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A lowly-rated marine specialist has a bumper order book and is primed to deliver strong earnings growth
November 20, 2023
  • First-half revenue falls 70 per cent to £5.5mn
  • Interim pre-tax loss of £4.6mn
  • Full-year profit guidance maintained

The absence of any revenue from its maritime systems business explains the hefty pre-tax loss for Aim-traded SRT Marine Systems (SRT: 38.5p). However, the directors expect substantial milestone payments to be earned in the second half from the group’s £160mn contracted order book, so are confident of hitting analysts' full-year expectations.

To put the second-half forecast growth into perspective, house broker Cavendish expects SRT to deliver £55.8mn of revenue from its systems business and £9.6mn of revenue from its transceiver activities. On this basis, the £74mn market capitalisation company could more than double annual revenue from £30.4mn to £70.9mn and report pre-tax profit of £7.2mn in the 12 months to 31 March 2024.

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