BWhatUWant2C
09 Mar 2016
Re: Where? I'd firstly like to also offer my congratulations and thanks to Mr Tucker and all at 'Wireless House' for the many, many hours of hard work and for retaining such long-term commitment to the cause. A great milestone has now been achieved and hopefully just one of many more to come.I too have been trying to figure out the country behind this highly encouraging RNS.I was initially dead set on India, recalling these points from Simon last February:- Had installed a network which was being expanded.- A year-long identifier trial had been completed.- Next phase (transceivers to vessels) was progressing quite quickly.- Was an "enormous opportunity", all for next year.- ISRO poss using AIS - variant of AbSea offered (see below).- End goal: 5yrs from original starting point, India to have most sophisticated MDA/vessell-tracking system in world.Also:- There was this report in Feb-15 noting the decision of the Indian govt to install AIS in small boats:[link] ISRO launched (I think in Sep-15) a 'next-gen AIS' nanosatellite (EV9 = exactView 9) for a Canadian customer (JV between exactEarth and University of Toronto):[link] Simon told us in June last year that a tender was imminent in India.My general sense was also that India was notably further along the curve than others in the region. Also, the language in the RNS detailing such a "sophisticated", "integrated" and generally comprehensive system seemed to fit the slot with India so well.However, aaalll that said, I then referred back to this presentation last March:[link] outlined three large Asian projects:1. India at ~$50m2. Confidential country at ~$50m3. Confidential country at ~$40mThen I spotted the description against the third country: 'Political decision made to implement system. Series of POC under way. Phased implementation over 3 years expected starting with 60 to 30gt boats.'Now that has me excited. It might be a red herring but the phased implementation over three years suggests today's RNS might not be India, which would mean we still have India to come -> great But regardless of which country it might be, what encourages me more is that these projects were previously valued at $40-50m yet we've just announced a single MDM for $100m - i.e. the scope of one of the previous opportunities has likely just doubled, at least. So, rather than having just taking a chunky £70m out of the ~£200m VSP, should we now be considering a larger VSP?Referring back to the RNS, the customer certainly is taking a broad array of SRT products and services - multiple types of AIS transceivers for vessels, AtoNs and an 'integrated network of national, regional and local control rooms' (presumably GeoVS). This breadth of the purchase is possibly most encouraging of all. It shows that all the different pieces have value to the customer and makes it harder for others to compete with such a comprehensive solution.More generally, I have always been of the opinion that once SRT secures and implements one of its biggest projects, it could/will serve as a large showcase to prove the technologies (of which there are now many) and SRT's management to all other governments... and the business model to investors. And then things could/will really start moving for us patient folk who've been waiting so long for this.I agree with others that margin is important but I am confident that variable costs are low enough for this business to be very highly profitable at scale.A whole pot of jam on toast for my breakfast tomorrow
Clitheroekid
09 Mar 2016
Re: RNS some jam today Well I'm certainly glad I had that chat with Simon Tucker and bought on the back of it - I owe him a pint!Has anyone else been getting inaccurate figures on the portfolio though? Originally it was showing the correct price but a rise of 6.88p, now it's showing the correct rise (13.25p) but it's not carried through to the `Overall GBP Total' at the bottom of the screen.
Courtier1
09 Mar 2016
Re: RNS some jam today whilst you are, of course right, that many small companies have been brought down by large contracts my sense is that this is not the case for SRT.Part of the problem with SRT in the past is that we have been waiting for such orders and they don't appear. The CEO, i suspect, has been gearing up to be able to deliver this type of order for a long time, which bodes better in my opinion than a company suddenly getting successful and not coping.More important to me is the base they have now achieved - the day to day orders generate something in the region of £7m+ p/a and this is unlikely, i'd argue, to disappear. That level of orders seems to get them above b/e so as long as they keep growing that and segregate the team delivering this large order then all should be ok. Margins are unlikely to be under massive pressure but as they are currently around 50% I don't think 30% is unreasonable to expect. It is not as if there is a lot of competition credible in this space.Good move today but I will hold on for much more
coldascheese
09 Mar 2016
£ 70million order thats £ 70million order will increase turnover per annum by 3 times-that's game changing in my view and more to come.
tasagil
09 Mar 2016
Where? "Digital Look" describes the news as regarding "One of the Worlds Largest Fishing Fleets". Fact or not..7 of the worlds top ten (largest fishing fleets) are in Asia. 1. China 16million vessels2. Indonesia 6million5. India 5million7. Myanmar 4million8. Japan 3million9. Vietnam 3million10. Phillipines 2mill (All rounded up to nearest mill 2014)Personally I'd like it to be one of the latter as that leaves the others for much larger 'future" contracts.
coldascheese
09 Mar 2016
Great news-more to come? Well in my view this is really substantial news for this small company and a huge order compared with any in the past.This will provide a much larger turnover in the next three years as a backbone to the business.Also this is only one order,there will be more to be announced that's for sure-so I see this as real change in fortune.As regards margins this order alone could improve margins as well .Overheads should not increase at the same rate as turnover as some overheads are fixed.Any further orders announced and this could really leap.
Hardboy
09 Mar 2016
Re: RNS some jam today C1,Of course this is the key question about the contract - what is the margin? What currency is it being paid in? One thing is certain over the coming months there are going to be a lot of currency fluctuations around the world. History is littered with successful small companies who over reached themselves taking on a contract too big for them - a vanity project because of its size - allowed too smaller margin; and often through no fault of their own (apart from taking on too large a project at too smaller margin) get destroyed by it. It can take up too much management time, that the rest of the business suffers, and when it's over there is no other business to fall back on. I know I sound a bit negative; but I think it's great news, and should be the making of the company and a reward for all Simon's hard work; but there are problems in running such a large contract. I hope they are up to it.
Courtier1
09 Mar 2016
Re: RNS some jam today hmm - interesting. So lets have a stab at some numbersGiven interims I was expecting a full year profit of around £1m and see that as replicable for next year.Now we have a £70m contract over 3 years to be added to the mix heavily weighted to years 2 & 3. So lets assume just 15% of that in year 1 = £10m revenue. gross margins I'd expect to be lower as it is design phase so say 30% (rather than 50%) = £3m profit + £1m from existing operations = £4m for next year puts this on a fwd PE of 8. Following 2 years materially more.So key now is to continue to grow existing business and pipeline whilst delivering against this particular mandate successfully in my view.
DreamBeaver
09 Mar 2016
Re: RNS some jam today Well done all those who kept faith! Patience rewarded!This deal is nearly 4X the current 'market cap'.I have always felt total confidence in Simon Tucker & never doubted his now justified enthusiasm.Next news could well be from the US mandate that either came into force 1st March or will be month end...off the top of my head, cannot remember the exact date.
Hardboy
09 Mar 2016
Re: RNS some jam today On the face of it this looks fantastic. SRT's best year saw them turnover £10m. This contract alone is said to be worth €90m over 3 years. I just hope it goes smoothly. Emerging Asian nations (assuming it is not Japan or S Korea) are notoriously bad at paying and good at finding reasons to delay payment or get something for nothing, and SRT have had problems in the past with cash flow management. I hope they have some really top locals working on their behalf to ensure the smooth payments.But it should kick start the share price today.
tasagil
09 Mar 2016
RNS some jam today [link] about the 5% rise yesterday!
Hardboy
07 Mar 2016
Low and lower We're in desperate need for some good news as the share price sinks low & even lower. It's near enough the lowest it's been in recent memory.
Old Ma Coni
16 Feb 2016
Greater clarity in trades Copied from JR710 on the LGO board Correct reporting of share trades. This petition was stalled in parliament since beginning of Nov 15. The FCA don't even reply on the matter, now is your chance to have your say. 2535 signatures so far. Have you done your bit yet? Have you sent it to your contacts? [link]
Clitheroekid
02 Feb 2016
Re: R Peresy Our chum Mr Persey's been buying again - another 225,000 shares. He now owns over 11% of the company.
Hardboy
18 Jan 2016
Re: R Peresy Well done BWYWTC, excellent research. It probably also explains where a lot of the cash came from to buy the shares.
