I'm pleasantly surprised by this morning's update.
Unless something has come through in the last few weeks with significant payments I don't think there is a lot of project income this year, and the turnover (I believe) at £13.5m is their best ever. The interims only reported sales of 2.9m, so they must have had a stocking H2.
If I'm right and this year is largely down to the "business as usual" rather than significant project income, to have increased sales so much; AND to be profitable is a significant achievement.
Whenever there is negative sentiment surrounding markets I try to think of what businesses will benefit from the cause of negativity.
When the hurricanes were about to batter the Caribbean & Florida last year I decided temporary power suppliers would benefit; so I tried a short term trade on Aggreko, which worked out well, though I'm glad I didn't hold them any longer.
I'm trying to think who will benefit from trade wars; and it's not easy to come up with anything. However, introduction of tariffs on anything could lead to more smuggling. More smuggling could lead to Governments doing more to police all shipping entering their waters, which could be good for SRT.
It looks like the jump in volume was due to the purchase by Mr and Mrs Lang notified in the RNS. It would seem that they bought over 1,000,000 shares, as their holding went up from 4% of the company to 5.5%.
So what? Well his background makes for interesting reading. With acknowledgment to Bloomberg:
Mr. Ian Michael Laing founded Milton Park Ltd in 1984 and serves as its Chairman. Having started his career in commercial property, Mr. Laing has been an active investor in life science and technology businesses for 25 years. He serves as Chairman of SQL and MEPC Milton Park Limited. He served as Chairman at Oxagen Limited and Bamboo Investments (Isle of Man) PLC. He was Deputy Chairman of the Board of Governors of the London Business School. He serves as Non-Executive Director of several private companies including Aegate Limited, SQW Group Limited and Immunocore Limited. Mr. Laing serves as Director of Oxford Semiconductor, Inc. He serves as Trustee of the Nuffield Medical Trust. He serves as a Governor of London Business School and of the Royal Shakespeare Company. In 2006, he joined the Board of Stanhope. He served as an Independent Non-Executive Director of Adaptimmune Therapeutics plc from December 2008 to December 31, 2016. He served as Non Executive Director at Sussex Place Ventures. He served as Director at Oxford Asymmetry International Plc from 1992 to 2000. He served as Director at Oxford University Hospitals NHS Trust. He served as Director at Doctors.net.uk, Oxagen Limited, Bamboo Investments (Isle of Man) PLC, Oxford Semiconductor Limited and Phosphonics Limited. He served as Non-Executive Director of the Oxford Radcliffe Hospital NHS Trust for five years. He is an Honorary Fellow of Green Templeton College and St. Edmund Hall in the University of Oxford. He received a M.Sc. from London Business School in 1971. Mr. Laing holds a BA degree from the University of Oxford and an MBA from London Business School.
If someone with that background is willing to shell out a couple of hundred thousand quid to increase his investment at least I feel I'm in good company!
After a depressing few months, when I've been seriously wondering whether to finally abandon these `long on promises short on results' shares. it's mildly encouraging to see over 2m shares change hands and a slight upward tick in the SP.
Do the broad sunlit uplands beckon? Or is it just a dead cat bounce!
I did actually get on the site & watch it; and it's mildly reassuring - dominant position in market, lots of new products and developments coming through to keep them there. Still a huge potential market (I picked up on <1% of leisure vessels have AIS) and potential projects in the pipeline. I guess it will be the award of major projects which will really kick start the share price, but the day to day income is gradually picking up.
I wonder if they are involved with Rolls Royce on this driverless ship they are developing.
Confident presentation from Simon, upgrades to OEM products & more dealers coming on stream, regular upgrades to GeoVS (but no info as to its take up by the market), SRT are investing in marketing, Aton and buoy monitoring products are being trialled with lots of interest from potential customers, satellite data project is in design stage, they've appointed a project manager & are talking with satellite providers & they expect to start selling data from their own satellites in approx 1 years time, two of the large maritime domain projects are (still) close to sign off, with a further ten in various stages of development. Simon's happy with how things are developing. Cheers BB
his consistent message was that they are very busy and moving towards targets and hence payments for achieving them. With the SP fall the question is whether you believe what he has to say or not. I believe so time will tell if my judgement is correct or not.
Not sure if you have an account with iii, but if you do, check your messages. iii posted something recently to say all their AIM figures are likely to be incorrect - something to do with how the figures are sourced. They are working on it, but for the time being you'll have to check other sites for AIM member prices.
Not great, but watched the webcast, and was encouraged. As always it's still Jam tomorrow, but the quantity and variety of potential projects seems to be increasing, so at some stage it still seems this baby will take off,
I think the adverse reaction reflects concern at the risks of the company over-reaching itself. This remains a small company with delicately balanced finances and a great dependency on a couple of crucial contracts. That makes it very vulnerable, as the recent contract delay (we hope just a delay) demonstrated.
To see it getting involved in setting up a satellite operation is bound to cause some to wonder whether another large lump of costs is being taken on before we have a strong reliable revenue stream.
That's not to say I'm selling. I have been a holder for many years and still expect them to deliver; but I fully understand why some would choose to do so.
Whilst the £10m loan facility with LGB will no doubt be useful it looks expensive at 9.5%. It may be that observers are taking the view that such a relatively high rate is a reflection of SRT's financial strength.
Story I've just seen on Bloomberg about (what I believe is) the far eastern country which has just postponed the 90m contract.
" The Economy Grows Less Than Expected on Spending Curbs.
➞ Gross domestic product gains 4% from previous quarter
➞ Construction sector grows 7% on same period last year.
The nation's economy expanded slower than economists estimated in the second quarter of 2017 as public spending fell.
Gross domestic product rose 5.01% from a year earlier, according to data released by the statistics bureau in the capital city on Monday; economists predicted growth of 5.08%.
First-quarter growth was 5.01%, previously reported data show
GDP rose 4% from the previous three months; economists expected 4.07% gain
The President has undertaken a major infrastructure program to bolster an economy thats growing slower than neighbours. But a budget deficit approaching the 3% legal limit has forced the state to curb expenditures.
While the government has revised its 2017 growth forecast up a notch to 5.2%, the economy is still falling short of the 7% the President targeted when he came into office almost three years ago.
The country's central Bank signalled Friday it may return to an easing bias to support economic growth after cutting rates six times last year. The central bank recently loosened rules on the amount of money banks must hold in reserves."
So it sounds like a bit of austerity - hopefully just temporary.
"if the country doesn't have the money this year then why would there be any reason to expect it will have next."
The Bloomberg Ad might work and the world might invest in remarkable ....................
This year's income takes a hit obviously; and effectively the order book gets drastically cut. They still have a large bank of real opportunities, so hopefully some will materialise sooner; and this project will come back some time in the future.
As with most small companies in the early stage of their development the share price of SRT alternates between upward spikes as news/contracts/updates are announced and more lengthy periods of steady decline when the absence of any material news produces a trickle of sellers (often who bought on the exciting update) with little corresponding buying interest.
We saw this pattern takes the shares down to ~20 at the start of 2016 and following a strong run-up they fell back again to ~30 during the following setback. I may be premature in calling the turn, but am hopeful that this time around we have seen the bottom at ~40. A pattern of rising lows like this has to be good news (whether you are a chartist or not) because it indicates the higher levels at which buying interest is returning. It also sets a higher lift-off point for the next upward tick in the price assuming we get more good news in due course.
This goes up & down quite a bit without any news. However it is only around the same price it was immediately before the Finals; and the Finals gave us no surprises, - and markets have been beaten up today.
Nothing to worry about IMHO; and if it does drop further - a good chance to top up.
Well Finncap target is what they think the price will be in time, however looks like in the short term it will fall back until order news arrives. Last fall back it lost about 50% ,lets hope it doesn't drop that far.
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