Business
Business restructure and Covid measures
Business restructure and Covid measures.
About this update from Seeing Machines Limited
[{"type":"text","content":"\n \n \n RNS Number : 3185N\n Seeing Machines Limited\n 19 May 2020\n \n \n \n \n Seeing Machines Limited\n \n 19 May 2020\n \n Business restructure and Covid measures reduce cost base by A$12m\n \n \n 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.\n \n \n \n \n \n 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.\n \n \n \n \n \n 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:\n \n \n \n \n \n a. \n CEO salary reduction of 20% and deferral of any bonus payable for 12 months;\n \n \n b. \n Chair fees reduced by 30%;\n \n \n c. \n Non-executive director fees reduced by 20%; and\n \n \n d. \n Introduction of a four-day working week and consequent 20% salary reduction for staff.\n \n \n \n \n \n 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. \n \n \n \n \n \n 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 d...