Seeing Machines Limited Business restructure and Covid measures (3185N)
19 Maggio 2020 - 08:00AM
UK Regulatory
TIDMSEE
RNS Number : 3185N
Seeing Machines Limited
19 May 2020
Seeing Machines Limited
19 May 2020
Business restructure and Covid measures reduce cost base by
A$12m
Seeing Machines Limited (AIM: SEE, "Seeing Machines" or the
"Company"), the advanced computer vision technology company that
designs AI-powered operator monitoring systems to improve transport
safety, announces the implementation of a business restructure
alongside a range of temporary cost saving measures in response to
the COVID-19 pandemic.
Like most other businesses in transport related sectors, Seeing
Machines has experienced a reduction in the rate of sales growth
compared with the same period last year across all divisions. The
Company has therefore implemented a range of permanent structural
changes and temporary cost savings designed to ensure its financial
strength and counter the effects of the current global crisis.
These measures will also permanently reduce costs, positioning the
business for profitable growth as demand returns.
The Company has successfully reduced discretionary costs and
introduced a number of short term measures to specifically mitigate
the impact of the pandemic. These include the following items,
which will be in place for an initial six months:
a. CEO salary reduction of 20% and deferral of any bonus payable for 12 months;
b. Chair fees reduced by 30%;
c. Non-executive director fees reduced by 20%; and
d. Introduction of a four-day working week and consequent 20% salary reduction for staff.
The Australian Federal Government has introduced a robust
economic stimulus package designed to assist businesses through
this downturn. Seeing Machines has successfully qualified for its
JobKeeper program which provides a wage subsidy of A$1,500 per
fortnight per qualifying employee and, at this point, will be
available until late September 2020.
At the same time, the Company has restructured to improve its
focus on profit in the three business units (Automotive,
Fleet/Offroad and Aviation). Specifically, changes to engineering
and technology management will improve the balance between
innovation and delivery and will result in a more targetted
approach to R&D in order to underpin the Company's market
leading position. Corporate Services functions will also be
restructured to enable better collaboration across the organisation
and facilitate an enhanced focus on profitable growth. As with any
cost restructure and streamlining, a number of roles across the
Company no longer exist but this process leaves Seeing Machines
with a permanent realignment of its cost base from which to
grow.
These initiatives are expected to result in significant ongoing
cost savings for the business, estimated at approximately A$12m
over the remainder of FY2020 and FY2021, thereby helping preserve
Seeing Machine's balance sheet strength.
Paul McGlone, CEO of Seeing Machines commented: "The
restructuring and cost-saving process has been a difficult but
necessary step in our journey to ensure the financial strength of
the business and, in turn, improve shareholder returns. The global
pandemic presents a range of challenges which will likely continue
to impact the industry for some months but also provides those
organisations that are able to with a catalyst for change.
"The new organistional structure will re-focus our business and
enable us to deliver better results faster. Our experienced and
leading team is committed and determined to deliver profitable
growth and we fully expect that when the world recovers from the
pandemic, Seeing Machines will be extremely well positioned in
order to leverage its market leading position to enhance safety
across our transport sectors."
Enquiries:
Seeing Machines Limited +61 2 6103 4700
Paul McGlone - CEO
Sophie Nicoll - Corporate Communications
Cenkos Securities plc (Nominated Adviser
and Broker)
Neil McDonald
Pete Lynch +44 131 220 6939
Stifel Nicolaus Europe Limited (Joint Broker) +44 20 7710 7600
Alex Price
Nick Adams
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) No. 596/2014. Upon
the publication of this announcement, this inside information is
now considered to be in the public domain.
The person responsible for arranging the release of this
announcement on behalf of Seeing Machines is Sophie Nicoll, SVP,
Corporate Communications.
About Seeing Machines (LSE: SEE), a global company founded in
2000 and headquartered in Australia, is an industry leader in
vision-based monitoring technology that enable machines to see,
understand and assist people. Seeing Machines' technology portfolio
of AI algorithms, embedded processing and optics, power products
that need to deliver reliable real-time understanding of vehicle
operators. The technology spans the critical measurement of where a
driver is looking, through to classification of their cognitive
state as it applies to accident risk. Reliable "driver state"
measurement is the end-goal of Driver Monitoring Systems (DMS)
technology. Seeing Machines develops DMS technology to drive safety
for Automotive, Commercial Fleet, Off-road and Aviation. The
company has offices in Australia, USA, Europe and Asia, and
supplies technology solutions and services to industry leaders in
each market vertical.
www.seeingmachines.com
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END
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