Srt Marine Systems Share Discussion Threads

[alter ego] 03/10/2018 19:43

Spot on la V. DJT appears to have an axe to grind as ST didnt give him anough respect when he challenged SRTs technical data. Collecting past cash due is one thing but assuming a repeat issue is quite another as anyone who attended the agm or bothered to read the multiple feedback posts would realise.

[lavalmy] 03/10/2018 17:03

An equally important point is that the Philippines project once signed and the original servers and software put back in (not very difficult) they will have an invoice of £8 million odd for which the have already arranged financing at a discount rate of 6% (which has been included in the revised higher price as ee notes above). This is non- recourse from Asian banks, so it renders what Mr Trading has just said largely irrelevant. Doubly so as the kit, from Dell et al., to be re-installed has already been paid for by SRT. A passing glance at the numbers suggests that this is the reason for the cash outflow being well above the operating loss - the accrual was paid. Then again management accountants aren't often allowed anywhere near the money, with good reason.

[yumyum] 03/10/2018 14:18

Thank you DJ. On the transceiver front SRT doing well then in a way. Growing market, lower prices

Agree that cash flow is important.

Signing one...or more than one big contract....soonish...is the main story really. With that done then extra loan notes will not be difficult. If necessary.

[dj trading] 03/10/2018 11:31

Given that Revenue mostly coming from transceivers currently (see today's TS and last year's results) I have updated prices below which show further reductions in selling prices. The Class A 50% off offer (see post above) has now gone but the Sailor Extreme package has 25% off currently!

Old Class A
Nov 16...Mar 17...Oct 18
£1339 ...£1175....£1091

New Class A
Nov 16...Mar 17...Oct 18
£3000 ...£2099....£1949

New Class B SOTDMA
Nov 16...Mar 17...Oct 18
£1425 ...£1049....£974

Competition for these products mainly from Weatherdock, AMEC and Vesper plus some Chinese manufacturers for anyone wanting to research further

[eagle eye] 03/10/2018 11:09

DJT,
Going forward the UKEF guarantee facility will enable cash to be released from invoice receivables.
I understand the cost has been inbuilt into contracts, so doesn't erode SRT's margin.

[yump] 03/10/2018 10:45

You should join up with opodio, you'd make a good team at Samaritans.

[dj trading] 03/10/2018 10:36

Eagle - Revenue is irrelevant now - they can do work and book milestones as they have in the past (to achieve Rev/PBT forecasts) but don't receive cash and Debtors just build up. They need cash!

Whilst they state they have agreed a £10m secured loan note programme each new issue has to be "sold" (eg The Space Prog highlighted in the original issue!)and given recent cash burn (and lack of sale-able assets to act as security) I think that will be difficult (even at "Wonga" interest rates) so I'm expecting them to come back to the market in 6-12 months if they can't get overdue Debtors to pay! or upfront/stage payments on any new contracts which I personally think is unlikely - most project Customers likely to want to see a working system with all snagging resolved before payment imo.

[yump] 03/10/2018 10:31

If SRT need more funding, I think they should be approaching Boris (and possibly Farage, if he's got any).

After all, their promise on Brexit was that a world of opportunity would open up selling to the rest of the world outside the EU. They didn't let it slip that UK businesses doing that, would need a whole new level of working capital to cover delays and long payment terms.

[fredfishcake] 03/10/2018 10:23

I don't remember Simon being *quite* as definitive as this previously:

"Our systems business expects to sign some new significant new contracts and complete the delivery of milestones during the second half"

Let's hope he's correct. At least they didn't waste money on proofreaders, either that or they *really* want to emphasize that these are NEW contracts!

[eagle eye] 03/10/2018 09:49

Core revenue last yr was circa £5m and is budgeted to grow 15-20% over the coming year, so let's call that £6m.
Overhead now £6.5m, so on 50% margin, that requires turnover of £13m to break-even.
So £7m required from projects for SRT to wash it's face.
But SRT isn't around to just break-even and I know Simon Tucker isn't motivated to just pull a salary.
Low risk investors would be wise sit on the sidelines and await contract wins, but will pay more for the shares which is the safest option.
Maybe the begging bowl will go around one more time, but hopefully not.

[countryman5] 03/10/2018 09:34

Pleasantly surprised. We knew that project money would be lacking in the first half.

[goodapple] 03/10/2018 08:43

Opportunity for our new Chairman to demonstrate his confidence and acquire a holding?

[dj trading] 03/10/2018 08:21

Simon needs to focus on cash flow in his webcast - this is the most important issue facing the company - how/when is he going to recover the overdue project debt. How are they going to fund new projects and how are they going to fund the ongoing cashburn.

Receivables were £4.3m and a large chunk was overdue at 31st March. What is the balance now and what is he doing about recovering overdue payments other than accepting the Customer's excuses for withholding payment?

[dj trading] 03/10/2018 08:08

So cash 31st March 2018 was £1.4m
Raised £3m in May
Cash 30 Sept 2018 £1.4m

So £3m spent in 6 months - some on placing costs and perhaps £0.5m bank loan repayment? (will know after webcast) but still well in excess of £2m

The overdue contract payments from Middle East don't even get a mention. Not looking good to me! deja vu?

[davemac3] 03/10/2018 08:07

That jam is still on the cooker

[kendonagasaki] 03/10/2018 07:57

Looks more like a free gravy train for a certain CEO?

[lavalmy] 03/10/2018 07:29

orinocor

The AGM, where everything was discussed, was only a few weeks ago. Did you expect any significant change since then?

[orinocor] 03/10/2018 07:23

There must be going concern issues now. This does not look like a business.

[goodapple] 03/10/2018 07:16

Webcast Friday morning 0800

[lavalmy] 01/10/2018 17:55

goodapple

Tucker is pretty scathing about this sort of stuff. It is all based on Class A AIS analysis which is fine if boats are actually transmitting (Class A's, that is). Peru currently uses CLS for its big fishing boats and I understand that they and SRT are competing there - over what I have no idea - but Global Fishing Watch/Google/Oceana and the likes are not competition. I think they were using the lights at night from the USAID weather satellite to help the Philippines as well - I can't be bothered to search again for the info as we are currently on the road - but as the Philippines will be converting to SRT's platform shortly, to be expanded thereafter, we can see which way the wind is blowing.

WRT to the re-tender, the wind has yet to blow from what I can see but no doubt it will very soon.

[goodapple] 01/10/2018 17:26

From Seafoodsource.com ( an interesting source of IUU news items )

"Japan, Peru using cutting-edge technology to combat IUU"

Global Fishing Watch etc delivering for Japan and Peru much of what SRT is offering, though it looks probably not with the same precision or in real time.

[yumyum] 01/10/2018 15:59

Countryman, in what repects is this a new tender process ? Where does it say rebidding ? I can only see the old tender on the bfar website.

[pugugly] 01/10/2018 08:39

If we do not win then calling share price sub 20p - Worse case < 15p

[crystball] 01/10/2018 07:39

We should not have to wait very long to find out if SRT have 'won' this contract! Also, if 'successful', a substantial sum of money should be forthcoming. We all look forward to that! ;-)