Srt Marine Systems Share Discussion Threads

[alter ego] 22/4/2021 17:12

Agree EE. Doubt the people who rely on fish as main source of food or income would agree with Duterte. Sounds like open invitation for China to grab what they like. Sad.

[eagle eye] 22/4/2021 15:59

Maybe not enough fish to quarrel about, but definitely a good reason to manage what you have left!

[piedro] 21/4/2021 08:45

“I’m not so much interested now in fishing. I don’t think there’s enough fish to quarrel about,” Duterte "Not Interested" in Confronting China on Fishing Rights hTTps://www.maritime-executive.com/article/duterte-not-interested-in-confronting-china-on-fishing-rights

[supernumerary] 17/4/2021 19:39

I never knew clams were quite so expensive. Also ecologically disastrous - no wonder the Philippines want to control the fishing in their zone... https://www.bbc.co.uk/news/world-asia-56784215 Philippines: Giant clam shells worth $25m seized in raid Around 200 tonnes of illegally harvested giant clam shells worth nearly $25 million (£18 million) have been seized in the Philippines. The seizure is one of the largest ever hauls of the endangered species. Four suspects have been arrested on an island in the ecologically protected province of Palawan. Giant clams can grow larger than one metre across, and weigh up to 250kg. They are seen as vital to the local marine ecosystem. The Philippines is home to most of the world's giant tropical clam species. [ ... ]

[goodapple7] 16/4/2021 14:01

Any mention in Investors Chronicle?

[pinkfoot2] 16/4/2021 13:27

I was looking at past Finncap research notes and came across one from 2018.In the same note was Finncap’s bullish view on Utilitywise-a company which has since imploded!At least SRT is still trading

[lavalmy] 15/4/2021 15:17

I hope so as it might make more sense than what the broker puts out there (even though Thompson does use their output extensively). 'Management expects the System business to book at least £125m over the next 24 to 30 months, to which can be added £20m of Transceivers business in that period. We ascribe the former a 25% GM and the latter a 40% GM (as seen in 1H21) totaling a £40m contribution. Cash overheads are c.£6m pa, suggesting EBITDA of at least £25m is due in the next 2½ year period.' As I mentioned previously, they are also expecting a cash contribution of £4 million from the transceivers business this year 'from profits' which is about twice what they work out at above. Also I have no idea what they mean by 'as seen in 1H21'. How on earth can they have seen that? 1H20 had no project revenues, nor for good measure did 1H19. But it is a real issue. What are the margins on these contracts? Given that they are all supposed to be systems sales with a large software component, if they don't hit their 50% target with these, they never will. Cash overheads are not £6 million. Cash overheads not including R&D might be. The R&D expenditure used to be roughly equal to the amortisation number and not worth adjusting for. Last year it was £3 million versus a £1.8 million charge so the gap is widening, as is the temptation to stress the EDITDA numbers. An item of expenditure may be capitalised or expensed, but it is still an item of expenditure. On the more positive side, it does seem that they have taken a lot of the cost and complexity of executing on these contracts out and a lot of that effort has indeed been expensed this year without any corresponding revenue. So maybe the 50% margin is on the cards and PBT in the region of £20 million, more befitting as a reward for our patience. .

[pinkfoot2] 15/4/2021 14:12

I didn’t see you as shortermist CM?

[countryman5] 15/4/2021 11:53

Will Simon Thompson comment tomorrow?

[supernumerary] 14/4/2021 17:30

ae - yes, I wondered about that. Maybe satellite transmission is involved? kinbasket - Columbia? Unlikely I think. Maybe Colombia, or Panama even - they must be worried about ships getting stuck in their canal too :¬)

[alter ego] 14/4/2021 16:41

C5 asked in post 10714 what the new "transceiver product" might be. I've puzzled about that ever since Simon first mooted the product. I note that the latest presentation slides on the web site refer to it as a "marine communications product" within the Transceivers Division. Is there a clue here about the nature of the product? With pure transceivers being pretty well up to date is this a hybrid incorporating radio too or perhaps a standalone marine radio? I don't know, but it seems a little odd to refer to it using somewhat different terminology in the trading update and the presentation.

[kinbasket] 14/4/2021 16:12

On page 7 of that presentation the 5 green dots of the "future" are in Columbia, Saudi, Bangladesh, Ghana (i think could be liberia or SL.) and Philippines.

[pinkfoot2] 14/4/2021 14:20

All good stuff but they lost a pile of money on very low reported revenue-is there a forecast in the market for 2022

[piedro] 14/4/2021 12:14

Thank you LaValmy, I found the new look presentation very refreshing

[lavalmy] 14/4/2021 11:46

'Robust financial management means the business is in a good cash position' is more what you say when banging the drum than passing the tin around and is indeed what is said in this investor presentation: hTTps://srt-marine.com/wp-content/uploads/2021/04/SRT-Inv-Presentation-April-2021.pdf There are some very interesting things in there. The most revealing is a picture of 'A GeoVS Hub System ready to be shipped to the ME'. Given that they have been bitten previously on buying equipment prior to contracts being signed, it suggests both certainty and imminence, to borrow a phrase. Also the £14 million cash inflow from Saudi in short order. Additionally,'follow-on contracts to expand these initial systems already under discussion' and re the Philippines 'negotiations underway for next phase and ongoing system maintenance and data supply contracts'. The picture is quite rosy indeed.

[lavalmy] 13/4/2021 15:47

It sounds like Duterte is growing a pair, but more like an extension of the broad pushback against China throwing its weight about. You mentioned Vietnam sending a Navy vessel out the other day. Last year's olives worked a treat BTW, the first year's I had to throw away.

[alter ego] 13/4/2021 15:17

As ever, thanks for your interpretation of the situation. Maybe, my jam will not see out the year unopened. Perhaps you have a jar of olives and some vino to enjoy as you don't like jam as I recall.

[lavalmy] 13/4/2021 15:10

They have just paid back about £1 million of the loan note program, due on 7th April. It does not look like it has been rolled over although there was a lag last time when the previous one was indeed rolled over. The broker's note mentions that the next tranche due in June will either be rolled over or paid back depending on contracts/receipts etc - either way they look very comfortable for once. Also the CBIL loan repayments start in July at £250k per quarter. From the numbers mentioned in the update, it looks like it is Saudi going ahead in H1, some £35 million. That one, if memory serves, was expected to pay up quickly for the almost immediate installation of the hub/GeoVS, c. £14 million high margin. If so, the position becomes exceedingly comfy.

[yumyum] 13/4/2021 09:42

A couple of weeks' ago there was approx GBP5.3 million cash. A further GBP5.7 million is due in the coming year from existing Philippines contract customer. Then there will be normal cash income on top (tranceivers)....plus some cash from new contracts (watch out for some nice RNS announcements). NO CASH RAISE.

[yumyum] 13/4/2021 09:38

SRT expect three contracts totalling GBP71 million to commence during the first half - i.e. Apr-Sept 2021. We will soon see if SRT are right this time (for once)...or Glavey.

[yumyum] 13/4/2021 09:33

No cash raise expected at all. What is expected : paying off debts, building reserves, and paying dividends. All this over the next 24 months. Oh......and a rocketing share price.

[glavey] 13/4/2021 09:09

When's the next cash raise coming?

[bones] 12/4/2021 11:31

In for a few more at 38p today.

[extrader] 12/4/2021 09:51

"Has anyone here ever negotiated a large national government security contract with a new product ?.." Not strictly comparable, but Brussels and vaccines spring to mind....;->