SRT Marine Systems – massive new Sovereign $200m contract now in advanced progression to add to £330m of five others now underway, shares at 72.40p ready to leap forward, TP 100p

18.09.2025

This morning SRT Marine Systems (LON:SRT), my favourite global provider of civil defence maritime intelligence and surveillance systems and navigation safety and efficiency solutions, has announced that it has received formal written notification of award from a new sovereign customer for the supply of a substantial maritime surveillance system.

The award is subject to completion of the project contract and a project financing package: neither of which is guaranteed and is likely to take many months.

The customer is a sovereign that faces an array of maritime domain challenges across an extensive and complex national marine domain.

From smuggling and illegal border incursions to illegal fishing all of which are a material risk to economic and social development of the country.

The SRT-MDA System being acquired will provide extensive maritime intelligence and insight, which will enable the relevant marine agencies to adopt an intelligence-led operations (ILO) doctrine and assist in detecting, neutralising and deterring such events.

Management Comment

CEO Simon Tucker stated that:

"This award from a new sovereign customer is a conversion from our £1.4bn validated sales pipeline, and once under contract, will be a substantial boost to our existing active contract book which currently stands at approximately £330m.

As the global market for maritime domain awareness continues to gather pace we expect to see our validated sales pipeline continue to grow with contract opportunities from both new and existing customers, and subsequent conversion into contract.

Our early first mover advantage has enabled SRT to build the sophisticated core technologies, execution capabilities and global references that have endowed us with a material and defensible market advantage which customers recognise and trust."

Broker’s View

Analysts Kimberley Carstens and Michael Hill, at Cavendish Capital Markets, have a 100p Target Price out on the group’s shares.

They state that:

“Today’s formal written contract award signals SRT Marine System’s global leadership and world-class customer referenceability as the primary provider of maritime intelligence and surveillance systems with first-mover advantage relative to global defence primes as nations invest in frontline civil defence capabilities.”

For the current year to end-June 2026, the brokers are estimating £115.8m (£77.5m est) of revenues, with adjusted pre-tax profits more than doubling to £10.2m (£4.7m), lifting earnings to 4.1p (2.1p) per share.

My View

After having recently peaked at 89.75p, the group’s shares have drifted back on slight profit-taking to the current 72.40p.

We should be getting more news in November when the group reports its Final Results for the year to end-June.

In the meantime, I believe that this group’s shares are destined to rise significantly.

As Tucker states:

“This market remains in its early stages of development as marine stakeholders seek to harness digital technologies such as AI to reveal insights that enable them to enhance security, safety and sustainability and therefore I expect to continue to see our business grow substantially from this base in the future." 

(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.