MIDAS SHARE TIPS UPDATE: Set sail for maritime innovator SRT – our tip has increased by 10%
The English Channel is the busiest shipping route in the world. More than 500 ships pass through the Channel every day, from cruise ships and ferries to fishing boats, oil tankers and military ships.
With so much traffic, safety comes first. Under international maritime rules, ships must ensure they have a ‘transceiver’ on board, a black box that shows where they are, where they are going and where other ships are in relation to them.
SRT maritime systemsa small Somerset-based company pioneered the technology some 15 years ago and is now used on hundreds of thousands of boats around the world. The group just went one step further with a new package, Nexus, that connects to users’ mobile phones. This allows them to see what’s ahead and talk to coastguards, other ships or even crew members wherever they are on their boat.
Nexus launched just a few weeks ago and has already attracted significant interest. Traditionally, ship captains can only communicate with the outside world via an old-fashioned radio, attached to the cockpit and of often questionable quality. Nexus is changing all that and orders are pouring in, with sales expected to pick up steam from early next year.
So far, so good. But SRT CEO Simon Tucker has another branch in his company: he offers full-service surveillance at sea through Maritime Domain Awareness Systems.
Oceans can be dangerous places. Pirates can seize ships, smugglers can bring in drugs, weapons and migrants, terrorists can endanger ships along the way.
Profit Trajectory: SRT technology for tracking ships at sea is in high demand
Yet integrated supervision is few and far between. Air traffic systems are mandatory worldwide. Maritime surveillance is patchy. Ten years ago, Tucker and his team began developing advanced systems that allow national coast guards and security agencies to monitor movements at sea and act quickly when they detect suspicious activity.
The Philippines was an early adopter, as was Saudi Arabia. A £165 million deal was signed with Kuwait last month and others are on the way, creating a raft of projects worth more than £320 million over the next two years with a longer-term pipeline of more than £1 billion.
SRT also has two deep-pocketed investors: David Brierwood, who developed the fabulously successful MSCI financial index series, and Ocean Infinity, controlled by billionaire hedge fund manager Anthony Clake.
Brierwood invests in SRT because he thinks it is a good company. Ocean Infinity is not only a shareholder, but also a commercial partner. The company specializes in autonomous underwater surveys, used by governments, defense companies, researchers and major industries. Thanks to a partnership between Ocean and SRT, both companies can offer more to their customers.
Midas judgment: SRT is up 10 percent to 41 cents since Midas recommended the company two years ago, but there is still more to go. Not for the faint of heart, but potentially worthwhile for the adventurous sailor.
Traded on: Goal ticker: SRT Contact: srt-marine.com
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