SRT Marine warns of interim loss

6th Oct 2023 10:12

(Sharecast News) - Maritime surveillance systems provider SRT Marine warned on Friday that it was set to report an interim loss due to revenues being "heavily" weighted to the second half.

SRT Marine said full-year revenues were expected to be second-half weighted due to the scheduled delivery of "several substantial revenue milestones" at the tail end of the year from its £160.0m forward contract order book of system projects.

The AIM-listed group said H1 was largely focused on "necessary preparatory and planning work" for these revenue-generating milestones, resulting in first-half revenues being an expected £5.5m, solely generated from its transceivers business, and pre-tax profits coming in at roughly £4.5m.

Chief executive Simon Tucker said: "For the first time we benefit from a substantial contract order book of £160.0m, with well-formed implementation schedules which in turn provides much improved financial reporting visibility and thus confidence for this financial year.

"Of course, this scale of growth and the nature of our customers are not without timing risks and challenges, however, our many years of experience and diligent preparations during this period are enabling us to manage and mitigate these risks and continue to be the reliable supplier of transceivers and surveillance systems that customers around the have come to expect from SRT."

As of 1130 BST, SRT shares were down 6.77% at 41.02p.

Reporting by Iain Gilbert at Sharecast.com