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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Srt Marine Systems Plc | LSE:SRT | London | Ordinary Share | GB00B0M8KM36 | ORD 0.1P |
| Price Change | % Change | Share Price | Shares Traded | Last Trade
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|---|---|---|---|---|---|
| 4.00 | 7.41% | 58.00 | 699,698 | 16:35:10 |
| Bid Price | Offer Price | High Price | Low Price | Open Price | |
|---|---|---|---|---|---|
| 55.00 | 58.00 | 58.50 | 54.00 | 54.00 | |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Communications Services, Nec | 14.82M | -13.65M | -0.0613 | -9.22 | 120.22M |
| Last Trade Time | Trade Type | Trade Size | Trade Price | Currency |
|---|---|---|---|---|
| 16:35:10 | O | 75,000 | 58.00 | GBX |
| Date | Time | Source | Headline |
|---|---|---|---|
| 23/1/2025 | 14:12 | UK RNS | SRT Marine Systems PLC Result of AGM |
| 16/1/2025 | 15:46 | ALNC |  TRADING UPDATES: CAB Payments eyes cost cuts; Niox shakes up board |
| 16/1/2025 | 07:00 | UK RNS | SRT Marine Systems PLC AGM & Investor Open Day |
| 16/1/2025 | 07:00 | UK RNS | SRT Marine Systems PLC Trading Update – H1 FY25 |
| 06/1/2025 | 10:26 | ALNC | SRT Marine wins phase 2 order for coast guard maritime project |
| 06/1/2025 | 07:00 | UK RNS | SRT Marine Systems PLC Phase 2 System Contract Notice to Proceed Received |
| 27/12/2024 | 10:30 | ALNC | SRT Marine Systems begins work on USD9 million coast guard contract |
| 27/12/2024 | 07:00 | UK RNS | SRT Marine Systems PLC US$9m New MDA System Contract Signed & Commenced |
| 10/12/2024 | 07:00 | UK RNS | SRT Marine Systems PLC Live Webcast 8:00am, Thursday, 12th December 2024 |
| 05/12/2024 | 14:56 | UK RNS | SRT Marine Systems PLC Holding(s) in Company |
Srt Marine Systems (SRT) Share Charts1 Year Srt Marine Systems Chart |
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1 Month Srt Marine Systems Chart |
Intraday Srt Marine Systems Chart |
| Date | Time | Title | Posts |
|---|---|---|---|
| 26/1/2025 | 13:33 | SRT Revenues-Future Opportunities & Drivers (SRT) | 15,612 |
| 10/7/2020 | 08:17 | Software Radio Technology-global AIS growth company | 9,355 |
| 17/3/2017 | 14:28 | dickie3times | 6 |
| 13/8/2016 | 12:28 | Software Radio Technology | 6,306 |
| 14/12/2015 | 20:37 | Listener tip of the week is an award winning tech small cap with, "50% upside" | 5 |
| Trade Time | Trade Price | Trade Size | Trade Value | Trade Type |
|---|---|---|---|---|
| 16:49:09 | 58.00 | 75,000 | 43,500.00 | O |
| 16:35:10 | 58.00 | 28,900 | 16,762.00 | UT |
| 16:29:30 | 57.63 | 468 | 269.69 | O |
| 16:26:40 | 57.63 | 1,488 | 857.46 | O |
| 16:26:10 | 57.63 | 1,000 | 576.25 | O |
| Top Posts |
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Posted at 27/1/2025 08:20 by Srt Marine Systems Daily Update Srt Marine Systems Plc is listed in the Communications Services, Nec sector of the London Stock Exchange with ticker SRT. The last closing price for Srt Marine Systems was 54p.Srt Marine Systems currently has 222,630,000 shares in issue. The market capitalisation of Srt Marine Systems is £123,559,650. Srt Marine Systems has a price to earnings ratio (PE ratio) of -9.05. This morning SRT shares opened at 54p |
Posted at 26/1/2025 12:00 by lavalmy Back and thawed out in sunny southern Sicily to a very welcome 21ºC.Firstly it was great to meet up with fellow shareholders and management and other staff. I don't have any worries about OI's position. SRT's period of vulnerability would appear to be over and the disposition of the other large shareholders would seem to counter-balance OI's stake and then some. On that subject, a person closely connected with a large shareholder was musing about where the share price might eventually end up and it made C5 sound like a pessimist. There was also the comments from ST about where the company will be in 20-30 years time with neither himself and Neil active - not quite a succession plan, but an indication. There was also a firm resolve and belief that no further warrants would be issued. So I lose no sleep about it. As has been mentioned, we await the commencement of the Bakamla contract and concommitant broker's note within a few weeks. I suspect that the current share price belies a lack of faith that it will go ahead, so when it does I expect significant action. Simon did mention that it will take performance to overcome the company's reputation as a serial misser. And that some institutions' interest was mildly piqued by the unexpectedly good half year results (as I was). We will see how long it takes. Apparently the broker was there. Did anyone talk to him? Apart from getting the other UKEF cover to substitute for OI's guarantee, I don't expect any further news before financial year-end. Simon was clear that projects have to go through budget processes and that at the earliest others would start next calendar year. That doesn't mean that they would be entirely invisible to us before that, of course. I also think that Kuwait doesn't seem to operate under quite the same rules and happens more at the whim of the ruler. And there they are trying to ensure that there is a sufficient period between the project being signed and actually commencing so that UKEF has the time to issue cover. The impression I got was that they expect to be able to charge more for projects once Kuwait is up and running. Overall project margins do and will continue to depend on the amount of civil work entailed, but they hope at a higher level. Here OI comes in handy as does the fact that it is SRT opening doors for them rather than the other way round. OI's offering is not easily compared to others like construction costs and SRT sees potential upside from including OI's rather unique robotics in SRT-led projects and increasing their margin that way too. |
Posted at 24/1/2025 18:19 by integer Countryman - On the point "HOWEVER, OI wants to eat SRT as soon as possible (despite saying in public that it would wait two years!.)"This may well turn out to be true but I assume it's a personal opinion? How OP responded during the meeting to the question do you want to buy SRT was (according to my notes): "No, I would feel quite ill, as in 2021 we bought 3 companies and I still feel stressed about it. Our investment in SRT was for two reasons. Collecting marine data and for SRT to visualise it for customers/coastguard |
Posted at 24/1/2025 16:09 by owenski ST did state at the end of the presentation I think during Q&A that revenue payments were coming in and cash and they wouldn't need to raise. Important to hear that.Also, looking to target ROCE of 25% and growth rate of 20% P.A..... That gives a flavour of where their profitability will sit. Gross margins on projects in the 20's up to 30% Margins on AIS side including X100 in the 40 - 45% region, with AtoN sitting as an outlier at 80% DAS as a standalone business is ongoing, with port authority demands seen as a growth area, Louise has a lot of input in developing a package of items including a kind of Geovs approach to utilising the data, this seems to be shaping up to be an area of project activity rather than just selling a few AtoNs. OP from OI is impressed by what SRT have actually built from scratch, enough obviously to take a stake including punting his own money, there are synergies between the two companies and the ground work that SRT have done seems to open doors for OI to be involved, also, OI are a data centric company and thus have a natural fit to SRT's Geovs core offering. OI's stake and board position in SRT seem to be a really interesting part of this journey. To outsiders, SRT has been a serial disappointment, however, SRT now has multiple projects running - currently over $200m - and is now in a different financial situation, the wider market is not up to speed with the situation here. OI came up with 21m to fund the Kuwait bond, everything moved at such speed - unlike the usual historic SRT government signing grind - that SRT were unable to raise the money elsewhere in the time scale. Kudos to OI for the support, the UK gov. really doesn't have the vision or nimbleness to support these companies, a lot of noises and little action. Without OI stepping up, I'm not sure that Kuwait would've been lost, but it sounds like a massive delay would've occurred. It feels like Kuwait is quite a showcase project and SRT's reputation could possibly have taken a dent if it had not proceeded at the required customer pace. Think this project is going to showcase SRT and so is critical. Countryman bangs on about all things SRT like he's their PR guy - good for him and good to meet up with him again - he's often said about others looking in on Kuwait and wanting to keep pace with what they have, actually, it's sounding like he's on the money here. In my view, the next catalyst for the share price is likely to be Indo spades digging the ground, think the market is going to start waking up especially when the brokers note is out with a couple of years of hard figures and over $300m of contracts under way. Estimates are for broker note issued in Feb. therefore Indo likely to get UKEF finalised within late Jan. early Feb. - we shall see. Slow roll out on X100, they really want to get this right and so are widening the beta testing pool in the real world marine environment to make sure all works well, good to meet the project guy behind this and access the thinking wrt quality etc. Personally, I don't think SRT are jam tomorrow anymore, I told Oliver about the pots of jam on seats at a past AGM, he thought it was hilarious. Great day out, good to meet the SRT team and shareholders again, thanks to AE for his excellent write up, just my two penneth worth. |
Posted at 24/1/2025 08:11 by countryman5 AGM. Random thoughts.Good turnout, About 50 (excited) shareholders. ST in top form. New NED Oliver Plunkett, CEO Ocean Infinity, was there. He was surprised at the numbers in attendance. I suspect that he was even shocked by what he saw. He is obviously bright and there appears to be good chemistry between SRT and OI at all levels. HOWEVER, OI wants to eat SRT as soon as possible (despite saying in public that it would wait two years!.) OI has a problem. In effect it has set SRT free. Kuwait has given SRT the cash flow and credibility, which SRT desperately needed. A year ago, nobody was talking about Kuwait. The first stage is now up and running and Kuwait is VERY pleased. SRT and OI kit will be its new toy, its pride and joy. Kuwait likes to boast about things and Saudi is in the firing line. ST was giving hints about the potential of Saudi spend. I am expecting serious numbers (Four or five times Kuwait spend and Kuwait has only just started). O P admitted that SRT does not have a competitor, unless it is in China somewhere and he knows the enormity of the potential market. Oliver Plunkett said that he had bought SRT shares on his own personal account. How is OI going to capture SRT, together with the management team? The longer he leaves it, the more it is going to cost. I believe Macbeth said ‘If it were done when ’tis done, then ’twere well It were done quickly’. I think that Mr T knows he does not need to do a deal, any time yet. The long awaited Brokers note is still awaiting the start of Indonesia. Did anyone hear the potential size of the Indonesian fisheries? I believe it started with a five, and it was not $50 million. We have no serious institutions on the shareholder register but the brokers note will probably make some desperate for a slice. OI and institutions face the same problem, where can they buy shares? In the unlikely event that SRT needed more funding, there will be a queue of potential buyers at well over a pound. I suspect that this morning Oliver Plunkett is trying to decide how to win SRT. Good luck with that one. Every day that you leave it, SRT gets further away. |
Posted at 23/1/2025 16:15 by alter ego Just arrived home from the AGM. As ever it was very informative and certainly worth the effort folk made to attend. One person I spoke to said he thought SRT were very unusual in allowing shareholders unfettered access to employees to ask whatever they wished. Answers whilst avoiding sensitive information were genuinely useful in forming a view on how things are going. It was good to put faces to some of the names here and I think I persuaded a lady from Cambridge that joining ADVFN would improve her knowledge of SRT more than the message board she was using. Please excuse any inaccuracies in what follows but I have tried to recall as much of what was said as possible from hasty jottings. Anyone else who attended is welcome to add to or correct what I have said.I started by trying to find out more about the launch of the X100 (Nexus). Initially it will be an EmTrak product hence X100 not Nexus. In time OEM’s are anticipated to include it in their offering but the strategy is to get a substantial user base who think it is a marvellous product. Marketing is planned via 5000 or so dealers so SRT will ensure they know what the X100 can do and they will have their own customer base into which it will be sold. Sound quality has been a top priority in the development of this product to ensure it performs better than anything else on the market. The actual product is constantly being tested by a small cohort of real boat owners who supply SRT with feedback on a weekly basis which allows for tweeks if there’s anything they would like to see done differently. The X100 has inbuilt MOB (Man Overboard) unlike rival products which tend to be standalone and often not used because it’s too inconvenient. Software updates are simply done by feeding the update to the mobile phone or watch and then to the Transceiver as soon as they connect. Early feedback is that users love the convenience of the connectivity and the ability to use the radio via their ‘phone or smart watch without any delay. The overwhelming impression I got was that SRT are very pleased with the market response, eg at METS, and the volume of pre-orders exceeding expectations. I was told more than once that there is nothing on the market that can match it. A very limited production run has begun and is expected to ramp up gradually once everyone is confident that the user feedback will be highly positive. They do not want any disappointment hence the controlled, cautious early production. Kuwait required pretty much immediate mobilisation and staff were called upon to work over the Christmas period to meet customer expectations. ST said he met no pushback to this request which demonstrates to me the commitment and unity of staff to the collective goal. The customer was very impressed and this has boosted SRT’s reputation in the region. Some existing structures are having to be used for control centres and towers because they exist not because they are ideal. Building new ones takes time but this approach gets things up and running earlier. They even have a mobile control “room”, a van full of servers that can collect data from remote locations and feed it into the system until more permanent arrangements are put in place. OI will provide underwater and surface level autonomous vessels/drones. With the advent of drones and unmanned aircraft decisons will have to be made about how high surveillance needs to go. Oliver stated that the sea is a very challenging environment for this equipment and the customer needs to understand that things may not work perfectly from day 1one Internet provision is less than ideal and there is no broadband as we know it at present. Satellite communication may be needed, eg Starlink. Clearly Kuwait is at the start of a journey which will take years to travel. I asked about Indonesia and EKEF financing. The loan has been agreed in principle with Banco Santander (in Spain) providing the money. It will be released in stages as SRT raise invoices for each delivery milestone. I got the impression that we are just weeks away from the start of the project but everyone here has learned to wait for the confirmation rather than the expectation. The question of the effect of inflation on the fixed project cost was raised. SRT build in a contingency to costs which mitigates this. It is also the case that much of the Dell servers and desktops were acquired earlier and at lower prices. It was estimated that roughly 40% of the total project cost is shielded in this way and ST thought that the contingency allowance would suffice. It was said that Indonesia are already talking about what they would want in the future as there is no Fisheries component in the project that has been approved. This underlines how, once a customer buys the system, it is normal for it to expand and evolve over many years. I raised the question of staffing needs as they have a long list of positions to fill. ST and Neil agreed that it is difficult to find the right people and have already employed a recruitment specialist with another needed to seek out candidates for the vacancies. Conventional recruitment agencies do not have the same focus. LinkedIn is where they expect to find the people they need. Countries are beginning to realise that they need what SRT can supply. Bahrain has suffered from depletion of fish stocks and because it has no means of regulating where and what can be fished it has imposed a blanket ban on fishing. In Saudi they are intent on creating an environment that attracts tourists under Project NEOM on the Red Sea (Dubai on Steroids was quipped). Here security, safety , water quality, fish and reef health are vital and SRT can enable the customer to achieve what they need. Proximity to Yemen, Somalia, Syria and Iraq presents risk that will have to be managed by KSA. OI were represented by Oliver Plunkett CEO of OI and our newest NED. Some investors enquired about the relationship between the two companies and the answers were reassuring from my point of view. At the most fundamental level OI can supply data that SRT currently doesn’t have but GeoVis can make sense of that data and present it to the customer, something OI cannot do on their own. That looks like a very symbiotic relationship to me where both parties see value added. Both companies have very similar cultures seeking to collaborate to make things happen. Each is pragmatic about how costs and profits should be divided. In the longer term Oliver said OI had not sought to enter into this relationship in order to take over SRT. Nevertheless, he was clear that things can change. ST expressed the hope that SRT would remain an independent company in 20 years time although he wouldn’t be its CEO. I took away the strong impression that there is no tension between these two entities. In reviewing future project opportunities ST was confident that SRT will be spoiled for choice given the rapidly dawning appreciation that countries need data to be able to manage their MDA. Someone asked about DAS and ST said that it was part of what SRT offered and would enable autonomous shipping on rivers to know if there was enough room to pass under a bridge or enough depth to avoid grounding. At sea it would warn ships of the state of the tide and currents so course corrections could be taken. Margins on the equipment are very high. Thanks to everyone who made this visit enjoyable. I look forward to the next one. |
Posted at 20/1/2025 02:30 by extrader Hi LaValmy,.."To be a bit picky, it is Ocean Infinity that is supposed to replace the cash collateral with a bank guarantee. SRT is then supposed to replace that with the UKEF and their own resources within the timescale you mentioned. Maybe OI has found it difficult to get a guarantee that does not require them to post cash collateral in turn. If so, the cheaper option all round would be to leave the position as is." Have you been told this by the company, pls, because the bit in bold sounds odd: it's SRT that has a credit issue and has to cash-collateralise its contingent obligation (and doesn't have the cash to do so) not Ocean (which evidently does have cash and/or adequate credit line(s) since it stumped up the money in the first place). I would expect the structure to have been as follows : (1) Client requires a PB to be lodged on contract signing; (2) Contractor normally arranges for his banker (Santander?) to issue the PB; (3) Banker is unwilling to do so (outwith Contractor's credit limit)and / or credit approval will take time); (4) Given urgency, Contractor approaches Ocean and gets a quick cash loan, with conditions attached; (5) These include loan int rate; fund-raise; repayment terms incl default (euphemistically, 'delay') penalties; (6) Ocean deposits $ 21.4m cash in escrow account (SRT/Ocean)with Santander, who immediately issues wholly secured PB; (7) The plan (see below) was for Santander to accept (i) a replacement of Ocean cash for an Ocean guarantee and later (ii) replacement of the Ocean guarantee by SRT's resources + another guarantee- from UKEF- as and when the facility becomes available. What's the reason for the UKEF delay? Cash is the best form of security, from a bank's perspective - it's what made a quick reply to this urgent need possible in the first place. It'll be slower to surrender for lesser security/more credit risk in a hurry.... The 16 Jan trading update confirms that there was still full cash collateralisation @ 31 December : .." Gross cash balances as at 31st December 2024 were approximately £4.5m, excluding $21.4m held in escrow.." This isn't what was supposed to happen, per the 28 Oct Finance Support Package RNS : .."The OI guarantee is initially provided as a cash loan of $21.4m with an interest rate of 0.75% per month. The loan is expected to be repaid by SRT with a period of approximately one month - 31 December is 2 months - and replaced with a bank guarantee on OI's behalf.[This wording doesn't make sense: SRT doesn't have cash to repay $21.4m, what it should say is that Santander will take an Ocean guarantee or (more likely, since it may not have a credit limit for Ocean) a *guarantee from Ocean's banker...and, on receipt of this substitute security, release the cash security back to Ocean. Not to SRT, that's why it was in an escrow account: to recognise Ocean's involvement and to protect Ocean's interest. The OI bank guarantee[* confirmed] itself will then be replaced within the next 6 months using a combination of SRT's own resources and UKEF export guarantee program. [ = replacement rate will depend on quantum available from UKEF AND SRT's free cashflow AND whatever extra credit- if any - Santander is willing to grant SRT in the meantime]. So it would seem that (1) Notwithstanding the above, Santander credit approval to substitute Ocean cash for Ocean contingent hasn't come through as at 31 December. I'd like to know why. Has its approval process been delayed by SRT's changing requirements for other contracts? If that's not the reason for delay, what is/was? Edit : See next post ! [There shouldn't normally be an issue at Ocean's bank end : it could send Santander a guarantee for $21.4m contingent on Santander's releasing to it the $ 21.4m ...and then deciding at leisure how much cash it would in turn release to Ocean. 'Cash is king' in credit matters.] (2) Point (1) needs clarifying, (a) because SRT is presumably still paying 0.75% per month for the loan; (b)more importantly, the loan has already run 2 1/2 months and if SRT/UKEF haven't retired the Ocean guarantee fully in (now) 5 1/2 months, the penalty kicks in: .."In the event that SRT does not replace the OI guarantee within 8 months, a further 4m warrants per month will be issued with a strike price equal to a 15% discount on the share price at the relevant time. This isn't quite a 'death spiral', but it does give Ocean some perverse incentives. (3) I think the point I raised on the 16th still stands : .."Assuming this sequence is broadly correct, could somebody ask Simon for an update on where we actually are with the UKEF facility going 'live'. We need answers on a number of basic issues, I hope someone at the Open Day/AGM will persist until we get them. GLA and ATB |
Posted at 03/12/2024 08:26 by countryman5 The resolutions at the EGM yesterday were well supported. Oliver Plunkett, CEO of Ocean Infinity joined the board of SRT. His CV revealed a substantial personal shareholding in SRT. We do not know when he purchased his shares, but he clearly understands the potential of the company. What happens next? I am assuming that the Indonesia contract is nearly ready to start with an immediate milestone ready for an invoice. This will be followed by kit and software waiting at MSN. We are told that work is underway with the Kuwait contract. Will we learn at the AGM about Ocean Infinity’s role in the Kuwait contract? When, and if, will we hear about the next Kuwait contract? They appear to be in a hurry to spend their oil money. Could the next contract exceed the first one in size? What happens if Saudi wants to match Kuwait, or is it going to admit that it can’t keep up with its neighbour?What is the relationship between SRT and its soon to be 24% shareholder, in the form of Ocean Infinity and Anthony Clake (OI/AC)? OI/AC approached SRT in the first instance. OI/AC wanted to use SRT as an entry to market for their underwater robotics and SRT needed more cash. When Kuwait came rushing along and SRT needed a performance bond OI/AC was the only game in town. In putting up the cash for the performance bond OI/AC was securing its position. It needed the SRT / Kuwait contract to sell its kit. Does OI/AC intend to buy SRT, and if it did, will other shareholders allow it to happen? Clearly OI/AC have the necessary cash in the back pocket. They will have about 24% when the options are exercised. Then there are members of the ‘concert party’. Oliver Plunkett is a member, but who else? The Takeover Panel has quite robust rules. If an entity, including concert party members, acquires 30% it must apply for a ‘Rule 9 waiver’, which requires a vote being put to all shareholders. Some people believe that OI/AC want SRT to remain independent, for the time being. Anthony Clake was recently interviewed by Bloomberg Businessweek. The article was titled ‘Lord of the Deep’. He stated that ‘his larger goal was for Ocean infinity to be a world leader in undersea technology. The modern UK has become too afraid of risk to produce champions.’ Does A/C want SRT to become a ‘champion̵ Does he want to use SRT as a ‘reverse takeover’ option at some time in the future? This would serve two purposes. It would allow OI to acquire a stock market listing without requiring due diligence. There might be some stones on the seabed which might be better left unturned! A reverse takeover might be for cash or OI paper for SRT shareholders. It is unlikely that an IPO would be looking to raise a lot of cash, but new shares would be needed in circulation to provide a free float to create a market. If OI/AC wanted SRT they would want Mr T and his management team. OI paper would be required for share options. Where does Mr T want to be in five years’ time? There is possibly a strategic reason for keeping SRT independent. What is the current relationship between SRT and OI? Are they like brothers? I don’t think so. Are they like stepbrothers or distant cousins? Possibly. I suspect that the two management teams are working closely together on systems contracts. There is an alternative description of their growing relationship. They are the founding members of a ‘nautical club’, where the vital member of the club is SRT with its Geovs technology. SRT is the hub, which connects everything. SRT gets the contracts and other members of the club provide the bolt ons. There is clearly a role for unmanned aerial devices. There is a role for ships and patrol boats. There is a role for armaments and many other suppliers. These suppliers would be included in future systems contracts and SRT would earn a margin on everything. At some stage the stock market is going to wake up to what SRT and its major shareholder are up to. SRT now has financial credibility. Not only does it have major contracts underway, but it is deemed as being under the wing of an incredibly wealthy backer. Banks will want to lend to SRT for future performance bonds, safe in the knowledge that OI is full square behind it. OI could be rewarded by not giving SRT a cut on its part of the systems contract. |
Posted at 14/11/2024 12:11 by pldazzle LaV - I was under the impression that OI have SRT's back?"OI has provided a $21.4m guarantee to SRT to enable SRT to issue a contract performance bond of similar value. The OI guarantee is initially provided as a cash loan of $21.4m with an interest rate of 0.75% per month. The loan is expected to be repaid by SRT with a period of approximately one month and replaced with a bank guarantee on OI's behalf. The OI bank guarantee itself will then be replaced within the next 6 months using a combination of SRT's own resources and UKEF export guarantee program. In return for providing this guarantee, OI is being granted 20,000,000 warrants at a strike price of 35p, with an exercise period of 3 years, which when exercised will inject a further £7m equity for SRT. In the event that SRT does not replace the OI guarantee within 8 months, a further 4m warrants per month will be issued with a strike price equal to a 15% discount on the share price at the relevant time." Certainly it's exceedingly complex, and by no means cheap, but it seems to work.... |
Posted at 29/10/2024 19:38 by countryman5 If you are considering the sale of some SRT shares, may I suggest that you pause the decision, for two reasons?Firstly. There will soon be a brokers note forecasting the June 2025 year end. (This Friday?) This will be based on known milestones on four MDA contracts and should reveal substantial cash balances, together with PBT of between £20 and £30 million. There will probably be a share price forecast of between £1.30 and £1.80, based on these forecast figures. Such a forecast will not include potential revenue from DAS and Nexus. Secondly. Ocean Infinity will eventually be the proud owner of about 22% of the company and I imagine that Marshall Wace will have completed a great deal of research into SRT. Traders, punters and ‘friends’ I recognise that Ocean Infinity was the only option for SRT to secure the necessary performance bond within the tight timescale being pushed by Kuwait. What are the intentions of Ocean Infinity? They are using SRT to access government contracts. They have a useful chunk of the Kuwait contract. More of the SRT contracts are going to include the unmanned kit that Ocean Infinity sells. There is clearly synergy, but when will Ocean Infinity launch a bid?. I suspect that £500 million would be readily available. Do they try to pick up shares in the market or do they go straight for a bid? They know that if they start bidding there is a fair chance there will be a bidding war. Do they go for an initial high figure and hope that nobody else enters a bid. Not easy to call. I was initially worried that if they acquired 25% they would prevent another company making a bid. However, my thoughts are that if they acquire 25% and a competitor gets 60 %, Ocean Infinity is stuffed. ‘A hostile takeover happens when an entity takes control of a company against the wishes of the company's management. A hostile takeover is an acquisition strategy requiring that the entity acquire and control more than 50% of the voting shares issued by the company.’ If a competitor acquired more than 50% of SRT by virtue of a high offer, Ocean Infinity would have few, if any, options but to sell their shareholding to the winning bidder. They would have the consolation of making a vast profit on shares bought at the incredibly low price of 35 p. (Would this be a six bagger?) I suspect that Ocean Infinity will soon move to a public listing and the US appears more favourably than the UK. However, if they did a reverse takeover of SRT, it would avoid the due diligence and expense of a full listing. In that scenario we could end up with Ocean Infinity shares together with a cash element. Obviously, any takeover needs the support of the SRT management team, who would be critical for the business going forward. I might regret these next few words, but I feel very relaxed about where we are. Plenty of cash rolling in, numerous contracts in the pipeline and an interesting takeover battle between contestants with large pockets. |
Posted at 28/10/2024 18:44 by extrader Hopefully Plunkett's arrival will bring a bit of focus/discipline to the Board and its grip on SRT's finances.As to the PB, my understanding is that : - SRT is required to post a bond for $21.4m (ie 10% of contract value....hmmm, I'm more familiar with 5%...) as surety for its ability to 'perform' (duh!) its contractual obligations ie delivery of specified kit that works as described; - it's evidence for the client that SRT's bankers believe it'll be around long enough to fulfil its contract obligations, including maintenance. It would be interesting to know the duration of the PB...and how it phases out as the contract progresses/completes - SRT's bankers aren't willing to post such a bond without 100% cash margin (make of that what you will), so SRT has got a bridging loan in cash from OI that SRT will in turn place with its bank, which will then issue the [cash collateralized] PB, which is sure to be a Condition Precedent for contract signature. - with the Contract signed, SRT's bankers will/should release the 100% cash collateral they hold (which SRT will then return to OI) in exchange for an equivalent (substitute)guarante * This tells you something about SRT's still parlous state with its banker, even after securing the Contract. It also pre-supposes OI's own credit-worthiness, of course, and will come at a cost. - SRT will use the proceeds of the placing + other cash inflows (Indonesia? Kuwaiti / Phillipine/ Saudi invoicing and 'revenue milestones') plus other support (UKEF facility AND £7m proceeds of OI 20m warrants) to convince its bankers to release OI from its guarantee obligations to the bank within 6 months and accept SRT as a stand-alone risk thereafter. - OI gets 20m shares in SRT at a discount and - if there's any slippage (surely not!)beyond that - the chance to tighten its grip on the Company. Not quite a CLN situation, but maybe rhyming somewhat. The mid-morning announcement, convoluted nature and 'cash is king' solution speak to the urgency of the situation....and the 31st October deadline. I'm sure they were burning the lights over the weekend...in MSN and elsewhere! All AIUI GLA and ATB |
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