Shares in Seeing Machines Ltd (AIM:SEE, OTC:SEEMF) rose 4% at 2.54p on Thursday after the tech firm's prelims and outlook statement reassured the market.
In their wake, Peel Hunt reiterated its 'buy' rating and 3p target price, saying the group’s automotive business remains the key growth driver ahead of next year’s European driver-monitoring deadline
The broker noted there were “no surprises” in the company’s full-year 2025 results, with management confident it can reach cashflow breakeven by the end of this calendar year and move into positive territory in the second half of fiscal 2026.
Cost discipline has been a central factor: adjusted operating costs are down $8.6 million from their peak in the first half of fiscal 2024, while monthly cash burn has dropped to $1.6 million.
With $22.5 million of cash at June-end, the broker believes Seeing Machines has ample runway to capture rising volumes.
Automotive royalties were the highlight of the results statement, climbing 29% to $13.7 million as another 1.5 million vehicles came on the road with its technology, bringing the total to 3.7 million.
With roughly 12.5 million new cars sold annually in Europe, the opportunity remains significant as regulation mandating driver-monitoring systems takes effect in July 2026.
Peel also pointed to encouraging traction in aftermarket products, where Guardian Generation 3 sales rose 120% sequentially in the fourth quarter and new opportunities are emerging through Mitsubishi partnerships.
Aviation, by contrast, delivered no revenue in the second half, but the broker sees this as immaterial to the long-term story.
Seeing Machines develops artificial intelligence–powered monitoring systems that track driver and operator alertness across automotive, aviation, rail and other transport sectors to improve safety.