SRT Marine Systems (SRT) H1 2025 earnings summary

Executive summary

• Revenues surged to £26.2m for the six months ended 31 December 2024, up from £5.5m in the prior interim period.

• Profit before tax reached £2.8m, reversing a prior loss of £4.6m, with an exceptional non-cash finance charge of £0.7m.

• Major $213m contract signed with Kuwait Ministry of Interior, with delivery commenced during the period.

• Five active nation state customers and a forward systems contract order book of £320m.

Financial highlights

• Gross profit margin improved to 46% from 37% year-over-year.

• Cash at period end was £4.5m, with receivables of £32.5m, most paid shortly after period end.

• Gross cash balances, including restricted cash, totaled £22.4m at 31 December 2024.

• Basic earnings per share were 0.93p, compared to a loss per share of (2.47)p in the prior period.

Outlook and guidance

• Board expects continued growth in both transceivers and systems businesses into H2 and beyond.

• Systems business has £320m of active projects scheduled for implementation over the next two years, with recurring revenues from support contracts.

• Validated new contract prospect pipeline worth up to £1.2bn, with some contracts potentially closing before end of 2025.