, but by Qnective with SRT as a sub-contractor. It is very unlikely to collapse, as the re-scoping work has all been done and agreed and the project is now in the final stages of being signed off. Yes, until it is finally and completely signed off there is always a risk, I would think that risk is more of a delay as any further additions or deletions are made to the contract. And these things have to be signed off by multiple parties, so not quite a 'done deal', but not too far away from it either. Qnective have every reason to get the deal agreed, I think it's more important to them than SRT, although I appreciate SRT shareholders are not concerned about that aspect.

Onto Tucker 'clap trap', well, yes, we all know there has been past misplaced optimism, but forecasts have been met over the last couple of years and Mr Tucker has successfully guided the company into becoming a systems provider with a complete range of world beating AIS products. This has all been done with not too much dilution and the breadth and depth of the opportunity currently exceeds anything in SRT's history. I think that is a good achievement and Mr Tucker has more than played his part in that. In fact he has been instrumental.

Timimg, as I mentioned, is tricky. Bit I would say a couple of things.

Project value
It is noticeable that the average project value has increased enormously over the last few years, as SRT are now providing far more than transponders in boxes. A few years back a £3m or £5m project was a decent deal. Now the typical or average deal value in the VSP is something in the region of $20m.

Project numbers
There are currently two project contracted, with a further 14 projects in the VSP. Worth noting that the VSP is a changing list, for example India and Mexico have dropped out of the VSP as they no longer meet the strict criteria (budget approval, I believe) but India and Mexico still remain very possible projects. Anyway, the depth of projects and the advanced nature of a number of these lead me to believe SRT have a very bright future.
There are four projects valued at £60m which are in the final stages before contract. I think there is a more than reasonable chance at least two of these will come in before year end. We are not too far away from the 'holy grail' of multiple over lapping running projects and with a good pipeline behind those. When that happens it would not surprise me to see a share price several multiples up from the current levels. imo.

[hjb1] 25/7/2017 10:59

more likely to do with corruption out there! I would like to know how many of the extra people who were drafted in to cope with all the new contracts are still employed??
What worries me is that Indo deal could collapse at ANY time, and the 'near term deals' I will take with a very vey large handful of salt, that is just Tucker speak claptrap! Let's face it, just how much did they forward book to get anywhere near y/e forecast..£1m...£2m??..jam anyone?

[extrader] 25/7/2017 10:36

Hi fft,

Something that occurred to me whilst out on my run this morning : Indonesia is the 'other side' of the Malacca Straits... might the delay/ re-scoping of that contract have something to do with the 'Norwegian' project involving the Malacca Straits , which has just concluded successfully ? And which may also involve SRT's GeoVs ?

I could imagine there being considerable political sensitivities over co-operation between the 3 maritime border countries (Malaysia, Singapore, Indonesia) in view of ethnic tensions (past Chinese, present PRC) and political differences cf the Emergency/ Confrontation in the '50s and '60s.

ATB

[astralvision] 25/7/2017 10:26

fft
perhaps you are forgetting this major contract signed end of March?



There's been a few smaller orders as well, core is buoyant, so first half figures should be just fine, esp on a comparison basis.

With £60m worth of contracts from 4 'near term' deals, future here looks very good. And that's not including Indonesia, which should be back on track 'soon'.

[fft] 25/7/2017 10:18

I don't think that over 1 year ago at AGM time, people thought this is where we would be. Indonesia has, for the moment, stalled as things are sorted out, and nothing else from the vsp has been announced (the Saudi deal seems low level). Now we get odd pictures from Norway and Mexico. Meanwhile other stocks over the last year have moved forward. I understand why, but the lack of news flow, especially regarding existing contracts (i.e. Indonesia), makes this very hard work. I don't see the 6 month numbers looking good, or, unless there is some serious front loading, the FY numbers for this year. Disappointing.

[extrader] 24/7/2017 22:42

Hi all,

The Mexico fishing project is referenced in an s'pedia post from Feb '15 : SRT even created a whole new market segment with the launch of its Identifier. This small class B device is cheap, battery powered and designed to be fitted to the smallest of craft. For this reason it has been deployed in Mexico to provide the authorities with the means to fight drug and people smuggling.

So a bit of a 'long lead item'....

And I wonder whether the Malacca Straits project is the one mentioned here :

As well as hardware, SRT have a fully functional 3D Software vessel monitoring system called GeoVS which not only shows the position of boats using AIS but also topographical data, tides and weather. It is installed in Poole harbour, see
www.maritimejournal.com/news101/onboard-systems/navigation-and-communication/3d-delivers-navigation-surprise-at-poole and at an un-named "strategically important commercial infrastructure installation" see www.investegate.co.uk/software-radio-tech--srt-/rns/licence-for-geovs-technology of Jan 2014....

Hmmm....

ATB

[techno20] 24/7/2017 22:30

Surely a decent photo to follow! But like the message. Could do with some news to stop the steady drift down.

[extrader] 24/7/2017 21:38

Hi all,

If you google SESAME straits e-Navigation Test Bed Project. and hxxp://www.seatrade-maritime.com/news/asia/kongsberg-led-e-navigation-project-concludes-test-bed-in-singapore.html, there's lots of info.

Unfortunately, this doesn't specifically mention SRT's involvement , if any.

Maybe they've just put it up to show that there's a lot of interest in MDM...?

Of more interest is the new slide up in the gallery, dated today and all fuzzy, with the text Mexico fishing boat monitoring success provides platform for future expansion 24th July 2017

ATB

[lazyj] 24/7/2017 20:57

"crinkly bits" connection to the previous gallery image.
"Prime Minister of Malaysia inspects GeoVS maritime tracking and management system."
SESAME straits e-Navigation Test Bed Project. :-)