News blog

Software Radio Technology

• BY: Andrew Hore |
• POSTED: 05/04/2013 |

AIS marine positional technology developer Software Radio Technology says that it made a pre-amortisation profit of £1.5m in the year to March 2013.

The profit is lower than Westhouse’s forecast of £1.9m but this appears to be an out of date forecast. WH Ireland has been forecasting £1m profit for 2012-13 since it was appointed broker and initiated coverage in November.  Revenues of £10m were higher than the WH Ireland forecast of £8.9m. The North American order gained in March helped SRT to outperform the forecast.

The profit is still not back to the 2010-11 level but WH Ireland forecasts a 2013-14 profit of £3.1m after amortisation, which is much higher than the £1.9m profit in 2010-11.

SRT has disappointed in the past because of the difficulties in predicting the timing of orders so it needed to beat the 2012-13 to begin to regain credibility. It is still early days for the 2013-14 forecast, which assumes revenues of £15m.

There was cash in the bank of £1.5m at the end of March 2013.

At 22.5p a share, up 2.5p, SRT is valued at £26.1m. The shares are trading on 10 times the 2013-14 forecast.

A live webcast will be held on 17 April at 7.30am (see www.softwarerad.com). Full year figures will be published on 11 June.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFMarch2013_42.pdf