- SRT Marine just won a contract worth £40 million from a national coast guard.
- The firm will install a national maritime surveillance system for the authority.
- The contract could be extended to add more functionalities in future.
The SRT Marine Systems PLC (LON: SRT) share price surged 28% after revealing that it had been awarded a contract for a new SRT-MDA ™ System project with a national coast guard worth £40 million.
The contract award covers the first phase of a three-phase project implemented serially over two years. The company will complete the first phase, after which it will move to the second phase and complete it before proceeding to the third phase.
SRT Marine clarified that the project would involve building a fully integrated next-generation national maritime surveillance system for use by the national coast guard.
The company also revealed that it could be awarded follow-on contracts after completing the project since it would need to add advanced functionalities to the system.
SRT will deliver, install, commission and support a national scale SRT-MDA™ System that will allow the national authority to monitor, track and manage all maritime activity within their territorial waters and EEZ in real-time from various command centres.
The company’s system will have sophisticated functionalities such as vessel identification and AI analytics that automatically detects, alerts, and categorises illegal and suspicious activities.
It will also have functionalities that will help the authority enhance the effectiveness and efficiency of their operations, leading to enhanced maritime security and safety in the covered region.
Investors cheered the contract award, as evidenced by today’s rally. However, SRT shares had given up a significant portion of their gains at writing.
Simon Tucker, SRT Marine Systems’ CEO, commented: “This project marks the first of several substantial contracts in our £550m validated sales pipeline (VSP) that had been delayed due to Covid, and we have been expecting to fall under contract once internal customer processes were completed. This customer is a major national authority with a long-term strategic program to build a next-generation integrated in-country maritime surveillance and management system. Our system has been selected due to its sophistication and our unique ability to successfully deliver such complex systems in challenging environments. We look forward to completing this initial project and moving forward with the customer to build up their system in the coming years.”
Investors looking to establish new positions in the company should wait for a potential pullback in the future before jumping in. However, there are no guarantees that we will get a deep pullback anytime soon.
*This is not investment advice. Always do your due diligence before making investment decisions.
SRT Marine share price.
SRT Marine share price surged 28% to trade at 54.40p, rising from Wednesday’s closing price of 42.50p.
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