Srt Marine Systems Share Discussion Threads

[countryman5] 18/10/2018 18:32

If these contracts start to arrive and all of the hard work of the SRT team delivers, the market will eventually recognise the forward revenue streams created by satellite data sales and also the constant upgrades that the systems will have bought into. If the Geovs hub remains ahead of the game and globally unique, no one will be able to compete. There is an enormous potential for work beyond the current VSOP. This will be a rare example of Warren Buffet’s ‘moat’. It is also worth noting that because SRT controls the Geovs hub all feeds, cctv,radar, satellite and any other later feeds have to pass through SRT hands. SRT takes it’s generous cut on all equipment sales. When the contracts start to arrive the share price will respond accordingly but let us not forget that the SRT team will have a heavy workload delivering on our behalf

[yumyum] 18/10/2018 17:41

It is all jam tomorrow. I understand that. :-)

[yump] 18/10/2018 17:41

I think in the UK a high multiple depends on a share becoming trendy with some recognisable buzzwords involved, as well as delivering earnings growth. Call me a sceptic if you like, as I am.

Although there are plenty of examples of mundane earnings growth where multiples have been very high eg. IQE.

So once the earnings start growing here, can we 'prime' ST to use a few bits of jargon to capture the interest of the investment community ? Any ideas ?

The Internet of Things being applied to millions of boats...

PS it doesn't have to be accurate

[yumyum] 18/10/2018 17:37

In May 2018:

£132.5m | 7 Projects in specification phase

£167.5m | 11 Projects in planning phase

£119m | 10 Projects in procurement phase

Plus Philo 2 - $30m ?

[yumyum] 18/10/2018 17:32

Trident, I agree of course. A p/e of 30 in due course is perhaps not beyond the realms of plausibility.

I believe Bahrain was underpriced so maybe should actually have a high multiple. The main point is that so far Bahrain has barely been repeatable.

Once the £400m+ and growing verified sales pipeline actually looks plausible (which so far it concretely does not)...so ONCE = IF = WHEN (hopefully)...then I think the show is on the road. With regular per boat income mounting up and multiple projects on the go (lets say 5 in 2020-21) then let's be positive and optimistic on a high p/e multiple.

[trident5] 18/10/2018 17:21

High p/e ratios?

It kind of overlooks that the key sales are rather one off in nature - what earnings multiple would you place on profits of the sale to Bahrain? I think the case could be made that it should be somewhere in the range of 1 to 2.

[yumyum] 18/10/2018 17:17

Let's believe that we are FINALLY on a roll. Two contract signings before Xmas and one before March 2019, booming transceiver business (well...let's say 20pct growth p.a.), more contract signings in 2019-20. Profits, debts payback, share buyback.

LaValmy, £30m turnover and £7m profit is conservative but fine by me and I think we can achieve that for 2019-20.

Philburt, you (and I) would settle for £1 a share tomorrow...BUT...when we have £30m turnover and £7m profit.....then I would not settle for south of £2.

EC, yes. Absolutely. Too right. Fully agree.

[philburt] 18/10/2018 17:03

YumYum - I'd probably settle for half that! Not one to be greedy.... :)

[lavalmy] 18/10/2018 16:27

YumYum

Or of course they could be earnings enhancing at that level to someone with higher rated paper, such as FLIR. It would be a shame though, and lets hope they can get to a high rating themselves.

Your £7 million could probably be achieved on a turnover of £30 million, given what we know of margins, overhead and tax rate.

[yumyum] 18/10/2018 16:04

Haha...."...once we have an e." ...fair point LaValmy. And a very valid idea. Profit of
£7m....pe of 50 = mkt cap £350m = share price of £2.38 (147m shares in issue).

[lavalmy] 18/10/2018 15:12

Just as an aside, FLIR has a market cap of close to $8bn and trades at a p/e of 65. Last year's post-tax profits were $107 million. They have made 10 acquisitions in the last eight years, the largest in 2010 for $265 million.

Once firing on all cylinders, SRT might want to think about listing over there. I think we would all be happy trading at a p/e of 65, once we have an e.

[hjb1] 18/10/2018 12:46

scroll down and it's about 2.40 in....Looking for maybe 55p

[owenski] 18/10/2018 10:02

I'll wager core revenue sales might not look too shabby this year.

[wynterwilde] 18/10/2018 09:51

Blimey, someone has found some stock! Hurry, hurry whilst stock lasts!😊

[eagle eye] 18/10/2018 09:32

Thanks for the all the informative posts these last few hours.
There doesn't appear to be a lot of stock about and the chart looks promising :-))

[fft] 18/10/2018 08:29

I asked Simon, and had the reply "Yes. Raymarine are owned by Flir and our transceiver business supplies Raymarine with its AIS transceivers under an OEM agreement."


No financial info, but given the low revenue numbers in recent years, this can only be good.

[yumyum] 18/10/2018 08:29

Good spot C5. Thank you. I agree we might be on a roll. At last.

[lavalmy] 18/10/2018 07:01

Maybe not, as it is not for a concrete amount but more of a frame agreement to be drawn down as and when (at least as between Raymarine and the US).

Certainly, it would seem to add significantly to the core OEM business over the next five years, which seems to have got back onto a growth trajectory in any case.

[fft] 18/10/2018 06:53

Wouldn't the size of the FLIR contract be such that it is a material revenue earner for SRT and as such would require an RNS to be issued if SRT kit is inside the AIS transponders ?

[lavalmy] 18/10/2018 05:33

Note the 'encrypted' part.

FLIR might be one contender if ever SRT sells itself. I think, e.g., Bahrain uses its cameras. I don't know who SRT uses or intends to use for these projects - probably depends on what the customer wants/already has.

[alter ego] 17/10/2018 22:26

You made excellent use of your quiet day C5. Thank you.

[crystball] 17/10/2018 22:20

Yes, interesting!

[owenski] 17/10/2018 20:49

Thanks C5. Source for reference -