SRT Marine Systems PLC Trading Update (5692F)
10 March 2020 - 6:00PM
UK Regulatory
TIDMSRT
RNS Number : 5692F
SRT Marine Systems PLC
10 March 2020
SRT MARINE SYSTEMS PLC
(AIM: SRT)
("SRT" or the "Company")
Trading update
SRT Marine Systems PLC (SRT), a global provider of maritime
surveillance, monitoring and management systems, today announces a
trading update for the current financial year ending 31 March
2020.
Following recent advice in respect of Middle East system
contracts with an aggregate value of GBP65m that contracting
process formalities were now complete and the contracts scheduled
for signature and commencement during March, the Company has
received formal written notification, confirming the status of the
contracts, but also that their expected signing and commencement
date will likely be delayed. The reason provided by the customers
for the delays are related to their governments' response to
Coronavirus which is requiring them to immediately and unexpectedly
reprioritise their short-term operational focus, combined with
expected restriction of movement of goods and people.
The initial contractual milestone deliverables relevant to the
current financial year are the GeoVS data centre systems, which
would be required to be delivered within the first few weeks of the
contract signings and generate approximately GBP14m of revenues.
The balance of the system will be delivered across multiple
milestones of various values over an 18 month period. However,
because of the expected delay, the first milestones are now
expected to be completed and their associated revenue recognised in
the next financial year which commences on 1 April 2020. The effect
of this change to the current financial year will be to reduce
expected year end revenues to GBP17.5m with an expected loss before
tax of approximately GBP3.8m. The impact on the next financial year
however will be to substantially increase our revenues and we will
provide market guidance once these contracts are signed.
While the written guidance SRT has received is clear that the
delay may only be a matter of a few days and thus may not have a
financial impact on the current financial year trading performance,
SRT believes there is a material risk that the contract signing and
milestone completions will move into the next financial year.
A live web cast will be undertaken by Simon Tucker at 0800AM on
Wednesday 11 March 2020 to answer shareholder questions.
SRT CEO, Simon Tucker said:
"Of course, we understand and respect the decision of our
customers to concentrate on the current exceptional circumstances.
Nevertheless, the timing and nature of this delay is unexpected and
very disappointing, and I apologise to my colleagues and
shareholders for the angst this unexpected delay will no doubt
cause. However, I hope it is of some re-assurance to note that
after many years of diligent work we have reached the point of
contract signature and that once we are past this short delay the
contracts will proceed and the significant revenue lost in the
current financial year added to the next."
For further information, please contact:
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 (NOMAD & Broker)
Jonny Franklin-Adams / Anthony Adams (Corporate
Finance) +44 (0) 20 7220 0500
Tim Redfern / Richard Chambers (ECM)
About SRT Marine Systems plc:
SRT Marine Systems PLC is a global company which develops and
provides advanced vessel tracking, monitoring, management and
analytic systems which are used by coast guards, fishery
authorities, infrastructure and vessel owners for the purposes of
managing and controlling their maritime domain. Applications
include security, safety, search & rescue, law enforcement,
illegal fishing detection and environment monitoring.
The information communicated in this announcement contains
inside information for the purposes of Article 7 of the Market
Abuse Regulation (EU) No. 596/2014.
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.
END
TSTKKKBNABKKFND
(END) Dow Jones Newswires
March 10, 2020 03:00 ET (07:00 GMT)
Srt Marine Systems (LSE:SRT)
Historical Stock Chart
From Apr 2024 to May 2024
Srt Marine Systems (LSE:SRT)
Historical Stock Chart
From May 2023 to May 2024