Some relatively good news for the Group as share prices have been falling in recent months.
Companies: SRT Marine Systems plc
The announcement this morning by SRT Marine Systems (LON: SRT) of the receipt of an order for 200 AIS Aids to Navigation ('AtoN') transceivers is welcome good news for the Group after share prices have been falling recently. This is due in part to the news of the postponement of an order from Asia earlier this year.
The order for immediate delivery is said to be for the "world's biggest single deployment", set for installment along an unnamed European waterway.
Today's announcement says the system will be used to:
"Enhance traffic control, the monitoring of the exact buoy location and status and the continuous real time monitoring of the local maritime environment and weather."
Shares have risen a fraction with the news and finnCap released a note anticipating the contract is worth up to £0.2m, which helps to "underpin expectations for FY 2018".
Group Chief Executive Simon Tucker had this to say on the new technology order:
"AIS AtoN is still a relatively new addition to the growing AIS big data eco-system and orders will take time to build. However, with many thousands of buoys and remote maritime infrastructure worldwide we believe our significant technology, product and market investments place SRT in a dominant position within this promising new market segment."
The company currently trades at a P/E ratio of 23x versus an industry average of 12x, with a market cap of £43m. Revenue grew steady in the three years to 2017, and consensus expects this to almost double to £20m in the two years to 2019. EPS growth grew a staggering 800% in 2016 and 227% in 2017 despite margins and profits fluctuating in recent years.
