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Hardware & electrical equipment

Seeing Machines says momentum is positive with trading in line with full-year expectations

The company makes AI-powered operator monitoring systems used in transportation

Seeing Machines Ltd (AIM:SEE, OTC:SEEMF) said it is trading in line with full-year expectations as it reported "positive momentum across the company" in the first half.

Revenues for the six months ended December 31 2021 grew 19% to A$21.7mln, or almost 25% at constant currencies.

Seeing Machines makes AI-powered operator monitoring systems used in transportation and has two divisions – one supplying automotive and aviation manufacturers, the other generating aftermarket sales with fleet and off-road vehicle companies.

The former grew 69% to A$5.2mln, while the latter was ahead 9% at A$16.4mln.

Overall, the company was loss-making to the tune of A$13.8mln, which is to be expected from a company at the formative stages of commercialisation. That figure represented an 18% year-on-year narrowing of the deficit.

More importantly, the group was sitting with cash of A$79.3mln at the period-end.

"These results demonstrate positive momentum across the company,” said chief executive Paul McGlone.

“Our Automotive business continues to grow with more cars starting production, generating high-margin royalty revenue.

“This is underpinned by our increasing confidence in ongoing RFQ [request for quote] processes as we focus on feature development and integration options to support OEM [manufacturers’] demands, in partnership with our tier-one customers.

“Aftermarket is experiencing similar positive momentum with growth in our direct business resulting in a more profitable business model and a growing sales pipeline through our expanding global team.”

McGlone said there were obvious “challenges” posed by the Ukraine war and inflation, but added: “We are focused on mitigating these risks as they are identified and are confident in our ability to continue to grow the business."

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