SHARE PUNT OF THE WEEK
WHO IS IT?
Seeing Machines makes technology that detects when drivers are tired or distracted. Its technology is used in lorry fleets as well as the aviation, rail and mining industries. It’s about improving safety as apparently one in six fatal crashes involves a drowsy driver.
WHAT’S THE LATEST?
Seeing Machines technology uses camerabased systems which use algorithms to detect the symptoms of fatigue and alert the driver. It tracks head and face movements to measure how often drivers are blinking and where they are looking. The firm is now trying to move from generating income from one-off hardware sales to a more reliable subscription-based revenue stream.
WHO BACKS IT?
Major investors include big-fund management firms Fidelity, which has a 3.2pc stake, and Miton Asset Management, which holds 3.75pc. The largest shareholder is Hunter Hall Investment Management, an Australian ethical investment firm, which has a 17.5pc stake in the business.
WHY YOU SHOULD INVEST
It has secured a follow-on order from a major US car maker which will see its monitoring system used in a semi-autonomous vehicle later this year. Other recent milestones include a royalty arrangement with US equipment maker Caterpillar and a deal with US fresh goods distributors Shamrock Foods to fit 750 heavy goods vehicles with its systems.
AND WHY YOU SHOULDN’T
Shares plunged this week as the firm reported a loss of £8.8m in the six months to December 31, down from a profit of £7m the year before. Seeing Machines said the figures reflected investment in its technology and a one-off licence fee with Caterpillar. It has also reduced full-year revenue expectations in its fleet business and said there had been slower than anticipated growth from Caterpillar.