I expect there to be some sort of signing ceremony for the Bakamla financing contract, a bit of PR by UKEF at least given the low level of Indo-Pacific business last year. I would be surprised if the Head of Bakamla would miss it, given the scale of the project relative to their budget, and of course ST. It might be worth monitoring Bakamla's twitter account as that was where the initial 'confidential' contract was broadcast. |
AE - no one here to say you neigh........ |
Stop horsing around alter ego. |
We've had allusions to a horse race, Horse meat lasagna and bookies odds so perhaps we need to wait to hear it from the horses mouth to understand what is happening. I just hope we are not flogging a dead horse after all. |
I wonder why Simon Tucker was/is in the Middle East? He's been there a few days now. What are the odds for a RNS tomorrow to take us into the weekend? Or maybe ST has returned home? |
I suspect some of C5's horses would have featured in a Tesco Lasagna long before they reached the finish line, such is the duration of the race. |
C5: have you been at the Sherry? :-) |
 There are six horses running today in the SRT stakes at Midsomer Norton (MSN). It is a sunny day here in Somerset and although there are only a few spectators there is great excitement about the race. Three of the runners come from stables owned by foreign Royal families. It is disappointing that King Charles 111 appears disinterested. The oldest horse comes from Bahrain (BHR), which lacks the oil money of the other two Royals. The house of Saud (Saud)has a very fine stallion which has previously won at this race course. I am tipping the very expensive gelding from Kuwait (KUW). Although it is an eight year old it is showing good form. Our horse from the Indonesian stables (IND) has shown good promise but is regarded in the industry as JT. (jam tomorrow). The other two runners are OEM and DAS, both of which come from stables here in MSN, which looks like a tin hut. These two are financed by PLM's (People like me) from around the world. An interesting feature is that OEM has a female rider called Louise, who is highly regarded within the industry. She has a reputation as a cake baker, but I think this credit is due to others.
As we approach the finishing (starting) line it is neck and neck between the BHR,SAUD, IND, OEM and DAS. However, KUW with the longest odds, had a slow start but is now showing incredible speed as it gallops up on the outside, and contrary to expectations, could be the the eventual winner of this extremely exciting race. It is going to be a photo finish....... |
It would appear that the company has reached an inflection point. It is moving from the growth stage, requiring losses, to the delivery stage of substantial profits. I am hoping that profits from NODE (Nexus, OEM, DAS and Emtrak) can service most of the company overheads. However, these are fast growing due to the increasing payroll required to service the systems contracts. It would be interesting to learn how the company prices contracts with provision for profit / overheads. I liken the company situation today as being similar to the closing furlong of a horse race. The horses are Saudi, Indonesia, Bahrain, Kuwait?, and DAS. They are neck and neck. Which will be the first over the finishing line with a RNS? It could be an outsider making a strong finish! |
C5
I think the debt will be rolled over. As you know the majority of the outstanding is due on 30 November and 14 December. There should be no problem with this, but it will be interesting to see what maturity they do. Twelve months would be very positive, three years much less so. A couple of webcasts ago I got the feeling that they would like to pay it all off. I imagine that they will soon be able to get more conventional financing.
I have no hard data on this but I think that frequently the in-country partner is involved in the procurement of the sensors - the LinkedIn job advert for head of sensors was quite clear about that - and what cash SRT receives on milestones is generally shared 50:50 with them, which strongly suggests that they are bankrolling much of that. When the next broker's note comes out, it should be clear that half of the first payment for Bakamla (£45 million or so) flows to the ICP. But that first payment is for shipping the goods to Bakamla. So the ICP must have provided some of the working capital. They are much more likely than SRT to have some in any case. |
Lav. Thanks for info. SRT will stay below radar for institutions until the brokers note comes out after start of Indonesia and next stage Saudi. Bahrain is relatively small.
Hopefully note will give guidance on debt repayment and anticipated cash balance at year end. Kuwait will probably require cash to purchase kit, although SRT is now going to be a major player and will be able to extract good credit terms for CCTV and radar. An institution will struggle to get a foothold by spending £5 million. Likewise if company decides on a buy back... large shareholdings are tightly held. Investors Chronicle comes out Friday. |
AE
Most have been advertised for a while, except the Kuwait and Indonesian one. The Product Owner is the app specialist that I mentioned the other day. The Indonesian one is a replacement. |
re LaV's 14798, it seems there are quite a few vacancies being pursued. Might be replacements in some cases but probably not in others.
see |
LaV, this year could be my first AGM!
Hope to see you all there 😊👍 |
$420 million over two years does sound rather a lot, compared to what we are used to. Maybe $150 million this FY, $200 million next, $50 million thereafter, or something like that. That leaves almost two years for anything else to crystallize from any others, PCG and the like.
And then the potential of Nexus which, if it works as they hope and flies, should generate some excitement over the course of next calendar year.
I might even make the AGM if it is early December. |
Thank you Baynet. Quite exciting now. |
Hi AE
Nothing much to add to the indonesian bank signing it's word for word.
My second post relates to the Intersec Saudi Arabia 2024 1-3 October the video looks like SRT's kit and there are photos as well |
(With a rough translation pls for those of us who don't speak Arabic!) |
Hi Baynet, like LaV I am not a twitter user, could you summarise please? |
Baynet
I think the Bakamla news is very relevant, although the Bank of Indonesia will not be paying SRT. Santander will be. However, there must be a signing off from the Indonesian side for that to happen. I imagine that is why the Head of Project Management is involved. Bakamla is not very experienced in these matters and as mentioned previously this pèroject is almost three times their annual budget. BTW the Bank of Indonesia is the central bank.
Unfortunately I don't have Twitter. |
Also some interesting posts this morning from Saudi govt account @BG994
Video demo just posted |
Any significance to this and UKEF process posted on twitter this morning?
Official Indonesia Coast Guard (IDNCG)
@HumasBakamlaRI
Bakamla RI and Bank Indonesia officially signed the Document to Become a Bank Indonesia Customer. The signing was carried out by the Head of Bakamla RI and the Executive Director of the Head of the Department of Project Management and Technology (DPPT) of Bank Indonesia, Herawanto. |
Yet more price sensitive information, I'm afraid.
They are now looking for a success manager for Kuwait, so it looks like C5's conjecture was well-founded. And, of course, it gives some indication of SRT's view of the project's imminence. |
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