SRT Marine Technology in the News

1st October 2007 - AIM Bulletin

Software Radio Technology winning marine orders

Software Radio Technology is making strong progress although it appears that the marine indentification and tracking technology is taking off faster than its TETRA personal mobile radio business.

Orders for marine tracking equipment have come from Turkey and China and from an international distributor. The FCC still has to pass it in the US but the US Coastguard is keen for smaller boats to have the technology that enables other vessels to know where they are and avoid colliding with them. The larger vessels have the technology but SRT is able to make it affordable for owners of smaller boats. There are 1.5m vessels that are less than 40ft. The market could be worth $400m and SRT's gross margins should be around 50%.

Production of TETRA personal mobile radios has begun in China and South Korea. SRT gets a $30 royalty for each one. It has also designed its own handset to sell in Europe under the brand of its customers.

Group overheads are still running at around £1m a year. SRT is on course to move into profit this year. Analysts expect a profit of £1.1m in the year to March 2008, rising to £1.8m the following year.