Software Radio Tech to beat market forecasts after strong year

Shares in Software Radio Technology (SRT) surged on Friday morning after the company revealed that results for the year to March 31st will be ahead of market expectations.

Shares in Software Radio Technology (SRT) surged on Friday morning after the company revealed that results for the year to March 31st will be ahead of market expectations.

The AIM-listed developer of advanced radio communications technologies said that revenues would be up 60% year-on-year at £10m, up from £6.2m the year before. Meanwhile, profit after tax (PAT) would by £1.5m, rising from just £0.2m.

SRT said that it invested heavily during the year in new product development, launching a new product every 12 weeks on average. In particular, the company said that its 'Aids to Navigation' product has been "well received" by the market and is now in production.

"Our years of technology, customer and market investments have placed SRT at the hub of the global automatic identification system (AIS) market. As demand for AIS functionality, and therefore products, expands we are now seeing this reflected in our financial performance," said Chief Executive Officer Simon Tucker.

"I believe we are at the beginning of this growth path and our financial performance for the year just ended provides a strong platform."

Analyst Eric Burns from Westhouse Securities had pencilled in revenues of £8.9m and a PAT of £1.0m and has hiked its earnings estimates accordingly.

Burn said: "Whilst the statement does not go into the specifics of the outperformance, initial shipments under the US frame orders announced last month, together with a continuation of the Mexico Identifier business are the likely contributors."

Shares were up 13.58% at 23p in early trading on Friday.

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Here’s why you really should own at least some bitcoin
Bitcoin

Here’s why you really should own at least some bitcoin

While bitcoin is having a quiet year – at least in relative terms – its potential to become the default cash system for the internet is undiminished, …
16 Sep 2020
Central banks want politicians to take charge – but what will they do?
US Economy

Central banks want politicians to take charge – but what will they do?

The US Federal Reserve has come to the end of the road in terms of what it can do to accelerate any recovery, says John Stepek. It's over to the polit…
17 Sep 2020
IAG's share price is ready for take-off - here's how to play it
Trading

IAG's share price is ready for take-off - here's how to play it

The owner of British Airways has had a turbulent year, but is now worth a punt. Matthew Partridge explains the best way to play it.
8 Sep 2020