MIDAS SHARING TIPS UPDATE: Set a course for the innovative SRT marine – our tip has increased by 10%

The English Channel is the busiest shipping route in the world. More than 500 ships pass through the Canal every day, from cruise ships and ferries to fishing boats, oil tankers and military vessels.

With so much traffic, safety is paramount. Under international maritime rules, ships must ensure they have a “transceiver” on board, a black box that shows where they are, where they are going and where other ships are in relation to them.

SRT Marine Systemsa small company based in Somerset, pioneered this technology about 15 years ago and it is now used on hundreds of thousands of boats around the world. The group has just gone one step further with a new kit, Nexus, which connects to users’ mobile phones. That allows them to see what awaits them and talk to the Coast Guard, other ships or even crew members wherever they are on their boat.

Nexus, launched just a few weeks ago, has already sparked considerable interest. Traditionally, ship captains can only communicate with the outside world through an old-fashioned radio, fixed in the cabin and often of dubious quality. Nexus changes all that and orders are coming in, with sales expected to gain momentum starting early next year.

So far, so good. But SRT chief executive Simon Tucker has another arm of his business – offering a full offshore surveillance service through Maritime Domain Awareness Systems.

The oceans can be dangerous places. Pirates can seize ships, smugglers can bring in drugs, weapons and migrants, and terrorists can endanger ships en route.

However, integrated surveillance is scarce on the ground. Air traffic systems are mandatory throughout the world. Maritime surveillance is piecemeal. Ten years ago, Tucker and his team began developing sophisticated systems that allow the coast guard and national security services to monitor movements at sea and act quickly if they detect suspicious activity.

The Philippines was an early adopter, as was Saudi Arabia. A £165m deal was signed with Kuwait last month and others are on the way, creating a series of projects worth more than £320m over the next two years with a longer-term pipeline of more than £1bn millions.

SRT also has two deep-pocketed investors: David Brierwood, who developed the fabulously successful MSCI financial index series, and Ocean Infinity, controlled by billionaire hedge fund manager Anthony Clake.

Brierwood invests in SRT because it believes it is a good business. Ocean Infinity is not only a shareholder but also a business partner. The company specializes in autonomous underwater surveys, used by governments, defense contractors, researchers and major industries. A partnership between Ocean and SRT allows both companies to offer more to their customers.

Midas Verdict: SRT has risen 10 per cent to 41p since Midas recommended the company two years ago, but there is still more to do. Not for the faint-hearted, but potentially rewarding for the adventurous sailor.

Traded in: Aim Heart: TER Contact: srt-marine.com