Seeing Machines revenue, profits rise in year-end results

Driver monitoring technology developer Seeing Machines reported a 15% improvement in revenue in its year-end results on Thursday, to AUD 54.4m (£30.25m).

The AIM-traded company said underlying revenue was up 22% for the 12 months ended 30 June, excluding the one-off licence in 2021, to AUD 55.5m at constant currency.

Automotive royalty revenues added 141% to AUD 5.5m, and non-recurring engineering revenue grew 67%, with the board describing it as a “lead indicator” for future automotive royalty revenue.

Total original equipment manufacturer (OEM) revenue, including automotive and aviation, increased 21% to AUd 14.7m, while aftermarket revenue was 13% higher at AUD 39.8m.

Annual recurring revenue, including royalties, was 18% firmer at AUD 17.6m, and royalties from ‘Guardian’ hardware sales increased 4% to AUD 2.4m.

Seeing Machines said its gross profit was 17.3% higher year-on-year at AUD 24.4m, while cash at year-end on 30 June totalled AUD 58.8m.

“The results presented in the 2022 accounts are strong, and the post-period announcement of our collaboration with Magna and its investment into the company has ensured that Seeing Machines is positioned to win more market share and secure our place as an industry-leading provider of DMS and OMS,” said chief executive officer Paul McGlone.

“Balance sheet strength is critical to our customers having the confidence in our financial capacity to deliver on our long-term innovation pipeline and commercial commitments.

"Our automotive business is thriving and, as we get through the next wave of RFQs, we will be able to clearly demonstrate this leadership position and affirm our predicted market share.”

McGlone said the aftermarket business was expanding, adding that despite some supply chain challenges, the next 24 months would see a “step-change” in opportunity as regulation drove additional growth, and the company moved to the next generation of its Guardian hardware.

“Finally, in aviation, we have no clear competition here and I am delighted to see this business shaping up to be in a position to add significant value to the company in the near future.”

At 1256 BST, shares in Seeing Machines were down 0.28% at 7p.

Reporting by Josh White for Sharecast.com.