SRT Marine Systems - At an Inflection Point, Trading Update indicates 47% profit advance and a 85% uplift in cash

Mark Watson-Mitchell - 13.01.2026

This morning SRT Marine Systems (LON:SRT), the global provider of intelligent maritime surveillance systems for sovereigns and maritime navigation safety systems, has reported a strong first half for FY26, with unaudited group revenues reaching £51.1m, which is a significant 95% increase from £26.2m in the prior year's comparable period, while its profit before tax rose by 47% to £3.1m.

The company's gross cash balance also grew substantially, increasing by 85% to £41.5m as of 31st December 2025.

Both business divisions performed as expected, with ongoing execution of major projects and a substantial £1.8bn opportunity pipeline, including a recently announced $200m award notification awaiting final approvals, suggesting continued positive momentum.

SRT has continued to execute simultaneously on four major system projects and continue to maintain and support a fifth.

In the current half-year, it expects that both divisions will continue to progress, with possible upside from the commencement of NEXUS deliveries, and new system contract conversions from the group's £1.8bn opportunity pipeline.

Management Comment

CEO Simon Tucker stated that:

"I am very happy with our H1 results which are in line with our expectations.

As reflected by our £300m active-contract book and £1.8bn new contract opportunity pipeline we are experiencing strong and sustained global interest in our solutions underpinned by a new and evolving understanding of the importance of the marine domain.

I expect to see SRT continue to gather pace and deliver strong growth this financial year and many years to come."

Broker's View

Analysts Kimberley Carstens and Michael Hill, at Cavendish Capital Markets, have a Buy rating on the group's shares, with a Target Price of 122p.

The brokers consider that:

"We believe SRT has reached an inflection point.

It demonstrates revenue, profit and cash recognition on multiple concurrent System projects, with prospects of material upgrades that benefit from operational leverage as the £1.8bn pipeline converts.

As the balance sheet strengthens, combined with a fully deleveraged balance sheet by FY27E, we believe SRT will soon reach a point of reduced reliance on external equity and debt financing to support successive contract awards."

My View

This little group is still at an early stage in its development,

but its market is totally global.

It is building up its internal strength to enable it to seek, win and handle mega-contracts on the international stage.

Its shares touched an All-Time-High yesterday at 99p, before closing at 96p, from which level a push well over the 100p barrier can be soon anticipated.

(Profile 14.09.20 @ 39.50p set a Target Price of 50p*)

(Profile 10.11.23 @ 39.75p set a Target Price of 60p*)

(Profile 25.04.24 @ 22p set a Target Price of 35p*)

(Profile 03.09.25 @ 80p set a two-year Target Price of 150p)