Srt Marine Systems Share Discussion Threads

[hjb1] 15/8/2017 10:42

yes I believe Xanatos are a SRT customer, was it through them that SRT supplied the 19k identifiers to Mexico or am I thinking of someone else?

[astralvision] 15/8/2017 10:33

Good to see there is competition in this field, I would be worried if there wasn't any!
Xanatos are, I believe, a customer of SRT

BAE Systems and others of that ilk are, I understand, more supplying 'military grade' systems at an order of magnitude more cost.

SRT have got themselves a very nice niche in what they do. With up to four contracts near term , the future here is good.

ps, I wonder if Saab are still using SRT's AIS Class A design, licensed to them years ago .

[dj trading] 15/8/2017 10:26

Kinbasket here is some competition for you!

Kongsberg - see fft link


SAAB -
And here are just a couple of large contracts



Xanatos - long list of contract wins in news


BAE Systems and others - dyor

PS VMS, VTS, MDM or whatever Tucker likes to call it isn't rocket science. In fact every boat equipped with AIS and Radar effectively carries their own personal VMS at a cost of just a few £k. Most IT suppliers would be able to offer a large integrated system (ie the part where SRT actually have little expertise as they are essentially box builders not major countrywide system designers)
SRTs unique offering is 3D capability but as I have said before with millions of boats it isn't possible to 3D model all vessels as it would take millions of man hours!

[hjb1] 15/8/2017 10:05

I asked ST about Kongsberg 2 years ago, his reply was;


'Kongsberg some Norweigen satellites with AIS receivers - as do a few countries. However they can only see Class A and have very periodic coverage. This is an entirely different proposition to exactEarths global coverage and ability through ABSEA to pick up transmissions from class B and identifier. Kongsberg will probably be a customer for ABSEA data and ABSEA enabled transceivers in some situations - eg Angola'

[fft] 15/8/2017 09:50

Maybe Konigsberg have been giving interesting presentations ? And I am sure there are others.

Singapore chose Konigsberg over SRT, so there may be more to them than the website says. Singapore is less than 10 miles to Indonesia so perhaps some tie-up in the future ?

hxxps://kongsberg.com/en/kds/knc/news/2017/may/successful%20final%20demonstration%20of%20sesame%20straits%20e-navigation%20project%20in%20singapore/

Despite ST's repeated comments over the years, I find it hard to believe that no one is seriously involved in the area. And the delay in all the projects in the VSP over the last 3-4 years makes me wonder if competition is causing the delays.

[obiterdicta] 15/8/2017 09:47

Yump - I understand your viewpoint but if the business has excellent growth prospects, where is the Director buying? Some Director buying would instil more confidence in me.

Kinbasket - possibly SRT may be in the frame in the future but they have been tripped up in year one of the contract. Not sure how EU regulations impact Asia.

OD

[hjb1] 14/8/2017 13:56

DJ is an accountant if my memory serves and has always put the other side of the coin like the competition to SRT etc to the dismay of some.
I would take what Tucker says with a great fistful of salt, if they are sooooo busy why have they laid people off in the last few months allegedly?
I would like to know if it was possible to forward book against the Indo deal to make up the figures for last years accounts.Let's say they shipped £25k of goods but booked much much more into the accounts for year end to make y/e forecast,
DJ you might be able to shed some light ?

[dj trading] 14/8/2017 13:53

And from the MDM Contract update - This doesn't make sense to me as these statements appear contradictory!?

"The letter from the end customer to SRT's customer, which has been shared with SRT, provides explicit confirmation of their desire for the system, the continued validity of the contract and associated payments, along with the revised timescales.

Although the formal communication by the end customer is clear and re-assuring, given the significantly extended timescales, in line with appropriate accounting practice the Board believes that it is prudent to consider the project indefinitely suspended from an accounting point of view."

If the first statement above is correct then the overdue debt should have remained imo without write down since they state payments are valid.

As they have taken an exceptional write down/loss that would suggest imo that the payment is very unlikely to be received and therefore suggests the contract is unlikely to proceed.

This contract represents almost the entirety of the £77m year end order book (and was always conditional on a stage by stage basis per initial RNS)

We will perhaps find out when the 2018 results are published

[obiterdicta] 14/8/2017 13:45

DJ Trading

You interpreted the accounts very well. Well done. I didn't. My loss and an expensive lesson.

OD

[dj trading] 14/8/2017 13:20

From results day
DJ Trading - 07 Jun 2017 - 12:02:46 - 5078 of 5516
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 5516 SRT Revenues-Future Opportunities & Drivers (SRT) - SRT
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

And Contract Update Day!
DJ Trading 31 Jul '17 - 08:35 - 5417 of 5515
"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!!!)

[obiterdicta] 14/8/2017 12:47

Some Director buying would also help. Notable by its absence though.

OD

[obiterdicta] 14/8/2017 12:40

Hi Yump

Of course it is always better to sell when high and buy when low. SRT fluffing their first big contract was confidence destroying and that only became apparent on 31 July 2017. I accept the fact of a seven figure receivable was known about in April/May 2017 - I thought that was less serious than it turned out. That was my misjudgment.

A few big contracts would restore my confidence but they need to be tied up quickly otherwise this will drift down to below 30p IMHO.

I might be wrong. May be selling down at 35p may look stupid in a month or two's time. Who knows? My call is the price will now drift downwards unless and until a big contract is announced.

OD.

[yump] 14/8/2017 12:17

fwiw I think the time to reduce was when the share price flew up to prices which were based too far on future earnings. Or at least, reduce and then buy back on any drop.

Regardless of Indonesia, imo SRT has developed significantly since 20p and this sort of level is reasonable enough, assuming there will be a jump in revenue to move earnings to say 1.5p ish. Then the p/e is about 20. Once it starts growing everything will change rapidly as the p/e catches up with the earnings growth.

All ifs and buts I know, but this is one of the few companies I hold where there is that real possibility. Its not like a business where the prospects are for the occasional big contract - there seem to be plenty to go at.

Of course if you happen not to believe that... but the Indonesia contract wasn't part of the pipeline as far as I remember.

[obiterdicta] 14/8/2017 12:02

OD

I am reducing my holding significantly. The reasons for this:

1. A key contract falling over within 12 months and very unlikely to be re-instated in January 2018.

2. The suggestion that the contract postponement was a surprise I find difficult to accept given that there was a seven figure receivable due on the contract and unpaid for some time. If a customer doesn't pay you when due - that is a clear indication something is wrong with either the product, the service, or the customer's ability to perform their part of the contract.

3. The VSP appears to be illusory at worst and highly optimistic at best.

4. The possibility of a dilution via a fund raise.

If new contracts are signed within the next 8 weeks I will revise my view but this investment has flattered to deceive but ultimately disappointed.

OD

[yump] 13/8/2017 12:30

I think if SRT genuinely thought they were in progress with the contract, it would be fair enough to show it off - that's not pumping.

More worried about the nature of the contract signed through a third party.

Hopefully, some other directly managed projects will start to generate serious revenue.

I think SRT have had more than their share of sod's law and its about time for a following wind.

[pi0110] 13/8/2017 09:49

How do you know if it is cash positive or not? The money owed is likely profit.

[fft] 13/8/2017 08:43

Good points Yump. I also recall that someone posted that the contract was cash positive from day 1, so that srt would not have to raise funds to fulfil it. Obviously not a greatly worded contract if it can be cancelled without any payments for work carried out. Or... Did it actually start ? That presentation srt did a few months ago using Indonesia with all the radar, ais, ships etc looks to have been a bit of pumping the situation and pulling the rug over the eyes.

[yump] 12/8/2017 10:29

What I still don't get about the Indonesia contract, is that, assuming there has been a year of work by SRT, how come that 2.2mln isn't being paid.

By 'back-end-loaded', I can only assume that actually nothing was contracted to be paid until year 2. Or that invoices would be paid in year 2 for work done in year 1, but the project was stopped before the end of year 1, so technically incomplete, although stopped by the customer.

Would be nice to have some clarification, although I guess its confidential.

Failing that, I hope when the project recommences, that SRT have a contract that has decent payment terms.

I wouldn't be surprised to find that for SRT, the contract doesn't come to fruition. The contract is said to be going ahead in 2018, but there's a difference between the contract going ahead and the contract going ahead specifically with SRT written in as supplier.

I remember someone posted a link to an exhibition/conference taking place where Indonesia were inviting product suppliers and someone raised the question of why they were doing that, when SRT had the contract.

Given that, plus the 'internal review', I am adding 2+2 and making 3, until such time as the first payment for something arrives with SRT.

A decent sized, direct contract is needed here for any sort of justified excitement again, imo, given that we are still waiting and waiting for some sort of sizeable project revenue.

[goodapple] 12/8/2017 09:49

"THINGS TAKE LONGER TO HAPPEN THAN YOU THINK THEY WILL THEN THEY HAPPEN MUCH FASTER THAN YOU THOUGHT THEY COULD " That's a quote from a famous economist that Al Gore just quoted...That is what will happen here....


(All borrowed from another poster, on another thread, on another site - but seems particularly apt here too)

[srtshare2] 11/8/2017 18:42

And i thought i was smart to pick up more at 36p.

[countryman5] 11/8/2017 17:14

Portsmouth photo in gallery

[pi0110] 09/8/2017 14:38

No doubting the need for maritime security in Asia.....