RMS implementing cost-saving measures
Geocurve and GyroMetric sales rise in 2018
New contracts to contribute to sales in the second quarter
What Remote Monitored Systems does:
Remote Monitored Systems PLC (LON:RMS), formerly known as Strat Aero, is an AIM listed firm that provides survey and inspection services and rotating shaft monitoring software.
While the business originally focused on drone technology, RMS has now turned its gaze squarely on software that helps monitor rotating shafts such as those used in wind turbines.
The move followed the purchase of a controlling stake in GyroMetric, a firm that develops technology to digitally assess rotating shafts, in September when the company upped its stake to 57.8% from 36.9% for £273,600.
The group changed its name from Strat Aero in September to reflect a new focus following the acquisition.
RMS also wholly owns Geocurve, which provides survey and inspection services to a range of major blue-chip companies and government agencies. The business supplies land surveys, mobile mapping surveys and virtual reality surveys.
- RMS is implementing cost-saving measures to offset a slow start to 2019 by its Geocurve business, largely as a result of the need to dedicate more resources than expected to the Environment Agency's Thames Estuary Asset Management 2100 (TEAM2100) programme. However, a number of contracts with new clients have been won that should begin to contribute to sales in the second quarter.
- A process to identify a successor for Gary Nel, the managing director and founder of Geocurve, is underway.
- RMS said in a January trading update that Geocurve revenue jumped 57% to £1mln last year as it delivered the initial phase of a contract for 3D and Virtual Reality survey services from the Environment Agency for its Thames Estuary Asset Management 2100 programme. Geocurve also completed contracts for Hesselberg Hydro, BAM Nuttall and Aecom, with further growth expected in 2019 as it focuses on the acquisition of “major corporate customers”.
- GyroMetric delivered an “increase in sales” of its active protection system to protect large marine drives in 2018, however these “remain modest”.
- GyroMetric has completed successful trials of its Incremental Motion Encoder (IME) at the wind turbine drive train test facility at the Offshore Renewable Energy (ORE) Catapult at Blyth.
- RMS announced in January that it has raised £350,000 in a share placing to fund growth in its core business areas and to help clear its debt burden.
- Geocurve has been successfully accepted into the EU's KEEP+ funding innovation programme. It will receive modest financial support from KEEP+ as it works with the University of Essex on “groundbreaking knowledge exchange, collaboration, contract research and innovation in the Virtual and Augmented Reality spaces (VR/AR)”.
In a March trading update, RMS chief executive Trevor Brown said action has been taken to address the issues arising at Geocurve and the company looks forward to “renewed growth in sales to new clients”.
He added: “We remain excited by the opportunities at GyroMetric, both in the wind industry and in new sectors. The board continues to seek further opportunities to enhance shareholder value.”