SRT Marine Systems (SRT) , a provider of maritime security systems, announced results for the year ended 31 March 2023 (FY23), reporting a revenue increase of 273% to £30.5m from £8.2m last year, and a profit after tax of £0.1m, up significantly from a £5.8m loss in FY22.
Cash at the year-end was £2.2m gross, down from £5.9m in FY22. It should be noted that post-period the company completed a £5.4m equity raise and increased its loan note programme capacity by an additional £20m.
Operationally, SRT expanded its transceiver distributor network substantially and also grew its delivery team to accommodate multiple simultaneous projects. The company continued progress on its new NEXUS VHF/AIS radio system and DAS transceiver products, both of which entered testing phases. SRT also continued advancing its SRT-MDA System to improve "dark vessel" detection and tracking.
In summary, this is a stellar result by SRT, reaching profitability from a £5.8m loss after a 3.7x increase in revnues as its markets recovered. The company entered FY24 with a £160m forward order book and a substantial prospects pipeline of approx. £1.4bn. SRT's transceivers division grew by 60% and its systems division is now back on track following a pause in government business during Covid.
Of the £30.5m of revenues generated, transceivers were responsible for £12.1m and systems for £18.4m. Its gross profit margin increased to 36% from 33%, contributing to the erasing of last year's loss. During the period, SRT's systems business executed on 3 projects, two with coast guards and one with a national fisheries ministry. This growth can be attributed to an increasing desire of national agencies to have effective maritime surveillance and intelligence in line with what has become the norm in air traffic control.
The Maritime Domain Awareness (MDA) market is still in its early stages of growth, as changes in maritime regulation begin to demand migrations to digital systems. SRT is an early player in the space, with a significant sales pipeline from private and government customers, and much room to grow as the MDA sector and associated technologies mature. Contracts in the MDA space tend to be long, with predictable follow-ons and long-term revenue visibility.
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