SRT Marine Systems - strong Interims point to further growth ahead, shares 86p, SQC TP 150p

Mark Watson-Mitchell – 16.03.2026

 This morning my favourite Marine Domain Awareness specialist group, SRT Marine Systems (LON:SRC), has reported a strong first half for the six months to end-December 2025.

It showed revenues increasing by 95% to £51.1m and profit before tax rising by 48% to £3.1m.

The company's gross cash position grew by 86% to £41.6m.

Importantly, the group stated that it maintains an active contract order book of £350m from five sovereign customers.

Post-period, a new £195m contract was signed with a sixth sovereign customer, pending activation, and the company has a further £1.8bn in validated new system contract prospects.

The first unmanned surface surveillance vessel program is now operational, and the new NEXUS VHF/AIS marine communications system has been launched.

The Business

SRT Marine Systems is a global provider of civil defence maritime intelligence and surveillance systems, as well as navigation safety and efficiency solutions.

Its systems provide MDA intelligence that enables sovereign agencies such as coast guards and fisheries authorities to adopt a new nationwide intelligence-led operations doctrine that is highly effective and efficient for maritime safety and security.

SRT navigation safety systems enable vessel operators to navigate digitally more safely and efficiently.

The group’s customers range from government agencies, such as coast guards, fisheries authorities, and ports and waterways authorities, to commercial and leisure vessel owners.

Management Comment

CEO Simon Tucker stated that:

"Our business continues to accelerate in line with the growing global market for, and interest in, maritime domain awareness.

Today's results reflect our strategic first-mover advantage and years of sustained investment in technology, products, people and market development, which have positioned SRT as a market leader that the market and our customers trust for their growing MDA requirements.

I look forward to continued growth in the second half and in the years ahead." 

Chairman Kevin Finn stated that:

“The Group enters the second half with growing momentum, supported by a large and expanding global market, proven technologies and products, active customer programmes, a growing installed base and increasing commercial visibility.

The Board remains confident in the Group's ability to continue delivering progress in the second half and in the long-term prospects of SRT.”

Broker Views

Analysts Kimberley Carstens and Michael Hill, at Cavendish Capital Markets, have today stated that it is now ‘Time to put it on your radar!’ commenting that:

“Scenario analysis based on highly reasonable assumptions demonstrate the highly operationally leveraged costs base after the investment phase completes.

Analysis implies FY27 +79% adj dil EPS upgrades from a £44.1m revenue upgrade as new multimillion dollar contracts now require c.£1.2m incremental opex investment.

Based on this scenario, SRT trades on an attractive FY27E 11.5x P/E or 10.4x P/E ex-cash at current 86p.

At this point, we reiterate our 122p TP.

As the primary provider of sovereign-owned 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, where long-term projects offer multiple successive contract opportunities involving expansions, support and maintenance and high margin data supply revenue streams.

Geopolitical uncertainty/conflict reinforces demand for enhanced capabilities, +50% validated sales pipeline growth to £1.8bn since 1H25, despite conversion of several multi-million-pound contracts, demonstrate structural global demand.”

My View

Still at an early stage of its real growth, SRT’s shares offer clear catalysts for further value accretion – in other words they have a lot further to climb in price from the current 86p.

Regular readers will already know what my opinions are about this group.

(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)