Srt Marine Systems Share Discussion Threads

[lavalmy] 12/6/2018 08:25

ee

Thanks for making the effort. I suppose that we will just have to wait and see.

Somewhat paradoxically, the Asian countries have much higher premia than the Middle East, though I would have thought that the former are much more prompt - the overall cost would probably even out.

[eagle eye] 12/6/2018 07:27

LaVal,
I've contacted SRT for further information.

Question:
Please explain the costs comparison of loan note vs an invoice guaranteed by UK Export Finance.

Simon Tucker reply:
'I'm afraid there isn't a straight answer. The UKTI offer a variety of credit guarantee products that are applicable to our projects - in some case two varieties will be applied to a single contract. For each the cost depends on the customer and the time'.


It appears a credit guarantee applies to a particular contract/invoice so
if payment due in 3 months, then it's not a straight annualized cost comparison.

[lavalmy] 11/6/2018 17:31

Thanks again ee.

I have read both already.

When you say that the cost saving would be £100k on the £2m, was that per annum, as in it would 5% p.a. cheaper, or more like over the three years? I doubt that they will need finance for that long anyway, and, as was mentioned a couple of times, the working capital gap is only expected at the beginning of a project and even then only as a temporary thing.

[eagle eye] 11/6/2018 17:04

The Placing RNS read in conjunction with the presentation available on the website is pretty comprehensive.
The constituents of the VSP has changed quite a bit and this was covered in the recent webcast.
The UK Export Finance facility does de-risk payment and provides cheap finance. Looking at the recent £1.15m rollover at 8%, the cost saving would be over £100K on the £2m had it gone ahead, which is not a sum to be sniffed at.
One thing I did pick up was the fact SRT don't have to go out and sell AIS.
As AIS is gradually being adopted, calls are coming to them.

[lavalmy] 11/6/2018 12:38

Thanks ee. Anything else of interest?

[eagle eye] 11/6/2018 11:14

I went through the presentation over the phone, but had to be cleared by FinnCap first.

[lavalmy] 11/6/2018 09:25

Thanks ee. Did you go to any presentations?

[eagle eye] 11/6/2018 08:50

LaVal,
I was told UK Export Finance would reduce the amount of loan notes by £2m and that it would be a useful form of finance going forward. I don't know and didn't ask which project it applied to.
I was a latecomer in the Placing, so was only able to participate due to the delay.

[lavalmy] 11/6/2018 08:03

ee

Re your post 6904 and UK Export Finance

Did ST give any more details to you about that? In particular, was it linked to any particular projects?

Obliged

[lavalmy] 09/6/2018 08:23

Satellite capacity prices have dropped by 35-60% over the last two years, which has been mirrored by Inmarsat's share price. Iridium has permission to compete in the maritime market from 2020. More broadly, lots of new capacity has gone up and is scheduled to go up.

SRT might be wise to wait and see. However, if they need specific hardware in space to reliably receive the AIS and other messages that their customers require, then general overcapacity in the telecomms sector is irrelevant to their decision. If that overcapacity can be harnessed in some way, then all the better. You would think that the whole satellite food chain will suffer, leading to even cheaper construction and launch costs, but maybe not quickly enough for SRT's purposes.

[effortless cool] 09/6/2018 07:23

Inmarsat has £1bn of annual revenue, so not at all similar.

[9degrees] 09/6/2018 06:57

both into tracking SRT shipping /Inmarsat aeroplanes , shipping et al and both using satellite

[yumyum] 08/6/2018 22:49

Is there a link to SRT ? Apart from the name of course.

[goodapple] 08/6/2018 21:36

Echostar Corporation

[9degrees] 08/6/2018 19:18

16.34 hours today confirmation of a bid for Inmarsat!

[lavalmy] 08/6/2018 12:37

I have reading a little about the Vietnam/EU trade deal etc, and the EU might lift the yellow card despite the lack of concrete action so far on political grounds. The Vietnamese hope to get the thing signed by the end of the year which would be difficult if the DG-MARE people had to revisit in November to give the thumbs up. The prime minister's detailed plans provided by Pietro might be enough to convince them that they will be taking the requisite measures. The Philippines had one lifted rather easily, Thailand not yet.

Apart from a reported cost of $7,000 per container, all of which have to be inspected, for fisheries exporters, Vietnam runs a more than €20 bn trade surplus with the EU. Moving to a free trade deal would be enormously beneficial to Vietnam. A massive carrot, and the only thing holding it up is the yellow card. (Although, apparently each EU state might have to ratify the deal.)

[lavalmy] 08/6/2018 12:23

A new picture on the site, presumably of the meeting on Monday. Looks like Vietnam to me.

The project is described as 'another VMS fisheries monitoring system'.

[supernumerary] 07/6/2018 17:14

Well they sold a port system to Malaysia back in 2015, and are still quoting it as one of their references: so one has to assume it's gone reasonably well. If the incoming government does want to move forward, at least they have some experience and reassurance with srt.

[lavalmy] 07/6/2018 15:14

Malaysia has just had a change of government and the new (old) guy is purging a lot of people, mainly on account of the endemic corruption of the ousted President and his cronies. I don't think much will be happening there at the moment.

Weatherdock won the contract to supply tracking devices to them, twice I believe. Also, on the fundraising presentation, in that region they are pursuing 11 contracts spread amongst 4 countries. The Philippines, Vietnam, Indonesia are three. The last is either Thailand or Malaysia. My bet is the former.

Edit. These Germans are not unfamiliar with the use of brown envelopes. To wit, the company selling the satellites to Indonesia which has resulted in the Bakamla corruption case - the head of their local subsidiary is not allowed to leave the country at the momemt. I wouldn't like to suggest that Weatherdock were up to the same thing, but, if they were, and if their stuff is no more than dolled up MOB devices that don't do the job, I wouldn't be surprised that Malaysia reverts to SRT in time.

[supernumerary] 07/6/2018 15:03

Have just a had listen to ST's presentation. Ref yesterday's discussion, my bet's on Malaysia...

[philburt] 07/6/2018 11:25

C5 - can you just hang on a mo while I buy a few more shares, before you go waking up The City......lol

[countryman5] 07/6/2018 10:34

8/12/15. Photo on gallery showing Mr T shaking hands with Vietnamese Minister. That is over 2 years ago!!! But these are absolutely enormous contracts and to think that a little AIM listed company in darkest Somerset is establishing itself in pole position in a new global market and the Stock Market has yet to wake up.

[countryman5] 07/6/2018 09:33

If I remember correctly there was a photo on the gallery showing Mr T meeting the Vietnam Minister . This was a long time ago. It just shows how long and how much interaction it takes to build the trust to hopefully secure these massive contracts. I believe this project was in last year's AGM presentation at about $30 million. The market fails to appreciate the potential, not only for the initial contract but also for subsequent spend. Satellite data sales, system upgrades, more transponders more ATONS etc. It will be like Bahrain. One country buys into SRT and all the neighbours follow. These conveyor belts of contracts allow for visibility of turnover for many years for whichever company owns SRT.(hopefully not CLS)
We should not underestimate the power of GEOVS. Once it is in place SRT has to be the provider of all the data feed in systems, such as CCTV radar, satellite etc. SRT buys in the specialist kit and adds on its margin. What a recipe!!!