The English Channel is the busiest shipping route in the world. More than 500 ships pass through the Channel every day, from cruise liners and ferries to fishing boats, oil tankers and military vessels.
With so much traffic, safety is paramount. Under international maritime rules, ships need to ensure they have a ‘transceiver’ on board, a black box which shows where they are, where they are heading and where other vessels are in relation to them.
SRT Marine Systems, a small, Somerset-based firm, pioneered the technology some 15 years ago and it is now used on hundreds of thousands of boats worldwide. The group has just gone one stage further, with a new piece of kit, Nexus, which links up to users’ mobile phones. That allows them to see what’s ahead and talk to coastguards, other vessels or even crew members wherever they are on their boat.
Launched just a few weeks ago, Nexus has already attracted considerable interest. Traditionally, ship captains can only communicate with the outside world via an old-fashioned radio, fixed to the cockpit and of often dubious quality. Nexus changes all that and orders are streaming in, with sales expected to gather steam from early next year.
So far, so good. But SRT chief executive Simon Tucker has another arm to his business, offering full-service surveillance at sea via Maritime Domain Awareness Systems.
Oceans can be dangerous places. Pirates can seize vessels, smugglers can bring in drugs, weapons and migrants, terrorists can jeopardise ships en route.
Profit trail: SRT technology is in demand tracking ships at sea
Yet, integrated surveillance is thin on the ground. Air traffic systems are mandated worldwide. Maritime surveillance is piecemeal. Ten years ago Tucker and his team began to develop sophisticated systems that allow national coastguards and security services to monitor movements at sea and act swiftly if they detect suspicious activity.
The Philippines were an early adopter, as was Saudi Arabia. A £165 million deal was signed with Kuwait just last month and others are coming down the track, creating a series of projects worth more than £320 million over the next two years with a longer-term pipeline in excess of £1 billion.
SRT also has two deep-pocketed investors: David Brierwood, who developed the fabulously successful MSCI financial index series, and Ocean Infinity, controlled by billionaire hedge fund manager Anthony Clake.
Brierwood invests in SRT because he thinks it is a good business. Ocean Infinity is not just a shareholder but a commercial partner too. The company specialises in autonomous underwater surveys, used by governments, defence contractors, researchers and major industries. A partnership between Ocean and SRT allows both companies to offer more to their customers.
Midas verdict: SRT has risen 10 per cent to 41p since Midas recommended the firm two years ago but there should be further to go. Not one for the faint-hearted but potentially rewarding for the adventurous mariner.
Traded on: Aim Ticker: SRT Contact: srt-marine.com
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