SRT Marine revenue rises 46% to £114.1 million in 2026
Key Facts
SRT Marine Systems announced preliminary results on 9 November for the financial year ended 30 June 2026, reporting revenue of £114.1 million, up 46% from £78.0 million the previous year. Pre-tax profit rose 653% to £10.7 million, compared with £1.4 million in 2025. The company said net cash generated from operating activities after corporation tax payments was £37.7 million, versus £1.0 million the previous year. The results reflect rapid expansion in its systems business, which has become the main source of revenue. The company focuses on maritime surveillance and communications systems for sovereign customers, according to the results statement.
Growth came mainly from the systems business, which recorded revenue of £104.3 million in 2026, up from £68.5 million in 2025. The navigation safety business generated £9.8 million, compared with £9.5 million. The chairman said demand was linked to governments' drive to acquire independent civil surveillance and intelligence capabilities, alongside the company's strategy, which it had pursued for years, and its expanding base of reference customers. The company added that it increased spending on core technology and products by 12% to £5.0 million, from £4.4 million the previous year. This reflects the allocation of more resources to product development alongside project delivery.
Systems contracts worth £218.4 million were converted during the year from a documented and validated opportunity pipeline of £1.8 billion, lifting the contracted order book to £539.5 million. New potential opportunities validated by the company also increased to £2.4 billion. These figures represent different stages: the order book comprises contracted projects, while potential opportunities are projects that have not all converted into contracts. The size of the existing order book gives the company a basis for delivering future work, while conversion of new opportunities into contracts remains an important factor in sustaining revenue growth. The company did not specify in its results when those opportunities might turn into contracts.
Cash balances stood at £57.1 million on 30 June 2026, of which £27.4 million was restricted as security for project performance bonds. This restriction means part of the cash balance is not available for general use, despite the increase in cash generated from operations during the year. The auditor's report cited a material uncertainty related to going concern, attributing it to the pace of growth and the possibility that the timing of customer receipts may not match supplier payments, which could require interim financing. The report also said instalments on loan notes fall due within 12 months, and there is no guarantee that the funding needed to repay them will be secured. The board is not recommending a final dividend for the 2026 financial year.
The consolidated gross margin was 32%, and the company said it edged up due to the timing of project deliveries and a higher proportion of deliveries of higher-margin SRT-Tech products. In contrast, tensions in the Middle East, supply-chain disruption and the expansion of an existing contract increased costs. The company expects the first half of the 2027 financial year to be loss-making, due to the weighting of low-margin infrastructure deliveries during that period. It said delivery of higher-margin SRT Tech units in the second half would balance this pattern. Chief Executive Simon Tucker is scheduled to host a live broadcast for shareholders on 10 November at 8:00 a.m. GMT to discuss the results, operational progress and outlook. The annual general meeting will be held on 16 December at 11:00 a.m., with key employees available to meet shareholders from 9:00 a.m. on the same day.