News blog

Software Radio Technology

• BY: Andrew Hore |
• POSTED: 27/01/2014 |

AIS marine positional technology developer Software Radio Technology is still uncertain about the outcome for the year to March 2014 and this has led to a sharp downgrade by house broker WH Ireland.

The broker originally expected a 2013-14 profit of £2.9m but this has been changed to a £1.5m loss. The forecast revenues have been slashed from £15m to £6m. The first half loss was £434,000 on revenues of £3.2m.

SRT has always found it difficult to predict the timing of orders. Management says that revenues could be between £6m and £13m and the former could produce a £1.5m loss, as forecast by WH Ireland, or up to a profit of £2.5m. WH Ireland has obviously decided to take the lowest option when formulating its estimates. There is still scope for a much better outcome.

No orders have been lost it is just that they may come through after March.

The first commercial deal, worth £145,000 in the first 12 months, has been secured for the GeoVS 3D visualisation software, with additional support revenues in the future. 

At 23p a share, SRT is valued at £26.6m.

Download the latest AIM Journal from http://wwww.hubinvest.com/AIMPDFJanuary2014_52.pdf