SRT Marine Systems – scaling at pace, with mega-£1.8bn opportunity pipeline, brokers Target Price 56% higher than the current 78p share price

Mark Watson-Mitchell – 23.07.2026

“As pioneers of national scale integrated systems and technology in the maritime surveillance domain, SRT is at the centre of a long-term trend of rising demand for integrated sovereign capability in this space.”

This morning’s Full Year Trading Update from SRT Marine Systems (LON:SRT) has identified just how effective its products could be to national agencies.

The £213m-capitalised group is a market leader in its special field.

One leading City broker stated that it remains exceptionally well-placed to benefit from secular demand for intelligence-led civil defence systems, reinforced by tensions in the Middle East that underscore the importance of independent, sovereign-owned domain awareness capabilities.

Still at a very early stage in its group development, it is impressive in its ability to have already secured a number of significant contracts with global State Agencies.

Its shares at 78p offer attractive upside prospects as it progresses, my SQC Research Target Price is 150p taking a one-year view.

The Business

Situated near Bath, the Midsomer Norton-based business is a global provider of civil defence maritime intelligence and surveillance systems and navigation safety and efficiency solutions.

Its systems provide marine domain awareness (MDA) that enable sovereign agencies, such as Coast Guards and Fishery Authorities, to adopt a new nationwide intelligence-led operations doctrine which is highly effective and efficient for maritime safety and security.

The group’s navigation safety systems enable vessel operators to navigate digitally more safely and efficiently.

Its customers range from Government agencies such as Coast Guards, Fishery Authorities and Ports & Waterway authorities to commercial and leisure vessel owners. 

Revenues are generated from a growing range of sources that now include the provision of software-enabled hardware, support and data services, unmanned surveillance vessels (USV) and infrastructure.

SRT’s revenue model is maturing with multiple long-term sovereign customers, each of which generates multiple revenue streams for SRT through successive SRTMDA Systems contracts that build on initial implementations, and annual support contracts of increasing value.

Full Year Trading Update

This morning the group reported a strong trading update for the financial year to end-June, with group revenue increasing by 49% to £116m and profit before tax rising by 105% to £10m, exceeding market expectations.

The company's gross cash balance significantly grew by 473% to £57m, comprising £30m in unrestricted cash and £27m in restricted cash.

While one project experienced lower-than-expected gross profit margins due to supply chain disruptions and scope expansion, the company anticipates this will be offset by future revenue and profit from other projects.

The group maintains confidence in achieving existing market expectations for the upcoming financial year, supported by a £1.8bn pipeline of opportunities.

Management Comment

CEO Simon Tucker stated that:

"SRT is scaling at pace.

A 49% revenue and 105% profit increase is an excellent result.

All achieved through a period of growing global instability where sovereign border and territory surveillance and security is increasingly important.

SRT's established global position, market-fit product offer and strategy of long-term sovereign partnerships in this global market is now starting to show in our financial performance.

We have a growing portfolio of opportunities from existing and new customers and therefore I expect to see this momentum accelerate into the future as our existing customers expand capability and we form new long-term sovereign partnerships."

The Equity

There are now some 273.01m shares in issue.

The larger holders include Ocean Infinity Group (14.63%), Hargreaves Lansdown Fund Managers (7.67%), Rathbones Investment Management (3.50%), Barclays Bank Plc (Private Banking) (1.71%), Amati Global Investors (1.41%), Maven Capital Partners UK (1.39%), HSBC Global Asset Management (UK) (0.47%), James Brearley & Sons (0.44%), IG Markets (0.24%), and iDealing.com (O.17%).     

Broker’s Views

Analysts Kimberley Carstens and Michael Hill, at Cavendish Capital Markets, have this morning reiterated their 122p Target Price for the group’s shares.

For the year to end-June, the analysts estimate that group revenues will have increased to £116.0m (£78.0m), while adjusted pre-tax profits almost doubled to £10.3m (£5.2m), lifting earnings to 3.8p (2.3p) per share.

They have also pencilled in for the current year, sales of £123.4m, £11.1m profits and 3.9p of earnings per share.

My View

If cheap shares come on offer, then I suggest that investors should take immediate advantage of such opportunities.

Although its shares appear to have been treading water in the last year, I am confident of my 150p Target Price.

(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)