Seeing Machines Ltd (AIM:SEE, OTC:SEEMF) expects to hit cashflow break-even by the end of 2025 and turn cash positive in the second half of its new financial year, as demand builds ahead of a European safety regulation that will require all new cars to carry driver-monitoring cameras.
The technology company, listed in London, makes artificial intelligence-powered systems that track driver attention and fatigue.
These “driver monitoring systems” will become mandatory for new vehicles across Europe from July 2026, a shift that management says is already lifting sales.
Chief executive Paul McGlone said the company is beginning to see “the expected quarterly increase in automotive royalty volumes” as the deadline approaches.
Car makers are forecast to sell around 12.5 million new vehicles in Europe in 2026, all of which must be fitted with the technology.
For the year to June 30, revenue came in at $62.3 million, slightly below the $67.6 million reported a year earlier but ahead of analyst forecasts.
The fall reflected lower hardware and installation revenue, partly offset by higher recurring royalties and aftermarket monitoring sales.
Automotive royalty income rose 35% to $14.4 million, while aftermarket monitoring revenue increased 9% to $13.6 million.
Losses remain sizeable, but trends are improving. Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) showed a loss of $30.1 million for the year, compared with $36.4 million in the prior period.
The company cut its average monthly cash burn from $3 million in the first half to $2.1 million in the second, helped by a restructuring that removed about $12 million in annual costs. Cash balances were stable at $22.6 million at year-end.
In the aftermarket business, which sells retrofit kits for trucks, buses and other vehicles, Seeing Machines has started converting pilot projects into sales.
The launch of its Guardian Generation 3 system drove a 120% quarter-on-quarter jump in hardware sales in the final three months of the fiscal year. Partnerships with Mitsubishi are expected to accelerate adoption in the Americas and Europe.
The company also deepened ties with auto suppliers, acquiring Berlin-based Asaphus Vision to boost its artificial intelligence expertise and forming a collaboration with Valeo.
McGlone said the group’s “strategic priorities continue to centre on sustainable growth and advancing safety technology innovation,” with a clear path to positive cash generation in fiscal 2026.