SRT Marine Systems LON:SRT, the AIM-listed engineering firm that builds maritime surveillance, security, management and safety products, and integrated systems, has published a trading update for the six-months to the end of December.
SRT has been navigating choppy waters in the last year. In dealing with key Middle East-based clients dragging their feet in ratifying agreed contracts, it was forced to change its end-period accountancy date and push 2024 revenues into 2025. It posted a loss in its last set of results.
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However, management promised jam tomorrow, and in this set of results has appeared to have delivered. The company decided to change its accountancy period – a big deal for a listed company – because SRT was tendering for a significant contract. This required that bidders have a minimum financial ratio criterion in relation to the size of contract. Without the revenues from the delayed, but agreed, contract SRT would not have achieved the required ratio. By changing the accountancy period, management must have confidence in their company winning the contract.
Over 350% increase in y-o-y revenues
SRT reported group revenues for 1H25 of £25.5m. This is a significant upgrade of 363% from the £5.5m it reported for the same period a year ago. Whereas in 1H24 the company reported a £4.6m loss, this time around SRT was back in the black with a GBP2.5m profit. Cash on hand was also up from £3.9m to £4.5m. Because of the change in accountancy period 1H24 refers to the six-month period to end of 30th September 2024.
SRT’s chief executive officer, Simon Tucker said: “This is a solid start to the year […] 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.”
SRT Marine Systems is a global leader in maritime domain awareness technologies. The company develops integrated surveillance and safety systems used by coastguards and fishery authorities for managing and controlling maritime domains. SRT Vessel Monitoring Systems (VMS) enables governments and national authorities to be able to reliably track, monitor and manage fishing vessels of any size and type in real time, without range limitation, at optimal cost.
SRT Marine Systems turns a corner
The company signed four new systems contracts in the half-year period, worth around £180m. Three contracts were repeat business from existing customers; on was from a new customer. The company also said that in January SRT secured another £12m contract.
SRT conducted a successful £8.5m fund-raising in November, seeing the maritime surveillance company go into 2025 in a strong position. SRT shares opened the week at 51.2p, up 33% over one-year with the company’s shares ranging between 10.35p and 53p. The company has market cap of GBP127.4m.
SRT Marine Systems appears to have turned a corner after a challenging period. With a strong order book, a robust balance sheet, and a growing global market for maritime domain awareness solutions, the company is well-positioned for continued growth and success in the years to come.
