AIM-listed maritime surveillance system and navigation device maker SRT Marine (SRT) posted a near-doubling in H1 revenue. The firm also delivered a significant increase in pre-tax profit and operating cash flow.
Strong growth and good visibility
Revenue for the six months to December 2025 jumped 95% from £26.2 million to £51.1 million. Around 90% of the total came from surveillance systems and around 10% came from the transceivers business.
The firm said it would continue to grow revenue in H2 and was confident of meeting market expectations. The current consensus on Stockopedia for FY revenue is £116 million, implying annual growth of 49%.
‘Our business continues to accelerate in line with the growing global market for, and interest in, maritime domain awareness’, said CEO Simon Tucker. ‘Today’s results reflect our strategic first-mover advantage and years of sustained investment in technology, products, people and market development’, added Tucker.
As of December, the firm had an active contract order book with five sovereign customers worth £350 million. However, it recently added a £195 million contract with a new sovereign customer taking current orders well over £500 million.
The firm has a further validated systems sales pipeline potential of £1.8 billion from new and existing customers. This figure continues to rise as more countries look to secure their maritime domains, giving the firm good visibility.
We flagged SRT Marine in our piece on ‘under the radar defence stocks’, and it continues to deliver. If anything, rising geopolitical instability and events like the Iran conflict just increase demand for its systems.
As shown by today’s update, orders can be lumpy and they depend on the speed of the customer not SRT. Therefore, now and then orders can be delayed from one quarter to the next which causes volatility in the shares.
For long-term investors who like the story, however, sell-offs usually represent a good opportunity to add to holdings. With a pipeline of prospects worth £1.8 billion and rising, the firm has exceptional visibility over future revenue.
Disclaimer: The author (Ian Conway) owns shares in SRT Marine.
Read the press release here: https://srt-marine.com/about/investors/
You might also like these stories:
