London South East were joined by maritime surveillance company SRT Marine CEO Simon Tucker, who explained the maritime surveillance, monitoring and management systems business to us in depth. (LON:SRT – Market Cap 58M).
“85% of the world is covered by oceans, 90% of our economic activity comes across the oceans. And not just on the big ships which you see but all the supporting vessels, fishing boats, the food and the protein which comes from fish. The control and monitoring of that is very important” said Simon.
“We believe this is a unique market segment which has been overlooked, and we were lucky enough to spot that gap many years ago and have been building a sophisticated technical offering to fit. We were lucky enough to have supportive shareholders who allowed us to build ourselves up underneath the radar and we now have product going into the Middle East and South East Asia, and a significant pipeline with more contracts coming” said Simon. “This is just the beginning.”
There are two main business divisions, Transceivers, which is effectively black boxes for ships/air traffic control but for boats (the maritime domain) a strong growth market. This was the original core SRT business.
1. Repeat sales from global network of 1,100 distributors and OEM customers
2. 40% average gross profit margin
3. Strong order book across all categories
4. Market demand snow-balling due to combination of long-term regulation (that demands digitalisation) and increased general production
Secondly, the new Systems business division which is driving growth and will transform the business.
1. Systems is an integrated national scale maritime surveillance, intelligence, command and control system contracts are primarily with coast guard agencies.
2. Already have multiple sovereign government customers
3. Target customers are national governments looking to secure their seas, identify threats and manage fishing waters
1. £70m existing contracts, £600m pipeline.
Functionality includes:
1. AI analytics that automatically identify and alert suspicious vessels and events
2. Integrated command and control for efficient and effective responses
3. Specialist functionality such as electronic fish catch reporting and auditing
4. Full digital maps of seas complete with depth information and detail on ships.
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