Seeing Machines Ltd (AIM:SEE, OTC:SEEMF) shares rose 5% on Thursday as analysts praised the company’s ability to adapt to challenging conditions in the automotive sector.
The transport safety tech firm expects to reach cash flow break-even in 2025 after cutting $12 million in annual costs through a company-wide restructure.
The savings, combined with rising high-margin royalty income and the launch of its Guardian Generation 3 system, are expected to underpin stronger cash flow next year.
Despite industry headwinds, the company said full-year performance remains in line with expectations. Production volumes surged, with 2.88 million vehicles now using its technology, up 90% on last year.
First-half revenue held steady at $25.3 million, while gross profit climbed 32% to $14 million. Cash reserves rose to $39.6 million, boosted by Mitsubishi Electric’s investment and a recent acquisition to expand AI capabilities.
"Seeing Machines' results show the company is adapting to a more challenging environment by adjusting its internal costs with the goal of reaching cash flow breakeven in the current calendar year," said American bank Stifel, reiterating its 'buy' advice.
The shares rose 0.1p to 2.39p.