Srt Marine Systems Share Discussion Threads

[hjb1] 05/11/2017 17:58

homeboy, spot on well said, though it's been going on for well longer than 5 years..lol

[yump] 05/11/2017 17:52

Sorry there isn't an award going for 'I told you so' posts. Never mind, at least you can puff out your own chest as if there was.

Isn't anyone listening to you in real life ? Sorry if they're not - it must be very frustrating.

Would you have come back if it was steaming ahead with revenue ? Of course not. Nobody ever does that - it would require too much integrity.

Will you come back if it goes well ?

I'm sure by now everyone here understands the risks and has compared them with the risks of other AIM companies trying to make their mark.

[homeboy] 05/11/2017 17:40

you've all had loads of webcasts, how's that working out for you all.

[homeboy] 05/11/2017 17:38

trident, well done on spotting the spelling mistake, there'll probably be a few more lurking there.

Better to spot spelling mistakes and take the spotlight off the business shambles going on here.

I'm not too bothered with my spelling, prefer to be more accurate when it comes to spotting poorly performing businesses though. ;-)

[goodapple] 05/11/2017 17:36

Webcast this month. Time for you to ask all your questions.

[homeboy] 05/11/2017 17:33

If I come back here in another 8 months time, I expect I'll see more of the same disappointments and same old promises, after all, it's been going on for five years now.

[trident5] 05/11/2017 17:32

Homeboy, it's "paid" not "payed".

[homeboy] 05/11/2017 17:30

Also I notice a recent pic on the SRT gallery of Saudi Ministers viewing the Bahrain SRT installation.

If they're having a viewing, it looks like they're not at the signing phase of any MDM contract. To my mind anyway.

[homeboy] 05/11/2017 17:24

Since the time I originally posted that, Indonesia has been cancelled, please dont try and correct me with 'company speak' of it's been put on hold.

And - Indonesia hasn't even payed it's bills.

SRT prior to this had given a low ball guidance of revenue for 12M for the year ended. I notice that they crowed about making most of their financial targets - NO, THEY DID NOT.

Firstly, they missed and came in with 11M revenue, which was a low ball target to start with.

Second, their exceptional margins which put them into profit was a one off. Otherwise the figures would have looked worse.

Third, these figures are now shown to be inaccurate. It was comprised of unpaid trade receivables now known to be unrecoverable from Indonesia - hence provision now being made in the accounts to write this off.

Their true revenue looked to be about 9M tops, still comprising of a big chunk of trade receivables and a big loss.

It also looks to me that their previous bank loan of 1M was on permanent roll over, they dont ever seem to earn enough money to pay that off, and so it's no surprise that they've been charged a high risk loan rate of over 9%. The market has priced this company as risky.

Don't worry though, this year will be the year.

Somehow I doubt that, I really cant see them earning close to 12M in less than six months to make this years figures, and it'll be the same old story, big announcement, small starting revenue, and then you wont hear any more. That money will also come and go on the wage bill with nothing to measure as a return for shareholders.

The real track record here is that nothing has worked out as promised.

I also notice that Mr Lavalmy is no longer holding a notifiable position here, I'll wager he finally woke up and sold out..... The bigger a position held here is not a statement of being more informed or being ore correct WRT the business case, it merely means a person is liable for larger losses...... A sobering fact.

Meantime, the cost base continues to rise and the ever action hungry CEO now wants to run a satellite network. Perhaps it would be good to actually make some money now, I remember the last big thing - GeoVis, even that isn't pulling the bucks in, good luck with satellite networks however cheap you can get them. If this cant deliver on the continual promises now, why on earth do investors keep falling for the jam tomorrow story constantly touted... Oh, that's right, you all did get your pot of jam didn't you. ;-)

[homeboy] 05/11/2017 16:58

I last posted here on the 07 March, this year. Post 4523 and following one.

Part quoted:-



"If I read that correctly, investors will not be getting progress reports? Once a project starts the terms are announced via RNS, but you wont hear anymore about it.

Therefore it seems an investor wouldn't be able to find how Qatar is doing.

Seems to me that one has to wait until a results TU is released, and that wont give any detail except to publish figures under general categories.

So, for example, you wont know how Indonesia is progressing, you will be given an overall company headline figure and then a financial breakdown into - core/mandate, ports and projects.

You will no longer be given any detail on project progress, you will have to wait till every half and or year end to see if this year's the one and you strike it lucky.

This is because it's all top secret and SRT can't give any detail away.........or possibly, it's taking longer to make any progress and sales are slower and SRT now have a rather good excuse to keep you all guessing.

And, you wont be getting any insight into how projects are going, you will now be in the dark with your big contact revenue guessing games.

Or maybe it's just me that views it this way, but if Indonesia takes six years to complete because it is a complex installation AND PROBLEMS WILL OCCUR, you wont know. Once a year SRT will attempt to give market guidance and then it's wait and see if they win, draw or lose. Ups the investment case risk here a bit don't it?"

Looks like I was spot on with this company.

[kinbasket] 05/11/2017 16:51

It's also of interest from the LGB fact sheet that they are only one of the investors. They have arranged the facility but are only a partial investor.

Total fund size is 3.5m and portfolio weighting suggests SRT is about 300k investment.

[astralvision] 05/11/2017 16:44

PUG

please read my post, there has been NO CHANGE in the loan situation! SRT have NOT drawn down £10m, it is the size of the 'loan programme' that has now beeen increased to £10m, as was always the plan and in the RNS SRT issued at the time.
The loan is in place to provide SRT with a flexible working capital facility should it be required.

The above is no guess btw, confirmed by SRT, but please make your own representations if in any doubt.

[kinbasket] 05/11/2017 16:40

Here is the end October factsheet..



"We have a schedule of further allocations into CLS
Finance Limited and SRT Marine Systems Plc planned
in November"

[pugugly] 05/11/2017 16:36

DJ Trading - Thanks for sharing - Message received is that there has been a major cash crunch and SRT needed funds in a hurry to cover - Paying 9 1/2 % is a scalpers rate (imo) -

I read the extension possibility in 2 ways - Either a big stock build expected for a new or extended contract (good) or more delays - bad. It is however a vote of confidence (imo) that funding is being made availalble.

However staying on the side for the moment until clarification as to which guess may be correct.

[astralvision] 05/11/2017 16:32

Have checked with SRT and I can confirm that kinbasket's interpretation is the correct one, ie it is the programme that has been enlarged to £10m, not that SRT have drawn down £10m!
As you were.

[kinbasket] 05/11/2017 16:22

I think this may be a complete misreading of the LGB document. In SRTs announcement it said..

"The £10 million secured loan note programme has been arranged by LGB Corporate Finance. The programme will enable SRT to issue secured loan notes in series to meet the Company's financing requirements flexibly as they arise. An initial issue of £2 million of secured loan notes, which was oversubscribed, has been completed and the proceeds received by SRT. This programme can be enlarged up to £10 million, at the Company's request. The secured loan notes are expected to be listed on the Bermuda Stock Exchange around 31 October 2017."

LGD say.

"The programme size is expected to be increased from £2 million to £10 million at the end of October"

IMO These two say the same thing. The programme is a series of loan notes that SRT can draw on, it doesn't say they are drawing down the money at the end of October rather that the facility is being put in place.

[hjb1] 05/11/2017 16:09

Knowing Tucker and SRT's track record it won't be champagne will it?

[pandeck] 05/11/2017 12:47

Interesting observation fft - I agree with your thinking....but I don't know the answer to your question!

[yumyum] 05/11/2017 11:57

Thank you DJ Trading. It does seem a lost cause...but in law you never quite know for sure.

[yumyum] 05/11/2017 11:54

Very interesting DJ Tading. Thank you.

[dj trading] 05/11/2017 10:32

Patent update - appeal rejected Aug 17 - now requesting rehearing of Patent Board Decision. I don't think the Patent Board will like the approach/tone taken in the request but I'm not a Lawyer.
Surprised SRT still investing in what looks like an expensive lost cause!
Patent expires March 2019 dyor

Round 1 - Sept 2015 all claims rejected

Round 2 - May 2016 all revised claims rejected or canceled

Round 3 - Nov 2016 appeal filed - Aug 2017 appeal rejected

Round 4 - Oct 2017 Request for Rehearing of Patent Board Decision

[goodapple] 05/11/2017 10:22

Possibly of more relevance may be the anti corruption purge in Saudi. National Guard and Navy chiefs now replaced, amongst others.
That may slow things down.
Or speed them up.

Meanwhile, Trumps visit to the Far East must have Kim's finger poised over the button for a missile and/or nuclear test to coincide.

[dj trading] 05/11/2017 09:48

Loan notes
"The programme size is expected to be increased from £2 million to £10 million at the end of October"
See LGB SME Fund Commentary

Seems very high risk to me - for all parties!

[hjb1] 04/11/2017 23:46

yes, clutching and straws spring to mind.