Pep up profits with tech wizard that keeps drivers alert
EVERY year, road accidents cause more than 1.3 million deaths and up to 50 million injuries globally. The greatest harm is invariably caused by fatigue or distraction and the problem is growing, with tiredness a worldwide epidemic and mobile phone use an increasing hazard on the road.
Seeing Machines makes sophisticated monitoring systems that send out alerts when drivers eyelids start to droop or their attention drifts elsewhere. The shares are 5.85p and should increase materially over the next two to three years.
Based in Canberra, Seeing Machines has been listed on AIM since 2005, one of a flurry of companies from Down Under that joined London’s junior market because there was nothing like it closer to home. Many have since bitten the dust but Seeing Machines has stayed the distance. There have been ups and downs but the firm is now firmly in go mode, with soaring sales over the past 12 months and further turbo-charged growth expected for years to come.
Seeing Machines’ software is among the most advanced in the world. Installed in more than a million vehicles, the kit uses a combination of artificial intelligence and data gathered over two decades to monitors drivers’ eye movements and detect whether they are nodding off or failing to keep their attention on the road.
Seeing Machines then moves into action, with beeps, wake-up calls or vibrating seats to jerk motorists awake. The technology was first used in commercial vehicles, such as lorries, buses and mining trucks, where driver fatigue or lack of attention can cause catastrophic injuries. To minimise that risk, Seeing Machines does not just alert a vehicle’s driver. It also runs a 24/7 service which relays serious issues to fleet managers so they can step in directly and ensure drivers change their behaviour or head off the road.
The service has been proven to work, it has been snapped up across the world and further progress is expected, amid a global step-up in safety regulations.
New standards should have an even greater impact on Seeing Machines’ automotive division. In Europe, for instance, from 2026 cars will only receive five-star safety ratings if ‘driver monitoring systems’ are installed, which can check motorists’ fatigue and attention levels. The move has already prompted soaring demand for Seeing Machines kit, with customers including Ford, General Motors and Daimler. Last month, chief executive Paul McGlone reported a 143 per cent surge in the number of cars carrying his technology to nearly 1.1 million and said that installations should increase by more than 20 per cent per quarter for at least the next four years.
Aviation is another area of growth for the business, with companies starting to deploy McGlone’s technology to ensure pilots remain focused throughout flights and to help new recruits learn the ropes.
Results for the year to June 30 will be unveiled in October and are expected to show a 49 per cent increase in sales to $58 million (£46million), rising to $85million over two years. McGlone has been ploughing cash into the business so losses have been recorded to date but the group is expected to turn a profit in 2025, with figures rising steadily thereafter.