Srt Marine Systems Share Discussion Threads

[fft] 18/7/2018 07:28

c5, as you say "if all goes according to plan".

This has been the problem with SRT over the years. Not much has gone according to plan. USA, Indonesia, Now the Philippines. Before that it was Russia, inland waterways, EU mandates etc etc. It has all looked good in theory, but the revenue has been lacking. Whether that is the fault of the company or not is irrelevant.

[lavalmy] 18/7/2018 07:28

fft

I doubt that SRT have sent the kit to the customer, but that it is still in boxes at their agents, much as in Indonesia.

I also doubt that any actual contract was signed, so there is no cancellation as such. A 'contract' was awarded, no doubt, as in being told that they had won the tender, and I have no doubt that it will be once they go through the process again. This was required by the NEDA board which insisted some time ago that the expanded project be subject to what they call the Republic Act. This more or less stipulates the procedures for tendering and possible exceptions to open tenders. SRT either did or should have known about this, but presumably wanted to wait until the last possible moment to see if a rabbit could be found.

[davemac3] 18/7/2018 07:27

It sounds a bit like beggars can't be choosers and the other party is holding all the cards

[orinocor] 18/7/2018 07:24

This is all more than a bit whiffy

[hjb1] 18/7/2018 07:22

oh no not again! another buying opp coming up.

[countryman5] 18/7/2018 07:22

Clearly ST was not happy to have to make this statement, which offers some important detail. The following, I believe, gives a hint that the country in question (Philippines?) is in the process of rolling out many substantial projects. 'our customer with whom we are building a long-term relationship that we expect will yield multiple significant contracts'. SRT had no option but to work with the S E Asia government. Will shareholders focus on the big picture or will they try to sell because of the loss on the previous year? Money that should have come in last year will roll into this year, if all goes according to plan.
For those shareholders who buy into the SRT story, and have spare cash, today may be a heaven sent opportunity.

[fft] 18/7/2018 07:19

No wonder accts were delayed as they hoped to find a way round this. It also explains the lack of RNS as the company didn't want to admit how risky it was.

ST used to say that all contracts were funded by the customers, but again, it looks like SRT have sent out the kit without having any cash from the customer. Lets hope it gets signed off in the next few months or another cash raise may be in order.

[davemac3] 18/7/2018 07:17

Cancelling a contract should incur some financial penalty. Is it 100% certain that SRT will still get this contract?

[lavalmy] 18/7/2018 07:13

Whoops. They got caught out this time. At least they will be able to start out with a clean slate accounting wise this year, which they were going to have to do anyway with the adoption of FRS15. One nil to the auditors.

As long as it doesn't affect the cashflow (and they have lined up some export finance), this will probably work out fine, especially as memories are short and this year's figures will be 'flattered' by having propery accounted revenues for once.

[hjb1] 17/7/2018 08:47

LaVal, many thanks for the info,.. appreciated! Yes I did Know the 'big boys' had to pay something, but didn't realise it was that much.Yes, they certainly will be happy to pay £17 per day.

[lavalmy] 17/7/2018 08:28

hjb

I am sure that you know that the big boats had to pay $1,000 per day for a foreign observer when they were fishing in High Seas Pocket No 1. Perhaps they are delighted to have the agreement of other signatories to the Western and Central Pacific Fisheries Commission that they can use Philippino observers at £17 per day, which in itself makes fitting a transponder and paying for a small amount of airtime look paltry.

This observer programme is all about Pocket No 1, where many of the pacific tuna grow to maturity. The Philippines is the only country allowed to fish there, and only with quotas and other restrictions. Why them? Because they have agreed to implement certain measures in their own EEZ where the tuna spawn, thus creating a bit of a win/win situation. Hence the observers being required on Philippino boats catching tuna in their own waters.

[extrader] 16/7/2018 20:12

Hi hjb1,

…"that's when the problems start, when boat owners are told they are expected to pay!"

Having accepted that certain problems are inevitable, I suppose we shouldn't profess surprise or complain.....;->

No rain, no rainbows.

ATB

[hjb1] 16/7/2018 19:21

that's when the problems start, when boat owners are told they are expected to pay!

[lavalmy] 16/7/2018 18:25

Not really, hjb.

I think that most of the stuff is copy and paste of the overall fishery rules that were previously published, again in draft. This time, I think that there is a legal requirement for consultation hence publication, but I doubt if they are actually expecting any feedback and will go to implementation - which in itself is a slowish process, given the time periods envisaged for compliance. However, the Philo 2 project is firstly infrastructure, GeoVS hubs etc that have already been booked, RADAR and CCTV etc which are to come. Lastly come the transponders and observers kit. This part is what they are prepping with the draft rules.

Of course, it may just be coincidence that they are doing it now, but it seems to me more likely that whatever bureaucratic hold-ups there have been are now resolved.

One thing I thought interesting was that the BFAR will now decide on whether and how much users should pay for the kit. Last time, the onus was firmly on the boat owners. They keep that stance for the observers, presumably because those boats are much bigger hence can afford to pay.

[hjb1] 16/7/2018 17:54

all well and good but it's still at draft and proposal stage, could be a while yet couldn't it??

[eagle eye] 16/7/2018 16:44

LaVal,
Good spot.
A lot of detail in the 10 page document on how the system will operate.

There are stiff penalties for non-compliance (Section 26), plus unauthorized disclosure of sensitive information (Section 27) has pretty dire consequences:

'unauthorized disclosure of VMM data by any person shall be penalized with
imprisonment of six (6) months and one day to six (6) years, removal from office
and forfeiture of all retirement benefits, where applicable.

[hjb1] 16/7/2018 15:45

I certainly hope they can sign off soon too.This week will be good, suppose it's too much to ask though eh?

[lavalmy] 16/7/2018 15:16

From what I can see, the BFAR in the Philippines has just published the first draft of their rules on VMS and electronic catch reports as well as a separate set of rules on the observer programme. Their website has been down for a couple of weeks, but I suspect that these have been published today. Whilst the VMS theoretically allows different modalities and equipment to be used, in practice this is a red-herring (as discussed a few months back). (EDIT: for those who don't know, the PHILO 2 project is the VMS/catch reporting system)

The importance of these draft rules being published is, I think, that all the paperwork for the Philo 2 project has been completed and that it is likely that SRT and the BFAR will be signing the formal contract soon - SRT will be keen to have it done before the accounts are finalised, so quite possibly they will be pushing for this week.

[hjb1] 16/7/2018 13:17

any surprises expected next week in the final results? I notice a few selling lately, maybe they expect something not nice to come?

[zipstuck] 13/7/2018 09:27

The agreement with the Jap manufacturer could lead to takeover interest imo

[zipstuck] 12/7/2018 16:03

get the feeling that someone is mopping up any sold stock.

[countryman5] 11/7/2018 20:36

somebody clearing up stock at 31.5?

[philburt] 11/7/2018 13:02

C5 - Sounds promising...

[countryman5] 11/7/2018 11:32

Front page of today's Philippines Inquirer article on fishing and Duerte backs large budget for fishing infrastructure

[yump] 09/7/2018 14:42

For anyone who thinks Shrimp is just a minor issue, its one of the most versatile bases for a dish: