I hope we will be pleasantly surprised! |
 I had a look at the emtrak nexus material, as I'm sure many have done, and combined with comments from SRT and the broker, I am in at least two minds about the new product's potential success.
Now I am not a boater so have no idea whether some of the capabilities are attractive, such as internal comms and MOB. I can certainly see the advantage of using a smartphone to access the radio from anywhere onboard and possibly even AIS alerts.
What bothers me more is the posture. Yes they have delayed its release until they are absolutely sure that it works, but limiting sales in order to get user feedback to improve the product is underwhelming, given the time and cost so far. Are they in fact confident about whether it works properly? Maybe the slow release is due to lack of funds to pay for a large production run, maybe it is to 'fine-tune' the functions which might mean back to the drawing board. Nothing from Panbo on this either and it wasn't entered for the awards at METS. And yet the transceivers research spend is expected to continue at the current high level of £3 million.
Anyway, in the next six months I don't expect much from it. A million or two in sales maybe. |
Hi CM-5
As a matter of interest, is the article's SRT ref one of 'We'd have seen the boat coming/passing over sensitive stuff' or 'we'd have detected what was going on underwater'?
I.e emphasis on 'old SRT' or the add-ons of our new fellow shareholder?
TIA |
CM-I don’t disagree with your comments but sooner or later, companies need to stand on their own two feet.SRT listed 20 years ago I think though the real action seems to have come from Geovis-10 years ago?
I said a while ago it needs a bigger balance sheet-a parent with diverse management to support Tucker.We may get that with our new big shareholder of course |
I understand that there is a good article in this weeks Telegraph Dispatches on the subsea cable in the Baltic. SRT is extensively quoted. |
this is one of the PDF links goodapple mentioned |
Nexus/X100 pdf dealers brochure available via Google: ARC MARINE & D&B Marine Supplies |
I agree with Countryman. I ran an active global Auto group for an international bank. With clients from Japan, Korea, Europe and the US calls came at all hours. I can still survive on 4-5 hours sleep. Been an SRT investor for well over a decade although in and out and not big but I still believe. |
I sometimes marvel at the naivety of some of the armchair critics who do not understand what it takes to build and run a business. If you cannot stand the heat of the kitchen... get out and make way for more people like Oliver Plunkett who do understand the risk / reward of SRT. Do the critics understand the work and dedication of the team driving this business? Do they understand the hours spent abroad creating relationships with potential customers? Do they understand the timing of telephone calls in order to suit people in different time zones? Do they understand how difficult it is to obtain and train the right people to join the team? How much did NEXUS cost to develop ? £6 or £8 million? Where do you think the money came from? Would you have made that call? I used to be a farmer which is a business surrounded in risk, where there is a saying 'You can only make good hay by making bad hay'. This means that the outcome of some decisions is often dependant on factors beyond your control. There can be no doubt about the frustration of management at the delay in contracts, but they are dealing with governments who decide many of the factors in achieving contracts. If you are unhappy, sell up and enjoy life elsewhere.
This is a company punching above its weight. It is winning global contracts against the likes of Airbus and Leonardo. |
Sorry CM but your lengthy tome totally ignores the thumping £14m loss on £14m of t/o-thinly disguised in the warning earlier this year as simply’ a loss’.Did anyone really see these results in their tea leaves?
The company clearly came close to a perilous position-and it hasn’t started the rollout yet.The brokers are clearly unwilling to provide any forecasts-so how do you value other than on opportunity?
It’s time for a demonstration of achieving that old fashioned thing called profit |
Still no mention whatsoever of Nexus / X100 on Em-trak's website.
Come on, it's no longer a secret is it? |
Hi Extrader
Me too. It was a general meeting not the AGM so I doubt if there was much more than the voting. The AGM has slipped into the wrong year, characteristically SRT.
There is no explanation of why there is such a prolonged and expensive delay either from SRT or the broker. The broker manages to say that they expect implementation in 1H25 and a page later 2H25. There is other guff about Indonesia, including a link to the greater muppets GomSpace who are still waiting for their own export credit but have already launched and commissioned a satellite. Hold your breath because the broker expects this to be the first contract of many.
Nor is it clear how they conspired to lose money on the BFAR contract.
Someone on here a couple of months ago was on about SRT having a cash runway or some such. It looks that they might well have had difficulty paying November's salary bill.
I will be attending the AGM and hope to get to the bottom of at least some of these issues, as well as the Saudi VAT issue. |
Was the Indonesian contract confirmed at the AGM?
It's nearly 2 weeks since Prabowo's low- key visit where it was suggested he'd put pen to paper...
I'd expected an RNS by now.
TIA |
Lavalmy, thanks, I did forget that with all the year end re-jigging, puts a different colour on things. |
Owenski
The FY runs July to June so the second half starts in January. |
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. |
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