SRT Marine Systems advances $15m Phase 2 of maritime surveillance project
Maritime technology specialist () updated markets on a previously announced large government contract to build an integrated maritime domain awareness (MDA) system for a national coast guard. said it received formal notice from the customer to proceed with the second phase of the project.
Phase 2 of the project has an estimated value of c. US$15m. expects final regulatory approval to be granted before the end of January, with immediate commencement of Phase 2 immediately thereafter. Implementation is scheduled to complete within 12 months, after which investors can look forward to Phase 3 of the long-term contract.
Simon Tucker, CEO of SRT Marine Systems, commenting: "This is another example of the long-term sovereign partnerships that SRT is forging. We look forward to working with this important customer to further expand their MDA system capabilities, which support and enable the implementation of a modern maritime safety, security and sustainability regulation program in the interests of all stakeholders.
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SRT Marine Systems, a provider of maritime security systems, announces the $15m Phase 2 of a large contract with a national coast guard customer for a comprehensive MDA project. Investors welcomed the news, sending shares 5.5% higher in early trade on January 6. stock is up c. 50% over the past 6 months.
continues to build its sovereign portfolio, now boasting several national customers, with a forward contract orderbook worth £320m over the next 2 years. projects a significant expansion of the orderbook as reflected in its validated MDA pipeline, which contains over £1.2bn of identified new contract prospects. Most recently, announced a 10-year MDA contract worth US$9m with a Middle East coast guard customer.
The maritime domain awareness (MDA) market is still in its early stages of growth, as changes in maritime regulation begin to demand migrations to digital systems. is an early player in the space, with a significant sales pipeline from private and government customers, and much room to grow as the MDA sector and associated technologies mature. Contracts in the MDA space tend to be long, with predictable follow-ons and long-term revenue visibility.
Specifically, MDA contracts are usually packaged with supporting data supply, support and maintenance contracts to keep systems in optimal operating conditions. Each implementation phase typically takes between 1-2 years and accounts for the majority of revenue. The longer-term support and maintenance contracts can vary from 1-10 years, with annual adjustments reflecting the size and complexity of the underlying system.
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