And here is me checking for RNS... no sign but if true.. Fine! |
Why isn't there a RNS? |
Why isn't there a RNS? |
Yep, does look like it's been signed, SRT named/UK, coastguard upgrade. |
Crikey must be a lot of SRT shareholders looking as the website’s stalled. |
Is that announced somewhere? |
Where is the announcement? |
Kuwait officially signed. Congrats to ST and team. |
Yump
I agree but not with Srt which has had a long time to produce |
As the accounts would be full of red ink I think you're right Pinkfoot2. It has all hinged on this deal getting over the line and accounts prior to deal would have had a huge impact on share price and therefore the look of how stable the company is.
Buck581 I agree! Happy to take a few more at 35, and I got a few more the other day at 40.
It's a decent board this generally, thanks all for contributions and esp CM5 and Lav thanks for all the thoughtful and detailed posts. I've held for a very long time and this feels like the start of the curve to me, given the massive geo-political risks around the world, the new bigger partner in a complimentary field and the potentially 4 contracts due in short order (I know we've heard similar before). |
The accounts are probably ready to announce but the impact of funding / signing of Kuwait affects going concern statement, hence delay and Jan AGM. There might be news direct from Kuwait before RNS. The signing will be high profile. Will the UK ambassador be in attendance? However, I doubt if Airbus or Leonardo will be attending! It will be interesting to see if Ocean Infinity content is mentioned. |
Then it seems to me they don’t want to publish the accounts until after the deal announced is documented properly and possibly the contract win signed.
CM-what’s the view? |
Yeah that's what they said in March "The Company intends to publish audited final results for the 15 months ended 30 June 2024 during October 2024." |
I thought the accounts were being published in October? |
 May I suggest that you do research on Oliver Plunkett, the CEO of Ocean Infinity and the new NED at SRT? He is clearly bright and able. He was a criminal barrister at a London Chambers and has been building OI for seven years. He would also appear to have a social conscience.
Kuwait appears to be the first time that OI kit is being incorporated as a bolt on for a SRT contract. OI has more than 500 employees. SRT must hit the ground running in Kuwait. Is there merit for SRT to receive a secondment from OI of a key player? OI would learn more about the workings of SRT, or does SRT not wish to reveal all of its cards? How much will our new NED be told?
I suspect that Anthony Clake and Oliver Plunkett are formulating the ‘golden handcuffs’ for ST and the key players at SRT. They will have a time lapse and probably be made of paper! If OI reverses into SRT, the logic would be to award OI share options which can only be cashed after a certain period.
The risk is that a hostile bid from a third party arrives before OI is ready. |
I’ve never seen this board so gloomy. It seems that big contracts are a very bad thing !
What exactly is it that the gloomsters want ? |
The SRT take over conundrum reminds me of the impending US elections. There are about seven states that are relevant in seeking victory. There are about seven shareholders who will decide the outcome of SRT's future. |
The reality CM is OI have a grip on the company and not far off having a 25.1pc blocking right-not sure whether that is a good thing in your ‘bidding war’ analysis. |
The answer is obviously 'no'.
Although of course he would be inside, therefore couldn't share it with his colleagues, so it wouldn't do OI much good anyway :¬) |
Oliver Plunkett is our new NED and should be at the AGM in January. Interesting question. If the company receives a bid from a company, other than Ocean Infinity, is Oliver Plunkett kept in the dark? |
SRT have kind of shot themselves in the foot here, if the contact is signed on Thursday will it shoot up or hover around 35p where the £7.5m fund raise will be I guess they could announce both at the same time ? |
Nice post Countryman, a OI take over is definitely a possibility |
If you are considering the sale of some SRT shares, may I suggest that you pause the decision, for two reasons?
Firstly. There will soon be a brokers note forecasting the June 2025 year end. (This Friday?) This will be based on known milestones on four MDA contracts and should reveal substantial cash balances, together with PBT of between £20 and £30 million. There will probably be a share price forecast of between £1.30 and £1.80, based on these forecast figures. Such a forecast will not include potential revenue from DAS and Nexus.
Secondly. Ocean Infinity will eventually be the proud owner of about 22% of the company and I imagine that Marshall Wace will have completed a great deal of research into SRT. Traders, punters and ‘friends’; of Ocean Infinity will be snapping up SRT shares in anticipation of a bid for the company. I believe that the bid will arrive in early 2025 because Ocean Infinity has no reason to delay. It will not want anymore contracts arriving to boost the share price. I anticipate that numerous global companies would also like to own SRT. There is now a sign beside SRT, which says ‘FOR SALE’. I strongly suspect that Airbus and Leonardo worked very hard to get the Kuwait contract. They will be licking their wounds. Kuwait going to SRT will be humiliating. This contract cements SRT as the MDA provider for the Middle East countries that are in a defence pact.
I recognise that Ocean Infinity was the only option for SRT to secure the necessary performance bond within the tight timescale being pushed by Kuwait.
What are the intentions of Ocean Infinity?
They are using SRT to access government contracts. They have a useful chunk of the Kuwait contract. More of the SRT contracts are going to include the unmanned kit that Ocean Infinity sells. There is clearly synergy, but when will Ocean Infinity launch a bid?. I suspect that £500 million would be readily available.
Do they try to pick up shares in the market or do they go straight for a bid? They know that if they start bidding there is a fair chance there will be a bidding war. Do they go for an initial high figure and hope that nobody else enters a bid. Not easy to call.
I was initially worried that if they acquired 25% they would prevent another company making a bid. However, my thoughts are that if they acquire 25% and a competitor gets 60 %, Ocean Infinity is stuffed.
‘A hostile takeover happens when an entity takes control of a company against the wishes of the company's management. A hostile takeover is an acquisition strategy requiring that the entity acquire and control more than 50% of the voting shares issued by the company.’
If a competitor acquired more than 50% of SRT by virtue of a high offer, Ocean Infinity would have few, if any, options but to sell their shareholding to the winning bidder. They would have the consolation of making a vast profit on shares bought at the incredibly low price of 35 p. (Would this be a six bagger?)
I suspect that Ocean Infinity will soon move to a public listing and the US appears more favourably than the UK. However, if they did a reverse takeover of SRT, it would avoid the due diligence and expense of a full listing. In that scenario we could end up with Ocean Infinity shares together with a cash element.
Obviously, any takeover needs the support of the SRT management team, who would be critical for the business going forward.
I might regret these next few words, but I feel very relaxed about where we are. Plenty of cash rolling in, numerous contracts in the pipeline and an interesting takeover battle between contestants with large pockets. |
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