Seeing Machines update disappoints markets

Shares in AIM-listed computer monitoring systems specialist Seeing Machines (LON:SEE) have dropped by 8.87% to 10.41p (as of 16:22 BST) despite posting that it expects to report revenue growth of 14.6% for the six months ended 31st December. Management said that trading during the current period was in line with forecasts.

CEO Paul McLone commented: “The first half of FY2021 has been significant for the company and the results are pleasing. Despite the obvious ongoing challenges around the world, we are still seeing growth in our Aftermarket (Fleet) business and our engagement across the OEM business and associated industries (Automotive and Aviation), has never been stronger. We are encouraged by our continued engagement across a number of ongoing RFQs, which have increased significantly in both number and value, since 1 July 2020, to deliver Driver and Occupant monitoring system technology to carmarkers globally.

Our expanding ecosystem of partners across the Automotive sector, in particular, is extremely encouraging and we are very positive about the tie-ups with large, global semi-conductor companies that will enable Seeing Machines to provide options and cost-savings for OEMs, especially as regulation really starts to impact delivery schedules. And despite the obstacles we face with momentum in the Aviation industry due to Covid-19, I remain confident that our long-standing collaborations will bear fruit and that Seeing Machines will see growth across this business in the near-term“.