TIDMSRT
RNS Number : 8235G
SRT Marine Systems PLC
29 July 2021
SRT MARINE SYSTEMS PLC
(AIM: SRT)
("SRT" or the "Company")
FINAL RESULTS FOR THE YEARED 31 MARCH 2021
SRT Marine Systems PLC, a provider of maritime surveillance,
monitoring and management systems, announces its results for the
financial year ending 31 March 2021.
FINANCIAL SUMMARY
-- Revenues of GBP8.3m, mostly generated by transceivers
division. No material revenue contribution from systems business
due to Covid delays.
-- Improved gross profit margin of 38%.
-- GBP550m systems division validated system sales opportunity
pipeline, of which GBP71m are very near term.
-- GBP5.3m gross cash as at year end.
OPERATIONAL HIGHLIGHTS
-- Significant progress of development of new dual application
AIS transceiver product (NEXUS) scheduled to commence shipping
early 2023.
-- Specialist marine data analytics lab established within systems division.
-- Systems delivery model evolved to enable efficient project
delivery even when international travel of SRT support engineers is
restricted.
-- Substantial new functionality implementation in SRT-MDA System GeoVS software platform.
Commenting on today's results, Simon Tucker, CEO of SRT
said:
"These are obviously very disappointing results and I personally
apologise to our shareholders who had expected this year to be our
take-off year. I hope and expect us to return to our expected
growth path, starting this year. We have made best use of the
forced delay by materially improving our products, in-country
relationships and market position. The demand for maritime domain
awareness solutions from both boat owners and government agencies
is strong and growing and underpins our business. And because of
our investments and activities over many years, SRT is today a
global leader at the centre of this emerging market opportunity,
which I expect to be soon confirmed as a number of customers
complete their contracting formalities and our transceivers
business moves forward."
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
finnCap Ltd
Jonny Franklin-Adams / Teddy Whiley (Corporate
Finance) +44 (0) 20 7220 0500
Tim Redfern / Charlotte Sutcliffe (Corporate
Broking)
About SRT:
SRT Marine Systems plc (SRT) is an established marine-tech business
that specialises in providing solutions that deliver enhanced
maritime safety, security and management to vessel owners/operators
and national maritime authorities around the world such as coast
guards, fishery authorities and infrastructure owners. We generate
revenues and profits from the sale of individual hardware products,
software licenses and ongoing long term data and system service
contracts.
The information contained within this announcement is deemed
to constitute inside information as stipulated under the Market
Abuse Regulation (EU) No. 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018. Upon the
publication of this announcement, this inside information is
now considered to be in the public domain.
CHAIRMAN'S STATEMENT
Despite many positive developments and much progress across
our business during the year that have significantly strengthened
our business, including significant engagement with new and
existing system customers and improved products, Covid has
caused significant delays to expected new system contracts.
Therefore, as we reported in our post year end trading update
issued in April 2021, these delays have caused a contraction
of revenues and a loss for the financial year ending March
2021.
However, during the first quarter of the new financial year,
we have seen unexpectedly strong trading in our transceivers
division and slow but steadily accelerating progress with
new system contract opportunities. Of particular note are
four system contracts worth an aggregate of GBP71m which had
been expected to commence last year, where the customers are
now actively pushing to complete their internal procurement
processes as quickly as possible, boding well for the new
financial year.
As reported in our post year end trading update (April 2021),
year on year group revenues decreased from GBP18.9m to GBP8.3m,
resulting in a loss after tax of GBP5.9m (2020: loss of GBP3.0m)
with gross cash as at the year-end of GBP5.3m. During the
year, the vast majority of the revenues (GBP8.2m) were generated
by our transceivers division which grew 1%. Our systems business
did not complete any revenue milestones, however GBP13.0m
of cash payments from existing customers were received in
accordance with contracted payment schedules and subsequent
to year end a further GBP2.3m has been received, with further
amounts due in the coming months.
Given the circumstances, our transceivers business performed
better than expected during the year, delivering 1% growth.
We saw steady demand across both leisure and commercial vessel
transceiver segments, as well as continuing increased demand
for our Digital AIS Aids to Navigation (what we now call 'DAS'
- Digital AtoN System'). All driven by a fundamental long-term
macro trend of digitising the monitoring and management of
the marine domain. Our product development focus has been
the improvement in the mobile device connectivity of existing
products that will make it more convenient for users to wirelessly
connect to their navigation app enabled smart phones and tablets.
And the creation and launch of more integrated DAS products
to meet growing demand from ports and waterway authorities
wanting to enhance navigation safety and marine environment
monitoring. A new and very significant transceiver product
(NEXUS) is also under development that integrates AIS with
other technologies and I am pleased to report excellent progress
with our plan to complete and start shipping this product
from early 2023.
Looking forward, during the first quarter of the new year
our transceivers business has exceeded our expected 10% annual
growth target, with stronger demand for both DAS and vessel
transceivers, which as of the date of this report seems likely
to continue into the future, along with stable profit margins
with good cash generation. We believe this is because of the
combined effects of the well-known quality of our products,
established and growing sales channels that value good product
and reliable supply, along with continued growing demand for
AIS. Our forthcoming NEXUS product will add a very significant
new complementary product segment to our transceivers business
which we hope will result in a material increase in revenues
from 2023.
Our systems business is ultimately underpinned by a long-term
macro-trend of countries wanting to have the autonomous ability
to monitor, control and manage their marine territories. Having
identified this strategic long-term opportunity early, we
have been able to develop a sophisticated turn-key system
solution, the SRT-MDA System, which is built around our GeoVS
maritime enterprise application which delivers a fully integrated
and feature rich maritime surveillance and management system
that is attractive to coast guards, fishery authorities and
owners of critical infrastructure. The SRT-MDA System is now
in use around the world, for example in Malaysia, Philippines,
Bahrain and Panama, providing important proven references
for new customers.
During the year we continued to invest in the development
of our system to both enhance existing functionality and performance,
as well as implement new functionality. Of particular note
is the growing sophistication of our system's backbone data
networking and fusion capabilities, and intelligent analytics
which is able to automatically identify illegal and suspicious
activities from hundreds of thousands of vessels and alert
system operators who can then instigate appropriate response
actions. This is work that is accelerating and will continue
into the future, adding significant value to our core systems
product.
These temporary delays, whilst extremely frustrating, have
given us the time to make very significant operational progress
that I believe will make a material difference to the business
both in the near term and years ahead. These have included
remodelling our systems delivery method such that our systems
are more modular and easier for our local partners to install,
commission and support efficiently with much less in-country
support from our delivery support engineers. New and innovative
system functionalities, such as dynamic analytics, multi-source
data fusion and alert response action management within the
fully integrated operating environment of the SRT-MDA System
that set us apart from potential future competition and will
deliver a material difference and added value to our customers
During the year, in conjunction with our local partners, we
have continued to make good progress with the implementation
of the SRT-MDA System in The Philippines for BFAR. In December
2018, we entered a four year PHP2.1 billion (GBP30m) value
contract to build the first phase of the world's largest and
most sophisticated national scale fisheries monitoring system.
Much of the infrastructure has now been completed and the
multiple monitoring centres are systematically being commissioned,
BFAR staff in training, with commercial fishing vessels equipped
with our VMS-100 now being tracked once every 15 minutes and
electronically reporting fishing catches. Following completion
of the project we expect a long-term system sustainability
contract which will include a subscription to our S-MDA satellite
data product, along with further system expansion contracts.
As we reported, new system contract discussions have been
significantly affected by Covid restrictions which have caused
customer project planning and procurement processing departments
to regularly close or suffer a significant capacity reduction,
resulting in extended contract finalisation processing timelines.
Whilst these issues persist in many jurisdictions and the
nature of government business means forecasting of precise
sales cycles is challenging, in recent months we have experienced
renewed engagement from customers to progress discussions
coupled with a steady increase in meaningful activity from
a subset of customers who appear eager to complete their contracting
processes as quickly as possible.
In our April 2021 post year end update we reported that the
value of our pipeline of validated system opportunities now
stands at GBP550m, with contract opportunities that range
from a few hundred thousand dollars to tens of millions, spread
across the world at different stages in the sales and contracting
cycle. Of these, seven worth an aggregate of GBP125m, located
in countries in SE Asia and Middle East, we consider to be
in their final stage prior to contracting. Due to the complexities
of government contracting processes and differences between
the processes of each customer, it is impossible for us to
forecast with absolute surety the date upon which these will
be signed. However, based upon received information and activities
we expect that four of these contracts worth approximately
GBP71m over an average two year delivery period, should be
under contract and delivering meaningful revenues within the
new financial year. The other three, worth GBP54m, likely
some months later, thus being contracted during the latter
half of the new financial year or early next year, and therefore
depending on exact timing may not contribute meaningful revenues
until the next financial year. I am also pleased to report
that some other significant opportunities in our pipeline
which are at an earlier stage in the sales development cycle,
have recently materially progressed with the customers indicating
a likely contracting timescale towards the end of 2022, although
these timescales are likely to change.
Our quick action at the beginning of Covid to develop and
execute a Covid resilience plan, coupled with ongoing careful
financial and operational management of the business has enabled
us to successfully weather this temporary storm and be in
our current positive position with an array of significant
opportunities ahead of us. In our new financial year, we expect
to see our transceiver business revert back to its long-term
growth trajectory, thus generating increasing revenues and
profits, and our systems business to enter multiple new contracts,
and thus drive a substantial and sustained financial turnaround.
I would like to thank everyone at SRT, all of whom have continued
to work fulltime throughout, even travelling and enduring
weeks of solitary isolation in hotel rooms around the world
to deliver essential tasks when possible, and our patient
shareholders for their long term and exceptional support for
the company.
Kevin Finn
Chairman
Date: 28 July 2021
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME FOR THE YEARED 31 MARCH 2021
Note 2021 2020
GBP GBP
Revenue 8,275,022 18,908,062
Cost of sales (5,097,419) (14,537,092)
Gross profit 3,177,603 4,370,970
Administrative costs (8,048,640) (7,717,677)
Foreign exchange (losses) / gains (486,675) 834,416
------------------------------------- ------- -------------- --------------
Total administrative costs and
foreign exchange (losses) / gains (8,535,315) (6,883,261)
Operating loss before exceptional
item (5,357,712) (2,512,291)
Impairment charge - (3,922,029)
Operating loss after exceptional
item (5,357,712) (6,434,320)
Finance expenditure (574,248) (464,539)
Finance income 1,057 1,430
Loss before tax (5,930,903) (6,897,429)
Income tax credit 797,060 818,407
Loss for the year after tax (5,133,843) (6,079,022)
Total comprehensive expense for
the year (5,133,843) (6,079,022)
Loss per share:
Basic 4 (3.13)p (3.93)p
Diluted (3.13)p (3.93)p
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH
2021
2021 2020
Note GBP GBP
Assets
Non-current assets
Intangible assets 8,274,170 7,776,882
Property, plant and equipment 1,688,512 1,782,048
Deferred tax 793,602 670,778
Total non-current assets 10,756,284 10,229,708
Current assets
Inventories 2,368,283 1,928,730
Trade and other receivables 3,600,187 15,958,534
Cash and cash equivalents 5,286,432 918,808
Total current assets 11,254,902 18,806,072
Liabilities
Current liabilities
Trade and other payables (1,648,983) (9,044,454)
Financial liabilities 5 (8,515,000) (4,990,000)
Lease liabilities (262,011) (202,445)
Total current liabilities (10,425,994) (14,236,899)
Net current assets 828,908 4,569,173
Total assets less current liabilities 11,585,192 14,798,881
Non-current liabilities
Lease liabilities (861,409) (1,067,741)
------------- -------------
Net assets 10,723,783 13,731,140
Shareholders' equity
Share capital 164,252 154,844
Share premium account 13,431,735 11,543,989
Retained loss (8,362,800) (3,458,289)
Other reserves 5,490,596 5,490,596
Total shareholders' equity 10,723,783 13,731,140
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEARED 31 MARCH
2021
2021 2020
GBP GBP
Cash generated from operating
activities 2,164,982 857,765
Corporation tax received 674,236 201,926
-------------- --------------
Net cash generated from operating
activities 2,839,218 1,059,691
-------------- --------------
Investing activities
Expenditure on product development (2,770,455) (2,970,033)
Purchase of property, plant
and equipment (341,875) (523,530)
Interest received 1,057 1,430
Net cash used in investing
activities (3,111,273) (3,492,133)
-------------- --------------
Financing activities
Gross proceeds on issue of
shares 2,000,005 34,837
Costs of issue of shares (102,851) -
New loans issued 3,525,000 -
Lease repayments (267,749) (225,149)
Loan interest paid (514,726) (400,605)
Net cash generated from / (used 4,639,679 (590,917)
in) financing activities
Net increase / (decrease) in
cash and cash equivalents 4,367,624 (3,023,359)
-------------- --------------
Net cash and cash equivalents
at beginning of year 918,808 3,942,167
-------------- --------------
Net cash and cash equivalents
at end of year 5,286,432 918,808
============== ==============
Notes
1. Status of financial information
SRT is a public limited company incorporated in England and
Wales whose ordinary shares of 0.1p each are traded on the AIM
Market of the London Stock Exchange. The Company's registered
office is Wireless House, Westfield Industrial Estate, Midsomer
Norton, Bath BA3 4BS.
The Board of Directors approved this preliminary announcement on
28 July 2021. This announcement does not itself contain sufficient
information to comply with all the disclosure requirements of IFRS
and does not constitute statutory accounts of the Company for the
years ended 31 March 2021 or 31 March 2020.
The financial information has been extracted from the statutory
accounts of the Company for the years ended 31 March 2021 and 31
March 2020. 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 recoverability of certain assets.
The statutory accounts for the year ended 31 March 2020 have
been delivered to the Registrar of Companies, whereas those for the
year ended 31 March 2021 will be delivered to the Registrar of
Companies following the Company's Annual General Meeting.
2. Basis of preparation
The financial statements have been prepared in accordance with
international accounting standards in conformity with the
requirements of the Companies Act 2006. For the purposes of the
preparation of the consolidated financial information, the Group
has applied all standards and interpretations that are effective
for accounting periods beginning on or after 1 April 2020. The
financial information has been prepared under the historical cost
convention unless otherwise stated.
3. Dividends
The Board is not recommending the payment of a final
dividend.
4. Loss per ordinary Share
The basic loss per share has been calculated on the loss on
ordinary activities after taxation of GBP5,133,843 (2020: loss
GBP6,079,022) divided by the weighted number of ordinary shares in
issue of 163,728,344 (2020: 154,742,293).
During the current and previous years, the Group incurred a loss
on ordinary activities after taxation and therefore there is no
dilution of the impact of the share options granted.
5. Financial liabilities
Bank loan
The bank loan (amount owed at 31 March 2021: GBP2,500,000) was
drawn down in April 2020 as a one year loan provided under the UK
government Coronavirus Business Interruption Loan Scheme (CBILS) at
an interest rate of 0%. Subsequent to the year end, the renewal of
this facility has been agreed with quarterly repayments commencing
in July 2021 through to April 2023 at an interest rate of 2.59%
above base rate. As the loan renewal documentation, whilst agreed
prior to the year end, was signed subsequent to the year end, IAS1
requires that the loan be classified in full as repayable in less
than one year despite the loan renewal and the revised maturity
date.
Other loans
As of 31 March 2021, the total of other loans outstanding is
GBP6,015,000. These all relate to a GBP10 million secured loan
programme which has been arranged by LGB Capital Markets and which
is secured by a floating charge over the Group's assets. In total
the group has drawn down GBP9,215,000 of the available GBP10
million, and repaid GBP3,200,000, leaving the current outstanding
balance of GBP6,015,000 which is due for repayment on various dates
over the next 3 years. (A note may only be issued once, and then
once repaid is cancelled). As the group has existing head room of
GBP785,000 on the existing program, for further draw downs the
process has commenced to increase the head room by a further GBP10
million.
During the year ended 31 March 2021 the covenant in relation to
debt service cover was breached and a waiver from loan note holders
was obtained subsequent to the year end on 28 April 2021. Due to
the waiver not being received prior to the year end, IAS 1 requires
that the loans are all classified as being repayable in less than
one year, despite GBP2,025,000 of loans having maturity dates in
excess of one year.
The gearing covenant was not breached as at 31 March 2021.
6. Annual Report and AGM
The Annual Report will be available from the Company's website,
www.srt-marine.com once it is published. To locate the report,
click "Investors" and then scroll down the page to "Reports and
Presentations". The Annual Report and Notice of AGM will be posted
to shareholders on 23 August, 2021.
The AGM will be held at the Centurion Hotel, Charlton Lane,
Radstock BA3 4BD at 11.00am on September 22, 2021. Prior to the
commencement of the formal AGM there will be an Open Morning at
SRT's offices, commencing at 9.00am.
In light of the current relaxation of COVID-19 restrictions and
social distancing rules, our current intention is for all
shareholders who wish to attend the AGM to be able to do so in
person. However, changes in public health guidance and legislation
issued by the UK Government may mean that shareholders will not be
able to attend the meeting. It is recommended that our shareholders
continue to monitor the Company's website as well as the Company's
stock exchange announcements for any updates to the
arrangements.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
FR UWABRAKUBUAR
(END) Dow Jones Newswires
July 29, 2021 02:00 ET (06:00 GMT)
Srt Marine Systems (LSE:SRT)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Srt Marine Systems (LSE:SRT)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024
