Srt Marine Systems Share Discussion Threads

[trident5] 18/10/2018 17:21

High p/e ratios?

It kind of overlooks that the key sales are rather one off in nature - what earnings multiple would you place on profits of the sale to Bahrain? I think the case could be made that it should be somewhere in the range of 1 to 2.

[yumyum] 18/10/2018 17:17

Let's believe that we are FINALLY on a roll. Two contract signings before Xmas and one before March 2019, booming transceiver business (well...let's say 20pct growth p.a.), more contract signings in 2019-20. Profits, debts payback, share buyback.

LaValmy, £30m turnover and £7m profit is conservative but fine by me and I think we can achieve that for 2019-20.

Philburt, you (and I) would settle for £1 a share tomorrow...BUT...when we have £30m turnover and £7m profit.....then I would not settle for south of £2.

EC, yes. Absolutely. Too right. Fully agree.

[philburt] 18/10/2018 17:03

YumYum - I'd probably settle for half that! Not one to be greedy.... :)

[lavalmy] 18/10/2018 16:27

YumYum

Or of course they could be earnings enhancing at that level to someone with higher rated paper, such as FLIR. It would be a shame though, and lets hope they can get to a high rating themselves.

Your £7 million could probably be achieved on a turnover of £30 million, given what we know of margins, overhead and tax rate.

[yumyum] 18/10/2018 16:04

Haha...."...once we have an e." ...fair point LaValmy. And a very valid idea. Profit of
£7m....pe of 50 = mkt cap £350m = share price of £2.38 (147m shares in issue).

[lavalmy] 18/10/2018 15:12

Just as an aside, FLIR has a market cap of close to $8bn and trades at a p/e of 65. Last year's post-tax profits were $107 million. They have made 10 acquisitions in the last eight years, the largest in 2010 for $265 million.

Once firing on all cylinders, SRT might want to think about listing over there. I think we would all be happy trading at a p/e of 65, once we have an e.

[hjb1] 18/10/2018 12:46

scroll down and it's about 2.40 in....Looking for maybe 55p

[owenski] 18/10/2018 10:02

I'll wager core revenue sales might not look too shabby this year.

[wynterwilde] 18/10/2018 09:51

Blimey, someone has found some stock! Hurry, hurry whilst stock lasts!😊

[eagle eye] 18/10/2018 09:32

Thanks for the all the informative posts these last few hours.
There doesn't appear to be a lot of stock about and the chart looks promising :-))

[fft] 18/10/2018 08:29

I asked Simon, and had the reply "Yes. Raymarine are owned by Flir and our transceiver business supplies Raymarine with its AIS transceivers under an OEM agreement."


No financial info, but given the low revenue numbers in recent years, this can only be good.

[yumyum] 18/10/2018 08:29

Good spot C5. Thank you. I agree we might be on a roll. At last.

[lavalmy] 18/10/2018 07:01

Maybe not, as it is not for a concrete amount but more of a frame agreement to be drawn down as and when (at least as between Raymarine and the US).

Certainly, it would seem to add significantly to the core OEM business over the next five years, which seems to have got back onto a growth trajectory in any case.

[fft] 18/10/2018 06:53

Wouldn't the size of the FLIR contract be such that it is a material revenue earner for SRT and as such would require an RNS to be issued if SRT kit is inside the AIS transponders ?

[lavalmy] 18/10/2018 05:33

Note the 'encrypted' part.

FLIR might be one contender if ever SRT sells itself. I think, e.g., Bahrain uses its cameras. I don't know who SRT uses or intends to use for these projects - probably depends on what the customer wants/already has.

[alter ego] 17/10/2018 22:26

You made excellent use of your quiet day C5. Thank you.

[crystball] 17/10/2018 22:20

Yes, interesting!

[owenski] 17/10/2018 20:49

Thanks C5. Source for reference -

[countryman5] 17/10/2018 20:42

I have had a quiet day today and have been researching Raymarine, one of SRT's main OEM outlets. Raymarine as a UK company went bust about 10 years ago and the brand was taken on by a US listed company called Flir. Interestingly they have just issued a press release about supplying 2000 AIS transceivers to the US Coastguard. I am assuming that this was one of the OEM large contracts that Simon alluded to in his recent webcast.

WILSONVILLE, Ore., October 16, 2018 – FLIR Systems, Inc. (NASDAQ: FLIR) announced today that it has been awarded a contract from the United States (U.S.) Department of Homeland Security (DHS) in support of the U.S. Coast Guard’s (USCG) Second Generation Automatic Identification System (AIS-2) program. The indefinite delivery indefinite quantity (IDIQ) contract has a ceiling value of $9.9 million to provide second generation Automatic Identification System (AIS) transponders, associated peripherals, and spare parts for nearly 1,774 boats and 282 cutters in the USCG’s active fleet.

The government anticipates the purchase of vessel class-specific kits and spare parts to equip all USCG vessels with AIS-2 over the next five years.

“We are pleased to provide AIS hardware and software technology to support the US Coast Guard’s mission,” said Jim Cannon, President and CEO at FLIR. “Our technology will provide enhanced levels of secure communication and coordination between Coast Guard boats, cutters, and shore stations. This award further extends our technology partnership with the Coast Guard, providing next-generation communication capabilities to complement their Raymarine SINS-2 navigation systems.”

The contract will be managed and executed by the FLIR Commercial Business Unit in the Nashua, New Hampshire facility.

Obviously this is significant OEM sales but the bigger picture is that SRT kit is perceived as being the best and when all the US police boats need AIS kit, hopefully Raymarine / SRT will be the supplier.

The US has been a very slow market but the potential is not to be under estimated.

I have this feeling that at last SRT are on a roll.

[lavalmy] 17/10/2018 18:38

No fish, as yet

[lavalmy] 15/10/2018 08:14

Indeed C5. It would seem that progress might be expected this quarter or next. The PM's decision envisages all offshore fishing vessels equipped with VMS or planned to be so by 2020.

[countryman5] 14/10/2018 21:30

I see that there was a photo on the SRT gallery of Mr T meeting the Vietnamese fishery minister in December 2015. This highlights the amount of engagement that takes lace to sell the SRT concept. The following is from the VASEP website (Vietnamese seafood industry):-

'Hung continued by saying that the warning from the European Union creates pressure for Vietnam to improve its fishery sector.

All the nine recommendations made by the EC are significant to the sector, he said, adding that the recommendations were put into the Law on Fisheries which will become effective in January 2019.

The Prime Minister also signed Decision No.78 approving a national action plan on preventing, reducing and eliminating IUU from now to 2025.

For long-term measures, Hung stressed the need to tighten management over fishing vessels, especially those operating offshore, review the development plan for the domestic fishing fleet in alignment with the seafood reserves, and intensify the enforcement of seafood origin and fishing diary declarations in line with regional and international regulations.

In September 2017, the European Commission issued a yellow card warning Vietnam for failing to progress in fighting IUU fishing.

After April 23, the EU will assess Vietnam’s efforts to fight IUU fishing. The "yellow card" is followed by a "green card" if the problem is resolved or a "red card" if it isn’t. A “red card” can lead to a trade ban on fishery products.

VNA

[lavalmy] 14/10/2018 13:51

An excellent summary of the Vietnam situation here:



' For the deal to be signed and become effective, Vietnam must prove its ability to fulfill high standards included such as sustainable development, the revision of the labor code, animal and plant quarantine, food safety and hygiene, and illegal, unreported and unregulated (IUU) fishing, for which Vietnam has got a yellow card by the EU and hence needs to fight before the deal signing.'