Seeing Machines Ltd - COVID-19 Update
There is an underlying and unstoppable movement for improved safety across all industry verticals and transport sectors, globally.
The immediate global impact from COVID-19 is unprecedented and, as governments across the world make a number of significant decisions on a day-to-day basis and implement a range of precautionary measures, many of which impinge on the movement of people and goods, this presents an obvious challenge to the transport sectors which
Accordingly, despite the otherwise positive momentum across all transport sectors and significant confirmed order books for both the Fleet and Automotive divisions, the short to medium-term outlook is uncertain and it is possible that the Company will be impacted by these conditions.
Specifically, the Company's current view on those potential impacts is as follows:
· Given the relatively early stage of existing Automotive programs and the timing of projected revenue from those programs, we are of the view that there is likely to be no material impact to this business segment as a result of COVID-19.
· Accordingly, at this stage there is no indication that there will be any impact to the current projected Automotive order book of
· At this point in time, and as previously announced, the Company's Guardian product supply chain is minimally affected by COVID-19 and the Company holds sufficient stock in various locations to allow it to achieve the previously-stated minimum connections target for FY20.
· However, anticipated business interruption for Fleet customers, resulting indecision on capital expenditure, as well as potential increased supply chain pressure which will reduce availability of vehicles for new installations, will likely have a significant impact on Guardian installation rates and future sales over the coming months.
· The timing of future stock deliveries is currently unconfirmed and further information will be provided as it comes to hand.
· While the Company still expects the Fleet business to achieve significant growth year-on-year, it is unable to accurately forecast the impact or the potential duration of these issues to future Guardian sales at this point in time.
· There has been a very significant impact from COVID-19 on airline operators around the world; however, as the Aviation business represents only a small proportion of the Company's revenue forecast for FY20, the ongoing situation is not expected to have any material impact on that business segment in the near term.
As a consequence of the various factors outlined above, the Company believes it prudent to withdraw current guidance in respect of sales revenue, annualised recurring revenue and the number of connected Guardian units by
In response, the Company is implementing contingency plans and cost containment initiatives which, together with the previously-announced
These measures leave
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+61 2 6103 4700
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Cenkos Securities plc (Nominated Adviser and Broker)
+44 131 220 6939
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+44 20 7710 7600
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