SMALL CAP IDEA: Seeing Machines safety tech is becoming a global force
Its driver safety technology is now a fixture in more than 3 million vehicles, while its Guardian monitoring system is gaining significant traction in the logistics sector.
It is an unheralded success story that might warrant a higher valuation if listed on Nasdaq or developed in the white heat of Silicon Valley.
While this apparent underestimation may rankle with management led by Paul McGlone, it could offer an opportunity for those new to the story.
As we will discover, its current modest market capitalisation is more a function of the fluctuating fortunes of the car market than anything self-inflicted, though there have been operational hiccups that are now largely in the rear-view mirror.
So, what does Seeing Machines actually do?
Put simply, its FOVIO Driver Monitoring System is designed to keep drivers safe by tracking attention and alertness at the wheel.
Using a mix of cameras and intelligent software, the set-up can tell if a driver is distracted or drowsy and prompts them to refocus or take a break.
Seeing Machines' customers for this product are original equipment manufacturers. At the last count, it had eight automotive partnerships.
Rather than simply receiving a one-off payment for its technology, it gets a royalty, resulting in recurring revenue that grows with installations.
A big demand driver is the upcoming EU General Safety Regulation, which mandates new cars, vans, buses, and trucks be fitted with advanced distraction warning systems such as FOVIO.
The second innovation is its Guardian system, an aftermarket monitoring product retrofitted to truck cabs.
Seeing Machines is up to iteration three, which integrates artificial intelligence for greater accuracy.
In its half-year results in March, the company said Gen 3 is being trialled with several large fleets.
More recently, excitement has grown around two collaborations with Mitsubishi Electric: one in the US, the other in Europe.
In an interview with Proactive earlier this month, managing director Paul McGlone said the American collaboration is already generating 'referrals and qualified leads for our sales teams to convert for our Guardian product.'
Overall, interest in Guardian 3 has been high, generating a pipeline that adds up to a potential 18,000 units.
'That includes both the referrals we've received from Mitsubishi and those that our in-house sales team have generated over the past few months,' McGlone told Proactive.
'So, it is the highest pipeline volume that we've ever seen since we've been in the business, and we're quite confident that we'll get a meaningful level of conversion from that pipeline.'
Now, all of this is a little jam tomorrow – although important for those looking at the long-term potential of Seeing Machines.
However, the latest results (its March interims) reveal why perhaps there's a little circumspection around the investment story.
Its top-line growth stalled with volatility in the automotive sector cited, a not unexpected development given the industry backdrop blighted by tariff worries.
That said, Seeing Machines pointed to an 'expected second-half skew' to performance, suggesting the first half was more a blip than a trend.
Top-line growth, particularly from royalties, is crucial for a business still firmly in the red (it posted a near $10million EBITDA loss for the six months to 31 December).
However, those results came with a pledge: to reach cash flow break-even in 2025 and a $12million cut to the cost base to help achieve this.
It has the runway to do so, with almost $40million in the bank at the last update, following a $33million investment by Mitsubishi for a 19.9 per cent stake.
Analysts point out that Seeing Machines shares trade at below three times sales (net of cash), which for a tech stock is exceptionally cheap.
That said, it is only a bargain if Seeing Machines can hit its revenue and self-imposed cash break-even targets.
A few cautionary notes: readers should conduct their own due diligence. I can only tell the story as it stands. Further digging is always advisable.
And remember, Seeing Machines is not a one-way bet. The road to commercial success for products such as FOVIO and Guardian 3 is rarely linear; there are always potholes.
And as Donald Trump's vacillations on tariffs have shown, there is real impact on the car and truck industry from political interventions, however inured financial markets may be to such pettiness.
That said, Seeing Machines is definitely one for the watch list.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Mail
42 minutes ago
- Daily Mail
Bank of England sweats over 'Oasis' inflation
The Bank of England could come under further pressure to delay interest rate cuts this week with figures expected to show a rise in inflation – partly thanks to an 'Oasis bump'. Economists believe official Office for National Statistics (ONS) data published on Wednesday will show the cost of living squeeze deepened last month. Consumer price index (CPI) inflation rose to 3.6 per cent in June, the highest level since the start of 2024. Experts believe it may have climbed to 3.8 per cent in July. The Bank has warned that inflation is on course to rise to 4 per cent later this year – double its 2 per cent target. Among the factors likely to have pushed up inflation in July is an 'Oasis bump' as hotel prices surged near venues for the band's sold-out comeback tour. Tours by Taylor Swift and Beyonce have previously been blamed for having a similar effect on inflation. Experts also pointed to higher airfares and the continued increase in the cost of food as putting upward pressure on this July prices. Sanjay Raja, senior economist at Deutsche Bank, said: 'July inflation will likely see price momentum rise further into uncomfortable territory.' The Bank has been steadily cutting interest rates since last summer after inflation fell to around 2 per cent – bringing to an end a period of dizzying price rises. But now inflation is rising again and markets have reduced bets on the likelihood that there will be any further rate cuts later this year – with the chances of a reduction before 2026 seen as little better than 50/50. Official unemployment figures and GDP data published last week – which was slightly less grim than forecast by experts – have also cast doubt on the need for further moves. A halt in the progress of rate cuts would represent a blow for borrowers. Raja predicts this week's CPI figure at 3.8 per cent. He said Deutsche's own data suggested the 'Oasis bump' may have helped lift hotel prices by 9 per cent. Bruna Skarica at Morgan Stanley predicts July inflation will climb to 3.7 per cent due to food, fuel and energy prices – but said factors including the Oasis impact meaning that risks are 'skewed to the upside'. Skarica said that even a marginally higher than expected inflation reading would pose 'severe' risks to Morgan Stanley's expectation for an interest rate cut in November. The cost of living squeeze is causing increasing stress for households, with millions more worried about it than when Labour came to power. ONS data last week showed 59 per cent said that their cost of living has increased in the past month, up from 45 per cent a year ago. The most common reasons for the rise were food, energy bills and fuel.
Daily Mail
42 minutes ago
- Daily Mail
ALEX BRUMMER: Buyout grocers crushed by debt anvil
Of all the private equity deals of recent years, the most ill-timed were those done for supermarket groups Asda and Morrisons during the pandemic. Ambition in both cases was high, but the deals left both grocers weighed down with a monstrous amount of debt and unable to compete with rivals. Predictably, Tesco with its vast buying power and ability to offer lower prices has raced away since the pandemic and now has 28.3 per cent of the grocery market. It continues to gain share at a rapid pace. The secretive, German-owned interlopers Aldi and Lidl have European-wide buying power across a narrower range of goods and an own-brand model. They have become price setters at a time of food inflation. Sainsbury's, with a market share at 15.1 per cent, intelligently chose to invest in price matching on a core range of goods with Aldi. It is an investment which has paid off. The most recent data from market research group Kantar show the scale of the challenge for private equity-controlled Asda and Morrisons. The former, now under the stewardship of veteran Allan Leighton, is struggling with year-on-year sales down 7 per cent. Morrisons, on paper at least, looks to be doing better with sales up 1 per cent. It is reckoned, however, that this might be a case of the hare and the tortoise. Morrisons, led by enthusiastic Lebanese-born chief executive Rami Baitieh, looks to be doing better. A series of asset sales, including its petrol forecourts, means it has brought down debt levels from £8.5billion, when it was bought by Clayton, Dubilier & Rice in 2021, to £3.8billion. The difficulty is that its idiosyncratic 'farm to fork' model of food retail means it has a higher cost base than competitors. In addition, its famous 'marketplace' style counters, selling everything from bread to fish, are more expensive to operate with greater wastage and staff costs than shelf to consumer. Rivals estimate that baskets can be up to 7 per cent more expensive. At a time when price is everything, with Aldi going great guns, Morrisons' much admired model may condemn it to the slow lane over time. In contrast Asda, the tortoise with declining sales, is in a much better position. A smart deal by private equity group TDR saw it acquire the 22.5 per cent stake owned by the Issa Brothers at what industry sources suggest was a bargain basement price, estimated in June 2024 at £500m. As well as lower legacy interest rates Asda's stores are endowed with in-store concessions including pharmacies, optician counters, Greggs, Music Magpie and much else, giving it a marketing edge over competitors. It is also on a convenience store opening spree and has part ownership of EG fuel forecourts. It doesn't hurt that the group has a cornerstone investor in mega-retailer Walmart which retains a 10 per cent stake. The bidding wars for Asda and Morrisons, which in hindsight drove the acquisition cost and debt level up, were in retrospect a dreadful mistake. Private equity firms boast that away from the glare of scrutiny surrounding listed companies, they can make tough decisions. They reckoned without a fast-changing post-pandemic and Ukraine war market which would see low prices, driven by Aldi and Lidl, become a dominant theme. Tesco and Sainsbury's rapidly adjusted. The debt anvil crushed the ambitions of Morrisons and Asda.
The Sun
44 minutes ago
- The Sun
Homeowners can earn £100s a month from their driveway in the easiest sidehustle – how you can too
HOMEOWNERS could make easy money ahead of the new Premier League season - simply by having a driveway they're not using. A team of experts has analysed postcodes near the nation's major stadiums to determine where householders could earn the most money by renting out their driveways to fans. 3 3 3 According to Leasing Options, residents living near Tottenham Hotspur Stadium (N17) enjoy the highest earning potential, with an average daily income of £22.25 throughout the year. Other lucrative areas include postcodes near Leeds ' Elland Road Stadium, where homeowners can make £22 a day, and Ch e lsea 's Stamford Bridge in London, offering £21.50 per day. For those living near Wembley Stadium, the country's iconic football venue that hosts the England National Team, cup finals and events like the recent Community Shield, the earning potential is similar at £21 per day. Likewise, residents near Scotland's Hampden Park and Wales' Cardiff City Stadium can expect to earn around £21 a day. Further down the rankings, homeowners in Liverpool living near Anfield and Everton Stadium can still earn a respectable £13 per day, with prices often more than tripling on matchdays or during special events. With the Premier League season kicking off this weekend, renting out an unused driveway could be one of the simplest and most effective sidehustles for homeowners looking to make some extra cash. It isn't just sporting events either, as some of the highest earners this year so far are music events - including high-profile concerts and festivals. These events often result in single-day earnings that surpass what would typically be made in a week - making them a particularly lucrative option for those living nearby. At the top of the list is Oasis at Heaton Park in Manchester, where driveway rentals can fetch an average of £165.67 per day during the event. Following closely is Beyonce's tour stop at Tottenham Hotspur Stadium in London, with homeowners earning an average of £150.26 per day during her shows. Shocking moment 'rude' dad parks car on STRANGER'S driveway to avoid school run chaos - before furious mum confronts him Similarly, the Wimbledon Championships in London provide an average earning potential of £101.08 per day for residents near the All England Tennis Club. Other notable events include Guns N' Roses at Villa Park in Birmingham, where locals can earn £97.40 daily, and Sabrina Carpenter's concert at Hyde Park in London, which offers average earnings of £94.92. Stadiums that can provide income opportunities year-round Tottenham Hotspur Stadium (London): £22.25/day Elland Road (Leeds): £22.00/day Stamford Bridge (London): £21.50/day Wembley Stadium (London): £21.00/day Hampden Park (Glasgow): £21.00/day Cardiff City Stadium (Cardiff): £21.00/day OVO Arena Wembley (London): £21.00/day Marshall Arena (Milton Keynes): £15.00/day Anfield (Liverpool): £13.00/day Everton Stadium (Liverpool): £13.00/day Leasing Options analysed data from JustPark to identify the UK's most profitable areas for driveway rentals. The study focused on over 25 major cities and key 2025 events, mapping more than 750 postcode districts using public data. Commercial listings were excluded, location accuracy was verified and districts with insufficient data were removed, leaving over 550 reliable areas. Median weekday and weekend rates were averaged to calculate daily earning potential, while event-day prices were separately assessed for major fixtures. Commenting on the data, Mike Thompson, Chief Executive Officer at Leasing Options, said: 'With demand for event parking soaring across the UK, it's clear that homeowners have a real opportunity to turn their unused driveways into a valuable source of extra income. 'Our data shows that locations near major stadiums like Tottenham Hotspur, Elland Road and Wembley consistently attract high rental prices. 'During big-name events, these figures can more than triple. "It's a smart, low-effort way for people to benefit from the buzz around them, especially in areas where parking is at a premium. 'As we look ahead to a packed 2025 event calendar, the potential for driveway rentals is only set to grow." How to rent out your driveway For those interested in turning their unused driveway into a steady source of income, there are a handful of steps you can follow. Check Eligibility - Review your mortgage or lease agreement to ensure renting out your driveway is allowed, and also check with your local council to confirm you don't need planning permission. Choose a Platform - Platforms like JustPark, YourParkingSpace and ParkOnMyDrive make it easy to list your driveway. You can sign up, create a profile and provide details about your parking space, such as dimensions, location and availability. Set Your Price - Research current rates in your area using the platform's tools or by browsing other listings. You can even adjust the price for special events or peak times to maximise earnings. Add Photos and a Description - Make sure upload clear photos of your driveway and write a good description, highlighting features such as proximity to venues, security and ease of access. Manage Bookings - Set your availability for weekdays, weekends or specific dates. Also use the platform's booking system to approve requests and communicate with renters. Ensure Insurance - Consider public liability insurance to cover accidents or damages while someone is using your driveway. Track Your Income - You must keep records of your earnings and remember that if they exceed £1,000 annually, you'll need to declare them to HMRC under the Property Income Allowance. This comes as Sun Motors recently looked at the family motors that lose the least value over time - with a luxury compact SUV taking the top spot. New data from the analysis of 40 million UK car sales over a typical three-year ownership period highlights which family models hold their value best. Experts from Carmoola have recently released their new Car Depreciation Index, developed with vehicle data specialists Brego, which ranks the top-performing family cars for resale value. They found that the Porsche Macan is the slowest-depreciating family car sold in the UK - losing just 19.9% of its value over three years. The Macan is particularly popular in the UK due to its blend of sporty performance, SUV practicality and the prestige of the Porsche badge. It's championed for being agile and powerful, with a well-tuned suspension that makes it enjoyable to drive on various UK roads, from city streets to country lanes.
