SRT Marine Systems - looking for doubled profits this year, with AGM Update next week, shares 83p, brokers TP 122p, SQC 150p!

Mark Watson-Mitchell - 25.11.2025

With profits expected to double this year, the shares of SRT Marine Systems (LON:SRT) look extremely attractive at 83p.

They could double in 2026!

Next week,

the company is holding its AGM and Investor Open Day on Thursday, 4th

December.

The group's broker describes the group very well -

"As the primary provider of maritime intelligence and surveillance systems, SRT is excellently positioned to execute on growing global demand for data-driven ISR (Intelligence, Surveillance & Reconnaissance) maritime operations across border control, security and environmental protection with its global leadership and first-mover advantage relative to global defence primes, combined with world-class customer referenceability."

Recent Results

The group reported a 426% increase in revenues, reaching £78.0m for the year to end-June.

It achieved a profit before tax and exceptional items of £4.9m.

Its system contracts totalled £325m, with a new contract prospects pipeline valued at £1.8bn.

The unrestricted cash balance at year-end was £4.3m, increasing to £13.6m by end-September.

The Business

SRT Marine Systems is a global company which develops and provides integrated maritime surveillance, monitoring, management and safety systems used by coast guards, fishery authorities, infrastructure and vessel owners for the purposes of managing and controlling their maritime domain.

Applications include security, safety, search & rescue, law enforcement, fisheries management, illegal fishing detection and environment monitoring.

Management Comment

CEO Simon Tucker stated that:

"The marine domain is critically important in many ways to everyone.

And yet what goes on there is mostly unseen and remains a mystery.

SRT is working to solve this global issue with our integrated marine domain systems that deliver Ai driven insight and intelligence to stakeholders that range from sovereign states seeking territorial and border security to mariners focused on safer and efficient navigation.

Todays' results are indicative of the latent demand waking up to the availability of our systems and the valuable insight and intelligence they can access on demand.

I believe we are right at the start of this global adoption."

Broker's View

Analysts Kimberley Carstens and Edward Stacey, at Cavendish Capital Markets, have recently increased their Target Price from 100p to 122p on the group's shares.

They are looking for the current year to end-June to show sales of £115.8m (£78.0m) while doubling its adjusted pre-tax profits to £10.2m (£5.2m), with earnings rising to 4.1p (2.3p) per share.

The brokers conclude that

"SRT is a strategic partner to sovereign maritime agencies.

It has outcompeted global defence primes to provide maritime stakeholders (fisheries, coast guards, port & waterway authorities) with a single integrated AI-driven operating platform for multi-domain maritime surveillance operations.

Its sovereign partnership framework enables customers to build up system capacity in multiple follow-on contracts of various types over time.

The market-leading nature of its highly sophisticated platform, combined with first-mover advantage, is reflected in “good visibility” across £500m worth of contracts within its impressive £1.8bn validated sales pipeline."

My View

I will put my view in very simple words - this group's shares are a cracking purchase for risk-tolerant investors - its prospects are really excellent.

A doubling in current year profits could see the shares double next year.

(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)

Asterisks * denote that Target Prices have been achieved since Profile publication.