SRT specializes in marine identification systems and wireless technologies. It provides a complete range of AIS products including OEM modules, PCA modules, and turn-key systems. SRT has 40 customers globally and expects increasing demand from new mandates requiring AIS on ships. While competitors offer some products, SRT has invested in research for over 5 years and provides the full range of AIS solutions.

1. Group 4 members:
George Abu Nader(Investment Proposal) CID:
00700155
Dmitry Tokarev(Investment Model) CID:0072847
Farah Najjar(Term Sheet) CID:00697089
Software Radio Technology
Plc(AIM:SRT)
Investment Opportunity

2. Contents
1. Executive Summary 12. Valuation
2. Company 13. Investment Returns &
3. Products Sensitivity Analysis
4. Customers 14. Legal and Financial
5. Market Structure
6. Competition 15. Sources and Uses of
Funds
7. Business Model
16. Capitalization
8. Strategy & Positioning Shareholders Table
9. Opportunity 17. Risks
10. Management 18. SWOT Analysis
11. Financial Overview
2

3. Executive
Summary(1/2)
Company Competition and business model Management
Software Radio Technology specializes Competition’s equipment is usually old All SRT executive have extensive
in research and development of and expensive. Also, they do not experience in the fields defining
marine identification systems as cover the full range of AIS their position. Some of them are
equipment. Through focus on
well as wireless radio technologies research and reliance on its clients also founders of the company
for effective distribution, SRT has
consolidated its status the main
supplier of marine recognition Financial overview
equipment From 2005 till 2009, extensive focus on
research explained low returns.
Strategy and positioning Revenues subsequently increased
Products significantly when the company
Although the company has a perfected its technology while
SRT provides a complete range of OEM remarkable lead in the AIS
products, PCA modules and turn- acquiring a reliable client base
technology sector, they are
key products that are used in AIS continuously focusing on research across the world
systems and can be finalized by in order to improve its current
the customer product range. They are also
looking to enlarge their
SRT income per year (£m)
distribution network
10.00
Market and customers 9.00
8.00
SRT currently deals with 40 customers Opportunity 7.00
across the world. New mandates A number of mandates (such as the 6.00
imposing the presence of AIS SOLAS convention instituted by the
5.00
4.00
equipment on board of vessels are IMO) will impose the carriage of 3.00
going to be instituted and may AIS equipment. Thus, all SOLAS- 2.00
drastically increase SRT’s client affected vessels will increase the 1.00
-
base targeted market segment size
2006 2007 2008 2009 2010 2011 2012
3

4. Executive
Summary(2/2)
Comparables
We propose investing £18.8 m
in the company over a PROFILE SYSTEMS & ACTEOS STREAMWI 3L System
period of 4 years. The Valuation ratios SRT SOFTWARE SA S.A. DE S.A. Aktiebolag
target IRR is 20% and
proposed equity PE ratio 20.18x 47.01x 7.08x 17.17x 38.80x
acquirement is 30%. EV/EBITDA 21.90x 4.13x 4.58x 7.07x 10.50x
Since that the company has EV/Sales 4.78x 0.63x 0.56x 2.15x 1.04x
currently issued a total of
105.9 million shares, this Market Cap/Book
will entails the issuance of Value of Equity 6.09x 12.87x 8.69x 71.15x 1.69x
45.4 shares for Sky Return on Assets
Partners. (ROA) 28% 1% 12% 16% 4%
Risks
Enterprise value
(entry and exit) 2011 2015  Strong correlation with the
underlying market
EBITDA (£m) 2.0 8.0
 Dependence on customers
EV/EBITDA 20.4 20.4  Intellectual property
protection/infringement
EV (£m) 40.8 163.2
Uses of funds:  Overseas customers
 Marketing (£m): 0.6  Dependence on key
executives
 Acquisition (£m): 17.9
 Human resources (£m): 0.9
4

5. Company
 SRT engages in the research and development Key Historical highlights:
of wireless radio communication technologies
and products for the identification and
tracking of land or maritime based assets in
the United Kingdom 0.7M USD Chinese AIS orders
- Feb 11 Strategic AIS agreement
 It is a leading supplier of Marine Automatic 1.2M USD AIS orders
Identification System which is primarily used Placing to raise 2.5M GBP
for maritime vessel identification and tracking, Class A transceiver approvals received
and homeland security applications
First orders of AIS Class A transceiver
 Provides customers with a wide range of - Oct 09
products such as PCA modules, OEM product,
and turn-key product which can be
subsequently finalized without risk
FCC approves AIS Class B technology
- Jun 08
 Office Location:
Bath, England, UK
 Foundation year:
2005 Placing to raise 4M GBP
 Employees: 31 Agreement with Saab Transponder
- Jan 07 Tech
 2011 Revenues:
£9.52M
Placing to raise 4.25M GBP
 Cash position: £3M
 Debt position: £1.5M Admission to AIM raising 3.5M GBP
- Sept 05
5

6. Products
All of the following products except for the identifier and the MOB allow for 2 variants:
 OEM Product: A “black box” product which is fully tested and ready to use. Shape and enclosure may vary
 PCA Module: Fully tested module that can be easily integrated into the customer’s system
SRT also provides technology licenses where completes technologies are sold to the customers for development and
manufacturing. They also offer turn-key product development where they closely work with customer engineers in
order to develop a specific product
1- AIS Class A 5- SART
6
Constantly transmits and 5 The AIS SART provided by SRT
receives information from 7 outperforms the standard
other Class A or B equipped SARTS
vessels and displays it on
the chart plotter 6- Identifier
Enables water craft of any
2- AIS Class B size and type to be tracked
Cost effective and reliable using AIS
version of the AIS Class A 1
8 7- Aids to Navigation
3- Receiver Provides multiples features
Processes the outgoing facilitating the navigation
message of the client vessel process
and decodes incoming AIS
messages 4 3 8- MOB
standard MOB safety and
4- Antenna Splitter security device which
2
Enables any AIS device and combines multiple
VHF radio to share a single technologies, AIS and Satellite
antenna Source: Company Data
6

7. Market
 Mandates impacting over 1 million vessels across Timing deadline Vessels impacted
the markets of China, Korea, India, Turkey, the US
and EU are either underway or are pending 1st July 2002 All vessels of 300 gross tonnage (and more)
engaged on international trade
 Under the Safety of Life at Sea Convention (SOLAS) All vessels of 500 gross tonnage (and more) not
introduced by IMO, carriage equipments for engaged on international trade
approved AIS equipment became mandatory All passenger vessels
 This requirement only applies to vessels subject to All new builds
the SOLAS convention. Also, several newly
introduced regional and country-specific mandates 1st July 2003 Passenger vessels constructed before 1st July
expanded the AIS carriage requirement. Thus, a 2002
larger selection of vessels should now carry Tanker vessels constructed before 1st July 2001
approved AIS equipment. 1st July 2004 Tanker vessels of 50kgross tonnage (and more)
 In response, demand for Class B transponders constructed before 1st July 2002
increased
1st July 2005 Tanker vessels of 10k-50kgross tonnage (and
World merchandise exports volumes, 1950- more) constructed before 1st July 2002
2010
140 1st July 2006 Tanker vessels of 3k-10kgross tonnage (and
more) constructed before 1st July 2002
120
100
1st July 2007 Tanker vessels of 0.3k-3kgross tonnage (and
80 more) constructed before 1st July 2002
Source: International Maritime Organization
60
40 1st July long lasting increasing trend inengagedexports will
 A 2008 All other vessels not global on international
inevitably lead to a higher demand of vessels
trade
20  This demand, combined with global and regional
0 mandate requirements, could increase demand for
1940 1950 1960 1970 1980 1990 2000 2010 2020 approved AIS equipment
Source: World Trade Organization
7

8. Customers
SRT recently tied up a strategic partnership agreement Existing mandates Estimated no. of Timing deadline
with India-based Elcom Marine Services units
Notable customers: Turkey 15,000 2011
 SRT recently signed a $1.25M worth contract with
Transas Navigator European Inland 25,000 2012
Waterways
 In 2011, 3 new customers signed contracts with SRT
European Fishing 40,000 2013
to use their products in projects they are tendering
 In 2007, Wright Designs: co-developing OEM TETRA China 550,000 2015
professional mobile radio
 Unimo Technology ordered $60M worth of TETRA South Korea 92,000 2013
handsets
India 300,000 N/A
 In 2006, SRT signed a TETRA technology license
agreement with an established OEM manufacturer in
Pending mandates
Taiwan
 In 2006, SRT, through Tianjin Communication & USA 27,000 N/A
Broadcasting Group Corporation, received a TETRA
Source: Company Data
handset order from the Chinese Government
Depending on the number of mandate-abidingvessels,the
above table reveals a multitude of new potential
customers over the next 3 years
8

9. Competition
 The main focus of SRT lies in SRT competitive advantages:
the development of Class B market:
products, modules and other  More modern equipment smaller
technologies used in the in size
establishment of AIS systems.  Better performance at lower
The following are among SRT’s  The company’s transponders price
main competitors called easyAIS
 The company provides the full
 SRT is the only company that  Weatherdock also supplies other range of AIS products
provides a full range of AIS AIS products
products. Nevertheless, several  SRT has invested in research for
other companies provide over 5 years and thus has
specific products accumulated better knowledge
Class A market: of the technology
 AMEC offers class A and B
transponders (CAMINO) but is  Extensive global network made
 Produces naval radar systems mostly specialized in the latter of 40 customers that provide SRT
with unparalleled access to all
and a wide range of maritime  It also provides a wide range of addressable markets
security systems AIS equipment
 Mostly engaged in the military
sector
 Produces the MA-500TR and MXA-
 The Furuno transponder is called 5000 transponders
FA-150
 Mostly involved in maritime
 The company covers other naval communication equipment
sectors such as fishing and
SRT shortcomings:
communication equipment  Smaller firm compared to some
multinational rivals
9

10. Business Model
Focus on research Extensive distribution network
• SRT has accumulated more than 5 years of  SRT is represented by 40 customers in key
research and development into radio-based territories for AIS technology
wireless technologies
• The company remainsheavily focused on  Each customer has its own brand and sales
R&D. It It continues to invest in R&D with channel, but the technological platforms or
£3m forecast in the next 18 months and a key components originate from SRT
widening of its product range  The company can therefore efficiently reach
• SRT’s concentrates its core expertise in markets subject to local mandates
developing next generation products lines
 SRT is thus increasingly generating revenue
• Outsourcing of manufacturing end product from non-UK companies
 SRT delivers a range of low-cost, high-performance core technology platforms
 These platforms are subsequently converted into a range of turn-key OEM solutions and modules
that are used in marine identification, digital PMR and tracking markets
 SRT currently produces a range of 30 products
 On Nov 11th SRT raised £2.5m (gross) via an equity placing for the purpose of expanding working capital in order
to address increased AIS demand; subsequent orders grew to total $8.1m (Dec 6th 2010)
 Strategy: entering an accelerated sales phase
10

11. Strategy &
Positioning
Enhancing distribution
•Through its distribution
IP-based product development Remain the network, SRT targets territories
•SRT’s product range is based on 4 leading provider where AIS mandates have been
group-owned IP core modules of vessel announced
identification
•These modules must comply with and tracking •It also, benefits its presence in the
AIS and International Electro products based key market verticals of shipping
technical Commission standards on AIS > Increase in the distribution
> Focus on R&D technology network
Product Details Expanding addressable markets & 2011 product 2012 product
development development (E)
building recurring revenue
Class A Used in larger
commercial vessels Next generation Dual mode
•Investment in R&D is estimated at
Retail point: 2k-5k Class B module SAT/AIS
2.5M GBP p.a. over the next 2 transponder
USD years
Class B Used in smaller Next generation MOB (Man over
> Thus SRT is expected increase its Class B OEM Board) OEM
commercial and
leisure vessels product range and reduce its
Class A engine & Tracking safety
Retail point: 0.5k- dependency on the current one
chart plotter & security
1.5k USD service
Extended range
Receiver Used in non- Product portfolio snapshot 12W Class B
mandated
applications Product development schedule Identifier
Retail point: 0.2k-
Source: Company Data
SART and AtoN
Source: Company Data, Arbuthnot Estimates
0.6k USD
OEM
11

12. Opportunity
 Opportunity: AIS is becoming mandatory for global shipping
 The 2002 International Maritime Organization (IMO) mandate on large vessels has established AIS
as a global technology standard. AIS is currently being deployed, impacting some hundreds of
thousands of vessels of all sizes and types
 More than 1,000,000 vessels will be affected by the SOLAS convention and other mandates
 SRT is established as the leading provider of AIS core technologies and products globally, with
two types of AIS as either a module or chipset board; Class A and Class B. It has also recently
developed a lower-power version for light vessels such as fishing boats
 Although SRT supplies hardware, its core expertise lies in the development of the software
required to integrate complex AIS communications and data streams
 There could potentially be a worldwide market for some 250,000 Class A large vessels (bulk
carriers, dry cargo vessels, container vessels, tankers, LPG's, LNG's, and cruise ships), worth
some £84m annually
 The market for leisure craft and smaller vessels (Class B AIS) is estimated at a further £45m
annually, bringing the total to just under £130m, with ancillary services taking this sum to £155m
(DSCE)
12

13. Management
Simon Tucker Richard Hurd Simon Rogers
Chief executive officer Chief financial officer Chairman
 Joined SRT in Jan 2009 as  Founder investor in SRT
financial controller  Early career in FMCG brand
 Appointed to the Board in management and
Nov 2009 MarketResearch
 ACA qualified accountant  Worked as UK Marketing
 many years of combined Director of software
commercial and professional company Lotus Development
practice experience  Director of Electronic Media
 Joined SRT in 2002 Neil Peniket Andrew Lapping
 Appointed to the Board as Chief operations officer Non-executive director
Commercial Director in 2004  Member of the SRT plc Audit
and CEO in 2008  Joined SRT in 2004 Committee and the
 Transformed a non- Nomination Committee
 Responsible for the delivery
profitable research firm into  Managing director of The
a lucrative business of all technology and
Hamilton Portfolio Limited
 Over 15 years experience of product developments
 Member of the Chartered
creating, building and  Worked in the electronics Institute of Taxation and
running international industry for 12 years non-executive director of a
businesses number of companies
 Chartered electrical
engineer
13

14. Financial Overview
Cash Flow Statement as of: March 31 2011, (£m) Income statement, (£m)
Fiscal year ending 2009 2010 2011 2012 2013 2014 2015
Net Income 2.170
Revenue 2.516 3.558 9.155 12.817 17.302 21.455 24.888
Depreciation & Amort. 0.069
Growth Over Prior Year % 0.152 0.414 1.573 0.400 0.350 0.240 0.160
Depreciation & Amort., Total 0.069 Other Revenue - - -
Total Revenue 2.516 3.558 9.155 12.817 17.302 21.455 24.888
Other Amortization 0.578
(Gain) Loss From Sale Of Assets - Cost Of Goods Sold 1.566 2.180 4.725 6.665 8.651 10.298 11.448
Gross Profit 0.951 1.378 4.430 6.152 8.651 11.157 13.439
Asset Writedown & Restructuring Costs -
Selling General & Admin Exp. 2.224 1.876 2.397 2.563 3.460 4.291 4.978
Stock-Based Compensation 0.103 Stock-Based Compensation 0.042 0.022 0.103 - - - -
Net Cash From Discontinued Ops. - R & D Exp. - - - - - - -
Other Operating Activities (0.008) Depreciation & Amort. - - - - - - -
Other Operating Expense/(Income) - (0.187) -
Change in Acc. Receivable (1.419)
Change In Inventories (1.016) Other Operating Exp., Total 2.266 1.712 2.500 2.563 3.460 4.291 4.978
Change in Acc. Payable 0.161
Operating Income (1.316) (0.334) 1.930 3.589 5.191 6.866 8.462
Change in Other Net Operating Assets -
Interest Expense - - - - - - -
Cash from Ops. 0.638
Interest and Invest. Income 0.033 0.002 0.008 - - - -
Net Interest Exp. 0.033 0.002 0.008 - - - -
Capital Expenditure (0.105)
Currency Exchange Gains (Loss) - (0.066) - - - - -
Sale of Property, Plant, and Equipment - EBT Excl. Unusual Items (1.282) (0.398) 1.938 3.589 5.191 6.866 8.462
Cash Acquisitions -
Gain (Loss) On Sale Of Assets - 0.012 -
Divestitures -
EBT Incl. Unusual Items (1.282) (0.386) 1.938 3.589 5.191 6.866 8.462
Sale (Purchase) of Intangible assets (0.907)
Income Tax Expense (0.148) (0.166) (0.232)
Balance Sheet as of: March 31 2011, (£m) - - - -
Invest. in Marketable & Equity Securt. - Earnings from Cont. Ops. (1.134) (0.221) 2.170 3.589 5.191 6.866 8.462
ASSETS LIABILITIES
Working Capital 5.132
Earnings of Discontinued Ops. (11.043) - - - - - -
Net (Inc.) Dec. in Loans Originated/Sold - Cash and Other Equivalents 3.025
Net Income (12.178) (0.221) 2.170 3.589 5.191 6.866 8.462
Other Investing Activities 0.008 Net Working Capital 2.107 Total Liabilities -
Cash from Investing (1.004)
Short Term Debt Issued -
Long-Term Debt Issued -
Total Debt Issued -
Short Term Debt Repaid -
Common Stock 0.106
Long-Term Debt Repaid -
Additional Paid In Capital 17.820
Total Debt Repaid -
Gross Property, Plant & Equipment 0.294 Retained Earnings (16.225)
Accumulated Depreciation (0.134) Treasury Stock -
Issuance of Common Stock 2.439
Net Property, Plant & Equipment 0.160 Comprehensive Inc. and Other 5.491
Total Common Equity 7.192
Total Dividends Paid -
Long-term Investments -
Goodwill - Total Equity 7.191
Special Dividend Paid -
Deferred Charges, LT 1.899
Other Financing Activities -
Other Long-Term Assets -
Cash from Financing 2.439
Total Assets 7.191 Total Liabilities And Equity 7.191
14
Net Change in Cash 2.073

15. Valuation
Assumption for comparables:
Investment specifications Since the main competitors are private companies, we chose
Entry year 2011 the closest public companies that are considered peers
Exit year 2015
PROFILE SYSTEMS & ACTEO STREAMWI 3L System
Implied investment period 4 Valuation ratios SRT SOFTWARE SA S S.A. DE S.A. Aktiebolag
Number of shares (in millions) 105.9 PE ratio 20.18x 47.01x 7.08x 17.17x 38.80x
Investment (£m) 18.8 EV/EBITDA 21.90x 4.13x 4.58x 7.07x 10.50x
Target IRR (%) 20 EV/Sales 4.78x 0.63x 0.56x 2.15x 1.04x
Market Cap/Book
Enterprise value (entry Value of Equity 6.09x 12.87x 8.69x 71.15x 1.69x
and exit) 2011 2015 Return on Assets
(ROA) 28% 1% 12% 16% 4%
EBITDA (£m) 2.0 8.0
80.00x
EV/EBITDA 20.4 20.4
70.00x
SRT
EV (£m) 40.8 163.2 60.00x
50.00x
40.00x
Pre/Post-money valuation PROFILE
SYSTEMS &
30.00x
SOFTWARE
Pre-money valuation (£m) 43.8 20.00x SA
10.00x ACTEOS S.A.
Required equity ownership (%) 30
0.00x
New shares to issue (in millions) 45.4 PE ratio EV/EBITDA EV/Sales Market Cap/Book
Value of Equity
Updated price per share 0.41
15

16. Investment Returns &
Sensitivity Analysis
Base case Stressed case
IRR IRR
2014 2015 2016 2014 2015 2016
19.4x 34.6% 31.4% 28.3% 19.4x 18.1% 17.9% 17.0%
20.4x 36.4% 32.7% 29.4% 20.4x 19.6% 19.0% 17.9%
21.4x 38.3% 34.1% 30.4% 21.4x 21.1% 20.1% 18.8%
Enterprise Value (£m) Sensitivities Enterprise Value (£m) Sensitivities
WACC WACC
13.0% 14.0% 15.0% 16.0% 17.0% 13.0% 14.0% 15.0% 16.0% 17.0%
Terminal growth
Terminal growth
2.0% 34.9 31.2 28.1 25.5 23.2 2.0% 18.8 16.8 15.1 13.7 12.5
2.5% 36.0 32.0 28.7 26.0 23.6 2.5% 19.3 17.2 15.4 14.0 12.7
rate
rate
3.0% 37.1 32.9 29.4 26.5 24.1 3.0% 19.9 17.6 15.8 14.2 12.9
3.5% 38.3 33.8 30.1 27.1 24.5 3.5% 20.5 18.1 16.2 14.6 13.2
4.0% 39.7 34.8 30.9 27.7 25.0 4.0% 21.3 18.7 16.6 14.9 13.4
Operational Assumptions Income Statement Forecast
45.0% Sales 40.0
40.0% Growth(B 35.0
ase) Revenue
35.0% Sales 30.0
Growth(St
30.0%
ress) 25.0
EBITDA
% Sales
25.0% EBITDA
Margin(B 20.0
£m
20.0% ase)
EBITDA 15.0
15.0% Margin(St
10.0 Net
10.0% ress)
Capex(Ba Income
5.0
5.0% se)
0.0% 0.0
Capex(Str
ess) -5.0
16

17. Legal and Financial
Structure
Legal Structure Financial Structure
 Dividends:The Series A Preferred Stock will
carry no dividends  Type of Shares: Series A Preferred Stock
 Liquidation Preference:In the event of any  Number of Shares: 105.9 million shares
liquidation, the proceeds shall be paid in the
following order :the holder of the Series  Investor: Sky Partners Ltd (the
APreferred stock. After receiving this Initial “Investors”)
Liquidation Amount all the assets will
proportionally be distributed among the  Investment Amount: £18.8 million
holders of the Preferred Stock and the  Number of New Shares: 45.4 million
Common Stocks.
shares
 Redemption Rights: Investors will have the
right to redeem from the Company at any  Price per Share: £0.41
point in time.
 Pre –money valuation: £43.8 million
 Conversion: convertible with initial
conversion ratio 1:1  Expected Closing Date: On or before
 Anti-Dilution Provisions: full ratchet anti September 1st 2012 if all conditions are
dilution met
 Voting Rights: Preferred shares holders and
common shares holders are entitled to one
vote on all the issues faced by stockholders..
 Board of Directors: 6 members, with 3
directors appointed by the holder of the
Preferred Stock.
17

18. Sources and Uses of
Funds
Source of funds: Uses of funds:
Sky Partners investment (£m):18.8  Marketing (£m): 0.6
 Shareholder loan:12.5  Acquisition (£m): 17.9
 Ordinary equity: 6.3  Human resources (£m): 0.9
The main uses of the investment capital will be dedicated to the acquirement of the equity. Also, a part of
this capital should be used to market SRT products to a wider audience. Finally, an efficient HR network
should be established in order to enhance the company’s recruiting abilities and improve its employment
management.
18

19. Shareholders Table
Assumption
50.1% of the company’s shares are in public hands and are traded regularly. For the
purpose of this project, we will assume that the remaining 49.9% are actually 100%
of the stocks. We will therefore consider 52.6 of the 105.9 million shares
Pre-investment shareholder table Post-investment shareholder table
Significant shareholders Shares held % holding Significant shareholders Shares held % holding
Sky Partners 22,552,041 30.0
Simon Rogers 13,508,900 25.7 Simon Rogers 13,508,900 18.0
Jonathan Horne 10,746,400 20.4 Jonathan Horne 10,746,400 14.3
TD Waterhouse Group 7,247,740 13.8 TD Waterhouse Group 7,247,740 9.6
Investec Asset Management 5,892,850 11.2 Investec Asset Management 5,892,850 7.8
Barclays 5,782,219 11.0 Barclays 5,782,219 7.7
Selftrade 4,743,319 9.0 Selftrade 4,743,319 6.3
Gartmore Investment Gartmore Investment
Management 4,700,000 8.8 Management 4,700,000 6.3
Total 52,621,428 100.0 Total 75,173,469 100.0
Note: If we include the omitted 50.1% of shares, Sky partners will therefore require the issuance of
45.4 millions shares in order to acquire 30% of the company. The outstanding number of shares
would therefore be 151.3 million
19

20. Risks
General risks
 Strong correlation with the underlying market
 SRT’s share price may be affected by market conditions regardless of its performance.
Specifically, the company shares may be exposed to the state of the technology sector
Company relatedrisks
 Dependence on customers
 The company relies on key customers in order to produce the final version of their products
and are therefore exposed to the customer’s failure to deliver
 Intellectual property protection/infringement
 SRT’s main product is technology which could be easily reversed engineered by another
company in case of failure to protect its intellectual property rights
 SRT is sensible to infringement of other companies’ patents and may as a result sustain
damaging legal proceedings
 Overseas customers
 The majority of SRT’s client base is located overseas, which exposes the company to foreign
policies, local competition and additional costs
 Dependence on key executives
 Some of the current executives of the company are also the company’s founders. Their
departure from the firms may significantly hinder the company’s output
20

21. SWOT Analysis
Strengths Weaknesses
 Modern, cost-effective and high-performing  Small company with limited production
products capabilities
 Full range of modern AIS equipment  Dependence on customers for finalization of
 Accumulation of over 5 years of research on the products
sector  Exposure to intellectual property rights and
infringement
 Extended supply network through 40 global
customers  Overseas customers entailing potential unexpected
costs and policies
Opportunities Threats
 IMO-introduced SOLAS: carrying AIS equipment  Exposure to the performance of the technology
mandatory sector as well as technological advancements in
the AIS sector
 Also, diverse international and local mandates
concerning AIS carriage requirements: nearly 1  Exposure to unexpected new competition
million vessels to be affected  International risks:
 SRT’s experience in developing AIS technology
 Political (trading policies)
places it in an ideal position to supply approved
AIS products  Economical (taxes, other costs)
21

22. References
 The SRT and SRT Marine websites
 World Trade Organization
 International Maritime Organization
 SRT admission document, Risk Factors
 Thomson-Reuters, Bloomberg
 Competitors websites
22