SRT Marine Technology in the News

1st July 2010 - Shares Magazine

SRT Navigating towards profitability

The contract win momentum at Software Radio Technology (SRT.AIM) means the maritime identification systems producer is worth a punt, as further wins should drive the shares up.

Legal changes across countries including the US, China, India, Turkey and EU member states means the group's automatic identification system (AIS) technology is now becoming mandatory for vessels travelling in these waters. SRTs order book stood at $4 million as of 1 April, and
the group has since announced further contracts, including 21 June's $480,000 deal for its AIS Class A transceiver.

'AIS, which enables you to identify and track vessels across the water, is becoming the worldwide standard from China to the US', chief executive officer Simon Tucker told Shares. At least 500,000 vessels
will need upgrading to the technology over the next three years.

Tucker says the group's AIS solution is the most competitive on the market, as the group has spent five years developing the technology. The devices also beat the competition on price.

Software Radio Technology supplies 25 of the leading global marine hardware companies, which incorporates the technology into their devices. This means we can focus 90% of our attention on the technology," says Tucker. "We also contract out all the manufacturing', He describes the current growth in demand as 'explosive'.

Last month (7 June) Software's finals showed a 81% reduction in losses, to £221,000, representing a 41% increase in revenues to £3.5 million. Jeremy Chantry at house broker Westhouse expects to see 'sharp' revenue growth this year, with improved profit margins as the company broadens its product mix. His 50p target price leaves 80% upside.

Shares says: Regulation should drive uptake. Buy at 27.8p.