Another thing about Indonesia is that our own man over there, Stephen Meakin, does not seem to be the sort who would be happy just sitting around waiting for thinga to happen. If he thought that the project was not going to happen, I am sure he would have quit asap.
Reading his profile on Linkedin it is remarkable how much people recommend him for getting jobs done on tight timelines ahead of time and below budget. So when the starting whistle is finally blown, I would expect to see rapid progress.
Maybe UKEF could hire him afterwards. |
What I do find baffling about this delay is that UKEF has a man based in Indonesia, a Magdalen man like myself.
From 2018
'Indonesia has become the first country in the world to have a UK Export Finance (UKEF) country head to be based in-country. Richard Michael has been appointed to the newly-created post in Jakarta, leading UKEF’s efforts to grow the UK-Indonesia trading relationship.'
He had previously spent about half of his 30 year career in Indonesia, so quite clearly would understand how things are done over there. I don't know exactly when SRT's project got into the Blue book, but it most certainly moved into the Green Book after he started with UKEF. So he will have undoubtedly have been involved with it then. |
pidazzle
I have no particular insight as to what has caused the delay, but I think it is just as likely that it is the UK end of things - small company, large contract, country and agency known for corruption etc.
As for noises from SRT, I tend to look at what they do rather than what they say. So when the project manager hired for Saudi left the company last autumn, is was clear to me that something was wrong. Conversely, the Indonesian project manager is still in place and they have recently hired a new manager for Saudi. |
LaV - So are you saying (1) that the contract as such is in place, but (2) that some 15-16 months later UKEF and Indonesia have STILL not signed a financing deal? Would it then be fair to read that as suggesting an attitude of "no urgency" on the part of Indonesia, meaning in effect that we can wait forever - or at least, indefinitely - for the contract to commence?
And if that's the case, is there not some sort of disconnect with the noises coming from ST and the company? |
Hi bathbuoy
I think you might have misunderstood what binding means in this context. The contract is contingent on UKEF and Indonesia signing a definitive financing deal. All prospective bidders had to have this in place to be considered eligible as Indonesia was not prepared to go forward with the project without foreign finance. If the finance is not forthcoming, there is no contract.
WRT to smaller chunks, I think that refers to the PCG and not Indonesia, but there is no indication that the PCG has any budget for next year for any of SRT's proposed projects. |
I know it’s been a long time coming but in the recent update Simon did say that the contract signed in May last year for £140m was a binding contract. Surely this means that the customer is committed and will have to fund it some way. I believe Simon said at the last shareholder meeting that it might have to be broken into smaller chunks that are funded separately.
Any views? |
I know it’s been a long time coming but in the recent update Simon did say that the contract signed in May last year for £140m was a binding contract. Surely this means that the customer is committed and will have to fund it some way. I believe Simon said at the last shareholder meeting that it might have to be broken into smaller chunks that are funded separately.
Any views? |
Assuming November/December - by which time there should be a Nexus feel-good factor for the directors to offer up to long suffering PI's.
METS in Amsterdam should see its full launch by EmTrak.
By then of course we might (just might) have some positive contract news.
Please, oh please. |
With the change in year end date, the AGM will not be in the same month as previous years I assume. Has anyone heard which month it will be in? |
There you go again CM with your ‘I suspect’ this and ‘I suspect’ that
Let’s have some hard RNS news before the 15 month 2024 loss is disclosed |
I suspect that there is a growing relationship between SRT Marine and Ocean Infinity. Ocean Infinity has more than 500 employees, it has a base in Southampton and is a major SRT Marine shareholder. It also has deep pockets! It does not take much imagination to see how their differing maritime skills complement each other.
Both companies have a global footprint, and I suspect that the Ocean Infinity offering will complement SRT’s ability to win contracts, going forward. SRT’s impressive list of contacts can also open doors for Ocean Infinity. Coastguards with a generous budget will recognise the potential for autonomous patrol boats which can loiter whilst watching and listening.
Some fisheries contracts will require ocean surveys to define where differing vessels will be allowed to fish. Ocean Infinity can provide this data.
SRT is in the ‘sweet spot’ for both coast guard and fisheries contracts. Is anybody aware of a company that has an offering which can compete? |
I wouldn't treat this news quite so flippantly given that we have been waiting for recurring revenues for far longer than the Indonesian contract.
It is a bit of a shame that the recurring part is not quantified but I would guess
$2.5-3 million at 40% margin. If ever SRT is valued partially on a revenue multiple for the recurring part, then even this modest start would account for a decent chunk of the current market cap. Five times sales or ten times EBIT, $12 million or so?
I should have added that this news also strongly suggests that relationships at the BFAR and Bakamla are still good, particularly important for the former. |
Nothing to get excited about. The long wait for some decent news continues. |
Obviously the market awaits the start of the LONG AWAITED £140 million Indonesia contract and the next stage of the £15 million Saudi contract. Both of these have kit at MSN awaiting delivery with early cash due to SRT. My interest is the very large ME contract mentioned, under outlook, in the trading update of 7/6. I am hoping that it will be Kuwait which will award this contract to SRT in the next three months. |
We were discussing this very issue 11 & 12 June. It has taken an awful long time to be shown correct. Let's hope the actual deals we so patiently await are just having their i's dotted and t's crossed. |
The broker's view seems about right.
'SRT Marine Systems has announced it has signed two follow-on SRT-MDA System support contracts with two sovereign agency customers in Asia worth in aggregate $4.6m to be recognised over the next 12 months. These wins highlight the repeatable nature of critical maintenance and support contracts that follow, and subsequently scale, as customers build up their sovereign maritime surveillance and monitoring capabilities once SRT has initially implemented its mission-critical SRT-MDA Systems for sovereign Coastguards and Fisheries customers.'
One small caveat is 'with one of the contracts including some existing functionality refinements' which would not be recurring, but the balance would seem to be. BFAR and Bakamla's little installation must be the customers. |
Well it’s a start this morning. |
I am looking forward to a great September for SRT ! |
10m fund raise last december,,, zero project income,,, must be close to 1m a month wage bill,,, so 8 months on, do the math,,,,,, that fund raise must be disappearing fast already,,,,
nexus, the saviour of the company is going to be a slow roll out as well, according to them anyway
will they need to raise again???
boom or bust isn't a good business model is it |
Makes you wonder what Ocean Infinity saw in it, to buy nearly 10% of the company. |
correct me if i'm wrong,,,the philippines contract has almost finished and all the money come and gone, spent on wages and nothing whatsoever to show for shareholders
ksa contract coming to an end and nothing to show for shareholders, cash on the balance sheet, profits etc
in fact all this still doesn't cover the wages and srt has remained an unprofitable business,,, for years
in what way is this even a good business model
every six months they come out with some results that say the same thing,,, this amazing pipeline has certain opportunities that have progressed etc and expectations for the second half,,,,and it never happens does it
they look to me to be in danger of running out of cash again from their last fund raise december 23
also, that farce of extending the year end, what a con, for a project that also didn't happen, no surprise there |
Nexus:
( in the absence of big contract news, this is at least a morsel of interest )
I had an email today from Dansk Marine Center, who are a Danish distributor/stockist for emTrak.
The headline product mentioned was emTrak Nexus and the details for availability were:
"In remote storage, delivery within 2-7 working days"
Here's hoping this bit of the long SRT wait may be justified... |
This is all that has been said about the 15 month 2024 numbers-light on detail
Whilst both our systems and transceivers businesses are progressing very well within the strategic global maritime domain awareness market, it is with considerable disappointment that it now appears likely that new project revenue milestones in our systems business which were expected to be completed in the current financial period will move into the early part of the next financial year. This is due to longer than expected customer contract completion administrative processes, resulting in significantly lower than expected revenues for the current year, which will aggregate to approximately £14m mostly derived from our transceivers division and thus resulting in a loss for the period. |
Not much volume-I would be worried if it were more.
The worry I have is the pathetic year end statement which referred to turnover but nothing else to count up.Poor and raises questions about why the disclosure is so limited
As for the fishing protection the post I out in this week suggests the easy way to avoid the Geovis detection is to be detected but stay legal by renting local flags!! |
looking like stock is getting dumped big time |
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