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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Srt Marine Systems Plc | SRT | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
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|---|---|---|---|---|
| 0.00 | 0.00% | 42.00 | 08:00:00 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 42.00 | 42.00 | 42.00 | 42.00 | 42.00 |
| Industry Sector |
|---|
| GENERAL FINANCIAL |
| Top Posts |
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Posted at 18/12/2024 09:08 by countryman5 Close watchers of this small, but innovative company, recognise the momentum building within the sales of this AIM listed company, which has a unique position in global markets. Sales are being driven by numerous factors. Firstly, SRT has acquired a reputation as the reliable supplier of AIS products, which are increasingly sold by its own EMTRAK brand, with NEXUS about to deliver an addition to the offering. Secondly, Coastguards around the world all watch each other and they can see what is happening in Bahrain, Saudi, Kuwait and Indonesia. There is recognition that Geovs delivers something which is unique, and coastguards are badgering their political masters for some of it. Obviously, budgets have to be approved, but security invariably opens cheque books. Thirdly, as per the recent FT Moral Money article, countries around the world know that they have to monitor their fishing boats to secure their future fishing operations. The World Bank knows all about the SRT system and will be helping many countries prepare their budgets. The Philippines is not alone in having powerful vested interests inside their commercial fishing fleets, but countries will be warned and prepared about dealing with those vested interests. In the next six weeks a lot is going to happen. We will have the four contracts (Kuwait, Saudi, Bahrain and Indonesia) all fired up with Kuwait delivering to help with the first half figures. (December 31st). We will hear these results in early January, together with the much-anticipated brokers note, where TO / PBT for this year and the next two will be underpinned by the £320 million of signed contracts. The big unknown will be contracts joining the £320 million. I believe that the pace of Kuwait will follow into more work from that Royal family. The neighbouring Royals in Saudi will want to maintain their security, especially with what is happening in the Red Sea, and will want to match Kuwait. And then there is Africa, where fishing and security (China v US) is increasingly hitting the headlines. Nothing is being factored in with the Philippines, but eventually truce will prevail within the fishing vested interests and both BFAR and PCG will have pent up demand. In late January we will have the AGM, when it will be interesting to hear the present and anticipated head count. Growing the team is one of the greatest challenges with many key workers needing to be found and trained into the SRT way of doing things. will the share price be beyond £1 after the AGM? The company has needed an injection of funds which has resulted in a dilution of the shareholder base. This was unfortunate but necessary. We will soon have a 24% shareholder. If Indonesia had started delivering six months earlier, or if Kuwait had not started at such speed, such dilution might not have been necessary. One of the consequences of the dilution is that the LTIPS will need to be rebased. Our management team needs to be rewarded for their incredible achievements. The alternative is to use the fast-flowing cash to purchase shares in the open market, where there will be few sellers.I am anticipating a fast growth in T/O predicted in the brokers note, with an even faster growth in PBT, because of increased margins going forward. SRT will no longer have to offer free trials to countries. The message going forward will be ‘Join an orderly queue, to receive your SRT system.' |
Posted at 14/12/2024 09:19 by countryman5 It would appear that the opportunities for SRT are without limit. SRT is still no more than a lion cub starting out in life. It would be interesting to know how the margins work, when pricing a contract. Countries will know the list prices for CCTV and radar, with SRT earning the industry discount. However, the remainder of the pricing structure lies with SRT. I assume that the company can increase margins now that it has become established as the market leader and growing volumes allow for better discount and credit terms from suppliers. There is a similarity between SRT and Tan Delta in many ways. It appears that Tan Delta has cash reserves but shares are like hen's teeth. |
Posted at 07/12/2024 16:49 by lavalmy Hi ExtraderI don't think the two are connected and I am pretty sure No10 would not issue a communique including items that were not going to happen. However, if it comes down to tea leaves try this from the broker talking about sources of finance: 'UKEF General Export Fund: Working capital requirements for the $180m Indonesian CG contract announced in May-23 (link here) is funded primarily through the UKEF GEF programme. — Current status: The UKEF loan is a government-to-govern by UKEF. The loan agreement is currently being finalised between UKEF and the SEA government with key elements already agreed prior signing in May-23. We await final agreement before implementation. — The UKEF financing associated to the Kuwait $213m contract is a separate agreement type to the $180m SEA UKEF agreement and completion is expected on a substantially faster timescale to partially replace the $21.4m cash loan provided by Ocean Infinity.' This is a muddle. They have not got anything yet from the GEF which is called the general export facility, but they might do. It provides essentially pre-export finance which in SRT's case will then be repaid by Santander with their lender to Indonesia hat on to Santander with their GEF provider hat on. All that once the main UKEF loan comes through which is non-recourse to SRT. The third type of financing which they hope to get is for the bond to replace OI's guarantee. I think that is 80% of the value leaving SRT to find some $4 million. I don't think that UKEF is involved in any other aspects of Kuwait, so any ratios or whatever to do with Indonesia (and I seriously doubt there are any given the still parlous state of SRT's balance sheet) will probably not be affected. Much more likely to do with concerns about how the contract was won given the Philippines. Other big aspects are why do SRT pay half of the first £45 million milestone to the in country partner? Do they provide equipment for that first milestone or is it a prepayment for construction work? More for the AGM, I think. |
Posted at 03/12/2024 08:26 by countryman5 The resolutions at the EGM yesterday were well supported. Oliver Plunkett, CEO of Ocean Infinity joined the board of SRT. His CV revealed a substantial personal shareholding in SRT. We do not know when he purchased his shares, but he clearly understands the potential of the company. What happens next? I am assuming that the Indonesia contract is nearly ready to start with an immediate milestone ready for an invoice. This will be followed by kit and software waiting at MSN. We are told that work is underway with the Kuwait contract. Will we learn at the AGM about Ocean Infinity’s role in the Kuwait contract? When, and if, will we hear about the next Kuwait contract? They appear to be in a hurry to spend their oil money. Could the next contract exceed the first one in size? What happens if Saudi wants to match Kuwait, or is it going to admit that it can’t keep up with its neighbour?What is the relationship between SRT and its soon to be 24% shareholder, in the form of Ocean Infinity and Anthony Clake (OI/AC)? OI/AC approached SRT in the first instance. OI/AC wanted to use SRT as an entry to market for their underwater robotics and SRT needed more cash. When Kuwait came rushing along and SRT needed a performance bond OI/AC was the only game in town. In putting up the cash for the performance bond OI/AC was securing its position. It needed the SRT / Kuwait contract to sell its kit. Does OI/AC intend to buy SRT, and if it did, will other shareholders allow it to happen? Clearly OI/AC have the necessary cash in the back pocket. They will have about 24% when the options are exercised. Then there are members of the ‘concert party’. Oliver Plunkett is a member, but who else? The Takeover Panel has quite robust rules. If an entity, including concert party members, acquires 30% it must apply for a ‘Rule 9 waiver’, which requires a vote being put to all shareholders. Some people believe that OI/AC want SRT to remain independent, for the time being. Anthony Clake was recently interviewed by Bloomberg Businessweek. The article was titled ‘Lord of the Deep’. He stated that ‘his larger goal was for Ocean infinity to be a world leader in undersea technology. The modern UK has become too afraid of risk to produce champions.’ Does A/C want SRT to become a ‘champion̵ Does he want to use SRT as a ‘reverse takeover’ option at some time in the future? This would serve two purposes. It would allow OI to acquire a stock market listing without requiring due diligence. There might be some stones on the seabed which might be better left unturned! A reverse takeover might be for cash or OI paper for SRT shareholders. It is unlikely that an IPO would be looking to raise a lot of cash, but new shares would be needed in circulation to provide a free float to create a market. If OI/AC wanted SRT they would want Mr T and his management team. OI paper would be required for share options. Where does Mr T want to be in five years’ time? There is possibly a strategic reason for keeping SRT independent. What is the current relationship between SRT and OI? Are they like brothers? I don’t think so. Are they like stepbrothers or distant cousins? Possibly. I suspect that the two management teams are working closely together on systems contracts. There is an alternative description of their growing relationship. They are the founding members of a ‘nautical club’, where the vital member of the club is SRT with its Geovs technology. SRT is the hub, which connects everything. SRT gets the contracts and other members of the club provide the bolt ons. There is clearly a role for unmanned aerial devices. There is a role for ships and patrol boats. There is a role for armaments and many other suppliers. These suppliers would be included in future systems contracts and SRT would earn a margin on everything. At some stage the stock market is going to wake up to what SRT and its major shareholder are up to. SRT now has financial credibility. Not only does it have major contracts underway, but it is deemed as being under the wing of an incredibly wealthy backer. Banks will want to lend to SRT for future performance bonds, safe in the knowledge that OI is full square behind it. OI could be rewarded by not giving SRT a cut on its part of the systems contract. |
Posted at 15/11/2024 14:01 by countryman5 I understand that it was Ocean Infinity which approached SRT in the first instance, offering to take a slice of the company (about 9%). I assume that they recognised the synergy between the two companies. O I could bolt on robotic vessels to SRT contracts and therefore use SRT as a route to market. It was SRT which approached O I for the recent cash support and both companies recognised the importance of the Kuwait contract. O I was in effect protecting its original investment because if there was no Kuwait contract SRT could be on a downward spiral, with few options for bolt on robotics. We now have a situation where SRT has a strong financial future and is the global king of the MDA systems market. I just wonder how the Saudi coastguard feels about the Kuwait impending system, together with O I robotics. Can't Saudi afford such a sophisticated system? SRT and O i make an impressive team.When the dust settles O I will issue a RNS identifying the size of their shareholding. Now that Oliver Plunkett has joined the board, the company must issue a RNS if they just buy one more share. Concert parties are an interesting concept with regard to the takeover code. Any parties deemed as acting in concert must declare their holdings. If an employee of O I, or someone connected to O I buys a SRT share, are they deemed as acting in concert? Does O I have a duty to notify all employees of their obligations if they buy an SRT share? Question for Oliver Plunkett at AGM? I feel more relaxed about O I's intentions with regard to a takeover. The code is quite protective of small shareholders especially as I believe that we have substantial holders who might have a vision of reaching a market cap of £1 billion. I believe that this is known as a 'Unicorn'. PS. I get the impression that there are one or two disgruntled shareholders here who would enjoy life more if they were to sell up. If you have a substantial holding, may I suggest that you contact Cavendish who probably know of an institution looking for stock. Unfortunately there are only small numbers changing hands now and this prevents an institution from obtaining a generous sized stake. |
Posted at 14/11/2024 12:11 by pldazzle LaV - I was under the impression that OI have SRT's back?"OI has provided a $21.4m guarantee to SRT to enable SRT to issue a contract performance bond of similar value. The OI guarantee is initially provided as a cash loan of $21.4m with an interest rate of 0.75% per month. The loan is expected to be repaid by SRT with a period of approximately one month and replaced with a bank guarantee on OI's behalf. The OI bank guarantee itself will then be replaced within the next 6 months using a combination of SRT's own resources and UKEF export guarantee program. In return for providing this guarantee, OI is being granted 20,000,000 warrants at a strike price of 35p, with an exercise period of 3 years, which when exercised will inject a further £7m equity for SRT. In the event that SRT does not replace the OI guarantee within 8 months, a further 4m warrants per month will be issued with a strike price equal to a 15% discount on the share price at the relevant time." Certainly it's exceedingly complex, and by no means cheap, but it seems to work.... |
Posted at 30/10/2024 06:39 by countryman5 May I suggest that you do research on Oliver Plunkett, the CEO of Ocean Infinity and the new NED at SRT? He is clearly bright and able. He was a criminal barrister at a London Chambers and has been building OI for seven years. He would also appear to have a social conscience.Kuwait appears to be the first time that OI kit is being incorporated as a bolt on for a SRT contract. OI has more than 500 employees. SRT must hit the ground running in Kuwait. Is there merit for SRT to receive a secondment from OI of a key player? OI would learn more about the workings of SRT, or does SRT not wish to reveal all of its cards? How much will our new NED be told? I suspect that Anthony Clake and Oliver Plunkett are formulating the ‘golden handcuffs’ for ST and the key players at SRT. They will have a time lapse and probably be made of paper! If OI reverses into SRT, the logic would be to award OI share options which can only be cashed after a certain period. The risk is that a hostile bid from a third party arrives before OI is ready. |
Posted at 29/10/2024 19:38 by countryman5 If you are considering the sale of some SRT shares, may I suggest that you pause the decision, for two reasons?Firstly. There will soon be a brokers note forecasting the June 2025 year end. (This Friday?) This will be based on known milestones on four MDA contracts and should reveal substantial cash balances, together with PBT of between £20 and £30 million. There will probably be a share price forecast of between £1.30 and £1.80, based on these forecast figures. Such a forecast will not include potential revenue from DAS and Nexus. Secondly. Ocean Infinity will eventually be the proud owner of about 22% of the company and I imagine that Marshall Wace will have completed a great deal of research into SRT. Traders, punters and ‘friends’ I recognise that Ocean Infinity was the only option for SRT to secure the necessary performance bond within the tight timescale being pushed by Kuwait. What are the intentions of Ocean Infinity? They are using SRT to access government contracts. They have a useful chunk of the Kuwait contract. More of the SRT contracts are going to include the unmanned kit that Ocean Infinity sells. There is clearly synergy, but when will Ocean Infinity launch a bid?. I suspect that £500 million would be readily available. Do they try to pick up shares in the market or do they go straight for a bid? They know that if they start bidding there is a fair chance there will be a bidding war. Do they go for an initial high figure and hope that nobody else enters a bid. Not easy to call. I was initially worried that if they acquired 25% they would prevent another company making a bid. However, my thoughts are that if they acquire 25% and a competitor gets 60 %, Ocean Infinity is stuffed. ‘A hostile takeover happens when an entity takes control of a company against the wishes of the company's management. A hostile takeover is an acquisition strategy requiring that the entity acquire and control more than 50% of the voting shares issued by the company.’ If a competitor acquired more than 50% of SRT by virtue of a high offer, Ocean Infinity would have few, if any, options but to sell their shareholding to the winning bidder. They would have the consolation of making a vast profit on shares bought at the incredibly low price of 35 p. (Would this be a six bagger?) I suspect that Ocean Infinity will soon move to a public listing and the US appears more favourably than the UK. However, if they did a reverse takeover of SRT, it would avoid the due diligence and expense of a full listing. In that scenario we could end up with Ocean Infinity shares together with a cash element. Obviously, any takeover needs the support of the SRT management team, who would be critical for the business going forward. I might regret these next few words, but I feel very relaxed about where we are. Plenty of cash rolling in, numerous contracts in the pipeline and an interesting takeover battle between contestants with large pockets. |
Posted at 28/10/2024 18:44 by extrader Hopefully Plunkett's arrival will bring a bit of focus/discipline to the Board and its grip on SRT's finances.As to the PB, my understanding is that : - SRT is required to post a bond for $21.4m (ie 10% of contract value....hmmm, I'm more familiar with 5%...) as surety for its ability to 'perform' (duh!) its contractual obligations ie delivery of specified kit that works as described; - it's evidence for the client that SRT's bankers believe it'll be around long enough to fulfil its contract obligations, including maintenance. It would be interesting to know the duration of the PB...and how it phases out as the contract progresses/completes - SRT's bankers aren't willing to post such a bond without 100% cash margin (make of that what you will), so SRT has got a bridging loan in cash from OI that SRT will in turn place with its bank, which will then issue the [cash collateralized] PB, which is sure to be a Condition Precedent for contract signature. - with the Contract signed, SRT's bankers will/should release the 100% cash collateral they hold (which SRT will then return to OI) in exchange for an equivalent (substitute)guarante * This tells you something about SRT's still parlous state with its banker, even after securing the Contract. It also pre-supposes OI's own credit-worthiness, of course, and will come at a cost. - SRT will use the proceeds of the placing + other cash inflows (Indonesia? Kuwaiti / Phillipine/ Saudi invoicing and 'revenue milestones') plus other support (UKEF facility AND £7m proceeds of OI 20m warrants) to convince its bankers to release OI from its guarantee obligations to the bank within 6 months and accept SRT as a stand-alone risk thereafter. - OI gets 20m shares in SRT at a discount and - if there's any slippage (surely not!)beyond that - the chance to tighten its grip on the Company. Not quite a CLN situation, but maybe rhyming somewhat. The mid-morning announcement, convoluted nature and 'cash is king' solution speak to the urgency of the situation....and the 31st October deadline. I'm sure they were burning the lights over the weekend...in MSN and elsewhere! All AIUI GLA and ATB |
Posted at 08/10/2024 04:51 by countryman5 Some rambling thoughts from a long time shareholder.This board has always had some dedicated posters. There used to be Prophet, who did a lot of research. He has been replaced by Lav, from Sicily, I believe. I remember about four ‘Names’ having a meeting with Simon at MSN. I believe AE was there. I still drive the same Toyota Auris which took me to MSN, in the early days. I used to note the RR car of Simon (not a roller) parked outside. I remember him talking about the cars he was once shown in the extensive garage of a leader from one country, he was visiting. He must have clocked up more air miles, than most. I suspect that he has met numerous World leaders, and he has the PR to carry it off. He is a superb salesman. I bought into his vision. I remember when Geovs, which was a university spin-off, was bought. Simon has always managed to find the money to keep the company going, during its growth stage. No mean feat. My understanding is that the loan company (soon to be made redundant), which underwrites SRT’s finances is a group of high worth individuals, of which one is a major shareholder. I remember when the BFAR /IMEMS contract with the Philippines was announced. I believe that it was about $32 million. This was a very major news story. I remember the company headcount stood at 48. Now I suspect it is nearer 148, and fast growing. One of the problems with SRT is MR. T. He is the face of the company and everybody only wants to deal with him. He needs one or two very able salespeople to do the ‘donkey’ work. I remember, not long ago, when the company issued a VSOP (Validated Sales Opportunity Pipeline) of $400 million and people ridiculed it. That figure is now a reality. The new figure is now in excess of $1 billion and that is also ridiculed. SRT has many attributes, apart from the team. It is the global leader in a new high-tech arena. It has Warren Buffet’s ‘economic moat’. This means it is difficult for others to compete with. I suspect that the recent contract win had Airbus, Leonardo and others competing. SRT is now competing and winning against global large defence contractors. SRT will be coveted, but fortunately it is controlled by a handful of large shareholders who appear to have a long term vision. It is obviously a potential takeover target, but not yet! Where are future sales coming from? The Philippines has lots of potential, both fishing and coastguard, with China and IUU fishing the main drivers. I believe that the US navy is a great fan of SRT. It knows about the company because of its base in Bahrain. I suspect SRT comes highly recommended to numerous coastguards on various continents, of which we know little. It would be good for the Philippines government to sort out the politics of its large fishing fleet. This will allow the Supreme Court and Ombudsman to allow the monitoring of fishing and allow BFAR to move onto the next stage of development and utilise World Bank loans, which have been agreed. Global fishing, with financial support from the World Bank, has so much potential. I look at Saudi, its wealth and its enormous coastline and I recognise that there is so much potential in years to come. Another key to SRT’s future is the ‘follow on’ contracts. Once a country selects SRT for its first contract, it feels obliged to continue for future contracts. Another key feature of the SRT approach is the selection of reputable in country partners. They supply the team with the screwdrivers! Invariably they have a good relationship with the various governments. They understand how these various governments work. So very important. I should not forget Louise and EMTRAK, DAS and Nexus. This is such an exciting company to be part of. |
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