Srt Marine Systems Share Discussion Threads

[pinkfoot2] 08/10/2024 18:41

The Kuwait thing was basically the company booking revenue before receipt of cash , then impairing it some time later in its entirety-I think about 3 years later.Im sure they learned a salutary lesson after that.

If they can announce a signed contract, then off to the races-usual caveat about cup and lip

[yump] 08/10/2024 15:53

If SRT was working through a subcontractor with anything substantial, I would sell all. Been there, done that, seen how “other” interests get in the way, even when you think the final customer loves the product and will put their foot down to make it happen as you expected.

[lavalmy] 08/10/2024 15:41

pidazzle

SRT did not have a direct contract with Kuwait but was a subcontractor. A second point to note was that the write-off included SRT's normally large profit margin at the start of a contract. Much the same happened with Qnective and Indonesia. SRT now only work directly.

[supernumerary] 08/10/2024 15:25

ST will answer if you email him...

[pldazzle] 08/10/2024 15:16

To begin with: For the avoidance of doubt I first invested in SRT in 2015, am positive about its future, have built up a sizeable holding, and have no intention of selling any time soon.

Not wishing to rain on anyone's parade, then - but I see just one tiny cloud on the horizon, no bigger than a man's hand, and I'd welcome some reassurance.

So far as I'm aware the customer country for the new $213m order has never been publicly named, but clearly it's widely assumed to be Kuwait. If memory serves, there was a (much smaller) order from Kuwait in 2017 which resulted in SRT having to write off £3.9m three years later - through a combination of bad debt and stock write-offs - after the customer saw fit, if it's fair to use the expression, to move the goalposts.

Obviously it would be a nightmare were history to repeat itself, particularly on the present much larger scale. Would those wiser than me (hello LaV, hello C5) feel able to offer any comfort on that score?

[pinkfoot2] 08/10/2024 13:32

Let’s hope so-I think the next news will be the 2024 accounts which won’t be pretty I guess.

[baynet] 08/10/2024 12:29

Also this tweet @Kompascom 8 hours ago

The British government through UKEF and Indonesia Eximbank has established strategic cooperation to help create new business potential for exporters.

[bathbuoy] 08/10/2024 12:12

Sorry if this has been mentioned before but the UKEF site mentions

UK partnership with Indonesia Eximbank creates new business opportunities
UK Export Finance and Indonesia Eximbank sign Memorandum of Understanding in Jakarta.

Dated 4 Oct 24

[supernumerary] 08/10/2024 11:38

When it goes right, it's worth the wait. I was in one such ride from 4p to £30 - many long termers dropped out along the way - 'it's never wrong to take a profit!' I remember a couple of fulfilled dreams - a chalet in the Alps, a property development business in Berlin - but in both cases it was still 10-15 bagger to go. And still British!

A rare beast though. Let's hope SRT becomes one :¬) And we all live to enjoy it :¬))

[yump] 08/10/2024 11:07

I think a few of us will be getting onto the buses with a free pass, given how old we might be after waiting ;-)

[alter ego] 08/10/2024 10:15

C5, your 14907 and its reminiscences , yes I was there. We all squeezed into a small conference room and ate sandwiches while ST explained what was happening and we asked questions. I'm afraid I cannot remember who else was there. The Prophet who was a well informed shareholder, often phoned ST and recorded AGM's on a dictaphone from which he transcribed useful snippets for our message board here. He and I went to the same school, I later found out. Not the same year but we often exchanged emails and it was his address that piqued my interest as it referred to LOFC (Leyton Orient) which was a club close to where I went to school. I think he coined the reference to waiting for buses which still pops up from time to time. Sadly I don't think he's with us any longer. I tried to contact him when he stopped posting but got no reply. It's been a long road but I think I see a bus at last, maybe another just behind?

[yump] 08/10/2024 09:59

I wonder if the world will become civilised before we either melt down or freeze over. Its unfortunate that religion and doctrine give power mad psychopaths an excuse.

[supernumerary] 08/10/2024 09:21

China continues it's slowly, slowly advance in the South China Sea:



Does China now have a permanent military base in Cambodia?
Jonathan Head
South East Asia correspondent
Published
7 October 2024

Two grey shapes, visible from satellites for most of this year at Cambodia’s Ream naval base, seem to confirm growing fears in Washington: that China is expanding its military footprint, beyond the three disputed islands in the South China Sea which it has already seized and fortified.

The shapes are type A56 corvettes of the Chinese navy - 1,500-tonne warships - and they have been berthed alongside a new, Chinese-built pier that is big enough to accommodate much larger vessels. Onshore there are other facilities, also built by China, which are presumed to be for the use of the Chinese navy.

The Cambodian government has repeatedly denied such a possibility, citing its constitution which bans any permanent foreign military presence, and stating that Ream is open to use by all friendly navies.

"Please understand this is a Cambodian, not a Chinese base," said Seun Sam, a Policy Analyst at the Royal Academy of Cambodia. "Cambodia is very small, and our military capacities are limited.

"We need more training from outside friends, especially from China."

Others, however, are watching with suspicion.

[ ... much more including interesting comments on Vietnam ... ]

[countryman5] 08/10/2024 09:00

The FAO estimates that around 58.5 million people are employed worldwide in primary fish production alone – of which approximately 21 percent are women. Including subsistence and secondary-sector workers, and their dependents, it is estimated that about 600 million livelihoods depend at least partially on fisheries and aquaculture. Most are in developing countries, and are small-scale artisanal fishers and fish farmers.

[countryman5] 08/10/2024 05:51

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.

[yumyum] 07/10/2024 23:38

C5......they seem to omit overfishing. Indeed they need to control better their maritime domain.

[countryman5] 07/10/2024 20:13

Maritime Fair trade Oct 7th
Filipino fishermen are grappling with declining fish catches in the West Philippine Sea as geopolitical tensions, rising fuel prices, and climate conditions like El Niño took a toll. The Philippines’ exclusive economic zone, which is being claimed by China, has experienced a significant drop in fish catch, as reflected in official statistics.

[extrader] 07/10/2024 17:41

Well, if you read the article (quoted in extenso) you haven't had to pay, so can be 'glad' for free...

;->

[buck581] 07/10/2024 17:00

I read on LSE that Investors Chronicle recommends HOLD.
I’m glad I’m not paying for such insightful genius.

[lavalmy] 07/10/2024 16:42

AE

I imagine that it will be similar to other recent contracts where a milestone is verified delivery of whatever to the country 50% and once installed 50%. And generally they start with the control rooms where the software is at. So 50% of what goes in to the control rooms may be payable rather quickly, the software component very high margin. The other 50% of that depends on them having the control room ready with anti-static flooring and the rest and that could be a bit longer. But given that SRT will have to pay for the other stuff, probably mainly from Dell and the like, the net effect of that first 50% is likely to be neutral.

[alter ego] 07/10/2024 16:16

I would hope that SRT will seek to make delivery of some high margin elements like software early in this project. If we assume they get paid on completion of a milestone, then some decent and profitable revenue should ensue.

[lavalmy] 07/10/2024 16:06

No crystball. ST did used to say things like that about Saudi. But it was never the case nor will it be.

[crystball] 07/10/2024 16:04

Nothing up front? I thought there would be up front payments.

[lavalmy] 07/10/2024 15:57

Crystball

None.

[lavalmy] 07/10/2024 15:52

Sorry YumYum. Wildly inaccurate on my part.