these so called imminent contracts, what's happening with them, the more you look at local country news the more it seems they're still talking and having meetings and nothing's moving,,,,,,, they raised 10mill over 8 months ago and their hirings/wage bill has been steadily moving up,,,,,,,, what are they burning through currently, a million a month??? no income as such to cover this is there, they must be getting low on funds once more cant be more than 2 or 3 mill left in the kitty,,,, are they going to have to raise again???
people signing so called contracts surely want more than a couple of mill on the balance sheet for solvency proof,,,
still lots of uncertainty with this one isn't there |
Another thought that occurred to me that I hadn't previously articulated was a possible AUKUS angle, bearing in mind SRT's 2 x principal contracts- both unhelpfully 'on hold' - are Indonesia and Philippines, both 'countries of interest' in the West's face-off with China in the South China Sea.
Today's FT includes a report on US's willingness to allow Australia and the UK greater access to US technology.
The flip side of that collaboration would be a greater US openness to using - or facilitating others'use of - Austealian or UK technology....
Is it time for Starmer to put his big boy trousers on and tell the Americans to give some substance to the 'special relationship'?
Esp in view of the overlap Aussie nuclear subs patrol patch and SRT's new shareholder interest in underwater MDA....
Maybe I've been reading too much Tom Clancy.
;-<<br /> GLA |
Zingo
Cheating EU boats sailing under different country flags to exploit the fishing rules in far off climbs |
pink... FT - only £1 for 4 weeks. Need SRT to boom to afford it. Can you make a synopsis. |
 Hi Extrader
It might well be the case that it could possibly be done, but I understand that the whole thing is mired in bureaucracy and most complaints are about the time lost - I can see that foreign content might make that even worse.
On the other hand, the US and the Philippines have been working together on the AFP modernization plan with a ten year horizon and that plan most definitely includes MDA. Whether that is partly funded by the US via FMF or whether the FMF is used exclusively for US origin is a bit irrelevant as long as the Philippines themselves are putting up cash. I have discovered that the AFP modernization budget does not go through the Department of Defence budget at all but is a completely different beast managed by them. For next year, it is PHP 50 billion. The question for us is whether the PCG's modernization comes under this heading or not as they are under the Department of Transport. Silos etc come to mind, but there again the PCG and AFP plans were developed as a coherent whole and the PCG has always been included in the US$35 billion modernization wishlist so maybe their funding comes from there. There is absolutely no detail available on what the PHP 50 bn will be spent on nor anything from the Congress re their briefings as to what the PCG's plans are. |
Hi LaValmy,
.."The US$500 million has to be spent on buying US kit so that is irrelevant to SRT.."
I'm happy to defer to your greater familiarity with / expertise in such matters, but on the basis of articles such as this
hxxps://www.insidegovernmentcontracts.com/2024/03/dod-issues-final-dfars-rule-implementing-increased-buy-american-restrictions-for-defense-procurements/
I'm not sure that there wouldn't be work-arounds available to SRT, eg
(1) The US domestic requirement threshold isn't ' absolute' ie 100%;
(2) There is wiggle room on grounds of (a) lack of availability and (b)unreasonable cost differential;
(3) Sourcing from 'friendly' nations.. 'domestic content to include components that are mined, produced, or manufactured not only in the U.S., but also in qualifying countries — countries with reciprocal defense procurement memoranda of understanding or international agreements with the U.S. in which both countries agree to remove certain barriers to the purchase of supplies.."
As a practical matter, 'US first' considerations may outweigh whatever the legal paperwork provides....but OTOH, if America is serious about helping the Philippines as a matter of strategic importance, there does seem to be sufficient flexibility in the system for 'creative' interpretation.
AFAICS |
Extrader recently quoted from the June 7th RNS, Below is a further extract:-
Since our last update we have also made some significant strides with a number of projects, but particularly, two in SE Asia worth approximately $50m in total, two in the Middle East worth $9m and $200m, one in Africa worth approximately $200m and one in SE Asia worth an indicative $100m. These are all with sovereign coast guards and are for the first phase of their build-up of large national maritime surveillance systems. Of particular note are the two in the Middle East. The smaller one received internal approval to proceed in 2023, however due to multiple scope changes this has not proceeded to contract with SRT. However, the scope has now been finalised and we have been advised that the final contract is now in preparation and pending issue and therefore believe this is likely to commence in the next few months. The larger contract opportunity contract timing looks likely to be later this calendar year subject to project scope finalisation and final award. Considerable customer engagement and planning work has been completed and is ongoing in respect of these two projects. For the African project we have conducted several project specification workshops and presentations and submitted several revisions of detailed proposals which have been well received and are now under consideration by the relevant Ministries and they appear eager to progress at pace. This is a similar situation for the new SE Asia Coast Guard project. At this stage the precise contracting timeframe remains uncertain, but our current view is sometime toward the end of 2025, with a 2 year implementation period once underway.
I regard the $200 million potential contract with a Middle East country to be highly relevant. We have not received any guidance as to which country this might be. I believe that Kuwait might be the candidate. My understanding is that Kuwait has been talking with SRT for many years. In the spring of this year Kuwait parliament was shut down, enabling the Royal family to rule by decree.
The Gulf Security Council (GSC) includes Saudi Arabia, Bahrain and Kuwait. One of the objectives of the GSC is to share information. Logic would suggest that if Saudi and Bahrain use a SRT system, then others within the GSC who want a MDM system, will lean towards SRT.
Shareholders might get excited about all of these contracts, including the 2 X $25 million S E Asia coastguard contracts (PCG?), but the reality is a lot of hard work to deliver on these contracts. SRT has been able to use recent months to prepare for the Saudi and Indonesia contracts. The company has also had time to find the right team to execute all of the work heading its way. However, let us not underestimate the challenges confronting the company as it moves towards the delivering of these gigantic contracts.
I get the impression that the employment market is moving in SRT’s favour. I saw a recent report from an employment agency that recently there might be three applicants for each vacancy. Now there are about ten people after each job. I note that nearby Dyson is laying off vast numbers. I suspect that a job at SRT is now considered to be a good find. |
I doubt if anyone here subscribes to this:
The US$500 million has to be spent on buying US kit so that is irrelevant to SRT, but it appears from the article that they have agreed to or agreed to a process which will lead to a concrete roadmap. Possibly that is the reason for no significant new budget allocation in the 2025 budget. The $500 mn is be increased to $1bn next year as currently they do not have the capacity to spend that much. Possibly the same applies with MDA despite the years of engagement with SRT so they might be rehashing the plans yet again with their newly invigorated alliance. SRT would certainly not be hiring a country manager just to complete the remnant of the BFAR contract. |
maybe next week brings goodness on top of more goodness. Rinse and repeat. We are already rather clean....but good things come to those that wait....hopefully. |
Indeed -we have gone from excellent news flow to ‘need to know’ newsflow, including year end numbers with just a high level revenue number which is hardly informative |
SRT's share price hasn't shown much volatility in the recent market-wide turmoil, perhaps it generates enough of its own ?
Looking at the June 7 trading update, some news ought to be 'imminent' :
- Customer 1 the total project is worth a gross value of £40m, and we have successfully delivered and completed Phase 1 which was worth £16m. Phase 2 is worth £12.5m and Phase 3 worth £11.5m. Phase 1 was completed in 2023, and Phase 2 was expected to commence during the second half of our current financial year. The process of finalisation and award has taken longer than expected due to a combination of the customer amending the exact scope of the project on several occasions along with the required redrafting and internal verification of formal project documentation. However, we are pleased to advise that the scope of Phase 2 has now been formally agreed and confirmed and the customer has advised that they expect the formal documentation and notice to proceed to be issued within the next few weeks.
-With regard to Customer 2, in May 2023 we signed a binding project contract worth £140m to deliver an SRT C5iSR system with a sovereign Coast Guard. Since then, much preparation has taken place, including project planning, surveys, and procurement. The project is financed by an inter-government loan between the UK Export Finance ("UKEF") and the country in question, the framework terms of which were agreed by the parties in early 2023 prior to the project contract. At the time of signing the project contract [Ed.: May 2023] we were advised that such inter-government loans usually take around 6 to 9 months to complete, following a well-worn process and thus we expected completion in early 2024. However, it has become clear that such inter-government interactions, move steadily but slowly according to a defined process. Whilst SRT is not party to this process, we, along with our project customer are passive observers and maintain close contact with the UKEF and the co-lending bank. In March it was indicated to us that the expected completion should be achieved in May however, whilst there has been material recent activity and progress in the documentation finalisation process, with both UK and Customer representatives indicating a June completion target, we feel that it is more realistic to expect completion early in the new financial year...."
We're now mid August....
As the Cindy Crawford Omega Constellation ad has it ...'Just ask yourself, if not now, when?'
GLA and ATB |
Have only just spotted this article from 21 May:
Encouraging.
Is the NEXUS launch still expected in September? |
The BFAR have a c.£30 million for the FishCoRe project (IBRD/WB) which SRT have previously claimed partially involves them. |
The Philippines budget has been duly transmitted to Congress. I think the DBM's website is overloaded at the minute.
Re the PCG, the capital outlays are forecast at some 1.081 billion about half of which is for hospitals and the like. The vast bulk of the rest is for the provision of Aids to Navigation, VTS and marine comms but that only amounts to £6.5 million.
I can see nothing about the PCG modernization which we know is supposed to be happening but as I said the site keeps crashing. |
It’s a pity the ‘attention to detail’ bit was missed in a raft of recent RNSs! |
General Manager, Asia
Requirements for the candidates (inter alia):
"Attention to detail combined with the ability to apply common sense."
I like that. |
The company issued a RNS ,7/6/24.In its outlook, one of the potential contracts is for a ME Country and is for $200 million. One can assume that Airbus, Leonardo, CLS , the Israelis and others will be bidding for this prestigious contract.
Perchance a little Aim listed company, based in a tin hut in Somerset, were to win this contract, it would truly be a case of David winning over Goliath. I merely speculate on the reaction in many quarters. |
Interesting program, features an area that Ocean Infinity are involved in and kind of suggests to some degree the interest in SRT, being virtual mapping, ie, AToNs. |
C5
Very interesting. Of course, they will have to be able to make sense of the transmissions.
WRT Philgeps, I think that the budget has to be passed into law before any pre-tendering happens (pre-tendering being tenders issued before the start of the budgetary period in order to hit the ground running) so nothing until then. That doesn't mean that agencies will not have already decided on what they want and from whom including pricing and contract terms etc. Next week we should see the budget and the US annoucements, so things might be clearer but the new person the are looking for sounds very promising indeed. |
KUWAIT CITY, July 13: In a move aimed at enhancing maritime safety and navigation, the Ministry of Interior (MOI) has issued Ministerial Resolution (410) of 2024, requiring all marine vessels, irrespective of type or status—be it stationary or in motion—to install an Automatic Identification System (AIS).
The AIS is a crucial self-identification device that aids in identifying ships at sea by broadcasting their call sign, location, and speed. This initiative is designed to streamline navigation processes and ensure safer maritime operations.
According to the resolution, the AIS devices must be procured from authorized entities sanctioned by the General Communications Authority. Sea-goers are obligated to register and obtain a permit from the General Communications Authority through their official website.
This will keep Louise busy.
This could tie in with a MDM system ($200 million?) |
There has been mention of the PCG spending $1 billion on MDM over 10 years with 2 X $25 currently progressing through Philgeps?? My understanding is that all contracts are initiated via Philgeps. It would be interesting to get a steer on the World Bank loan for BFAR. |
Marcos gave the State of the Nation address on Monday and the budget is to be presented to Congress on 29th. I strongly suspect that this position has to do with what is in that budget. There is very little left on the BFAR contract and no news of movement on decisions about the illegal fishermen. That would leave the PCG. They certainly wouldn't be hiring a new body just for laughs. |
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