REG - SRT Marine Systems - Change of Year End and Business Update

SRT Marine SystemsAnnouncement

08/03/2024 07:00

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RNS Number : 0646G  SRT Marine Systems PLC  08 March 2024

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
THE MARKET ABUSE REGULATION (EU) 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW
BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("MAR"), AND IS
DISCLOSED IN ACCORDANCE WITH THE COMPANY'S OBLIGATIONS UNDER ARTICLE 17 OF
MAR.

 

 

SRT MARINE SYSTEMS PLC

(AIM: SRT)

("SRT" or the "Company")

 

Change of Year end and Business Update

SRT Marine Systems plc ('SRT'), the AIM-quoted developer and supplier of
maritime surveillance systems and navigation safety products hereby provides a
business update and notification of a change in financial reporting date.

In order to protect our ability to tender for certain pending new system
contracts, as explained below the Board has resolved to move the financial
year end from 31 March to 30 June. The effect of this change is that the
current financial year will be extended by 3 months to be 15 months in length
ending on 30 June 2024. The Company intends to publish audited final results
for the 15 months ended 30 June 2024 during October 2024. Thereafter the
Company will publish unaudited interim results for the 6 months ended 31
December by no later than 31 March (commencing with the financial results for
the 6 months ended 31 December 2024) and audited final results for 12 months
ended 30 June by 31 December in each calendar year (commencing with the
financial results for the 12 months ended 30 June 2025).

The reason for this decision is that in one specific jurisdiction we must meet
certain minimum financial ratio criteria related to the size of the target new
project in order to bid and contract. The Board believes there is a risk that
some existing system project deliveries, expected to be completed in March,
will slip into the next quarter due to the time required for governments to
complete the necessary processes and paperwork for the deliveries, combined
with the effect of the annual Ramadan and EID periods. The consequence of this
would be a reduction in our financial ratios and therefore risk our ability to
bid for these new system projects. As we are not certain these deliveries will
complete in March, the Board considers this to be an unnecessary risk which
could exclude SRT from substantial new projects.

In December 2023, we completed a £10.5m equity cash raise which significantly
strengthened our balance sheet and has endowed SRT with a strong cash position
that enables us to confidently make optimal decisions in the best long-term
interest of SRT.

As of this update, as stated above the Company is a passive, but well informed
observer whilst waiting for the relevant government agencies in three
countries to complete their required processes to enable execution of initial
revenue milestones on projects worth an aggregate of $220 million.

Notwithstanding the above mentioned risk of paperwork completion delay, we are
pleased to report that during the past three months there has been significant
progress across all our system project opportunities, both existing and new
prospects, with growing visibility and thus confidence on timescales.
Operationally, we have recently released and are implementing a new version of
our GeoVS maritime surveillance system. The new version includes significant
improvements in a number of functional and non-functional areas.
Non-functional improvements include core system architectural enhancements
that result in faster system data flows and processing times which in turn
supports faster and more extensive user functionality. Functional improvements
are across multiple areas, but of particular note are improved reporting and
analysis and significant enhancements to our proprietary D-Ai analytics engine
that will further refine our systems ability to automatically detect and
characterise maritime events such as IUU, transshipment etc, and the
introduction of a bolt on web portal function that will enable customers to
integrate, engage and share information with their fellow government agencies
and external stakeholders. Work is now underway on the next phase of
enhancements which will result in the next major product release in early
2025.

Our transceivers business has performed solidly, maintaining our gross profit
margin as supply chain and market conditions have normalised following COVID.
Our DAS sub-division is showing exceptional promise having built a significant
pipeline of opportunities which are now starting to convert. Operationally our
major transceiver development, NEXUS marine voice and communications system,
is now well into its test and validation program with initial field trials
also underway. Following our soft launch of this product to dealers and
distributors at METS in November 2023, we have a growing forward order book
and interest continues to build from our 4,500 strong value-added reseller
base. The full sales and marketing program will commence during the later part
of summer with first deliveries starting in the autumn as planned.

For the new 15 month period ending 30 June 2024, we prudently maintain our
revenue expectations that we previously had for the 12 months that would have
ended on 31 March 2024.

Simon Tucker, CEO of SRT Marine Systems, commented:

"Our recent £10.5m fundraise has placed us in a strong cash position where we
can confidently make these decisions and maximise our market opportunities.
The decision to move our financial year end date mitigates the risk that a few
weeks delay on paperwork could exclude us from some significant new contract
opportunities."

 

 For further information, please contact:
 SRT Marine Systems plc                                      www.srt-marine.com (http://www.srt-marine.com)

                                                             + 44 (0) 1761 409500
 Simon Tucker (CEO)                                          simon.tucker@srt-marine.com (mailto:simon.tucker@srt-marine.com)
 Louise Coates (Marketing Manager)                           louise.coates@srt-marine.com (mailto:louise.coates@srt-marine.com)

 Cavendish Capital Markets Limited (NOMAD & Broker)
 Jonny Franklin-Adams / Teddy Whiley (Corporate Finance)     +44 (0) 20 7220 0500
 Tim Redfern / Harriet Ward (ECM)
 Yellow Jersey PR
 Charles Goodwin / Annabelle Wills                           +44 (0)774 7788 221

                                                             srt@yellowjerseypr.com (mailto:srt@yellowjerseypr.com)

About SRT Marine Systems plc:

SRT is a global leader in the development and provision of next generation
digital maritime surveillance and navigation safety technologies and systems.
The Company's products and solutions are used by individual vessel owners,
port authorities, maritime infrastructure owners, coast guards and national
security agencies to enhance their maritime domain awareness. Applications
include the tracking of commercial and leisure vessels; sustainable fishery;
anti-collision; search and rescue; waterway management, port and coast
security; pollution management; and environmental management.

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