Srt Marine Systems Share Discussion Threads

[extrader] 03/7/2018 17:17

Hi EC,

May be that SRT just want a bigger time window in which to allow a contract or two to be RNS-able...?

ATB

[effortless cool] 03/7/2018 15:01

Results 23 July.

Over one month later than for any prior year, which is perplexing.

[goodapple] 03/7/2018 14:57

"Greater detail will be available with the results later this month.'"???

[yumyum] 03/7/2018 14:48

Thank you LaValmy. I am glad to see finnCap sticking their reputational neck out and saying that they feel SRT is ''deeply undervalued''. I agree of course. finnCap's Target price (p): 75.0

[philburt] 03/7/2018 10:53

LaV - Thanks for the update.

[lavalmy] 03/7/2018 10:50

finnCap's take on the JRC deal:

'The global provider of maritime management and surveillance systems and the leader in AIS technology, has entered an OEM partnership agreement with Japan Radio Corporation (JRC) of Japan. It will supply JRC with AIS product solutions customised and branded to JRC requirements. We are not changing forecasts at this stage but this is a very encouraging development, which will help to underpin the recurring revenue base. Japan has several suppliers of AIS technology and it is very encouraging that a UK firm such as SRT has been selected for such a prestigious long-term contract. We continue to feel the business is deeply undervalued, with significant project deliveries expected over the next few years. Greater detail will be available with the results later this month.'

[goodapple] 02/7/2018 11:57

I trust when jam tomorrow becomes jam today that the share price will respond with considerably more enthusiasm than it has to today's positive news.

[srtshare2] 02/7/2018 10:48

Muted share price response....too much jam 2mrrw. Havent started the last lot yet.

[fredfishcake] 02/7/2018 10:02

It would be nice if SRT had a stab at quantifying this...kind as it is for Laval to make an estimate above, wouldn't it be better to have it from the horse's mouth?

Having said that, it does look like a real feather in SRT's cap.

[lavalmy] 02/7/2018 09:56

Kudos for sure. Probably adds IRO £2-300K post tax, certainly not £50k and very unlikely to be £500k, so maybe worth 2p on the share price

From the original broker's note:

'In terms of device-specific competition, Saab (one of SRT’s earliest partners), Furuno (based in Japan) and Japan Radio Corporation are the largest competitors for Class A devices. The latter two tend to use legacy hardware and in fact may be future customers for SRT’s modules, particularly as component sourcing becomes difficult as stocks reach obsolescence.'

Didn't Simon say in the webcast that they were hoping to add OEM customers soon? So maybe Furuno could be next.

I'm a bit surprised that JRC didn't insist on keeping this under wraps.

[extrader] 02/7/2018 08:38

Hi all,

Coals to Newcastle, sand to the Saudis, electronics to the Japanese...;->

ATB

[goodapple] 02/7/2018 08:36

An underwhelming response from the share price so far, but Simon has repeatedly stated that there would not be any RNS's issued which were not significant.
This looks significant to me, and I'd agree with C5's comments above although lining up potential takeover predators at this stage may be a bit premature.

[pandeck] 02/7/2018 07:49

fft - you really must try harder....

[countryman5] 02/7/2018 07:36

This is a very significant RNS. JRC is renowned for quality at the top end of the commercial market and they have chosen SRT to provide them with their AIS modules. Praise does not get better than that. JRC is big, much bigger than Raymarine. JRC has 5650 employees and sales of approx £1,0000 million and describes itself as 'one of the leading companies in the field of wireless'. My understanding is that it always developed its own AIS and therefore it must have stood down its own R&D AIS development team. This sends a very powerful message to the global maritime market about who is best in class in the global AIS market. This tells potential buyers that EMTRAK is best in class and will enhance both EMTRAK and OEM sales going forward . The likes of Garmin will know that buying cheap and dubious alltech is not the way to preserve their brand name.
I predict that JRC will want to buy SRT Plc because they cannot afford to allow a competitor to buy their source of AIS modules. Not only that but SRT are now competing with them in their very profitable systems market.
If there is a fight between JRC and CLS for the ownership of SRT that would be two big pocketed suitors... but there may be others.
SRT merges CCTV, radar and other information in its GeoVis system. But once it detects a target, the logic would be to provide the response such as armed boats or missiles, which makes SRT attractive to global defence companies.
Who will be the lucky buyer of SRT Plc and at what price?

[fft] 02/7/2018 07:33

Wasn't that impressed. Surely this agreement can't be material to revenue given the amounts expected from projects, and isn't it a bit worrying that there is still no official mention of a contract despite numerous mentions on this BB and apparently by ST at Mello recently ?

[lavalmy] 29/6/2018 13:13

WRT to goodapple's quote above (and the reply to extrader in the header), I think AIS/terrestrial is the only way to go, for now at least. exactEarth's recent tie-up with IHS Markit is as clear an indication as you can get that satellite AIS and busy areas do not mix and it has to be supplemented by terrestrial coverage and that for the relatively easy Class A transmissions.

These VMS projects don't just involve standard AIS messages, of course. There is all the catch reporting etc to beam up as well and I have no real idea of how they are doing that in terms of transmissions. From extrader's reply:

'SRT’s approach has been a little different. Our VMS system offers an innovative onboard data in put method using our VMS-Connect application that enables the fisherman to use a cheap mobile device. We have selected AIS as the transmission method since when near to shore there is no data costs, and when further out with SAT-Trak it can continue to be tracked, but now at between $5 and $10 per month ..'

and

'If 20,000 vessels were transmiting data to the Inmarsat overhead, it would be overwhelmed as it was not designed for this.'

From these two, I surmise that whatever data the fisherman is putting into his mobile, that is transmitted to the shore stations, and, if, further out, via satellite. Quite how much data is needed and when, e.g. if the customer needs once an hour pictures of the catch or whether that can simply be stored and accessed later, is a bit unknown. However, the Inmarsat/CLS approach doesn't seem to be capable of coping with large numbers either (and that would be non AIS transmissions).

[desha] 29/6/2018 12:48

thanks LaV. Had assumed Vietnam was asking the EU to fund at least partially

[lavalmy] 28/6/2018 12:57

goodapple

Couldn't have put it better myself.

[goodapple] 28/6/2018 12:55

I quote from a reply I received from ST some time ago, regarding SRT's main markets being outside the EU:

"For SRT, our opportunities are all outside of the EU. The EU is, today, a minor commercial marine market. For example the Vietnamese fishing fleet alone is 50% larger than the entire EU fishing fleet. They do not have VMS systems currently and cannot afford the version of VMS system used in Europe. This is where our AIS based version, which has a low per vessel installation cost and low ongoing operating costs is so attractive and why we are making such good progress with our plethora of discussions with these countries in particularly in the area of fisheries."

I look forward to Vietnam getting up and running, to be followed by others from "the plethora".

[philburt] 28/6/2018 12:26

LaV - Good points. Thanks.

[lavalmy] 28/6/2018 11:51

desha

If Vietnam are short of funds, they will go with the most cost effective solution. The loans that CLS manage to organise from the French (not EU) government still have to be paid back, so the question of cost remains - if CLS is 66% more expensive, it would require a heck of a soft loan to make the NPV cost to Vietnam equal to a self-funded option.

There is also the point about scalability - if they are going to track the other 80,000 fishing boats that don't go far offshore, they can do that with the AIS infrastructure and no communications costs. In the government document, they are planning to do just that. Plus you have EEZ security and port management aspects. All that can be added on to an AIS system.

The original CLS Movimar system was paid for by a French loan. Vietnam are now stuck with having to repay that. I imagine that they are now much keener on value for money.