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Remote Monitored Systems sees “spectacular turnaround” as it completes name change

Formerly known as Strat Aero, the company is now focusing squarely on remote monitoring of rotating shafts after acquiring a controlling stake in software firm GyroMetric
Wind turbines
GyroMetric develops technology to digitally assesses rotating shafts such as those in wind turbines

The chairman of Remote Monitored Systems PLC (LON:RMS), Nigel Burton, has hailed a “spectacular turnaround” for the business as it changed its name from Strat Aero to accompany a refreshed strategy.

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 name change is not an accident, it’s to signal that this is about remote monitoring,” Burton says.

The move followed the purchase of a controlling stake in GyroMetric, a firm that develops technology to digitally assesses rotating shafts, in September when the company, then Strat Aero, upped its stake to 57.8% from 36.9% for £273,600.

The move seems to be paying off, with Burton saying that in the first half of 2018 the firm has seen revenues increase 47% and operating losses fall by 72%.

“Through an [underlying earnings] EBITDA perspective [the company] has gone from a loss of half a million to a loss of £8,000 so we’re pretty well break-even now” he adds.

Geo and Gyro

The new strategy is down to RMS’s two subsidiaries, GyroMetric Systems, which provides rotating shaft monitoring software, and Geocurve, a specialist surveying business.

Geocurve has seen progress this year after it secured two new contracts in July.

The first was with hydraulic engineering group Hesselberg Hydro for an initial four months that has room for extension and additional services.

The second was to carry out a 3D survey of a large airstrip and associated infrastructure for US engineering giant AECOM.

Bright future

Going forward, Burton says that the firm is now able to focus on other clients now that it has more capacity.

“The demand is there” he adds, with Geocurve aiming to bring in a number of contracts.

“The question is have we got revenue and have we got customers? And that’s looking good on the Geocurve side”.

Regarding GyroMetric, Burton says the company has seen an “amazing” response to wind trials conducted by the subsidiary, with “a lot of excitement” around the product.

“All we have to do now is turn that into new revenue,” he says.

“Our plan is to underpromise and overdeliver”.

With shares trading at 1p, RMS carries a market cap of around £3.3mln.

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