Srt Marine Systems Share Discussion Threads

[fft] 25/5/2018 02:58

C5,. The claim, if any, would be against whoever breached the nda by passing info on. No chance against the paper as they could claim public interest etc etc.I don't think I have ever seen anyone prosecuted for breaching an NDA. Anyone else ?More to the point, why have the fundraising if most of the 10m facility from last year is still available. Or is it planned to use that as well some time later....

[glavey] 25/5/2018 01:40

It could be argued.., but not with any legitimacy.

[countryman5] 24/5/2018 21:40

It could be argued that the disclosure of insider information by the Evening Standard (Their headline used the word secret) should not have passed the paper's legal team. It could be argued that as a result of the disclosure the share price dropped. If it transpires that the strike price for the placing is lower because of the inexcusable actions of the Evening Standard, I believe that existing shareholders might have a justifiable claim against the paper and its editor. The basis of the claim would be that new shares were issued at a discount because of the actions of the newspaper and the discounted shares undermine the value of existing shareholders. I believe the company's Nomad should address this issue with the paper.

[hjb1] 24/5/2018 21:32

I think it's safe to say that the share price will now drop to around 20/22p. Mr Tucker can forget the figures he mentions I'm afraid.They will work backwards from 20/22p, let's say 20% discount, so around 16/18p maybe.
Hope I am miles out, we will soon see!
I thought that £10m facility was set up for this very purpose, so why are they going cap in hand too?
Yes, insiders selling out, this just stinks more and more.
Some explaining to do here Mr Tucker..Not sure we will get a Rns Tomorrow though!

[ramnik007] 24/5/2018 21:19

Amazing that insiders have been selling from 36p down. How do they got away so blatantly.

[pugugly] 24/5/2018 20:46

If the leak is correct about 22p/25p and for a serial disappointer I would suggest money managers will try to go to 20p UNLESS there are non disclosed contracts in the bag and not announced for reasons of "trade/customer" confidentiality

[costax1654x] 24/5/2018 20:04

I bought some shares today just in case!Anyway fellow investors have a look at AEG I personally think that it will multibag.Good luck here!

[hjb1] 24/5/2018 19:47

I think the reporter and editor of that newspaper needs a rocket too imo!!

[crystball] 24/5/2018 19:28

It is disappointing to find out in this way about a fundraising. I look forward to another RNS or a webcast to explain the reasons behind the fundraising. Also some contract news is long overdue.

[hjb1] 24/5/2018 19:18

The share price will work it's way to the placing price one way or the other! I don't expect the share price to be back over 30p if the placing is at 20p or less.
'Only £5m being raised'?? Thought is was £6m.
A big problem here is credibility, as ST has a poor poor record on delivery I'm afraid.

[countryman5] 24/5/2018 19:06

Evening Standards disclosing 'insider information'. George Osborne needs to get a grip. Obviously fundraising in progress. I assume that the RNS will give details of recent contract win and payment profile . Only £5 million being raised???Hopefully company will be selective on which institutions it allows to enter the share register. Hopefully only three at max so that they can each have enough shares so that they go into the market and become sizeable shareholders. The company is now perceived as a 'systems provider' rather than a 'black box shifter' and the fund raising presentation before various institutions / private shareholders will have raised the company's profile considerably. I expect the share price to be back above 30p after the RNS. Will it be tomorrow or Tuesday?

[hjb1] 24/5/2018 18:24

22p-25p hmmmm! wonder where the share price will start tomorrow??

[clarkey26] 24/5/2018 18:00

Press speculation was in the Evening Standard



As people have said it depends on the reasoning for the raise which is unclear, if it is not contract related then would have though might be at a lower share price as this is still above the recent lows. Raising at any decent level would probably have been difficult given history of postponed contract etc.

Surely there will now be an RNS with more detail in the morning.

[hjb1] 24/5/2018 17:01

It looks like they will try not to dilute too much by drawing on a bit more of the £10m facility.
I have no problem at all with fund raising, .. if it's for the right reasons, like support a big contract for instance.After all that's why companies come to the Aim market isn't it?

[lavalmy] 24/5/2018 16:50

fft

What £10 million at full stretch? They have used slightly over £3 million. This is not a time for scaremongering comments.

As for 'It is almost as if most of the turnover from 2016/2017 and 2017/2018 to date has not been collected', well ...

[hjb1] 24/5/2018 16:50

well, there was hardly a stampede to sell.Only about 80k sold after the Rns.Probably happen tomorrow I guess!!
MM gonna have fun tomorrow no doubt!

[fft] 24/5/2018 16:46

yump,

It was only in Sep 2017 that they unveiled a 10m working capital facility.

Given the low turnover, and not excessive expenditure, It is almost as if most of the turnover from 2016/2017 and 2017/2018 to date has not been collected. The accounts will be fascinating to read.

I can see how a decent contract could need the extra 6m, but with the 10m facility at full stretch and increased dilution, it could well be that the poor SRT shareholder gets very little out of it. If the contract earned a crazy amount for SRT the ii's would queue up to participate at the shareprice last week, not hold out for far lower as others would be happy to take there place.

[yump] 24/5/2018 16:33

Well they'll have to announce a pretty impressive set of contracts to get much confidence back.

They're actually raising and facilitating way, way more working capital than would be needed to just keep going at this level of turnover, so the 'cashflow issues' wouldn't actually arise unless there's a lot of work going on, or about to.

The main issue is surely what sort of timing they can expect from debtors.

If you need more working capital, that's not a problem if your debtors pay up on time - you can't actually run a larger business without a larger pot of working capital, especially one involved in lumpy projects.

Sounds a bit obvious, but its very different from issuing shares just to cover endless 'technology developments'. We all know those companies - most of them never even make a profit for one year, or have proven products that have sold in any volume.

[fourseven] 24/5/2018 16:29

Stock shorting prior to a positive announcement that is likely to kick the share price up hard is a clever tactic.

[hjb1] 24/5/2018 16:26

at this rate they will be lucky to raise at 18p this time.Just as I was getting a bit more bullish here too, buying opp anyone????

[fft] 24/5/2018 16:25

The webcast cant realistically happen until the funding is in place, and the accounts are out.

[goodapple] 24/5/2018 16:22

There's still time for a May webcast to answer a few questions and calm a few nerves.
Disruption of this routine would of itself be a cause for concern.

[lavalmy] 24/5/2018 16:17

fft

The notion that the receivables would be in by June was based on the expiry date of the new loan note, 21st June. When the company postponed the usual date of the accounts to the last week of July, the assumption was that they would not get the invoices paid until then, if indeed invoices have yet been issued.

SRT have always cut it fine, in terms of both meeting targets and keeping financing, both debt and equity, to a minimum. They have always had a rosy view of the future but it looks like they got it wrong and perhaps would have been wiser to do equity (at 40p) back in September than debt.

I don't know if ST has ever given a downbeat presentation and doubt he ever will.

Disappointing that 3 years on from a low equity raise at 18p, they are back again and not for that much more.

[obiterdicta] 24/5/2018 16:08

Didn't they raise £10 million in the Autumn for some satellite project?

Rule One: Generate FCF.
Rule Two: Repeat rule one.

This Company goes up one ladder then goes down a longer snake, so after a recent ladder up from 20p to 35p, we are snaking down to 25p and probably below.

Avoid.

OD