Seeing Machines Ltd (AIM:SEE, OTC:SEEMF) said annual revenue for the year to June 2025 would come in ahead of forecasts, helped by stronger demand from carmakers as Europe moves towards mandatory driver monitoring systems.
And, in an update on trading, it reaffirmed its goal to be cash flow break-even by the end of the calendar year.
The London-listed safety technology group expects to report revenue between $62 million and $63 million, above market expectations.
The company said its automotive division, which supplies monitoring technology that checks if drivers are paying attention at the wheel, was a key driver of performance.
Production volumes rose 35% to more than 1.5 million units, lifting higher-margin royalty income. Europe is preparing for new General Safety Regulation rules in July 2026, when all vehicles must be fitted with camera-based driver monitoring systems.
Cars on the road fitted with Seeing Machines’ technology increased 69% year on year to 3.7 million. Royalty revenue of $10.2 million was recognised from a programme that began in the final quarter.
The company continues to post operating losses, but said profitability was within reach.
Adjusted earnings before interest, tax, depreciation and amortisation (a measure that strips out certain costs) are expected to show a loss of between $29 million and $30 million.
Losses narrowed in the second half, with the average monthly shortfall reduced from $3 million in the first half to $2.1 million.
Seeing Machines has taken out about $12 million of annualised operating costs as part of a restructuring.
"We remain focused on achieving our core goal of cashflow break-even run rate by the end of this calendar year," said Paul McGlone, chief executive.
The company highlighted progress in its Guardian fleet safety business, with sales of its third-generation hardware rising 120% in the fourth quarter. A deal worth $1.2 million was also signed with a US self-driving car company.
It also revealed that referral agreements with Mitsubishi for its Guardian Generation 3 product were “progressing well”, with a steady pipeline of opportunities.
Further talks indicated the technology could also be applied across other Mitsubishi group businesses, including rail, home monitoring, building management and factory automation.
Seeing Machines raised £26.2 million ($32.8 million) earlier this year through a strategic partnership with Mitsubishi Electric Mobility.
The agreement includes referral deals with Mitsubishi subsidiaries in the Americas and Europe to boost sales of Guardian technology.
The company ended the year with $23.1 million in cash, little changed from $23.5 million last year.
It said trading in the current year had begun in line with expectations, with momentum in car production royalties expected to accelerate as the European deadline approaches.