SRT Marine Systems shows its growing strength and don't miss the indicator of its Director's option pricing structure

11.06.2025

Last Monday morning, 9th June, SRT Marine Systems (LON:SRT) made quite an interesting announcement, the importance of which seems to have been overlooked by the market.

"SRT Marine Systems plc ('SRT'), a global provider of maritime domain awareness systems and technologies for security, safety and environmental protection is pleased to advise that it has replaced the contract guarantee provided by Ocean Infinity in October 2024 with one provided by its corporate bankers, Barclays supported by UK Export Finance ("UKEF"). 

In October 2024, as part of a broader financing package, Ocean Infinity provided a $21.4m guarantee to provide an immediate contract guarantee for a new $213m contract in the Middle East.

A condition of the guarantee was that if it was not replaced within 8 months (end of June 2025) 4.0 million warrants would be issued each month to Ocean Infinity.

The replacement of the Ocean Infinity provided guarantee means that this financing is now fully settled, and no further warrants will be issued.

Richard Hurd, CFO of SRT Marine Systems, commented:

"I am delighted to complete this guarantee replacement which has been enabled by a combination of our improving balance sheet and the support of our bankers and UKEF."

As far as I read it, this is an important show of strength by SRT - it was supported by significant shareholder Ocean Infinity in order to achieve a major contract.

It is now progressing with that piece of business and it has generated sufficient funding within itself to replace the strictures that ran alongside the OI support.

This really feels like a group that is on the cusp of some substantial award-winning business and breaking into future profitability.

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. 

Massive Option Level Pointers

Furthermore, did you notice the announcement a week ago, on Wednesday 4th June?

"On 4th June 2025, options were granted to Jean Francois Bonnin over 500,000 ordinary shares of 0.1p each, exercisable at the Company's nominal value.

The Options vest annually in even tranches over a 5-year period and are then exercisable in four equal tranches when the Company's average mid-market closing share price exceeds each of 75p, £1.25, £1.50 and £2.00 for a period of 20 continuous business days."

As I look at it going forward, the group's own Management has already set its own targets for where the company's shares will be traded within the next few years.

My View

The shares of SRT Marine Systems closed last night at 69.50p after rising to 70.97p at one stage yesterday.

Medium-term investors should take on board the price structure of the SRT Director's Options, a clear pointer of future perceived potential.

(Profile 14.09.20 @ 39.5p 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 31.03.25 @ 60p set a Target Price of 100p)

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