SRT Marine inks $10m contract with coast guard customer

21st Jun 2023 16:54

(Sharecast News) - Maritime technology specialist SRT Marine Systems has been awarded a new contract by an existing coast guard customer, it announced on Wednesday.

The AIM-traded firm said the customer had decided to proceed with the next phase of its maritime surveillance system capability build-up strategy, choosing SRT as its trusted partner for the important project.

It said the contract processing formalities were currently underway, and were expected to be finalised in the coming months.

Upon formal contract signing, SRT would commence the initial system upgrade implementation, which was anticipated to be completed within 12 months.

The value of the initial system upgrade was estimated to be around $10m.

Additionally, SRT said it was anticipating the possibility of further purchase contracts for customised transceivers, which could result in an additional $10m of revenue.

"The accumulated investment of many years is now being reflected in the accelerating pace at which our new contract opportunity pipeline is growing and then transitioning into contract," said chief executive officer Simon Tucker.

"Over the last year, our pipeline of new system contract opportunities, has grown to an approximate value of £1.4bn, of which £380m are at a mature stage in the sales cycle with increasing surety of timing.

WI am delighted to receive notification of another new contract sooner than expected from this long-standing customer, which will likely result in additional revenues for SRT in the current financial year."

At 1522 BST, shares in SRT Marine Systems were up 0.83% at 61p.

Reporting by Josh White for Sharecast.com.