- Imminent signing of four major contracts worth £71m.
- Three other contracts worth £51m in near-term pipeline.
- Flagship £31m Philippines project to complete by end of 2021 and generate significant recurring revenue.
Aim-traded SRT Marine Systems (SRT:37p), a global leader in AIS, an advanced identification communications technology used to track and monitor maritime vessels, looks set fair to deliver a material return to profit in the current financial year.
As flagged up in April’s pre-close trading statement, Covid-19 related delays to the implementation of major systems contracts meant that the group’s transceiver business (revenue edged up slightly to £8.3m on a respectable gross margin of 38 per cent) was effectively the only source of income in the 12 months to 31 March 2021. The margin earned was not sufficient to cover annual overheads of £8m, mainly on SRT’s systems business, so pushing the group into a £5.9m pre-tax loss. The cash loss was £1.9m after adjusting for non-cash items, mainly depreciation and amortisation of capitalised research & development expenditure.