Business
SE Asia Contract Change
SE Asia Contract Change.
About this update from Srt Marine Systems Plc
[{"type":"text","content":"\n \nRNS Number : 9565U SRT Marine Systems PLC 18 July 2018 \n\nSRT MARINE SYSTEMS PLC\n(\"SRT\" or the \"Company\")\nSE Asia Project & Year End Update Revision\n \nSRT advises that yesterday it was informed by its SE Asian government customer of a decision to change the funding source and therefore the contract structure for the fisheries monitoring project announced in March 2018. This will adversely affect revenues and profits for the year ending March 2018 and, if as expected, SRT are awarded the contract again by the customer, will positively affect revenues and profits for the financial year ending 31 March 2019.\nIn March 2018, SRT was directly awarded a Euro 28.5m contract by a SE Asian government to deliver the SRT VMS System for the purpose of fisheries and maritime environment monitoring and management. Whereupon SRT commenced the implementation of the project including delivery and invoicing of product as per the contract milestones. \nThe specified funding source for the project was to be provided by way of an agreed overseas development assistance (ODA) loan from a European government. Following some issues and delays in regards to the activation of the loan and following confirmation of the availability of internal funds for this project the customer has formally decided to change the funding source for the project from the original overseas ODA loan to their own internal funds. This new funding has been approved and is now available for the project.\nIn line with local government procurement regulations all project contracts must specify the source of the funding. As such the change in funding source requires a change to the existing contract. The route to achieve this had originally been by way of a contract novation process thereby maintaining the existing contract. However, the customer has now determined that this is not appropriate within their national procurement process and therefore not advisable. Therefore, the customer has advised SRT that the existing contract must now be cancelled on the basis that the ODA loan funding source is not being used, and a new contract issued via the standard procurement process which specifies the local budget as the funding source.\nAs such SRT has been formally advised by the customer, and accepted, the cancellation of the existing contract ef...