SRT Marine Systems (SRT ), a provider of maritime security systems, said an existing Coast Guard customer had awarded it a new contract worth up to US$20m after initiating the next phase of its maritime surveillance system buildup strategy.
The contract is being finalised and expected to be completed in the next few months. The initial system upgrade implementation is expected to be delivered within 12 months of the formal contract signing at an expected value of approx. US$10m. Thereafter, SRT expects a series of further purchase contracts for customised transceivers, estimated at an additional $10m of revenues.
SRT said the customer was a national Coast Guard facing an "increasingly complex range of maritime security and safety challenges". The customer has an existing SRT supplied vessel tracking and identification system commissioned in 2016. The next phase currently being contracted will integrate a new generation of sensor types within a single operating platform and deliver a significant uplift in the customer's maritime intelligence across both territorial and EEZ waters.
This contract further testifies to SRT's rapidly growing opportunity pipeline. Over the past year, SRT's pipeline of new system contract opportunities has grown to approx. £1.4bn, of which £380m are at a mature stage in the sales cycle.
Investors have welcomed this sales growth, pushing SRT shares 34% higher year-to-date, and 105% higher in the past 12 months. Shares rose 3.5% on today's news.
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