Thank you for this. Very much appreciated. |
 Just arrived home from the AGM. As ever it was very informative and certainly worth the effort folk made to attend. One person I spoke to said he thought SRT were very unusual in allowing shareholders unfettered access to employees to ask whatever they wished. Answers whilst avoiding sensitive information were genuinely useful in forming a view on how things are going. It was good to put faces to some of the names here and I think I persuaded a lady from Cambridge that joining ADVFN would improve her knowledge of SRT more than the message board she was using. Please excuse any inaccuracies in what follows but I have tried to recall as much of what was said as possible from hasty jottings. Anyone else who attended is welcome to add to or correct what I have said.
I started by trying to find out more about the launch of the X100 (Nexus). Initially it will be an EmTrak product hence X100 not Nexus. In time OEM’s are anticipated to include it in their offering but the strategy is to get a substantial user base who think it is a marvellous product. Marketing is planned via 5000 or so dealers so SRT will ensure they know what the X100 can do and they will have their own customer base into which it will be sold. Sound quality has been a top priority in the development of this product to ensure it performs better than anything else on the market. The actual product is constantly being tested by a small cohort of real boat owners who supply SRT with feedback on a weekly basis which allows for tweeks if there’s anything they would like to see done differently. The X100 has inbuilt MOB (Man Overboard) unlike rival products which tend to be standalone and often not used because it’s too inconvenient. Software updates are simply done by feeding the update to the mobile phone or watch and then to the Transceiver as soon as they connect.
Early feedback is that users love the convenience of the connectivity and the ability to use the radio via their ‘phone or smart watch without any delay. The overwhelming impression I got was that SRT are very pleased with the market response, eg at METS, and the volume of pre-orders exceeding expectations. I was told more than once that there is nothing on the market that can match it. A very limited production run has begun and is expected to ramp up gradually once everyone is confident that the user feedback will be highly positive. They do not want any disappointment hence the controlled, cautious early production.
Kuwait required pretty much immediate mobilisation and staff were called upon to work over the Christmas period to meet customer expectations. ST said he met no pushback to this request which demonstrates to me the commitment and unity of staff to the collective goal. The customer was very impressed and this has boosted SRT’s reputation in the region. Some existing structures are having to be used for control centres and towers because they exist not because they are ideal. Building new ones takes time but this approach gets things up and running earlier. They even have a mobile control “room”, a van full of servers that can collect data from remote locations and feed it into the system until more permanent arrangements are put in place. OI will provide underwater and surface level autonomous vessels/drones. With the advent of drones and unmanned aircraft decisons will have to be made about how high surveillance needs to go. Oliver stated that the sea is a very challenging environment for this equipment and the customer needs to understand that things may not work perfectly from day 1one Internet provision is less than ideal and there is no broadband as we know it at present. Satellite communication may be needed, eg Starlink. Clearly Kuwait is at the start of a journey which will take years to travel.
I asked about Indonesia and EKEF financing. The loan has been agreed in principle with Banco Santander (in Spain) providing the money. It will be released in stages as SRT raise invoices for each delivery milestone. I got the impression that we are just weeks away from the start of the project but everyone here has learned to wait for the confirmation rather than the expectation. The question of the effect of inflation on the fixed project cost was raised. SRT build in a contingency to costs which mitigates this. It is also the case that much of the Dell servers and desktops were acquired earlier and at lower prices. It was estimated that roughly 40% of the total project cost is shielded in this way and ST thought that the contingency allowance would suffice.
It was said that Indonesia are already talking about what they would want in the future as there is no Fisheries component in the project that has been approved. This underlines how, once a customer buys the system, it is normal for it to expand and evolve over many years.
I raised the question of staffing needs as they have a long list of positions to fill. ST and Neil agreed that it is difficult to find the right people and have already employed a recruitment specialist with another needed to seek out candidates for the vacancies. Conventional recruitment agencies do not have the same focus. LinkedIn is where they expect to find the people they need.
Countries are beginning to realise that they need what SRT can supply. Bahrain has suffered from depletion of fish stocks and because it has no means of regulating where and what can be fished it has imposed a blanket ban on fishing.
In Saudi they are intent on creating an environment that attracts tourists under Project NEOM on the Red Sea (Dubai on Steroids was quipped). Here security, safety , water quality, fish and reef health are vital and SRT can enable the customer to achieve what they need. Proximity to Yemen, Somalia, Syria and Iraq presents risk that will have to be managed by KSA.
OI were represented by Oliver Plunkett CEO of OI and our newest NED. Some investors enquired about the relationship between the two companies and the answers were reassuring from my point of view. At the most fundamental level OI can supply data that SRT currently doesn’t have but GeoVis can make sense of that data and present it to the customer, something OI cannot do on their own. That looks like a very symbiotic relationship to me where both parties see value added. Both companies have very similar cultures seeking to collaborate to make things happen. Each is pragmatic about how costs and profits should be divided. In the longer term Oliver said OI had not sought to enter into this relationship in order to take over SRT. Nevertheless, he was clear that things can change. ST expressed the hope that SRT would remain an independent company in 20 years time although he wouldn’t be its CEO. I took away the strong impression that there is no tension between these two entities.
In reviewing future project opportunities ST was confident that SRT will be spoiled for choice given the rapidly dawning appreciation that countries need data to be able to manage their MDA.
Someone asked about DAS and ST said that it was part of what SRT offered and would enable autonomous shipping on rivers to know if there was enough room to pass under a bridge or enough depth to avoid grounding. At sea it would warn ships of the state of the tide and currents so course corrections could be taken. Margins on the equipment are very high.
Thanks to everyone who made this visit enjoyable. I look forward to the next one. |
A rise in the morning is ALWAYS a good sign.
I'll get my coat...
ATB |
Assuming many attendees already have a not insubstantial committment in shares and a level of frustration, perhaps a rise in the morning would be a good sign. |
Like eagle eye, circumstances have proved awkward for attending today's event but I eagerly await the reports thereon.
In particular, was there any contact with our new big shareholder, OI that could give a possible feel for the depth of their involvement? |
Timeous.
This from South China Morning Post (which is interesting in itself) :
hTTps: www.scmp.com/week-asia/politics/article/3295920/philippines-blindsided-mounting-security-threats-amid-fresh-espionage-claims?
.."The Philippines is struggling to contend with mounting security threats, analysts warn, citing amid recent reports of alleged espionage activities that have alarmed the nation.
Their warnings come in the wake of the Armed Forces of the Philippines’ announcement that it was looking at possible connections between the arrest of an alleged Chinese spy conducting surveillance operations on the country’s military installations; the discovery of underwater drones in various waters across the country; and the proliferation of fake identification cards among foreign nationals.
Without naming a particular country, Rear Admiral Roy Vincent Trinidad, the Philippine Navy spokesman for the West Philippine Sea, said on Tuesday that “there seems now to be a deliberate and calculated move to map out the country by a foreign power”....
6 Jan 2025
.."Drone discovery in Philippines spurs call for US military expansion..."
" Who ya gonna call?"
GLA |
Sorry I won't be at the meeting today.
For the first year in ages I'll be relying on reports from everyone attending.
It's always a worthwhile visit, so have a great day!
eagle eye |
Quite a move end of day, looking forward to meeting the team at SRT tomorrow. |
Djibouti Code of Conduct signatories join forces for security
November 21, 2024
Signatory States of the Djibouti Code of Conduct/Jeddah Amendment (DCOC/JA) are working to develop a framework for regional coordination to tackle shared maritime threats.
The DCoC-JA is a regional initiative to combat piracy, armed robbery against ships and other illicit maritime activities in the Western Indian Ocean and the Gulf of Aden. A two-week workshop (10 to 21 November), hosted at the Jeddah Academy for Maritime Science and Security Studies in Jeddah, Kingdom of Saudi Arabia, brought together representatives of governments, regional maritime centres and partner organization. Delegates discussed ways to enhance cooperation, communication and coordination among maritime security entities, both nationally and across the region. They developed terms of reference for new DCoC sub-working groups, focused on the following specific thematic areas: Port and Ship Security; Protection of Vital Coastal Installations; Illegal Unreported & Unregulated (IUU) Fishing, and Maritime Environmental Protection. |
ah.. 65 ish is high |
agree 60p.. chart breaking out... love some more good news to help it on its way ... at 60p we are in blue skies? all time highs? |
Series of repeat chunky buys today, while the sells are random sizes. 60p likely this week imo. |
Thanks, LaV
I particularly appreciate the 'edit' footnote !
Much appreciated.
ATB |
Extrader
I don't know what Uk government information that is referring to, but UKEF have a range of products. The one in question for Bakamla is a government to government one which can be quite complicated. The Danish company which put up a satellite in the summer based on a contract with the Indonesian fisheries ministry is still waiting on theirs, despite it being 'approved' six or so months ago. I think the issues with Bakamla are several.
First is Bakamla's previous problem with corruption almost as soon as it came into existence. Second is the relative size of the project compared both to Bakamla's normal budget and to SRT's balance sheet. Third is the rather detailed due diligence required to ensure that there has been no corruption. This is not helped by the Philippines situation, but according to UKEF application forms you have to be convicted of a corrupt activity for this to kick in. And also in the Philippines case there does not seem to be a suggestion of corruption in the UK sense, more that the Philippines has been disadvantaged financially by losing the French loan and increasing the project cost for the locally financed version.
Size would be an issue with Kuwait as well, but I don't see that it has taken any longer than initially expected. I doubt that the whole process takes such a short time in any case - all these bond support guarantees have to go through the guaranteed bank and be approved there first.
Edit: I actually think that the Kuwait contract will reassure UKEF in respect of the Bakamla one. A small UK company that gets one enormous contract might require investigation on the grounds of capability, but if a second country signs a similarly large one with the same small UK company with some serious competitors involved as C5 mentioned (Airbus and Leonardo) then it does give comfort that the small UK company has actually got something they want and at a fair price. |
Ah OK.
Dependent on my phone atm.
Another Q, though re UKEF :
.."According to UK government information, a UKEF (UK Export Finance) approval typically takes around 1 to 2 weeks to process, with the decision usually communicated within 7 working days; however, more complex cases might require additional information and could take up to 2-3 weeks to finalize."
First Bakamla, what's the apparent delay -10 weeks now? - with Kuwait?
If there's an explanation that I've missed, grateful if you would indulge me and repeat it.
TIA |
Extrader
If you listen to the link provided by Owenski ... |
.."The OI loan is expensive, but I doubt if the share price would be at £1 without it..'
Could you clarify, pls?
My screen has the s/price at around half that.
?
Cheers |
I will also be at the Centurion Wed night, all being well, would be good to have dinner also at 6.30. Hope to see a few regulars there. Will only be my 2nd SRT AGM but have been invested for what seems like half a generation.. |
Very interesting Owen. He resonates quite strongly with what I felt at the time, viz if SRT's offering is the only one in town then Kuwait has nowhere else to shop and could have been made to wait until the UKEF had provided the 80% cover. The OI loan is expensive, but I doubt if the share price would be at £1 without it. Maybe had Kuwait waited and the Bakamla project had started it would be. |
Amati Global commentary on SRT @ 42:35 - |
My wife and I will be staying in the Centurion and having Dinner at 6.30pm. We would be pleased to sit with other shareholders, actual or potential. |
I will be at Centurion Wed night if any one else is there and fancies dinner? |
Hi LaValmy,
.."It seemed pretty obvious that SRT expected UKEF to take some time to issue cover for this. At the time it was stated that it was a different and shorter process compared to the Bakamla loan. That is the one I would like clarity on as it is impeding progress. The OI issue isn't, though I will ask what the hold-up is."
Thanks on both counts.
."More than likely it would involve an extra set of fees and OI may have to deposit the cash in any case.."
In the context of what Ocean has achieved by this move, an extra set of fees is irrelevant, IMO.
Ocean was able to mobilize $ 21.4m 'overnight' (I may be exaggerating) to cover an urgent need....I don't get the impression that it's at all squeezed.
Banks tend to consider contingent obligations-such as guarantees - more lightly, with Basel bank risk weighting connivance/support reflecting this, precisely because they're not as 'absolute' a credit problem : there's usually some wiggle room over interpretation or time to negotiate, whereas with cash, 'when it's gone, it's gone'....and, for balance, on the other side 'possession is 9/10ths of the law'.
In my limited -but intense- experience.
ATB |
Extrader
I just spotted your post about Santander's potrential exit. I doubt that they mean winding down their presence rather than selling up so assume that it would be business as usual. |
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