Maritime systems firm to delay financial reports as it bids for new contracts
A developer of maritime surveillance and navigation systems says it is in a strong position to won new business.
SRT Marine Systems, which is based in North Somerset, has announced a delay in publishing its full results for the year.
The AIM listed company is delaying its results for three months to protect its ability to tender for certain pending new system contracts.
The company said that in one specific jurisdiction it must meet certain minimum financial ratio criteria related to the size of the target new project in order to bid and contract.
The firm says there is a risk that some existing system project deliveries, expected to be completed in March, will slip into the next quarter due to the time required for governments to complete the necessary processes and paperwork for the deliveries, combined with the effect of the annual Ramadan and EID periods.
In December 2023, SRT completed a £10.5m equity cash raise which significantly strengthened its balance sheet that gave it a strong cash position that enables the business to confidently make decisions in the best long-term interest.
It is currently waiting for the government agencies in three countries to complete their required processes to enable execution of initial revenue milestones on projects worth an aggregate of $220 million.
SRT added that during the past three months there has been significant progress across all system project opportunities, both existing and new prospects, with growing visibility and thus confidence on timescales.
For the new 15 month period ending 30 June 2024, SRT said it maintains revenue expectations that it previously had for the 12 months that would have ended in March.
Chief executive Simon Tucker said: “Our recent £10.5m fundraise has placed us in a strong cash position where we can confidently make these decisions and maximise our market opportunities.
“The decision to move our financial year end date mitigates the risk that a few weeks delay on paperwork could exclude us from some significant new contract opportunities.”
