16.01.2025
It is pleasing to see a very gradual edging forward in the share price of SRT Marine Systems (LON:SRT).
It is a global group providing maritime domain awareness systems and technologies for security, safety and environmental protection.
With customers ranging from governments to vessel owners around the world, it provides advanced technologies, products and systems, that integrate multiple proprietary technologies such as advanced analytics, data fusion, augmented visualisation, that enhance maritime safety, security and environmental protection and sustainability.
The Bath-based £114m-capitalised group’s AGM is due to be held next Thursday, 23rd January, I am hoping that we will soon be seeing an update on current business on hand, potential contracts to be won and also on the forging of a stronger alliance with Ocean Infinity.
I particular favour the OI link because its product and technology synergies, together with its financial strength, could create an incredible partnership as both groups push forward for more opportunities for their maritime data and systems businesses.
SRT has already stated that it has a growing pipeline of potential contracts on a global scale, believed to be worth some £1.2bn on a validated basis.
Next Thursday’s AGM Statement will, hopefully, be positive and point the way to the group achieving even more success in winning new business.
We could soon see analysts publishing their estimates for the loss-making group as it progresses over the next few years.
The group’s shares, which have endured a switchback ride over the last couple of years, hitting 67p in May 2023, then down to 10.35p in June last year, were trading at around 45.50p ahead of this morning’s announcement.
This morning’s Interim Trading Update for the six months to end December 2024 reported a 363% improvement in group revenues from £5.5m to £25.5m, with a pre-tax loss of £4.6m being replaced with a £2.5m profit.
CEO Simon Tucker stated that:
"This is a solid start to the year.
The combination of our transceivers business, a £334m active contract book from multiple sovereign customers, each with long term system development plans and a £1.2bn pipeline of further prospects gives us significantly improved visibility over future financial performance.
Both of our businesses are now well established and our future is underpinned by our portfolio of sophisticated technology and products, an established market position, and a global MDA market at the beginning of its growth curve."
This morning, after the Update, the group’s shares have risen 8% to trade at around the 49p level, which was last seen in October 2022.
The tide is turning and could well soon sweep this group’s shares above 50p, then 60p and break above the 67p at which they peaked less than two years ago.
Hold very tightly, while being prepared to pick up cheap stock if the profit-takers look to get out.
(Profile 14.09.20 @ 39.50p set a Target Price of 50p*)
(Profile 10.11.23 @ 39.75p set a Target Price of 60p)
(Profile 25.04.24 @ 22p set a Target Price of 35p*)
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