Srt Marine Systems Share Discussion Threads

[extrader] 31/7/2017 11:44

Hi all, incl hjb1,

Put the company up for sale imo.

Aah, but how would you value it ?

Depending on the webcast, I may use the opportunity to top up.

ATB

[hjb1] 31/7/2017 11:30

I think it's safe to say this contract won't see the light of day and neither will India.What does that make the laughable vsp look like now?
Put the company up for sale imo.

[hjb1] 31/7/2017 11:20

yes Philburt, I did indeed do my own research and that's why I sold.

[philburt] 31/7/2017 11:10

So, the last 12 months has been pretty positive all round for SRT, but we all knew risks still existed. That's why they're not £1 a share yet. Yet one piece of 'bad news' and shareholders get the jitters. It never fails to amuse me.
In my opinion, the investment case hasn't changed. For an investor in a small AIM investment this hiccup was a great test to have at this stage. How would the Board react? Well, I think they've reacted quickly and prudently and the prompt 're-scheduling' of the webcast to address this shows great character in my opinion.

As a long term investor, I've put my money where my mouth is, as they say, and bought another few '000 share this morning.
Takes me to my 'magical' 200k share target which, as a 'small' investor, I was struggling to reach. It's a small holding admittedly in comparison to many investors here, but we all must have a plan....
Happy with my average of 31p also :)

GLA & DYOR.

[fft] 31/7/2017 10:49

I am not sure that SRT has the critical mass to be able to progress the business much further. I had envisioned cash flow from the Indonesia contract funding more development (ST had said that the IND contract was always cash positive from the beginning - he must have forgotten the bit about being paid !).

Now the cash has been spent, but nothing back for it for at least a year and probably longer. SRT may not survive another contract mess up like that and it must hit future expenditure plans.

It would probably do far better under the wing of a company with far greater resources and who always have a place at the top table - BAE or one of the American defense contractors.

[yumyum] 31/7/2017 10:17

Meantime....keep on shifting the boxes !

[owenski] 31/7/2017 09:55

Trouble is, government's and PLC's have a disconnect on timescales. SRT needs income, and government projects take as long as they take.

It's not a guarantee that Indonesia will resume on a timescale that suits SRT investors either.

This was always the risk here and it's come home to bite.

The risk here will only decline when SRT has multiple projects on the go with fairly certain income streams. Announcing the start of one middle east project of substance still wont ameliorate that risk as the income streams tend to be small at the start and can stretch out for some years after. This is unlikely to be the only time this happens, as it's unfortunately the nature of government contracts.

It's a shame though, not a good start to the week.

[goodapple] 31/7/2017 09:36

A lot of opportunistic buying this morning. It would be good to see a couple of Director purchases.
Could one possible outcome be that SRT would eventually deal directly with end customer?

[pugugly] 31/7/2017 09:26

"Internal project review" Could mean anything from Cancellation or hand over to another company - ?? "Chinese and brown paper envelopes" or extension and upgrade. Put your money down or take it off the table - Your choice.

[trident5] 31/7/2017 09:18

It's in the RNS:

SRT's European based customer who is the prime contractor to the Asian government entity has been formally advised by the end customer that, the postponement is due to internal project review and budget issues in their current fiscal year.

[zipstuck] 31/7/2017 08:48

may be some concern over cash flow if receivables of this size provided for. How will this be resolved.

Wonder why the contract was suspende.

[fft] 31/7/2017 08:45

This doesn't do the credibility of the vsp or the size of the vsp any good at all. They will need to be more upfront about how other contracts are progressing. Was the lack of info regarding Indonesia really due to confidentiality reasons or was it because srt new it was on hold and that a hit to the accounts would have to be reported at some point.... And no bonuses or share options until the cash is in the bank !!

[countryman5] 31/7/2017 08:42

The European customer of SRT, who is the prime contractor to the Asian government, is a major global player. Most of their work on this contract would have been 'front loaded' with SRT mainly coming in behind, towards the end of the contract. The European customer will have a very substantial financial exposure on this contract.

[dj trading] 31/7/2017 08:35

"Simon Tucker, CEO of SRT Marine Systems plc said: "The receipt of this news was both surprising and disappointing."

Well it shouldn't have been a surprise!!!! with a £2.2m debt outstanding for 16 months they should have been chasing this on a daily basis!!! (especially given the size of the overdue debt relative to turnover and the contract's significance for the order book!!!)

[trident5] 31/7/2017 08:34

J777J - they just had a big contract with a government in Asia postponed.

[j777j] 31/7/2017 08:29

Something about this co has always stank.Maybe from the moment I learned it was acquired after the Ceo eavesdropped someone elses conversation on a train.Lots of talk,little delivered.

[trident5] 31/7/2017 08:21

The bonuses are being written back, I read it that they had been accrued and not paid.

[fft] 31/7/2017 08:17

Will they now show some confidence in the company and buy some shares with their money ?

[fft] 31/7/2017 08:11

Are the directors repaying their bonuses ? Not sure I understood that bit. It also makes there haste to cash in the zero priced options over a year ago more understandable !!

[dj trading] 31/7/2017 08:10

I'm not surprised!

DJ Trading - 07 Jun 2017 - 12:02:46 - 5078 of 5409
The read through on the £2.2m outstanding is the status of the contract to which it relates. It doesn't suggest all is well with the relationship to me!

DJ Trading - 07 Jun 2017 - 11:46:51 - 5075 of 5409
Re Receivables this is why you need to be concerned especially as it includes £2.2m outstanding for 14 months - presumed to be Indonesia (which is bulk of order book)
Note 13 to accounts

Trade and other receivables
2015 £1.6m
2016 £4.7m
2017 £7.9m

[pugugly] 31/7/2017 08:09

Biggish sells - smallish buys - According to ADVFN software - Early yet but near the 20% guess markdown -

amt:> share price was priced (imo) to perfection - Going to be an interesting day - Just goes to show payment is key -

anyone any ideas - or rumours in the maket as to which country has postponed ?

[amt] 31/7/2017 08:05

Pe of 38 shows the market is expecting a lot. Todays announcement is hugely disappointing. Over the years SRT never fails to disappoint.

[countryman5] 31/7/2017 07:34

The RNS is clearly disappointing for existing shareholders and management. Will it affect share price? Any institution or potential shareholder will hope so, thus providing an opportunity. Market makers will probably drop the price first thing but will this tempt the sellers? I am expecting a drop, buyers hold off for the lower price and a sudden bounce back when the buyers, if any, return.
This is a game of poker for those wanting stock. How long do we wait?
If the RNS had said that the rescoped contract is now up and running with a new value in excess of the previous contract, I would have expected the share price to double at the opening today. The reality is that there was nothing in the share price for this contract.
I note that the RNS did not downgrade their forecast for the year, which they would have been obliged to do if today's RNS was relevant.
The company clearly believes that the big contracts, primarily from the middle East cluster, are imminent. They are putting in place the the structures that will be required to handle them. The impairment does not affect the cash position. An interesting week for those with cash who can handle a game of poker.

[pugugly] 31/7/2017 07:23

" The net effect of this will be an exceptional profit and loss account impairment charge of GBP1.5m in the current financial year (Year ending 31(st) March 2018). This figure includes the write back of associated accrued project costs such as equipment as well as all Directors bonuses that were accrued but not paid in the last financial year. (Year ending 31st March 2017). The associated net receivable of 2.2m is written off within this impairment charge. Upon recommencement of the project these monies will be paid, contractual deliverables completed along with associated revenues.

Simon Tucker, CEO of SRT Marine Systems plc said: "The receipt of this news was both surprising and disappointing. This is the only project where SRT is not actively engaged with the end customer at a senior decision making level and thus we must rely entirely on our customer for information and instruction. There is a clear imperative for the country in question to significantly enhance their maritime domain awareness and this fact is reflected in the formal letter from the end customer which confirms the validity of the contract and that the project will recommence in their new financial year. However with an indeterminate restart date and therefore payment date it is right that we maintain a prudent accounting approach and make a full provision at this time. However I note the clear and formal commitment from the end customer to this project and to move forward with it during 2018. Thus this remains a very significant pending project for SRT."

How much o0f a fall ? Minimum of 20% Guess.