REG - SRT Marine Systems - Half Year Report
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RNS Number : 6603W SRT Marine Systems PLC 16 March 2026
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 MONTHS ENDED 31 DECEMBER 2025
SRT, the AIM-quoted developer and supplier of sovereign civil defence maritime
surveillance systems, and navigation safety devices announces its unaudited
interim results for the six months ended 31 December 2025 (the "Period").
First Half Highlighted
· 95% increase in revenues to £51.1m (H1 2024: £26.2m).
· 48% increase in profit before tax to £3.1m (H1 2024: Profit
before tax £2.1m).
· 86% increase in total gross cash at 31 December 2025 to £41.6m
(H1 2024: £22.4m).
· £350m active contract order book from five active sovereign
customers, reflecting the group's strong track record of converting its
visible new contracts pipeline into active contracts
· £195m new contract with new (sixth) sovereign signed post period
end, pending activation. £1.8bn of further validated new system contract
prospects from new and existing customers. Five active sovereign customers and
systems.
· First unmanned surface surveillance vessel (USSV) program fully
operational and conducting 24/7 missions within an SRT-MDA System program.
· NEXUS VHF/AIS marine communications system launched commenced
shipping shortly post period end.
Commenting on today's results, Simon Tucker, CEO of SRT said:
"Our business continues to accelerate in line with the growing global market
for, and interest in, maritime domain awareness. Today's results reflect our
strategic first-mover advantage and years of sustained investment in
technology, products, people and market development, which have positioned SRT
as a market leader that the market and our customers trust for their growing
MDA requirements. I look forward to continued growth in the second half and in
the years ahead."
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)
Kevin Finn (Chairman) kevin.finn@srt-marine.com (mailto:Kevin.finn@srt-marine.com)
Nora Alakshan (Corporate Communications Manager) nora.alakshan@srt-marine.com (mailto:nora.alakshan@srt-marine.com)
Cavendish Capital Markets Limited (NOMAD & Broker)
Jonny Franklin-Adams / Teddy Whiley / Finn Gordon (Corporate Finance) +44 (0) 20 7220 0500
Sunila de Silva (Corporate Broking)
About SRT:
SRT Marine Systems PLC ("SRT") is a global provider of civil defence maritime
intelligence and surveillance systems, as well as navigation safety and
efficiency solutions. Our systems provide MDA intelligence that enables
sovereign agencies such as coast guards and fisheries authorities to adopt a
new nationwide intelligence-led operations doctrine that is highly effective
and efficient for maritime safety and security. Our navigation safety systems
enable vessel operators to navigate digitally more safely and efficiently. Our
customers range from government agencies, such as coast guards, fisheries
authorities, and ports and waterways authorities, to commercial and leisure
vessel owners.
Chairman's Statement
I am pleased to report a strong first-half performance for the Group,
reflecting our continued successful execution of our business plan across both
navigation safety and maritime surveillance and security systems for
sovereigns. During the period, we grew revenues by 95% year on year to £51.1m
and increased profit before tax by 48% to £3.1m, generating strong positive
operating cash flow of £35.3m. These revenues comprised £46.9m from the
systems business and £4.2m from the transceivers business. We expect revenues
to continue to grow in the second half of the financial year, and the Board is
confident in delivering current market expectations.
This accelerating financial performance reflects the long-term development of
the global maritime domain awareness market, the resulting increase in the
scale of our Maritime Domain Awareness ("MDA") systems delivery activity, the
resilience of our navigation safety transceivers business, and the benefits of
sustained investment in technologies, products, people and market development.
Active system contracts under implementation with five sovereign customers
total approximately £350m, of which we have successfully executed £123m,
with £227m left to deliver. Meanwhile, the flow of opportunity into our
business continues to strengthen with a visible new contract prospects
pipeline remaining at approximately £1.8bn despite a major new sovereign
contract worth £195m moving from pipeline to signed status; pending
activation once the associated project finance agreement is completed. This
building pipeline of new prospects, pending and active contracts gives the
Board increasing visibility and is the basis of our confidence for the second
half and the years ahead.
During the period, we achieved a significant operational milestone with SRT's
first unmanned surface surveillance vessel programme becoming fully
operational in Kuwait. This marks an important development for the Group and
demonstrates the breadth of our maritime surveillance system capabilities and
our ability to support customers with integrated systems operating in complex
live environments. Based on this success in the future we expect to expand USV
and UAV surveillance platforms into our other sovereign surveillance projects
as an integrated part of the SRT MDA Eco-System. Shortly after the period end,
NEXUS, our new VHF/AIS communications system, also commenced shipping, marking
an important milestone in the continued evolution of our navigation safety
product offering.
Overall Group gross profit margin of 27% during the period was lower than in
the prior comparative period, due to the type-mix of system deliverables
completed during the period. Gross margin in the systems business was 26%,
while the transceivers business delivered a gross margin of 42%. Operating
expenses, increased to £10.2m from £8.5m due to increased expenditure in our
delivery and sales functions to reach critical mass scale to support and
enable successful execution of both existing and future visible projects.
Having now reached critical mass to support multiple project execution, we now
expect our operating and staffing expenses to increase at a reduced rate.
Gross cash balances at 31 December 2025 amounted to £41.6m, including £27.4m
of restricted cash held in support of project-related obligations. Net cash
generated from operating activities during the period was £35.3m, reflecting
the conversion of receivables at year end together with the completion of
additional project invoicing milestones during the period. In the second half
we expect to deploy some of this cash for project related purchases to enable
the delivery of next phase of invoice milestones. However, for the financial
year as a whole, we expect to remain significantly cash generative.
Our navigation safety transceivers business has developed into a consistently
profitable base for the Group, supported by an established product portfolio,
a global distribution network and a broad customer base. It also continues to
offer attractive medium and long-term growth opportunities which we are
actively working towards. We believe our newly launched NEXUS product will be
complementary and accretive to our existing portfolio, broadening our reach
into larger market segments and supporting future growth as adoption builds
across our distribution network.
Our systems business, which provides the Group's civil defence maritime
intelligence systems to sovereigns, continued on a rapid scaling trajectory.
We now have five sovereign customers, with approximately £350m of active
contracts under implementation, of which £123m of revenues have been
realised, leaving a net £227m to be delivered as this phase of contracts
complete. As each sovereign customer continues to execute on their own
long-term project to build up their own independent surveillance and
intelligence capability based around the SRT MDA Solution Eco-System, we
expect to support them through multiple contracts in the years to come: We
call this a Sovereign Partnership.
During the period we announced the award of a new contract with a new
sovereign customer, and subsequent to the period end, the Group signed the
contract worth £195m at a formal signing ceremony attended by the customer,
SRT personnel and representatives of the UK Government and UK Export Finance
("UKEF"). The contract is to deliver a national SRT maritime surveillance
& intelligence system. As noted in the relevant RNS announcement, the
activation of the contract and commencement of implementation is subject to
the UKEF supported project finance package the process for which is now
underway but not guaranteed. Additionally, the Group signed a £15.3m
follow-on contract with an existing sovereign customer to expand the scope of
its current system; this is an immediately active contract and is therefore
now included in our active project order book of £350m. The continued
movement of opportunities from visible sales pipeline to signed contracts,
active implementation and revenue delivery underlines the momentum building
across our systems business and our proven contract execution capabilities.
Today, SRT is a known and respected leader in the global maritime surveillance
and intelligence systems business. The medium and long-term markets for our
businesses continue to grow and evolve, presenting opportunities with both new
and existing customers. Around the world, sovereign agencies are
prioritising their transition from analogue to digital MDA systems in order to
strengthen surveillance across their marine domains for security, safety,
regulatory and environmental purposes. Alongside our active project base, we
retain a visible pipeline of new contract prospects from both new and existing
customers valued at approximately £1.8bn, which we expect to convert and add
to in future periods
Overall, the Group enters the second half with growing momentum, supported by
a large and expanding global market, proven technologies and products, active
customer programmes, a growing installed base and increasing commercial
visibility. The Board remains confident in the Group's ability to continue
delivering progress in the second half and in the long-term prospects of SRT.
Kevin Finn
Chairman
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025
Six months ended Six months ended 12 months
ended
31 Dec 2025 31 Dec 2024 30 June
2025
Unaudited Unaudited Audited
Notes £ £ £
Revenue 51,126,686 26,203,635 78,021,137
Cost of sales (37,230,338) (14,129,320) (54,119,161)
Gross profit 13,896,348 12,074,315 23,901,976
Administrative costs (10,164,946) (8,468,392) (17,494,471)
Operating profit 3,731,402 3,605,923 6,407,505
Finance costs
(794,935) (1,622,018) (5,324,323)
Broken down as:
Finance expenditure excluding exceptional item
Non-cash exceptional finance cost (794,935) (944,340) (1,877,120)
6 - (677,678) (3,447,203)
Finance income 174,711 123,023 338,710
3,111,178 2,106,928 1,421,892
Profit before income tax
Income tax (charge) / credit (192,287) - 604,800
Profit for the period 2,918,891 2,106,928 2,026,692
Total comprehensive income for the
period 2,918,891 2,106,928 2,026,692
Earnings per share:
Basic 2 1.16p 0.93p 0.85p
Diluted 2 1.10p 0.92p 0.82p
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2025 As at As at As at
31 Dec 31 Dec 30 June
2025 2024 2025
Unaudited Unaudited Audited
Notes £ £ £
Assets
Non-current assets
Intangible assets 16,995,298 15,033,129 15,911,732
Property, plant and equipment 1,343,667 1,109,108 1,316,097
Other non-current assets 3,494,711 - 849,684
Total non-current assets 21,833,676 16,142,237 18,077,513
Current assets
Inventories 3,322,977 6,980,222 4,074,508
Trade and other receivables 37,435,193 32,475,688 52,622,837
Current tax recoverable 2,852,872 831,164 2,682,039
Cash 14,265,772 4,474,859 4,272,396
Restricted cash 27,378,578 17,945,770 5,675,894
Total current assets 85,255,392 62,707,703 69,327,674
Liabilities
Current liabilities
Trade and other payables (58,069,144) (21,910,683) (42,105,407)
Borrowings 3 (2,239,004) (30,088,427) (10,715,228)
Current tax liabilities (2,376,984) - (1,246,196)
Lease liabilities (220,597) (224,594) (235,548)
Total current liabilities (62,905,729) (52,223,704) (54,302,379)
Net current assets 22,349,663 10,483,999 15,025,295
Total assets less current liabilities 44,183,339 26,626,236 33,102,808
Long-term liabilities
Borrowings 3 (13,989,768) (2,164,927) (5,882,022)
Lease liabilities (308,134) (411,943) (369,313)
Total long-term liabilities (14,297,902) (2,576,870) (6,251,335)
Net assets 29,885,437 24,049,366 26,851,473
Shareholders' equity
Share capital 4 251,591 249,863 250,208
Share premium account 42,189,056 42,178,358 42,189,056
Other reserves 8,937,799 6,168,274 8,937,799
Retained loss (21,493,009) (24,547,129) (24,525,590)
Total shareholders' equity 29,885,437 24,049,366 26,851,473
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025
Six months ended Six months ended Year ended
31 Dec 2025 31 Dec 30 Jun 2025
2024
Unaudited Unaudited Audited
Notes £ £ £
Cash generated from / (used in) operating activities
5 34,571,769 (5,546,593) 1,009,197
Corporation tax received 767,667 - -
Net cash generated from / (used in) operating activities
35,339,436 (5,546,593) 1,009,197
Investing activities
Expenditure on product development (2,286,669) (2,260,381) (4,433,910)
Purchase of property, plant and equipment
(255,938) (171,843) (546,070)
Interest received 174,711 123,023 338,710
Net cash used in investing activities (2,367,896) (2,309,201) (4,641,270)
Financing activities
Gross proceeds on issue of shares 1,383 9,530,000 9,544,795
Costs of issue of shares - (504,079) (507,831)
New loans issued 476,330 20,996,655 22,922,318
Loan repayments (844,808) (2,410,837) (19,992,604)
Lease repayments (124,686) (132,103) (263,308)
Loan interest paid (783,699) (929,411) (1,849,205)
Net cash (used in) / generated from financing activities (1,275,480) 26,550,225
9,854,165
Net increase in cash and cash equivalents
31,696,060 18,694,431 6,222,092
Net cash and cash equivalents at beginning of period
9,948,290 3,726,198 3,726,198
Net cash and cash equivalents at end of period
41,644,350 22,420,629 9,948,290
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025
Share Share Retained Earnings Other Reserves Total
Capital Premium
£ £ £ £ £
At 30 June 2024 222,634 33,179,666 (26,839,724) 5,490,596
12,053,172
Total comprehensive income for the period - - 2,106,928 - 2,106,928
Share based payment charge - options
- - 185,667 - 185,667
Warrants charge - - - 677,678 677,678
Issue of equity share capital 27,229 9,502,771 - - 9,530,000
Cost of issue of shares - (504,079) - - (504,079)
At 31 December 2024 (unaudited) 249,863 42,178,358 (24,547,129) 6,168,274
24,049,366
- - (80,236) - (80,236)
Total comprehensive income for the period
Share based payment charge - options - - 101,775 - 101,775
Warrants charge - - - 2,769,525 2,769,525
Issue of equity share capital 345 10,698 - - -
At 30 June 2025 42,189,056 (24,525,590) 8,937,799
250,208 26,851,473
Total comprehensive income for the period - - 2,918,891 - 2,918,891
Share based payment charge - options
- - 113,690 - 113,690
Issue of equity share capital 1,383 - - - 1,383
42,189,056 (21,493,009) 8,937,799
At 31 December 2025 251,591 29,885,437
NOTES TO THE INTERIM FINANCIAL STATEMENTS
1. Accounting Policies
Basis of preparation
The Group has not applied IAS34 Interim Financial Reporting, which is not
mandatory for UK AIM listed companies, in the preparation of this half yearly
report.
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 30 June 2026.
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 30 June 2025 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 an
emphasis of matter paragraph in relation to the recoverability of intangible
assets and a material uncertainty related to going concern.
The financial information for the six months ended 31 December 2025 and 31
December 2024 is unaudited. The interim financial statements will be available
to download on the Company's website www.srt-marine.com
(http://www.srt-marine.com) from 16 March 2026.
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 30
June 2025.
2. Earnings per share
The basic earnings per share has been calculated using the profit for the
period of £2,918,891 (six months ended 31 December 2024 - £2,106,928, year
ended 30 June 2025 - £2,026,692) divided by the weighted average number of
ordinary shares in issue of 251,102,886 (six months ended 31 December 2024 -
226,777,564 and year ended 30 June 2025 - 238,278,281).
During the period, the calculation of diluted earnings per share has assumed
conversion of all potentially dilutive ordinary shares, all of which arise
from share options and warrants. A calculation is performed to determine the
number of shares to be issued for no consideration. The number of dilutive
shares under options and warrants at 31 December 2025 was 14,554,929 (31
December 2024 - 2,058,370 and 30 June 2025 - 7,550,639) the weighted average
number of ordinary shares for the purposes of dilutive earnings per share was
265,657,814 (period ended 31 December 2024 - 228,600,072, year ended 30 June
2025 - 245,828,975).
3. Borrowings
31 Dec 2025 31 Dec 2024 30 June 2025
Unaudited Unaudited Audited
£ £ £
Less than one year:
Loan notes 490,000 11,610,000 9,125,000
Equipment loan 1,749,004 1,481,773 1,590,228
Investor loan - 16,996,654 -
Total 2,239,004 30,088,427 10,715,228
More than one year:
Loan notes 13,110,000 490,000 4,485,000
Equipment loan 879,768 1,674,927 1,397,022
Total 13,989,768 2,164,927 5,882,022
Loan notes 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 10%.
During the period £8.6m of loan notes matured and were
refinanced for a further 2 years. Furthermore, an additional equipment loan of
£476,330 was drawn in respect of purchases for a systems project. This loan
is repayable in quarterly instalments over a 3 year period with an interest
rate of 4%.
On 28(th) October 2024, an existing shareholder, Ocean
Infinity Group Limited provided a $21.3m guarantee to enable the group to
issue a performance bond of a similar value in respect of a project contract
worth $213m which was signed on 30(th) October 2024. This guarantee was
initially provided as a cash loan of $21.3m at an interest rate of 0.75% per
month. During the year ended 30 June 2025, the loan was repaid as the
guarantee was replaced with a bank guarantee on Ocean Infinity's behalf and
then a combination of SRT's own cash resources and the UK Export Finance
guarantee program. In return for providing this guarantee, Ocean Infinity has
been granted 20,000,000 warrants at a strike price of 35p, with an exercise
period of 3 years.
4. Share capital
31 Dec 31 Dec 30 June 2025
2025 2024
Unaudited Unaudited Audited
£ £ £
Allotted:
Ordinary shares of 0.1p each 251,591 249,863 250,208
Reconciliation of movement in share capital Number of shares
Shares issued at 30 June 2024
222,634,086
Placing of shares
(a)
27,228,570
Shares issued at 31 December 2024
249,862,656
Exercise of share options
(b)
100,000
Exercise of share options (c)
20,000
Exercise of share options
(d)
225,000
Shares issued at 30 June
2025 250,207,656
Exercise of share options
(e)
88,000
Exercise of share options (f)
920,000
Exercise of share options
(g)
375,000
Shares issued at 31 December 2025
251,590,656
Notes:
a) The placing in December 2024 took place at 35p per share raising
gross proceeds of £9,530,000 before costs of £504,079.
b) 50,000 share options were exercised at a price of 29p in April
2025 with a further 50,000 share options exercised at a price of 0.1p
c) 20,000 share options were exercised in April 2025 at a price of
0.1p
d) 225,000 share options were exercised in June 2025 at a price of
0.1p
e) 88,000 share options were exercised in July 2025 at a price of
0.1p
f) 920,000 share options were exercised in August 2025 at a price
of 0.1p
g) 375,000 share options were exercised in September 2025 at a price
of 0.1p
5. Cash used in operating activities
Six months ended Six months ended Year ended
31 Dec 2025 31 Dec 2024 30 June 2025
Unaudited Unaudited Audited
£ £ £
Operating profit 3,731,403 3,605,923 6,407,505
Depreciation of property, plant and equipment
265,688 210,871 464,654
Amortisation of intangible fixed assets 1,203,104 1,397,662 2,692,588
Share-based payment charge - options 113,690 185,667 287,442
Decrease in inventories 751,531 1,070,677 3,976,391
Increase in trade and other payables 15,963,737 18,102,971 38,297,695
Decrease / (increase) in trade and other receivables
12,542,618 (30,120,364) (51,117,078)
Net cash generated from / (used in) operating activities
(5,546,593)
34,571,771 1,009,197
6. Exceptional finance charge
As set out in note 3, during the previous period Ocean Infinity was granted
20,000,000 warrants at a strike price of 35p, and an exercise period of 3
years for the provision of a guarantee in respect of a project performance
bond.
In accordance with international accounting standards, these warrants have
been valued during the period over the expected life of the services that are
provided, being the guarantee. This has generated a notional non-cash
exceptional finance charge in the statement of comprehensive income for the
year ended 30 June 2025 of £3,447,203.
7. Subsequent events
As noted within the 2025 financial statements, the group received notification
of an award from a new sovereign customer. Subsequent to the period end, the
group signed a contract worth $261m with this new customer to deliver a
national maritime surveillance system. This project is subject to the
completion of a UK Export Finance supported project finance package which is
not guaranteed.
Furthermore, the group signed a new contract worth $20.5m with an existing
sovereign customer to expand the scope of the current system.
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