SMN 4.72% 50.5¢ structural monitoring systems plc

SMN - Presentation March 18, page-42

  1. R-7
    651 Posts.
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    @Hatrack and @wagster. Just like you and others on the forum (@jimmycrackcorn, @Poseidon 1945, @Patong1, @JCoure, @AlbertE, @susieq, @Gilant, @Idle Wanderer, @DreamCatcher, among others) I've spent hours and hours researching SMN and looked over numerous ADs of relevance to CVM. I've two key insights about ADs and SMN:

    1. ADs will, to a very significant extent, drive early adoption of CVM (including installation of CVM by OEMs during aircraft production to address known issues - i.e. identified in ADs). It's important to note that an AD doesn't generally require an OEM to modify an aircraft component(s) or design, it often just mandates monitoring of known issue(s). Individual ADs are useful for revenue projections as they given an indication of the quantum of $$ involved in meeting a specific mandated action and so, the potential cost saving of a visual inspection (or NDT) with CVM, but trying to second guess which ADs will be relevant for CVM is a thankless task, for one main reason...

    2. There are way too many ADs where CVM may be a useful AMOC (note: Alternative Method of Compliance in FAA parlance, AMeansOC for CASA). I'm happy to leave it to the experts at the FAA, DeltaOps, SMN, Boeing and elsewhere to determine the priority cases. @OptiontraderMGR, the graph below gives some idea of why I don't think SMN will attempt to identify all relevant CVM applications for 737-NG ADs before they begin installing ... but it also supports the high revenue estimates you've been suggesting for SMN, if we can capitalise on the opportunities.

    upload_2018-5-9_13-32-57.png

    And the graph that follows gives a sense of the opportunity across the three major aircraft OEMs we've been working with... (both taken from this April 2016 presentation)

    upload_2018-5-9_13-36-46.png
    Needless to say (but I will anyway)... there's a lot of opportunity here, if we get sales moving. Which is why the appointment of our new sales manager is so important (and why we'll hear more about him very soon). AIMO. GLTAH R-7
    Last edited by R-7: 09/05/18
 
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