Srt Marine Systems Share Discussion Threads

[lavalmy] 24/9/2021 17:20

I have had another listen to the more relevant parts of the webcast and a few things have enthused.

The two important parts are the two 'wordy' slides about what makes SRT's offering unique and why it takes so long to get contracts signed. The long gestation period has allowed SRT to really understand what their customers want or can achieve and given them the time to develop it. A good example is the dynamic delivery of information to the hub - if the backbone can't deliver that quantity of data, it is reduced to e.g. 1 slide per second as opposed to 70 so as to not clog up the arteries.

A second example is the 6,000 alerts in the first few days in Bahrain, mainly due to speeding. That overload for the operators led to the new thinking about both automation of actions (sending emails to the speeders) and development of an action management functionality.

So the prolonged and intimate relationship with various customers, instead of being a moat in itself, has allowed SRT to build a real moat in the GeoVS Hub. Once installed, the moat is both the relationship and the Hub, with a highly profitable gateway feeding in the satellite data streams.

I suppose hats off not only to SRT but also Bahrain for taking the plunge which has allowed this development to take place. I know it has been long and that quite a few shares have been issued to cover losses, mostly at low prices, but shifting AIS boxes was not going to work on its own as no-one knew what to do with the data. SRT realised that they didn't know what to do with other data as well, so developed something that could make sense of it all.

[alter ego] 24/9/2021 10:10

Jeff just gave it as an example LaV, he was asked (by EE I think) what the biggest challenge was and gave that response. You might be right though about VN. In my own limited experience video formats do vary across manufacturers. Over the years multiple formats have emerged, VHS/Betamax, numerous Codecs, video streaming formats, security camera formats. Maybe the same is true for other data streams, audio, radar, infra red? I guess that's the general point. If you want to be able to fuse multiple data streams you need to cope with whatever is thrown at you.

[lavalmy] 24/9/2021 09:55

I was wondering who might have a Russian camerato integrate into GeoVS? Vietnam?

[alter ego] 24/9/2021 07:46

Troll alert - filtered long ago.

[kendonagasaki] 23/9/2021 22:37

Simon Tucker has just bought another new Rolex Watch!Must be on a good whack paid for by you mugs?

[extrader] 23/9/2021 17:10

.."I will be needing some myself soon if what my wife says is true..."

Somewhat O/T, but it vaguely involves Bahrain.
I leaved there at the time (about 30 years ago) and we had annual home leave, to include a medical. I think alcoholism was the main concern.

Anyhoo, my wife asked for my hearing to be included in the test. After the checkup , the doc asked how long we'd been married ? It was about 7 years by then.

'Aaah' came the reply...'psychological deafness...'

Thankfully, that bit didn't make it on to the written report.

[alter ego] 23/9/2021 17:06

LaV, it was I that raised the Exact Earth takeover. ST saw nothing significant in it for SRT and my conclusion was that he thought there is enough choice already as to who supplies the data.

[lavalmy] 23/9/2021 16:58

Thanks AE. I will be needing some myself soon if what my wife says is true.

I just seems odd that they want new ones already, unless there is some new functionality.

[alter ego] 23/9/2021 16:45

Thanks LaV - I have to wear hearing aids these days so must have misheard - £25m would be very significant so little wonder there is excitement.
Haven't watched the replay yet, too busy and was probably scribbling notes while ST was doing his presentation as I knew I could watch later. I only heard that Bahrain had found more boats than they expected not why any were being replaced..

[lavalmy] 23/9/2021 16:41

I know someone at the AGM asked about the exactEarth takeover, but it occurs to me that the repercussions of the price paid are not fully factored in. Nine times revenues was the price paid. Now SRT is expecting to sign a 10 year contract to supply the Philippines with satellite data, starting at £2.5 million a year, going up as they add more transponders (though not linearly). SRT have a fixed cost for the acquisition of the data, purchasing by area rather than number of boats, so any increment is pure profit.

eE, on the other hand, have to pay some of their revenues to Harris who own the payloads on the Iridium satellites. They in turn have some obligations to Iridium. Competition is driving down the price of raw data of all forms from all the new satellites and in any case the various governments have no interest in buying say infrared data from one outfit, radar from another etc. They seem to have little interest or clue about how the MDA system actually works, but judge it on price per boat, performance and such like.

The overall point, I suppose, is that SRT could well get into a position where it has very significant revenues derived from satellite data of various sorts without having the headache of actually having any satellites. And those revenues are highly valued at the moment (madly so, but perhaps there is a winner takes all mentality). SRT isn't.

[extrader] 23/9/2021 16:36

..Did anyone discover why Bahrain would want to replace the transponders they already have?..

If I heard the right bit of the webcast , SRT spoke of 7,000 or so transponders
- not clear why they wanted to replace them..but
- said they needed another 7,000 for all the boats they hadn't previously counted.

AIUI

[lavalmy] 23/9/2021 16:11

Thanks AE.

I think revenues of £25 million for the Nexus might be closer to the number.

Re the Gabon, CLS thinks they have that wrapped up:



If SRT have only recently been asked, are CLS using SRT (unlikely) or has something gone wrong with the CLS contract - price found out to be too high? Small beer in any case.

Did anyone discover why Bahrain would want to replace the transponders they already have?

[alter ego] 23/9/2021 15:50

Here are bullet points extracted from my AGM notes. Apologies for mistakes and memory lapses. Perhaps others who attended would be good enough to add corrections or amplify where needed.

More or less in chronoligical order:

Cynthia Johnson - Business Support Manager, Maritime Domain Management
Highlighted by LaV recently.
- Brought in to help ensure customer experience of project is as good as possible.

- She described it as looking at the “soft” aspects of project to help improve customer experience. I understood that outside of hardware and software, there is a need to look at the users of the system and work out how best to support them with information, posters, leaflets, possibly multi media.

- Asked if she is bilingual she said her French was adequate but as she lives in Toulouse, I assume it’s better than that.

Demonstration of GeoVS system used in Philippines by Jean-Francois Bonnin (known as Jeff) Director of Product Management
- Biggest challenge for software is being agnostic to data source particularly if say, Russian equipment like a camera is used as formats deviate from the norm

- Anticipating adding data sources such as satellite light detection, underwater sound and surface noise detection

- Key feature of GeoVS is being able to show data from all sources on one screen controlled by one mouse.

- Covid has made visits very difficult and time consuming because of quarantine rules

- In country partner role is crucial with responsibility for much of installation, training and system admin, routine tasks. Selected with care wherever possible to get right partner.

- SRT will eventually handover and step away

- System creates alerts which trigger automated actions like notifying boat owners of transgression of rules to deter and show they are under surveillance

- System analyses activity to produce management reports to show what is happening at a summary level

- V.11 is due next April then every 6 months rather than 3 month as previously

- Version control – not different versions for each customer. All features available but some unwanted and not used. Will not support all old versions so will need to enforce upgrades where customer has chosen to stay on an earlier release.

- Although data is owned by the customer local agreements between countries e.g. Philippines and Indonesia and some International ones, allow for some sharing in the common interest.

Finance, Richard Heard CFO
- Comfortable with level of cash but clearly not complacent and hoping for more to come in.

- Enough headroom on Barclays banking loan if cash becomes tight

- Not considering shareholder fund raise

- Have repaid some of loan note borrowing but would not expect difficulty in raising more if required

- Inventory low - lessons learned from over-anticipating take up in past

- Payroll about £4m approx. 70 staff

- No staff furloughed during Covid

Products and sales
- Poseidon obsolete, no longer made

- Apollo well received in market

- Low fault rate - 1-2% but some are no fault found. All returns examined to locate problem

- Approx 1200 dealers, up from 6000 a couple of AGM's ago

- Next day delivery on orders

- Leisure boating has grown as people have money not spent on holidays

- Transceiver sales run rate getting closer to £10m

- EmTrak direct sales – people can use Google to find cheapest source and won’t undercut dealers. EmTrak kit selling well.

- New marketing agency appointed in last year. Very pleased with their work.

- Product reliability remains high with returned faulty at between 1-2 %. All are investigated to discover why. A number are no fault found and likely to be operator error.

- Chip shortage not yet a problem but lead time now at 12 months. Most transceivers have approx. (80?) components the lack of availability for any one of which would prevent manufacture. Flextronics clout is key to maintaining supply.

- New product called Nexus being developed for launch anywhere from late 2022 to first half 2023 with much of the requirements input being generated by Warren Lester, Transceiver Product Manager as well as input from the panel of mariners LaV commented on.

- Everyone very excited at possibilities due to innovative features and user friendly interface design.

- Plan to attend METS trade show mid November and to engage with 8 large OEMs who need advance notice of new product to plan their own response including asking for specific requirements. Raymarine, Navico, JRC and Garmin mentioned. ST believes if OEM’s take up the product others will follow to avoid missing out so the response to the soft launch this year is crucial. Garmin have not previously been a SRT customer despite acknowledging the quality. Commercial rivalry between OEM’s has been a factor so hope is that will not apply here.

- Significant revenue possibilities, Edit see post 11038

- AtoN making headway and significant opportunity to expand sales. SRT are adding additional elements like mounting brackets, solar panel, sensors etc to make it more “plug and play” for installers and buoy makers.

- John Guercio recruited from Navico as OEM & Module Business Development Manager. Will join in Novenber. As EE reported, he will take on promoting take up of AtoN’s as well as the Nexus product. Already being helped to get up to speed.

- SRT looking at shipping direct from Flextronics in Ireland to EU customers to eliminate Vat being charged on export from UK .
Also looking at setting up an Irish company.

Projects
- Saudi – ST met senior haed of “civil service” responsible for 60,000 staff approx. two weeks ago. Was told no outstanding issues to be resolved and contract expected to be signed once the seven separate ministry departments had carried out the procedures. indicated more like days not months “inshalla̶1;.

- Bahrain – expected to upgrade existing system soon.

- Philippines – covid has created delays in getting staff on site but system operating well and all payments due to date have been received. Approx 1000 transceivers now installed and operating.

- Vietnam – yellow flag from EU being ignored in favour of spending money on covid measures. Suggested that countries in this region tend to be fiscally more responsible than in the west and do not just borrow to meet expenditure.

- Bangladesh was mentioned but my notes unclear on what was said and memory not reliable – anyone else able to comment?

Gabon – enquiry received very recently. I think ST mentioned in his presentation – small project, rapid completion possible.

- Enquiries being received regularly. Some instantly dismissed as too embryonic to devote time to. Customers given some standard information to help them develop a better case for engagement. Libya cited as one such. Another, an unnamed South American country with no money to finance a project.

- Indonesia - my understanding is that dialogue has continued following the cancellation of the earlier contract award due to a change in high level personnel and prosecution of the previous incumbent for corruption. Need has not gone away.

- Much of Africa under EU influence and funding.

- Francoise Debroux is International Director of sales sharing the workload with ST. Important to meet customers face to face wherever possible despite Covid constraints.

Geoff aka The Prophet
I asked ST if he had heard from Geoff. He said he had tried to contact him without success some time ago. Great shame if we have lost him.

[yumyum] 23/9/2021 13:45

Thank you alter ego and eagle eye.

[pinkfoot2] 22/9/2021 21:53

Any news on income/sales?

[eagle eye] 22/9/2021 20:07

Covid, lack of news flow or whatever, only 12 people (plus staff) attended the the AGM. No it wasn't like the last supper (especially with those notorious cakes making their first appearance in two years).
The AGM was held at SRT HQ and not at the Centurion Hotel as has been the case over the past half dozen years. Usually there is a push for management to break away around 12 o/c, but everyone gave their time freely and proceedings closed around 1.30pm.
SRT continue to add new faces, though in a very selective way. A new person starts early November to head the AtoN sales/marketing space. SRT are increasing headcount in both software testing and hardware engineering.
Overhead this year could increase to around £9m, so a project (or projects) will need to land for SRT to wash it's face in the current financial year.
Nexus is a big project and will account for approx 90% of R and D effort over the next 12/18 months and SRT have high hopes for it. No pricing point, Mr Tucker says it will be 'competitively priced'. The market it addresses is substantial, so could have a meaningful impact on turnover.
There was an impressive demonstration of the BFAR MDM system (minus the live boat positions)showing how data analytics can be used to create actionable information. This must provide an excellent reference for any prospective purchaser.
It was clear from the warehouse tour that a large quantity of data centre hardware was ready for shipping. Who knows whether it's weeks or months away, but it's ready to go whenever. It's likely to be air freighted in days, so when the contract gets signed, it will be on it's way.
Thanks to everyone who made the effort to attend, it was good to see some regular faces. Thanks also to everyone at SRT also who put the time and effort into making it such a successful event.
Best wishes
Eagle Eye

[fredfishcake] 22/9/2021 19:29

For those who missed it, AGM at

[alter ego] 22/9/2021 17:41

you're right LaV, there's been an enormous effort to make sure the product meets the needs of the user. My impression is that functionally it will outdo anything on the market and as far as Vesper is concerned it will be priced to be a more affordable.

[lavalmy] 22/9/2021 17:03

One thing I thought significant from the webcast was their boating committee providing feedback/ideas for the Nexus product. I take this as tacit recognition that Vesper have stolen something of a march in the tech savvy segment (the founders were nautical and I think their boat was called Vesper) - the functionality and user-friendliness from a boater's perspective is crucial to wider adoption, so getting real users involved early will be a great help.

Otherwise, his imminence sounds about to be proven right.

[yump] 22/9/2021 16:31

alter ego and anyone else...

Thanks for any updates and notes you care to share - its very useful. I'm just too unpredictably busy to get to any AGM's.

Also nice to have someone commenting who hasn't got the rose-tinted's on. (in contrast to a few other shares I have when posters have attended AGMs !)

[pinkfoot2] 22/9/2021 16:24

Basically no change!

[alter ego] 22/9/2021 16:17

Home now from the aGM. Lots of notes to pour over and bits and pieces lodged in memory to recall. That's mainly bits of detail that will hopefully flesh out the bare bones which will be seen on the recording of ST's presentation.

Perhaps in the time I have available now, the best thing I can do is give my reaction to the event and the numerous conversations I was party to. The rest I'll try to write up tomorrow.

My overriding impression is of a company champing at the bit to get going, knowing that they may only be days away from the news we all have been waiting for from KSA. I'll qualify that by adding that nothing is predictable regarding timeframes but that all the negotiation, modification, agreements on what is needed is behind them and it is now a matter of waiting for the customer to satisfy their own internal procedures.

Equipment required to be installed is ready to be shipped, bolted to pallets awaiting boxing up. The customer staff who will operate the control rooms have been selected and relocated in readiness. It could be on its way next week or in a month or two. No-one is sure how long it will be but there's no sense that it will not happen

The other big takeaway was the excitement surrounding the Nexus product under development. Everyone involved believes SRT are on to a winner with this product which combines AIS and VHF radio but with lots of connectivity and a user friendly interface. Much of the detail is a closely kept secret but a prototype device will be soft launched at METS in Oct/Nov and direct discussions are lined up with 8 major OEMs to prepare them for its availability late 2022/ early 2023. The aim is to produce a product that is functionally a must have and priced competitively. An informal discussion over sandwiches, revealed just how important this could be and how large the target market is.

Finally for now, I once again saw how unified the SRT team is, all singing from the same song sheet and how happy they all seemed. One who I won't embarrass by naming said they loved their job and the company they worked for. Despite Covid restricting staff getting together, there is a clear can do attitude to overcome the obstacles.

It was good to see so many faces, many more than I expected, many of whom I know or who are familiar from past AGM's.

[alter ego] 15/9/2021 20:07

La V you may envy us rubbing shoulders but I just watched an old Rick Stein travel program when he visited Palermo. Have to say I envy you for the sun, the fish, the lemons, the fruit and the wine. Think that makes us even. 😎

[alter ego] 15/9/2021 15:36

Yes La V, Have to get covid tested yet but all being well, I'll do my best with notes. Luckily the presentation is live streamed and presumably recorded for later viewing. That should reduce the volume of notes required to be taken. Hopefully some attendees will do likewise.

[lavalmy] 15/9/2021 15:27

AE, as I said that was before emTrak. This new lady is on the GeoVS side, so systems.

They were beginning to have a remote working system before COVID - a guy in Toulouse, a Canadian - but now seem to be even more comfortable with it. This new lady in Toulouse (who was freelance for a long time before CLS so is used to being a self-starter) and some programmer up North in Shipley.

I envy you the chance to rub shoulders with all the senior managers - last time you and others got lots of information from them. I hope you meet with the same success and report back with your customary diligence. I will be watching the main event, of course.