News blog

Software Radio Technology

  • BY: Andrew Hore |
  • POSTED: 22/08/2012 |

AIS marine positional technology developer Software Radio Technology has begun to ship identifier devices to Central America, which is part of an order valued at $3.7m.

The first batch is equivalent to 15% of the order. There are likely to be two further shipments which should happen by the end of 2012. It is unclear if either of these shipments will be prior to the end of September 2012 or if they will both be in the second half of the financial year. 

The final order could be as much as five times the initial level. There are other potential orders from the Middle East and Asia.

EU fisheries regulation and Russian legislation mean that the automatic identification system (AIS) technology needs to be fitted by 2014. SRT’s technology is used in the majority of AIS products sold.

At 20.75p a share, SRT is valued at £24m.

SRT had a poor 2011-12 because orders were delayed. Revenues fell from £9.15m to £6.17m in the year to March 2012. Lower sales combined with higher admin costs meant that the profit slumped from £1.94m to £175,000. 

There was £646,000 in the bank at the end of March 2012, although SRT raised £2.56m at 27p a share just after the balance sheet date. Based on current forecasts this cash should be enough to get SRT to a point where it is cash generative. Inventories increased to £3.5m at the end of March 2012. This was in order to be able to fulfil the Central American order. This inventory increase should unwind this year.

SRT expects to spend a further £1.7m this year on completing the development of its product range. Development spending should then reduce from next year onwards.

SRT recently changed its nominated adviser and broker from Westhouse to WH Ireland.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFAugust2012_35.pdf

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