TIDMSRT
RNS Number : 8851T
SRT Marine Systems PLC
20 November 2023
The information communicated in this announcement contains
inside information for the purposes of the UK Market Abuse
Regulations and is disclosed in accordance with the Company's
obligations.
SRT MARINE SYSTEMS PLC ("SRT" or the "Group")
HALF YEARLY REPORT FOR THE SIX MONTHSED 30 SEPTEMBER 2023
SRT, the AIM-quoted developer and supplier of maritime
surveillance, analytics and management systems and products
announces its unaudited interim results for the six months ended 30
September 2023 (the "Period").
Financial Highlights
-- Continued year on year growth of transceivers business.
-- GBP2.5m new product and technology investment.
-- GBP160m systems contract order book for System deliveries to commence in H2.
-- Gross cash balance at end of H1 GBP3.9m (H1 2022: GBP1.5m).
Operational Summary
-- NEXUS transceiver product commences testing and launch planning.
-- Final completion phase of Philippines - BFAR fisheries contract.
-- GBP40m Middle East Border Agency maritime surveillance
project - Phase 1 completed, and planning and preparation for final
Phase 2.
-- Planning and procurement for commencement of GBP145m SE Asia
coast guard project signed in May.
Commenting on today's results, Simon Tucker, CEO of SRT
said:
" The hard work and progress made across the business during the
first half has prepared us for a busy second half , with the
scheduled delivery of a number of system project milestones and
continued growth of our transceivers business . In line with this,
we are on track to complete our financial year end as
expected."
Contacts:
SRT Marine Systems plc www.srt-marine.com
+ 44 (0) 1761 409500
Simon Tucker (CEO) simon.tucker@srt-marine.com
Louise Coates (Marketing Manager) louise.coates@srt-marine.com
Cavendish
Jonny Franklin-Adams / Teddy Whiley (Corporate
Finance) +44 (0) 20 7220 0500
Tim Redfern / Charlotte Sutcliffe (Corporate
Broking)
Yellow Jersey PR
Charles Goodwin / Annabelle Wills +44 (0)
7747 788 221
About SRT:
SRT Marine Systems PLC ("SRT") is a global leader in maritime
domain awareness products and systems. Our solutions integrate
multiple technologies, advanced analytics, innovative digital
display systems, logistics and command and control to provide
enhanced maritime surveillance, security, safety and management
for national authorities such as coast guards and fishery authorities.
Applications include coastal and territorial water surveillance
and security, fisheries monitoring, management and IUU detection,
search and rescue, waterway management and aquatic environment
monitoring as well as individual leisure and commercial boat
owners.
Chairman's Statement
The first half of the financial year has been very busy with
much progress made across both our systems and transceivers
businesses. With systems contracts worth GBP160m to deliver, our
project teams have been working closely with the relevant customers
and third-party suppliers on the substantial preparatory and
planning work required for their delivery, with multiple milestones
scheduled for H2, several of which are substantial revenue
generating milestones. Alongside this our transceivers business has
made good progress growing its sales and distribution as well as
launching new products which we expect to sell well during H2.
As already reported in our October 2023 trading statement,
during the H1 period ending 30(th) September 2023, our systems
business did not generate any revenues having not completed any
revenue milestones and as such the GBP5.5m of Group revenues we are
reporting derives entirely from our transceivers business. Gross
profit was 37%, resulting in a loss for the period of GBP4.6m, and
a period end cash position of GBP3.9m.
Systems
Our systems business, which provides maritime surveillance and
monitoring systems for government agencies such as coast guards and
fisheries, has made good progress on existing, new and prospective
contracts. Our existing contract with BFAR in the Philippines is in
its final completion stage and is expected to be completed during
the second half. Having completed the first phase of our GBP40m
Middle East Border Agency project, we have been working closely
with the customer to aggregate and plan the next two phases into a
single phased implementation which we expect to commence during Q4
of this financial year. This work has included significant project
planning as well as preparation and staging of equipment ready to
make the first invoice and payment generating deliveries upon
instruction to proceed from the customer.
Much planning work has also been completed in respect of our
$180m (GBP145m) contract with a SE Asia National Coast Guard (as
announced on 18 May 2023), which is expected to commence in the
next few months upon completion of a government-to-government loan
agreement, which is in its final formal stages. This work has
included the completion of the substantial procurement planning
which includes supplier selection, price and terms negotiation and
detailed project planning with the customer and our local civil
works contractors. This has included multiple in-country meetings
as well as a recent multi-agency final project planning and review
meeting in the UK with the end customer and the UK government
present. We expect to commence first deliveries during Q4, which
will also include the first substantial revenue milestones.
We have also been working closely with an existing long-standing
Middle East Coast Guard who wishes to move on to the next stage of
their maritime surveillance system strategy and expand and enhance
their existing system. Following the usual period of consultations
which has defined the scope of this follow-on phase we have
received official notification that they are now ready to proceed
and are awaiting issue of the contract, expected shortly, whereupon
we shall immediately commence implementation with some deliverables
potentially falling into H2 depending on the exact timing of
contract and equipment procurement lead times.
In tandem with this focused work on existing customers, our
sales and support teams have substantially progressed negotiations
and project specification discussions with several of our validated
new contract opportunities and as such we expect to see further new
contracts in the near future. In general, we continue to see
growing interest and engagement from nation-state agencies who
desire to acquire independent maritime surveillance capabilities to
transform their understanding and monitoring of their marine
domains and adopt a digital intelligence lead approach to active
management and law enforcement.
The SRT-MDA System has continued its development journey and has
grown to be a sophisticated national scale integrated surveillance
and monitoring system which can be configured for either coast
guard and or fisheries users. Our development teams continue to
enhance its capabilities with particular focus around its data
fusion, analytics and command & control capabilities. This is a
long-term continuous improvement development roadmap which is the
foundation of our success and will support the long-term
relationships we form with customers.
Transceivers
Our transceivers business, which develops and sells maritime
navigation safety and communication transceivers, continues to
grow, with revenues 5% ahead of the comparative period last year.
This growth reflects the established long-term market trend of
marine navigation digitisation and SRT's position as the dominant
provider of AIS and related transceiver systems. We see a blend of
growing regulation and market-ripple adoption driving demand, for
example the Port of Antwerp has recently extended existing
regulation affecting certain classes of commercial vessels to make
it mandatory that all vessels operating there are required to have
an AIS.
We have continued to grow our global distribution network which
now consists of over 5,000 entities, from dealers and distributors
for our own em-trak brand to leading original equipment
manufacturers ("OEM's") located across the world from Australia,
Japan to Europe and USA. Of note is our high margin Digital ATON
Systems ("DAS") sub-division which is focused on providing
specialist navigation devices for buoys and infrastructure. We see
a substantial global opportunity and have launched new kitted
products which make it easy for ports, waterways, and marine
infrastructure owners to implement these systems with full
interoperability with their existing systems. This is revealing new
and unexpected opportunities, an example being a new opportunity
whereby many thousands of fish farms in the EU will require
tracking and monitoring using AtoN's from next year. We now have a
dedicated salesperson focused on this growing market, and this has
started to bear fruit with more sales and a growing pipeline of
opportunities.
Our new NEXUS marine communication VHF/DSC radio system is now
in its later stages of development and commenced its testing phase
along with a soft launch to our dealers in the November METS
exhibition. We have had a stronger market reaction than was
expected and received forward orders for over 100 units within the
first three days of the soft launch. We expect to complete all
final testing and pre-production by the summer of 2024 and start
shipping product in Autumn 2024. This is approximately 12 months
later than we had originally planned due to a conscious decision to
be cautious and undertake a much more extensive product testing and
refinement period due to the complexity of the product and to
ensure our first voice communications product is of a standard
commensurate with what the market expects from an SRT device.
Outlook
I acknowledge and appreciate shareholders concerns regarding the
financial performance imbalance between the two halves of this
financial year; however, this is the nature of the timing of
revenue related deliverables on our current systems projects and
was expected. With the revenue milestones scheduled for the second
half, we are confident of our full year performance.
Going forward, with multiple system contracts running in
parallel, we expect a smoother distribution of revenues across
financial periods. However, I must highlight that the exact timing
of deliverables on a project are influenced by multiple factors,
some of which beyond our control and thus they can easily slip
either side of an accounting line. This does not detract from the
fundamentals of our business which are now built on robust, proven
products that deliver multiple revenue streams with defensible
profit margins, being delivered by an experienced team into a
global market whose growth is driven by strong fundamentals of
security, safety and environment protection.
Kevin Finn
Chairman
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHSED 30 SEPTEMBER 2023
Six months Six months Year
ended ended ended
30 Sep 30 Sep 31 Mar
2023 2022 2023
Unaudited Unaudited Audited
Notes GBP GBP GBP
---------------------------------- ------- -------------- ------------- -------------
Revenue 5,502,316 18,836,044 30,506,152
Cost of sales (3,441,404) (11,633,644) (19,467,188)
------------------------------------------- -------------- ------------- -------------
Gross profit 2,060,912 7,202,400 11,038,964
Administrative costs (6,268,250) (4,742,197) (10,903,940)
-------------- ------------- -------------
Operating (loss) / profit (4,207,338) 2,460,203 135,024
Finance expenditure (411,355) (337,628) (781,547)
Finance income 13 137 351
-------------
(Loss) / profit before income
tax (4,618,680) 2,122,712 (647,172)
Income tax credit - - 715,692
------------------------------------------- -------------- ------------- -------------
(Loss) / profit for the period (4,618,680) 2,122,712 69,520
------------------------------------------- -------------- ------------- -------------
Total comprehensive (loss)
/ profit for the period (4,618,680) 2,122,712 69,520
------------------------------------------- -------------- ------------- -------------
(Loss) / earnings per share:
Basic 2 (2.47)p 1.17 0.04p
Diluted 2 (2.47)p 1.16 0.04p
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2023
As at As at As at
30 Sep 30 Sep 31 Mar
2023 2022 2023
Unaudited Unaudited Audited
Notes GBP GBP GBP
------------------------------- ------ ------------- ------------- -------------
Assets
Non-current assets
Intangible assets 12,989,804 10,705,675 11,756,717
Property, plant and equipment 1,246,425 1,287,004 1,256,223
Total non-current assets 14,236,229 11,992,679 13,012,940
Current assets
Inventories 4,304,490 2,672,582 3,465,626
Trade and other receivables 4,268,348 13,434,163 5,828,652
Current tax recoverable 973,188 978,963 968,607
Cash 3,930,126 1,522,079 2,181,548
Restricted cash 949,115 906,245 949,115
------------------------------- ------ ------------- ------------- -------------
Total current assets 14,425,267 19,514,032 13,393,548
Liabilities
Current liabilities
Trade and other payables (7,189,712) (11,592,880) (7,009,926)
Borrowings 3 (9,690,000) (3,962,500) (8,002,500)
Current tax liabilities - - (199,126)
Lease liabilities (250,840) (223,137) (237,371)
Total current liabilities (17,130,552) (15,778,517) (15,448,923)
Net current (liabilities)
/ assets (2,705,285) 3,735,515 (2,055,375)
Total assets less current
liabilities 11,530,944 15,728,194 10,957,565
Long term liabilities
Borrowings 3 - (2,985,000) -
Lease liabilities (638,159) (704,026) (649,946)
Total long term liabilities (638,159) (3,689,026) (649,946)
Net assets 10,892,785 12,039,168 10,307,619
------------------------------- ------ ------------- ------------- -------------
Shareholders' equity
Share capital 4 192,428 180,677 181,517
Share premium account 23,245,908 18,067,612 18,213,072
Other reserves 5,490,596 5,490,596 5,490,596
Retained loss (18,036,147) (11,699,717) (13,577,566)
Total shareholders' equity 10,892,785 12,039,168 10,307,619
------------------------------- ------ ------------- ------------- -------------
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHSED 30 SEPTEMBER 2023
Six months Six months Year ended
ended ended
30 Sep 30 Sep 31 Mar
2023 2022 2023
Unaudited Unaudited Audited
Notes GBP GBP GBP
------------------------------------------ -------------- -------------- --------------
Cash (used in) / generated
from operating activities 5 (1,683,914) (794,348) 778,840
Corporation tax (paid)/
received (203,707) - 925,174
------------------------------------- ---- -------------- -------------- --------------
Net cash (used in) / generated
from operating activities (1,887,621) (794,348) 1,704,014
------------------------------------- ---- -------------- -------------- --------------
Investing activities
Expenditure on product
development (2,494,889) (2,483,961) (4,795,292)
Purchase of property, plant
and equipment (83,042) (57,955) (199,061)
Interest received 13 137 351
------------------------------------- ---- -------------- -------------- --------------
Net cash used in investing
activities (2,577,918) (2,541,779) (4,994,002)
------------------------------------- ---- -------------- -------------- --------------
Financing activities
Gross proceeds on issue
of shares 5,408,231 - 146,300
Costs of issue of shares (364,484) - -
New loans issued 2,000,000 15,000 1,695,000
Loan repayments (312,500) (625,000) (1,250,000)
Lease repayments (124,357) (139,323) (258,835)
Loan interest paid (392,773) (317,072) (742,660)
------------------------------------- ---- -------------- -------------- --------------
Net cash generated from
/ (used in) financing activities 6,214,117 (1,066,395) (410,195)
------------------------------------- ---- -------------- -------------- --------------
Net increase / (decrease)
in cash and cash equivalents 1,748,578 (4,402,522) (3,700,183)
------------------------------------- ---- -------------- -------------- --------------
Net cash and cash equivalents
at beginning of period 3,130,663 6,830,846 6,830,846
------------------------------------- ---- -------------- -------------- --------------
Net cash and cash equivalents
at end of period 4,879,241 2,428,324 3,130,663
------------------------------------- ---- -------------- -------------- --------------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHSED 30 SEPTEMBER 2023
Share Share Retained Other Reserves Total
Capital Premium Earnings
GBP GBP GBP GBP GBP
At 31 March 2022 180,677 18,067,612 (13,946,362) 5,490,596 9,792,523
Total comprehensive profit
for the period - - 2,122,712 - 2,122,712
Share based payment charge - - 123,933 - 123,933
At 30 September 2022 180,677 18,067,612 (11,699,717) 5,490,596 12,039,168
Total comprehensive loss
for the period - - (2,053,192) - (2,053,192)
Share based payment charge - - 175,343 - 175,343
Issue of equity share
capital 840 145,460 - 146,300
At 31 March 2023 181,517 18,213,072 (13,577,566) 5,490,596 10,307,619
Total comprehensive loss
for the period - - (4,618,680) - (4,618,680)
Share based payment charge - - 160,099 - 160,099
Issue of equity share
capital 10,911 5,397,320 - - 5,408,231
Cost of issue of shares - (364,484) - - (364,484)
At 30 September 2023 192,428 23,245,908 (18,036,147) 5,490,596 10,892,785
---------------------------- ---------- ------------- ------------------ ------------------ -------------
NOTES TO THE INTERIM FINANCIAL STATEMENTS
1. Accounting Policies
Basis of preparation
The interim financial information in this report has been
prepared using accounting policies consistent with International
Financial Reporting Standards (IFRS) as adopted by the United
Kingdom. IFRS is subject to amendment and interpretation by the
International Accounting Standards Board (IASB) and the IFRS
Interpretations Committee and there is an ongoing process of review
and endorsement by the UK Endorsement Board. The financial
information has been prepared on the basis of IFRS that the
Directors expect to be adopted by the UK Endorsement Board and
applicable as at 31 March 2024.
Non-statutory accounts
Financial information contained in this document does not
constitute statutory accounts within the meaning of section 434 of
the Companies Act 2006 ("the Act"). The statutory accounts for the
year ended 31 March 2023 have been filed with the Registrar of
Companies. The report of the auditors on those statutory accounts
was unqualified and did not contain a statement under section
498(2) or (3) of the Companies Act 2006. The audit report drew
attention by way of emphasis to a material uncertainty relating to
going concern and included an emphasis of matter paragraph in
relation to the uncertainties associated with the forecasting of
future revenues and profits.
The financial information for the six months ended 30 September
2023 and 30 September 2022 is unaudited. The interim financial
statements will be available to download on the Company's website
www.srt-marine.com from 20 November 2023.
Accounting policies
The accounting policies as applied by the Group are the same as
those applied by the Group in the consolidated financial statements
for the year ended 31 March 2023.
2. (Loss) / earnings per share
The basic (loss) / earnings per share has been calculated using
the loss for the period of GBP4,618,680 (six months ended 30
September 2022 - profit of GBP2,122,712, year ended 31 March 2023 -
profit of GBP69,520) divided by the weighted average number of
ordinary shares in issue of 187,174,103 (six months ended 30
September 2022 - 180,676,939 and year ended 31 March 2023 -
180,961,021).
During the period ended 30 September 2023, the Group has
incurred a loss for the period and therefore there is no impact of
the share options granted on diluted earnings per share.
For the previous period ended 30 September 2022, the calculation
of diluted earnings per share has been calculated on profit for the
period of GBP2,122,712 (year ended March 31 2023 profit of
GBP69,520). It assumes conversion of all potentially dilutive
ordinary shares, all of which arise from share options. A
calculation is performed to determine the number of shares to be
issued for no consideration. The number of dilutive shares under
option at 30 September 2022 was 1,787,866 (At March 31 2023
1,958,724) and the weighted average number of ordinary shares for
the purposes of dilutive earnings per share was 182,464,805 (year
to 31 March 2023 182,919,745).
3. Borrowings
30 Sep 30 Sep 31 Mar
2023 2022 2023
Unaudited Unaudited Audited
GBP GBP GBP
--------------------- ------------ ------------ ------------
Less than one year:
Bank loan 2,000,000 937,500 312,500
Other loan 7,690,000 3,025,000 7,690,000
Total 9,690,000 3,962,500 8,002,500
---------------------- ------------ ------------ ------------
More than one year:
Bank loan - - -
Other loan - 2,985,000 -
Total - 2,985,000 -
---------------------- ------------ ------------ ------------
The bank loan was drawn down in September 2023 as a short-term
loan provided under the UK Government Recovery Loan Scheme (RLS) at
an interest rate of 3.5% above base rate.
Other loans relate to drawdowns on a secured note programme
which has been arranged by LGB Capital Markets. The loan note
liabilities are secured by a floating charge over the Group's
assets. The loans have terms of up to 3 years and interest rates of
8-12%.
During the current period and previous year, a covenant in
relation to debt service cover was breached and a waiver from loan
note holders was obtained shortly after the period/year end. Due to
the waiver not being received prior to the period/year end, IAS 1
requires that the loans are classified as being repayable in less
than one year.
4. Share capital
30 Sep 30 Sep 31 Mar
2023 2022 2023
Unaudited Unaudited Audited
GBP GBP GBP
-------------------------------- ---------- ---------- ----------
Allotted:
Ordinary shares of 0.1p each 192,428 180,677 181,517
--------------------------------- ---------- ---------- ----------
Reconciliation of movement Number of
in share capital shares
Shares issued at 31 March 2022
and September 2022 180,676,939
Exercise of share options (a) 210,000
Exercise of share options (b) 530,000
Exercise of share options (c) 100,000
Shares issued at 31 March 2023 181,516,939
Exercise of share options (d) 8,000
Placing of shares (e) 10,720,000
Exercise of share options (f) 15,000
Exercise of share options (g) 48,000
Exercise of share options (h) 120,000
Shares issued at 30 September 2023 192,427,939
Notes:
a) 150,000 share options were exercised at a price of 18p in
November 2022 and a further 60,000 at a price of 23p in the same
month.
b) 500,000 share options were exercised at a price of 20p in December 2022 and a further
30,000 at a price of 18p in the same month.
c) 100,000 share options were exercised at a price of 0.1p in February 2023.
d) 8,000 share options were exercised at a price of 0.1p in April 2023.
e) The placing in June 2023 took place at 50p per share raising
gross proceeds of GBP5,360,000 before costs of GBP364,484.
f) 15,000 share options were exercise at a price of 0.1p in July 2023.
g) 40,000 share options were exercised at a price of 26p in
August 2023 and a further 8,000 at an exercise price of 0.1p in the
same month.
h) 120,000 share options were exercised at a price of 31.5p in September 2023.
5. Cash (used in) / generated from operating activities
Six months Six months Year ended
ended ended
30 Sep 30 Sep 31 Mar
2023 2022 2023
Unaudited Unaudited Audited
GBP GBP GBP
---------------------------------- -------------- -------------- --------------
Operating (loss) / profit (4,207,338) 2,460,203 135,024
Depreciation of property,
plant and equipment 200,296 241,005 474,226
Amortisation of intangible
fixed assets 1,261,803 1,146,354 2,406,644
Share-based payment charge 160,099 123,933 299,276
Increase in inventories (838,864) (312,660) (1,105,704)
Increase in trade and other
payables 179,786 5,133,245 550,291
Decrease / (increase) in
trade and other receivables 1,560,304 (9,586,428) (1,980,917)
Net cash (used in) / generated
from operating activities (1,683,914) (794,348) 778,840
----------------------------------- -------------- -------------- --------------
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IR FLFERLLLDLIV
(END) Dow Jones Newswires
November 20, 2023 02:00 ET (07:00 GMT)
Srt Marine Systems (LSE:SRT)
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Srt Marine Systems (LSE:SRT)
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から 11 2023 まで 11 2024
