Technology

SRT Marine Systems plc

Year

2019


Transaction type Equity Capital Markets & Corporate Broking

Sector Technology

finnCap has completed £4m equity fund raise for SRT Marine Systems Plc, the global provider of maritime surveillance, vessel tracking, monitoring and management systems, to support accelerated contract delivery timescales for coast guard contracts which amount to approximately £100m of the £212m near term contract opportunities.

Commenting on the Placing, Simon Tucker, CEO of SRT said:

“This fund raising enables SRT to accelerate our systems contract in-take and subsequent delivery of those systems to customers and thus a commensurate positive effect on the financial performance of our business. Leveraging our leading position in AIS maritime identification and tracking technologies, in 2013, we decided to enter maritime systems business and develop a new type of civilian maritime domain surveillance and management system suitable for large scale fisheries and coast guard applications. Since then we have made the significant investments required to develop the core technologies and integrated system product solutions, along with market penetration such that we have successfully delivered several system contracts, have an existing forward contract order book of £35m which we must substantially deliver over the next 18 months and have a significant and growing near term pipeline of system sales opportunities worth in aggregate c.£212m, that we are working towards successfully concluding within the next 18 months, with delivery periods ranging from 6 to 24 months and longer term recurring satellite data supply. The sales and planning process for system contracts is often protracted. However in recent months a number of our pipeline of validated opportunities in the Philippines and the Middle East have made significant progress in contract discussions. These straddle both Coast Guard and Fishery customers and as such now require us to accelerate the development of certain sophisticated command and control functionality within our GeoVS system software to meet potential customer requirements. Additionally, with simultaneous contracted projects underway in differing countries we will need additional delivery resources in the form of project managers and field engineers to work with our in-country installation partners to ensure that the projects are delivered to the high standards that are now the hall-mark of SRT. The maritime domain awareness (MDA) market is in a phase of sustained growth driven by the availability of new technologies and functionality and due to historical strategic decisions and sustained investments over many years, SRT is now at the centre of this market opportunity and also now in an operational and financial position where we can win and deliver significant business”.