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SRT Marine Systems sinks as pandemic delays push it into loss

Chairman Kevin Finn added that the delays were likely to continue to have a “material effect on SRT" until the second half of its current financial year

SRT Marine Systems PLC - SRT Marine Systems sinks as pandemic delays push it into loss

SRT Marine Systems PLC (LON:SRT) shares sank on Monday as the group saw itself tumble into a full-year loss as the pandemic slammed the brakes on a number of contracts.

In its results for the year ended March 31, the maker of maritime surveillance and management systems reported a pre-tax loss of £6.9mln, compared to a £3.1mln profit in the prior year, while revenues dropped to £18.9mln from £20.5mln.

READ: SRT Marine Systems restarts Philippines fisheries project

In a statement, SRT’s chairman Kevin Finn said the pandemic had caused a “significant short-term financial impact” on the business, primarily due to the delay of expected new system contracts and associated revenues.

He added that the delays were likely to continue to have a “material effect on SRT until the second half of the new financial year”, although following this a strong recovery was expected led by the company’s systems business.

Chief executive Simon Tucker added that the firm’s transceivers business had “maintained its trading level” and that during the first half of its current year SRT had seen a resumption in negotiations with new system contracts.

"Having made so much progress with both product and sales development it is very disappointing to have this year and the first half of our new year disrupted due to [coronavirus]. Although short-term, the financial impact has been significant due to the delays and changes caused to our systems business. However, due to a combination of cash raising and significant payments from existing system customers, coupled with refinements to our business that enable continued operations, we are in a good position to move forward”, Tucker said in a statement.

Investors were less optimistic, with the shares dropping 11.6% to 36.7p in early deals.

Quick facts: SRT Marine Systems PLC

Price: 38.255 GBX

Market: LSE
Market Cap: £62.83 m

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