Srt Marine Systems Share Discussion Threads

[countryman5] 02/5/2021 17:14

Hopefully the Philippine Coast Guard will be impressed with the SRT / BFAR system and will soon be in the market for their own sophisticated MDM system. Vietnam and Indonesia have similar problems with China.

29 Apr 2021
Philippine President Rodrigo Duterte has said he will not withdraw navy and coastguard boats patrolling the disputed South China Sea, insisting the country’s sovereignty over the waters is not negotiable. At the same time, he added that he wants to maintain friendly ties with China, citing Manila’s “debt of gratitude” for Beijing’s help with the coronavirus vaccine.

Tensions over the regional sea, which China claims almost entirely, have spiked as Beijing refuses to withdraw its vessels from the Philippines’s Exclusive Economic Zone (EEZ) and as Manila steps up maritime patrols.

KEEP READING
Taiwan boosts South China Sea deployments, gets submarine nod
US, Philippines discuss Chinese ‘swarming̵7; in South China Sea
Philippines, Vietnam press China over South China Sea activities
Duterte is under growing domestic pressure to take a harder line but has been reluctant to confront China over the issue as he tries to foster closer ties with the economic giant.

He said late on Wednesday that while the Philippines is indebted to its “good friend” China for many things, including free COVID-19 vaccines, his country’s claims to the waterway “cannot be bargainable”.

“I’ll tell China, we do not want trouble, we do not want war. But if you tell us to leave – no,” Duterte said.

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“There are things which are not really subject to a compromise, such as us pulling back. It’s difficult. I hope they understand, but I have the interest of my country also to protect.”

Duterte’s apparent attempt to hedge the issue has drawn the ire of Filipinos on social media with many condemning the president as a “traitor”; for not taking a firmer stand on the South China Sea dispute.

In a statement on Thursday, retired Supreme Court Justice Antonio Carpio, who argued the Philippines’ case on the South China Sea before the International Court of Arbitration at The Hague, also criticised Duterte.

“Filipinos deserve, and should demand, a president who loves Filipinos first and foremost who will uncompromisingly defend Philippine sovereignty and sovereign rights in the West Philippine Sea,” he said.

Naval drills
Duterte’s remarks came after the country’s defence department said China had “no business telling the Philippines what we can and cannot do with our own waters”.

The Philippine coastguard is conducting drills near Thitu Island and Scarborough Shoal, as well as the Batanes islands in the north and the southern and eastern parts of the country.

Scarborough – one of the region’s richest fishing grounds – has long been a flashpoint between Manila and Beijing.

In response to the exercises, China’s foreign ministry said on Monday that the Philippines should “stop actions complicating the situation and escalating disputes”. Other littoral states, including Malaysia, Vietnam and Brunei, claim parts of the South China Sea. Taiwan also has a claim.

In recent weeks, Manila has boosted “sovereignty patrols” involving the navy coastguard and fisheries in the Spratly Islands – an archipelago contested by several countries.

The Philippines has also carried recently a joint military exercise with the United States.

Beijing has ignored a 2016 international tribunal decision that declared its historical claim over most of the South China Sea to be without basis.

Once-frosty ties between Manila and Beijing have warmed under Duterte, who set aside the ruling in exchange for promises of trade and investment – which critics say have not materialised.

Delays in COVID-19 vaccine deliveries has left the Philippines heavily reliant on the jab developed by China’s Sinovac.

About 3.5 million doses have been sent to the Southeast Asian country so far, including one million donated doses.

SOURCE: AL JAZEERA AND NEWS AGENCIES
RELATED
Foreign Affairs Secretary Teodoro Locsin, pictured with his Chinese counterpart, Wang Yi, had promised that Manila would file diplomatic protests 'every day' as long the Chinese vessels remain within the Philippine EEZ [File: Nicolas Asfouri/AFP]
Manila hits Beijing’s ‘blatant disregard’ of South China Sea vow
The Philippines files two more protests after maritime authorities spotted 165 Chinese vessels on Tuesday.

23 Apr 2021
The Philippine Coast Guard reported on Thursday that despite repeated demands by Manila that Chinese ships leave Whitsun Reef, at least 240 Chinese vessels remain in the area and surrounding waters as recently as Wednesday [Philippine Coast Guard]
Duterte urged to confront Chinese ‘bullying̵7; in South China Sea
Manila urged to shore up its exclusive economic zone in the South China Sea by building structures within its waters.

[goodapple] 30/4/2021 14:48

A little update from Bfar on the Gallery.

[piedro] 29/4/2021 08:14

Not without a fight ...

Philippine Military: China Should "Desist and Leave" Spratly Islands

[alter ego] 22/4/2021 17:12

Agree EE. Doubt the people who rely on fish as main source of food or income would agree with Duterte. Sounds like open invitation for China to grab what they like. Sad.

[eagle eye] 22/4/2021 15:59

Maybe not enough fish to quarrel about, but definitely a good reason to manage what you have left!

[piedro] 21/4/2021 08:45

“I’m not so much interested now in fishing. I don’t think there’s enough fish to quarrel about,”

Duterte "Not Interested" in Confronting China on Fishing Rights

[supernumerary] 17/4/2021 19:39

I never knew clams were quite so expensive. Also ecologically disastrous - no wonder the Philippines want to control the fishing in their zone...



Philippines: Giant clam shells worth $25m seized in raid

Around 200 tonnes of illegally harvested giant clam shells worth nearly $25 million (£18 million) have been seized in the Philippines.

The seizure is one of the largest ever hauls of the endangered species.

Four suspects have been arrested on an island in the ecologically protected province of Palawan.

Giant clams can grow larger than one metre across, and weigh up to 250kg. They are seen as vital to the local marine ecosystem.

The Philippines is home to most of the world's giant tropical clam species.

[ ... ]

[goodapple7] 16/4/2021 14:01

Any mention in Investors Chronicle?

[pinkfoot2] 16/4/2021 13:27

I was looking at past Finncap research notes and came across one from 2018.In the same note was Finncap’s bullish view on Utilitywise-a company which has since imploded!At least SRT is still trading

[lavalmy] 15/4/2021 15:17

I hope so as it might make more sense than what the broker puts out there (even though Thompson does use their output extensively).

'Management expects the System business to book at least £125m over the next 24 to 30
months, to which can be added £20m of Transceivers business in that period. We ascribe
the former a 25% GM and the latter a 40% GM (as seen in 1H21) totaling a £40m
contribution. Cash overheads are c.£6m pa, suggesting EBITDA of at least £25m is due in the next 2½ year period.'

As I mentioned previously, they are also expecting a cash contribution of £4 million from the transceivers business this year 'from profits' which is about twice what they work out at above. Also I have no idea what they mean by 'as seen in 1H21'. How on earth can they have seen that? 1H20 had no project revenues, nor for good measure did 1H19.

But it is a real issue. What are the margins on these contracts? Given that they are all supposed to be systems sales with a large software component, if they don't hit their 50% target with these, they never will.

Cash overheads are not £6 million. Cash overheads not including R&D might be. The R&D expenditure used to be roughly equal to the amortisation number and not worth adjusting for. Last year it was £3 million versus a £1.8 million charge so the gap is widening, as is the temptation to stress the EDITDA numbers. An item of expenditure may be capitalised or expensed, but it is still an item of expenditure.

On the more positive side, it does seem that they have taken a lot of the cost and complexity of executing on these contracts out and a lot of that effort has indeed been expensed this year without any corresponding revenue. So maybe the 50% margin is on the cards and PBT in the region of £20 million, more befitting as a reward for our patience. .

[pinkfoot2] 15/4/2021 14:12

I didn’t see you as shortermist CM?

[countryman5] 15/4/2021 11:53

Will Simon Thompson comment tomorrow?

[supernumerary] 14/4/2021 17:30

ae - yes, I wondered about that. Maybe satellite transmission is involved?

kinbasket - Columbia? Unlikely I think. Maybe Colombia, or Panama even - they must be worried about ships getting stuck in their canal too :¬)

[alter ego] 14/4/2021 16:41

C5 asked in post 10714 what the new "transceiver product" might be. I've puzzled about that ever since Simon first mooted the product. I note that the latest presentation slides on the web site refer to it as a "marine communications product" within the Transceivers Division. Is there a clue here about the nature of the product? With pure transceivers being pretty well up to date is this a hybrid incorporating radio too or perhaps a standalone marine radio?

I don't know, but it seems a little odd to refer to it using somewhat different terminology in the trading update and the presentation.

[kinbasket] 14/4/2021 16:12

On page 7 of that presentation the 5 green dots of the "future" are in Columbia, Saudi, Bangladesh, Ghana (i think could be liberia or SL.) and Philippines.

[pinkfoot2] 14/4/2021 14:20

All good stuff but they lost a pile of money on very low reported revenue-is there a forecast in the market for 2022

[piedro] 14/4/2021 12:14

Thank you LaValmy,
I found the new look presentation very refreshing

[lavalmy] 14/4/2021 11:46

'Robust financial management means the business is in a good cash position' is more what you say when banging the drum than passing the tin around and is indeed what is said in this investor presentation:



There are some very interesting things in there. The most revealing is a picture of 'A GeoVS Hub System ready to be shipped to the ME'. Given that they have been bitten previously on buying equipment prior to contracts being signed, it suggests both certainty and imminence, to borrow a phrase. Also the £14 million cash inflow from Saudi in short order.

Additionally,'follow-on contracts to expand these initial systems already under discussion' and re the Philippines 'negotiations underway for next phase and ongoing system maintenance and data supply contracts'. The picture is quite rosy indeed.

[lavalmy] 13/4/2021 15:47

It sounds like Duterte is growing a pair, but more like an extension of the broad pushback against China throwing its weight about. You mentioned Vietnam sending a Navy vessel out the other day.

Last year's olives worked a treat BTW, the first year's I had to throw away.

[alter ego] 13/4/2021 15:17

As ever, thanks for your interpretation of the situation. Maybe, my jam will not see out the year unopened. Perhaps you have a jar of olives and some vino to enjoy as you don't like jam as I recall.

[lavalmy] 13/4/2021 15:10

They have just paid back about £1 million of the loan note program, due on 7th April. It does not look like it has been rolled over although there was a lag last time when the previous one was indeed rolled over.

The broker's note mentions that the next tranche due in June will either be rolled over or paid back depending on contracts/receipts etc - either way they look very comfortable for once. Also the CBIL loan repayments start in July at £250k per quarter.

From the numbers mentioned in the update, it looks like it is Saudi going ahead in H1, some £35 million. That one, if memory serves, was expected to pay up quickly for the almost immediate installation of the hub/GeoVS, c. £14 million high margin. If so, the position becomes exceedingly comfy.

[yumyum] 13/4/2021 09:42

A couple of weeks' ago there was approx GBP5.3 million cash. A further GBP5.7 million is due in the coming year from existing Philippines contract customer. Then there will be normal cash income on top (tranceivers)....plus some cash from new contracts (watch out for some nice RNS announcements).

NO CASH RAISE.

[yumyum] 13/4/2021 09:38

SRT expect three contracts totalling GBP71 million to commence during the first half - i.e. Apr-Sept 2021. We will soon see if SRT are right this time (for once)...or Glavey.

[yumyum] 13/4/2021 09:33

No cash raise expected at all. What is expected : paying off debts, building reserves, and paying dividends. All this over the next 24 months. Oh......and a rocketing share price.