Srt Marine Systems Share Discussion Threads

[hjb1] 15/11/2017 12:14

as he admits, he knows sweet F.A about the business or what they do.

[walbrock82] 15/11/2017 11:51

The problem I see with SRT involved three factors:

1). Lumpy sales and delay in orders; - this caused profits to be inconsistent.
2). The volatility between inventory levels and sales.
3). After fulfilling their orders, SRT has to wait for an extremely long time to receive cash payments (now it is over 250 days).

Add in the loan conditions of 9.5% coupon interest and the 12.5% in gross fee (SRT received £1.75m in net proceeds, check cash flow statement), it looks like SRT is serving LGB Corporate Finance very well. Think about it, a £2m senior loan note generates £250k in fees and 9.5% in coupon interest giving LGB a total of £450k in interest in the first year, or 22% return.

Hope their new business produces profits.

For full analysis and illustration click here:

[yump] 15/11/2017 09:20

DJT

Do you actually know the total value of the Middle East project ?

[hjb1] 15/11/2017 09:06

well they could always sell with or without the bracket, can't see it though!

[dj trading] 15/11/2017 08:28

No not joking!
Fishing buoys (in the UK/Europe at least) are no more than a small football sized buoy with a 5ft stick/flag on top. In the UK they are often used to mark each end of a string of lobster pots. Fisherman will record position from GPS so don't require aton to locate. However, other boats often run over them (or trawlers drag up/damage lobster pots - as not aware they are there particularly when working at night. So an aton is of use in indicating to trawlers or any boat at night that there is fishing equipment.

So going back to my suggestion. The buoys are small with a thin diameter post/flag and are moved around equipment. Fisherman might have one aton but many buoys so want to move/attach quickly. They wouldn't want to pay for many fixing clips to fit to each buoy just in case they wanted to fit the aton. (and the clips are too big to go onto most fishing buoy posts) It looks like SRT have just modified their Identifier without thinking about the practical side.

You will note that the Chinese version that has been on the market for 8+years has two slits down the side presumably for locating two attachment straps. (and looks somewhat smaller) - Given that these are likely to get lost over time - price will also be a consideration - best electronics not an issue - if it doesn't work properly not really the end of the world as most (99%+) fishing equipment won't be marked anyway.

[smartmoney100] 15/11/2017 01:20

Too funny DJ :-)

[hjb1] 14/11/2017 20:51

oh that would look really stylish wouldn't it, a serious bit of expensive kit held on by a cable tie ha ha, love it! I've got a good idea too, maybe they can attach their Atons with blue tack..lol! DJ I take it you were joking?

[dj trading] 14/11/2017 18:43

Goodapple - Re Fishing buoy trackers - perhaps Tucker read my post in 2013!

DJ Trading22 Feb '13 - 18:13 - 1993 of 9351 0 0 Edit
TP - Re Identifier competition - there is a competing identical looking product which has been on the market for 12-18 months to my knowledge. Originally designed as a fishing net marker (there's another AIS opportunity) but now also marketed as an Identifier for boats as well. Spec looks pretty similar to SRT but it's manufactured in China!


That is TCB who were the original manufacturers of SRT's first class B



SRT's video
Why does it have to go into a bracket? Better to just tie/strap on then easily transferable between buoys - just a suggestion Simon

[dj trading] 14/11/2017 18:19

Countryman Re post 6089 above $7.5m (£5.7m) Mid East Project.
£4.8m was booked as Revenue last year on Contract signing just one day before year end!
See Debtors in AGM presentation page 11

So only £0.9m revenue to book this year and all the work to be done (and cash expended.)

Re cash - with this project to complete and fund (cash) and another £0.5m bank debt to repay before year end (current liability) cash will start to get tight again if they don't receive some payments for the Mid East Proj in 2H.

[goodapple] 14/11/2017 18:16

"New product launches, particularly Buoy-Tracker which enables small buoys such as fishing buoys to be electronically marked, have been received by the market with considerable interest; one opportunity alone in the UK could be worth over GBP1 million in revenue."
First time I have seen direct reference being made to this product. Bring it on.

[yump] 14/11/2017 17:24

Oops I missed that, sorry. Actually if I'd seen it probably would have topped up at the time, so cheaper to do it now ! I blame the daft impossible-to-read-easily formatting of all that RNS prose.

From now on I'm going to get the RNS's up, then use 'Find' on the browser to jump to any content with 'GBP' or 'mln' or 'project'. That seems to pick out the critical bits from the prose.

[astralvision] 14/11/2017 16:45

extruder, you are probably right, new chairman has a different phraseology.

yump, bypooh is correct , the £60m was also in the AGM presentation notes, page 16, that was dated 12th July.

[bypooh] 14/11/2017 16:34

Reasonably clear from the final results on 7th June:

'I am pleased to report that four projects located in the Middle East and Asia with an aggregate value of approximately £60 million appear to have made significant progress towards contract signing during the year, with several others also making key break throughs.'

Though, or course, it is over five months later.

[yump] 14/11/2017 16:18

The £60mln has never been mentioned before and they have not as far as I know said that they are busy with pending and actual project work. If you like to knit-pick, its only been 'pending' as far as I know.

I thought the £60mln was very helpful, because up until now the contracts that are close to being signed (however close you think that is or was), could have been £10mln or £200mln.

[countryman5] 14/11/2017 15:15

If non project was £2.9 million first half, double it for full year that equates £5.8 million. Mid east project as identified in AGM presentation would be $7.5 ((£5.5 million)

[obiterdicta] 14/11/2017 15:06

In April 2017 we had the following:

"we have also seen excellent progress with a number of our validated sales pipeline opportunities moving closer to contract and thus revenues and I look forward to updating the market in due course when they convert."

Since then 3 contracts but nothing chunky.

OD

[fft] 14/11/2017 14:30

Finncap are still going for 12m second half revenue so mgmt must be very confident they will land at least one of the deals and book sales from it into the accounts. It probably, like Indonesia, won't be a cash event as that will follow when invoiced which I can't see being in this FY. Wonder whether the finncap report has led to the share price recovery after early weakness.

[astralvision] 14/11/2017 13:36

Not sure I like the 'appear' word, new chairman hedging his bets?

[fft] 14/11/2017 13:15

And in the results it said "pleased to report that four projects located in the Middle East and Asia with an aggregate value of approximately GBP60 million appear to have made significant progress towards contract signing during the year, with several others also making key break throughs."So, Yump, nothing new !!

[fft] 14/11/2017 13:10

The 4 projects were announced a long time ago. I am sure I have read the word imminent about them in a trading update 6 months ago ! This isn't room 101. You can't rewrite history.

[effortless cool] 14/11/2017 13:09

I'm sticking with SRT for the time-being, although I do feel a bit like I'm a donkey following a carrot on a stick, always just out of reach.

[yump] 14/11/2017 13:04

Meanwhile, the only difference between a month ago and now, is that a number of projects nearing contract signing has appeared (4) and a value of £60mln over 1-3 years, once signed.

So from an objective point of view, there is an improvement, whether you believe in jam or not.

[yump] 14/11/2017 13:01

Thank you for your philanthropy. You can go now.

[orinocor] 14/11/2017 12:52

yump you sound like you were born yesterday. Just look at the numbers and ignore the jam. You are falling into the beginners trap of believing the management and the hype. These shares are a strong sell on every metric.