Srt Marine Systems Share Discussion Threads

[countryman5] 21/11/2017 07:11

Do you buy shares now (very few being traded) or wait for the contract news?
PS. How will you vote on the takeover?

[piedro] 20/11/2017 23:05

Countryman5,
Thank you for the link and much more informative than the webcast.

News from Malaysia
Gov't to make AIS installation on Class B fishing trawlers compulsory

[alter ego] 20/11/2017 23:05

Link spoiled by advfn who replace http with hxxp. If you post a link, putting hTTp at the beginning overcomes the spoiling tactic.
Interesting discussion. ST very confident, says several projects in contract discussion stage now.

[countryman5] 20/11/2017 21:49

Paul Scott interview with Simon Tucker. Some Countries mentioned. hxxp://qualitysmallcaps.co.uk/ceo-or-fd-interviews/srt-marine-systems-srt-ceo-interview-20-nov-2017/

[yump] 19/11/2017 19:33

EF

Fair enough. Curious about how you order your priorities for investment...

[goodapple] 18/11/2017 19:20

Meanwhile, if you need any persuasion that the Emtrak sales people are doing their bit -
Check out Marinetraffic.com (scroll down to AIS E-SHOP)

[effortless cool] 18/11/2017 17:54

You did make yourself clear, I just think that you are totally wrong.

[yump] 18/11/2017 17:50

Perhaps I didn't make myself clear enough.

If someone is worrying about working capital and cash, then they clearly don't trust management to manage the basics, in which case the rest of the investment case matters not a hoot and its a massive sell.

I assume certain 'givens' in my investments and one of them is that management have the capability to manage working capital and cash, operate sound H&S practices, operate within employment law etc. etc.

[effortless cool] 17/11/2017 17:33

yump,

I think that people who don't worry about working capital, cash, etc, shouldn't be invested.

It doesn't matter how good the business prospects are, if the business runs out of money its other people that ultimately benefit.

[yump] 17/11/2017 17:08

fft

That's mainly because I'm looking at the business prospects.

I do think if people have a worry about working capital, cash etc. then they shouldn't be invested. It will either work out or not and that's dependent on the business progressing, not on the cash or wc position, which are secondary, unless anyone believes that element of risk will lead to failure.

In which case, for them its a massive sell, as is any other business selling into these markets, that doesn't yet have enough traction to be generating sufficient cash flow to feed growth.

[integer] 17/11/2017 13:26

anyone have a copy of the Finncap report?

[yumyum] 17/11/2017 12:07

All quite messy, those accounts!

I see that SRT Marine Systems PLC (LON:SRT)‘s stock had its corporate rating reaffirmed by equities research analysts at FinnCap in a report issued on Wednesday. So still 75p target.

[fft] 17/11/2017 01:21

yump,

that's now twice in the last few days that you admit you haven't read the SRT documents (AR and presentation) that say what the value of the contracts are :-)

The good news about the 4.8m receivable is that it (or a large part of it) should (according to the length of the contract- 1 year) be paid this half, thus greatly improving the cash situation. The remaining 0.9m GBP (roughly as the value was quoted as $7.5m so exchange rates will play a part on conversion) should also come in in H1 of the next FY.

The downside is that it looks like SRT is paying to complete (or do most of the work) before the cash comes in. So there is a working capital element that needs to be funded. As always, we know the end of period cash numbers but between those 2 dates the cash flow numbers can vary by millions up and down. It will be interesting to have a look at the interest numbers in the next accounts to see what the average debt for the period has been.

[homeboy] 16/11/2017 18:33

It'll be an announcement with the headline contract amount, unfortunately, SRT wont inform investors after that of progress, probably courtesy of the failed Indonesian contract, they emphasise the need to not give details in the name of national security etc, fair enough, but it also allowed the Indonesian contract problems to remain hidden for some time in my view. How a contract is progressing or whether the headline grabbing figures mentioned translate into actual cash wont be known until financial reporting time.

As we've seen, revenue is not cash, it's mostly debt owed to SRT and shown up as a trade receivable. I'm of the opinion, beyond any project start announcement, bearing in mind the lengthy payment terms offered, that SRT will again be dipping into the overdraft facility.

[dj trading] 16/11/2017 18:23

The more interesting and important discussion recently has been about revenue recognition for the Middle East contract. No doubt several on here will have raised this with Tucker. Anyone?

btw Simon there appears to be a difference between the Annual Results presentation
Results - "£7.9 million debtors – £6.5m due from two projects with payment expected in accordance with agreed schedules"

and the AGM presentation regarding the amount due (is it £6.5m or £7.0m?)
AGM - "£7.9m debtors – £7.0m of which due from two contracted system projects – of which £2.2m has been subject to a delay due to project re-scoping*."

[dj trading] 16/11/2017 18:11

hjb - it was just a suggestion as you know and I'm not surprised SRT don't want to go down that route as tooling cost for new casing etc. Of course I made the suggestion that fishing buoy AIS might be an opportunity for SRT back in 2013 - they got there eventually!

Perhaps they will take on board my suggestion re attachment method and also produce a much cheaper version in a few years time. You have to remember that left at sea these will be lost/damaged etc. (not the same as a boat attached tx so price is key)

[goodapple] 16/11/2017 17:26

Chairman - writing about Buoy Tracker: "one opportunity alone in the UK could be worth over GBP1 million in revenue."

[hjb1] 16/11/2017 16:49

Answer your question DJ about brackets? Nice one Mr T.

[countryman5] 16/11/2017 16:30

Comment from Mr T.
I’ve seen some of the debate on buoy tracker. Some observations.

- Chinese AIS manufacturers produce cheap AIS products for their local market where compliance with the AIS standards is not tested and certified. They then try and sell them internationally. In most countries a transmitting item of any kind needs certification. Making AIS properly is tricky stuff in reality.
- Fishermen are desperate for such a solution and so have been buying and illegally using the Chinese stuff for years.
- They have a number of serious issues: 1) the quality is very poor and they do not last long, 2) they transmit an incorrect message type – the target on the screen looks like a boat not a buoy. 3) they block other ais transmissions.
- Authorities have been clamping down on them in recent years because of the dangers. Additionally fishermen have stopped buying them due to the reliability issues and problems with using.
- Buoy-Tracker is a certified AIS AtoN Type 1. It is the only certified device for fishing buoy tracking. One issue for fishermen is that they need to have an AtoN MMSI which they must get from the local radio authority.
- The bracket system is loved by the fishermen. One of things they hate about the Chinese stuff is the cable tie system. Our bracket system means it can be simply fited in seconds and there is no physical on-off switch – its simple, quick and secure. A single bracket costs them $20, so its cheap to equip all their buoys. They love this.
- We have seen enormous interest in this product – Russia, Canada, Europe, USA, New Zealand – fishermen and authorities are cautious and so there is a lot of testing going on. We have even just quoted fishing companies in Vietnam and China this week!

[yumyum] 16/11/2017 09:18

If you believe there are 4 contracts to be signed before the start of next financial year and if you believe there is significant recurring revenue to be gained from own-system satellite tracking then the company's shares look a very attractive investment proposition indeed.

I do believe the above and would expect a first contract announcement in days or weeks rather than months.

Gearing up the company is a brave move. Fortune favours the brave in this case. Significant investment will reap significant rewards.

Meantime we do indeed need to see those projects start to be delivered. I am very confident rather than merely hopeful.

[homeboy] 16/11/2017 09:07

And therein lies the problem.

Beneath the headline figures - which are pretty poor for a company resting on an absurd 45m market cap, not profitable and in debt - the cash isn't actually flowing in. Hence they now have an expensive overdraft facility that they are already tucking into, expect that to continue.

"He is exemplary in his willingness to communicate with PI's and the clarity with which he presents the case for SRT through webcasts etc."

The case for investing should be made on reasons of expected financial return, which is based in part on delivery of objectives. No doubt the CEO is a nice bloke, but that's no rationale for investment.

[dj trading] 16/11/2017 08:56

"yump15 Nov '17 - 23:48 - 6115 of 6115 0 0
I'm asking you what the total contract value is. That, as far as I can see, appears nowhere"

Yump - Mid East Contract value - Page 18 item 2

Debtor value (accrued/invoiced revenue for contract not yet paid) is on page 11


"yump15 Nov '17 - 23:48 - 6115 of 6115 0 0
Or to put it another way: why do you think year end debtors = total project value?"

I don't think year end Debtors=total proj value.
Year end Debtors for that contract = the amount of Revenue recognised in P&L (invoiced or accrued) but not yet paid. (see my original post for detail - 6095)
DJT - FCMA

[yump] 15/11/2017 23:48

DJ Trading

It is not what I think - the data is plain to see. It is what the data represents that is the issue. Perhaps I haven't been clear in what I am asking you.

I'm not asking what value was in the debtors figure at year end, I'm asking you what the total contract value is.

That, as far as I can see, appears nowhere, unless you assume that SRT have booked the entire project into that debtors figure.

Seeing as we don't know what deliverables have not been delivered at year end - how can any conclusion be made about what is yet to be allocated as revenue from the rest of the project which is still ongoing.

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

If you are going to make that assumption, then I think you need to explain why you think there is no more revenue to be booked for the rest of the project being delivered.

Or to put it another way: why do you think year end debtors = total project value ?

Or to put it another way: my year end debtors certainly does not equate to my total project values underway.

That's about as many ways of putting it as I can think of.

[goodapple] 15/11/2017 22:50

You either have faith in the prospects for SRT, or you don't.
Like several other posters here, I have been on board for a few years now which have been something of a white knuckle ride - seen a few peaks and a few toughs.
The carrot keeps getting bigger, though it always seems the stick gets longer.
Now it's satellites on SRT's menu, and that's another couple of years down the line. Jam the day after tomorrow.
But if you read the big picture for yourself and envisage the future demands for MDM, and you consider the achievements of this little business in MSN which has established itself at the forefront of AIS technology I reckon it's worth staying aboard for the ride. Their technical achievements are impressive.
To call Simon Tucker just a polished performer would be to do him an injustice, as I believe he is totally committed to his vision for the company and its future. He is exemplary in his willingness to communicate with PI's and the clarity with which he presents the case for SRT through webcasts etc.
He and SRT have had a bad press for some time as being a serial disappointment for investors. I am sure he relishes the prospect of proving the doubters wrong.
As somebody else who posted here a couple of weeks ago, I too am of retirement age but I hope to stay around long enough to reach the promised land. Or the promised carrot anyway.