Countryman, you wrote -
"What happens next? I am assuming that the Indonesia contract is nearly ready to start with an immediate milestone ready for an invoice."
Reading through the results it was stating - "pleased to advise that the final administrative processes on the other contracts are nearly complete and thus expect work to commence at the beginning of the second half of the new financial year."
Unless I'm getting that wrong it seems they're suggesting the other contracts wont be starting till after June 2025. So no income from them until then. I did think, from the last webcast, that he said four contracts would sign before year end???? |
 The resolutions at the EGM yesterday were well supported. Oliver Plunkett, CEO of Ocean Infinity joined the board of SRT. His CV revealed a substantial personal shareholding in SRT. We do not know when he purchased his shares, but he clearly understands the potential of the company. What happens next? I am assuming that the Indonesia contract is nearly ready to start with an immediate milestone ready for an invoice. This will be followed by kit and software waiting at MSN. We are told that work is underway with the Kuwait contract. Will we learn at the AGM about Ocean Infinity’s role in the Kuwait contract? When, and if, will we hear about the next Kuwait contract? They appear to be in a hurry to spend their oil money. Could the next contract exceed the first one in size? What happens if Saudi wants to match Kuwait, or is it going to admit that it can’t keep up with its neighbour?
What is the relationship between SRT and its soon to be 24% shareholder, in the form of Ocean Infinity and Anthony Clake (OI/AC)? OI/AC approached SRT in the first instance. OI/AC wanted to use SRT as an entry to market for their underwater robotics and SRT needed more cash. When Kuwait came rushing along and SRT needed a performance bond OI/AC was the only game in town. In putting up the cash for the performance bond OI/AC was securing its position. It needed the SRT / Kuwait contract to sell its kit.
Does OI/AC intend to buy SRT, and if it did, will other shareholders allow it to happen? Clearly OI/AC have the necessary cash in the back pocket. They will have about 24% when the options are exercised. Then there are members of the ‘concert party’. Oliver Plunkett is a member, but who else? The Takeover Panel has quite robust rules. If an entity, including concert party members, acquires 30% it must apply for a ‘Rule 9 waiver’, which requires a vote being put to all shareholders.
Some people believe that OI/AC want SRT to remain independent, for the time being. Anthony Clake was recently interviewed by Bloomberg Businessweek. The article was titled ‘Lord of the Deep’. He stated that ‘his larger goal was for Ocean infinity to be a world leader in undersea technology. The modern UK has become too afraid of risk to produce champions.’
Does A/C want SRT to become a ‘champion̵7;, where he has a 24% shareholding acquired at a knockdown price? Why not let it grow and grow?
Does he want to use SRT as a ‘reverse takeover’ option at some time in the future? This would serve two purposes. It would allow OI to acquire a stock market listing without requiring due diligence. There might be some stones on the seabed which might be better left unturned! A reverse takeover might be for cash or OI paper for SRT shareholders. It is unlikely that an IPO would be looking to raise a lot of cash, but new shares would be needed in circulation to provide a free float to create a market. If OI/AC wanted SRT they would want Mr T and his management team. OI paper would be required for share options. Where does Mr T want to be in five years’ time?
There is possibly a strategic reason for keeping SRT independent. What is the current relationship between SRT and OI? Are they like brothers? I don’t think so. Are they like stepbrothers or distant cousins? Possibly. I suspect that the two management teams are working closely together on systems contracts.
There is an alternative description of their growing relationship. They are the founding members of a ‘nautical club’, where the vital member of the club is SRT with its Geovs technology. SRT is the hub, which connects everything. SRT gets the contracts and other members of the club provide the bolt ons. There is clearly a role for unmanned aerial devices. There is a role for ships and patrol boats. There is a role for armaments and many other suppliers. These suppliers would be included in future systems contracts and SRT would earn a margin on everything.
At some stage the stock market is going to wake up to what SRT and its major shareholder are up to. SRT now has financial credibility. Not only does it have major contracts underway, but it is deemed as being under the wing of an incredibly wealthy backer. Banks will want to lend to SRT for future performance bonds, safe in the knowledge that OI is full square behind it. OI could be rewarded by not giving SRT a cut on its part of the systems contract. |
Reflected on this today-it really does look like a rabbit out of the hat to me.The ‘loss’ described in the summer warning turns out to enormous and I suspect the delay in all things on the reporting front would be down to going concern issues.
A lot of smoke and mirrors over the last few years-the attention now swings to implementation and cash generation(not from shareholders).Margins will be now in focus too.
Disappointing that Cavendish can’t put some numbers out but probably wise in this instance |
I don't really see that they had to hide these results until now. Maybe to get the placing away, but even then that was underwritten by OI. Pretty dire all round with the one ray of light being the margins on DAS/AtON. The only virtue of the incessant dilution is that the loss per share is smaller.
The broker has the lipstick out but still hasn't found the balls to make a forecast, leaving us in the dark about prospects. Some gems include in the FY24 highlights: 'Indonesia is the world’s largest island nation with +17,000 islands growing at c.5% real GDP/annum and 5-7% growth in GDP per capita 2025'. The pipeline itself has not changed much, including both the BFAR and the PCG, neither of whom have budgets to buy anything.
The other positive factor is the sunk cash in inventories which when these contracts do start will reverse quickly. Half the cash goes to the in-country partner.
Someone mentioned the directors today. I do hope that the new one is a bit more on the ball. The current lot to a man have committed an offence according to the Companies Act by not having an AGM within six months of the period end. Sloppy, really, as was the Chairman's statement which repeats a sentence in the second paragraph. It is not exactly that he hadn't the time to get it right.
As for Piedro's point, I rather think that the impetus for the financial mismanagement was from the sales side, not instigated by the FD. |
Last line of Chairman's statement is the punchline:
"We therefore believe the coming years will be transformational."
I was hoping he would be saying "year" - not "years"
This LTH's patience wearing very thin. |
Shocking!!
I am wishfully looking forward to the appointment of a new Financial Officer |
The £8.5M raise looks insufficient for the scale of operations planned. They likely need significantly more funding to properly execute £320M of contracts over 2 years, potentially £30-40M+ through combination of:
Additional equity
Project financing
Working capital facilities
Milestone financing
The key risk is insufficient funding constraining their ability to deliver contracts, creating a negative spiral. |
I am a long term shareholder in SRT and believe Simon and his team work tirelessly on our behalf.
However I do question whether the non-exec Directors offer the necessary depth and breadth of experience to advise Simon. The recent catalogue of errors suggests not. |
There should be more announcements today. |
"are pleased to advise that the final administrative processes on the other contracts are nearly complete and thus expect work to commence at the beginning of the second half of the new financial year."
Much as we have to take any estimates with a pinch of salt, when is this? |
Surprised about how quiet this is today. Also the trading patterns are a bit 'blocky' |
Is this the buying opportunity? If the orders come through yes if there is the usual slip between cup and lip probably not. Simples. |
Terrible set of results which looks like it could have been terminal but the proverbial rabbit out of hat saves the day. |
Despite the £14m drop in revenue loss announced this morning, it's good to see so far that it doesn't seem to have affected the price this morning so far. |
All's quiet as we await publication of 15month results on Monday.
Trepidation, hope, - just the usual sentiments here. |
Thank you all for your probing and excellent prompt response from Louise. I like her statement that METS went extremely well and also her time frame.I was premature in buying more but can handle the delay! |
I wonder if AI would have ever come up with 'Google'? |
That's what has kept me invested in SRT - the responsiveness to serious questions from shareholders - thank you @alterego for taking the initiative and reporting back.
Have you heard the X100 songs promoting the advantages of the new product?
15 minutes communion with ChatGPT4o and Suno.com, the description was revised and these two songs were "written" in a sea shanty style :)
And 5 pretty so-so naming suggestions for the product:
Suggested Product Names
1.SeaLink X100 – Emphasizes the product’s role as a seamless communication link.
2.NaviCom X100 – Highlights its dual navigation and communication functionality.
3.AquaCom Pro – Reflects advanced communication for marine professionals.
4.MarinerConnect X100 – Tailored to mariners seeking enhanced connectivity.
5.OceanGuard X100 – Conveys safety, reliability, and robust performance.
Yes - just 15 minutes - and not the final refined versions (description, names and songs) - but a no risk and almost free start for dabbling with any marketing ideas.
I will share the results (for what they are worth) with Louise and realise that the revised description cannot be shared because it was not meant to be in the public domain and might be covered by copyright. |
yump, in my experience both Louise Coates, Simon Tucker and Richard Hurd reply to shareholder queries, usually very promptly. Like you, I find other companies less reliable. |
I've also had a prompt reply from Louise along similar lines.
AE - "there is now no mention of the X100 on the website."
I find this baffling though. Surely there should be at least some mention of the product coming soon? |
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