SRT Marine Systems Lands €167m Contract as Tech Sector Leads Pre-Market Positivity

📈 Today's Key Themes

The London Stock Exchange is poised for a positive opening, with the technology sector leading the charge. SRT Marine Systems' €167m contract win in Indonesia headlines a series of strong pre-market announcements, showcasing the sector's resilience and growth potential. International expansion is a recurring theme, with companies like M&C Saatchi and Corero Network Security securing strategic deals in emerging markets. The energy sector also demonstrates positive sentiment, with EnQuest and Prospex Energy reporting encouraging operational updates. These developments, coupled with Elementis' strategic divestment and capital return plans, paint a picture of companies actively pursuing growth and operational efficiency.

💡 Company Updates

Q1 Updates

M.T.I Wireless Edge Ltd (#MWE) reported a strong start to 2025, with Q1 revenues up 7% to $12m and operating profit rising 6% to $1.25m. The company's net profit for shareholders increased by 9% to $1.02m, while net cash from operating activities surged by 85% to $2.31m. The Antenna and Water Control & Management divisions showed particularly strong performance, contributing to the overall positive sentiment. EnQuest PLC (#ENQ) delivered a solid operational performance in Q1 2025, with production averaging 42,028 Boepd. The company reported successful infill drilling and well optimization at its Magnus field, driving production increases. Despite a temporary shutdown due to a pipeline system outage (now resolved), EnQuest maintains a robust liquidity position with $534 million in cash and undrawn facilities.

Trading Updates

Cambridge Nutritional Sciences plc (#CNSL) expects total income to reach £11.1m, up 12% on the prior year. The company anticipates adjusted EBITDA to show a profit of £0.4m, doubling from £0.2m previously. Profit before tax is expected to be £1.6m, a significant improvement from the £0.75m loss reported last year. However, revenue excluding exceptional and other income is expected to be lower at £8.3m.

Annual Results

Prospex Energy Plc (#PXEN) reported a dramatic 96% reduction in annual losses to £46,759. The company's cash position improved significantly to £1,185,386 from £3,186, ending the year debt-free and financially self-sustaining. Strategic expansions include acquiring a 7.2365% working interest in the Viura gas field and creating an investment vehicle in Poland for future growth.

🎯 Leading Developments

Major Contract Wins and Expansions

SRT Marine Systems plc (#SRT) has secured a landmark €167m contract with the Indonesian government to deliver an advanced maritime surveillance system. This National Maritime Security System (NMSS) project will establish an integrated national maritime surveillance, command, control, and communication capability for the Indonesian Coast Guard. The system will enable continuous real-time monitoring of Indonesia's Exclusive Economic Zone and territorial waters, leveraging SRT's proprietary AI-driven intelligence. This multi-phase project, spanning over two years with eight years of ongoing support, marks a significant expansion into a new high-growth market for SRT Marine Systems.

The scale and long-term nature of this project could have a transformational impact on SRT Marine Systems' performance, potentially boosting investor confidence in the company's growth trajectory.

Corero Network Security plc (#CNS) announced a 5-year, $1.2 million contract expansion with Lightedge, a leading provider of secure, compliant hybrid infrastructure and services. This development extends Corero's high-performance DDoS protection across Lightedge's growing network of data centres in the US and globally. The contract reflects the industry shift toward flexible, AI-ready security architectures that adapt in real-time, positioning Corero favorably in the evolving cybersecurity landscape.

Strategic Corporate Actions

Elementis plc (#ELM) has sold its Talc business to IMI Fabi for an enterprise value of $121m, with net cash proceeds of around $55m. This strategic move is expected to improve the Group's adjusted operating profit margin by approximately 240 basis points. In a show of confidence, the Board has announced plans for a £50m share buyback programme, signaling a positive outlook and commitment to shareholder returns. M&C Saatchi plc (#SAA) has agreed to acquire 90% of Dune 23, a sports agency with offices in Dubai and Abu Dhabi. This acquisition aligns with M&C Saatchi's growth strategy and will integrate with the company's fast-growing UAE business. Dune 23 brings specialist expertise and a proven track record in the sports and entertainment sector, enhancing M&C Saatchi's capabilities in the rapidly growing Middle East market.

📅 Week Ahead

28 May 2025: Pets at Home Group Plc (#PETS) FY25 preliminary results announcement
28 May 2025: C&C Group plc (#CCR) Full-year results announcement
28 May 2025: JPMorgan Global Growth & Income Ord (#JGGI) Effective Date for implementation of the Scheme
29 May 2025: Auto Trader Group plc (#AUTO) to announce full year results
29 May 2025: HarbourVest Global Priv Equity Ord (#HVPE) to announce annual results
29 May 2025: Hollywood Bowl Group plc (#BOWL) Interim Results
30 May 2025: Fresnillo plc (#FRES) Payment date for final ordinary dividend and special dividend
30 May 2025: Unite Group PLC (#UTG) Final dividend payment

View full calendar

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