Seeing Machines Limited (LON:SEE) has reported higher revenues in its final results as well as “good momentum” in the first quarter of its current year following increased demand for its driver monitoring technology products.
In its results for the year ended June 30, 2020, the AIM-listed firm reported that revenues were up 25% year-on-year at A$40mln, boosted by a 32% rise in revenues from original equipment manufacturers (OEM) due to a pre-production licence deal with a Tier 1 partner.
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The company also reported a 30% increase in aftermarket revenues despite a slowdown in installations of its Guardian monitoring systems due to the coronavirus pandemic.
Recurring revenues were also up 17% at A$14mln reflecting growth in the group’s installed base of Guardian products to 23,415 at the end of June. Pre-tax losses for the year were at A$45.5mln compared to a A$42mln loss in 2019.
Looking ahead, Seeing Machines said results for the first quarter of its current year are ahead of budget, which it said demonstrated “good momentum” in the business. Revenues in the period were up 20% at A$9.5mln with cash of A$35mln at the end of September, while the company said a A$28mln investment from Federated Hermes Inc meant it is “well capitalised” to fund its business plan.
"We are pleased with the company's achievements in FY2020. Despite the issues facing everyone due to the global pandemic, we have managed to deliver solid results, strengthen our balance sheet and set the company up for significant growth”, Seeing Machines chief executive Paul McGlone said in a statement.
"I am pleased that our solid progress in FY2020 has continued into the first quarter of FY2021, with both revenue and cash ahead of budget. I am confident that we are on track for a successful year ahead with a strong strategic focus, foundational partnerships and a well established team to deliver", he added.
The company's shares were 6.2% lower at 4.4p in early deals on Monday.
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