Tuesday's small-cap tech news was dominated by a strong earnings surprise from a driver-monitoring specialist riding a regulatory tailwind, alongside a run of contract wins across defence, IP commercialisation and managed cybersecurity. Chip designer CML Microsystems and physical security group Synectics also delivered upbeat updates, while broker sentiment stayed constructive on Optima Health and Nvidia.
Seeing Machines swings to H2 profit on royalty surge
Seeing Machines (AIM:SEE) shares jumped as much as 9% on Tuesday, trading at 5.09p, after the AI-powered driver monitoring specialist reported financials well ahead of market expectations for the year ended 30 June. Adjusted revenue rose 45% to $76.3m from $52.8m in FY2025, with growth accelerating dramatically in the second half as revenue climbed 126% to $52.9m from $23.4m in H1, driven by a shift toward higher-margin automotive royalties.
The scale of the turnaround is stark: second-half adjusted EBITDA is expected to land between $10.7m and $11.7m, reversing a $13.7m loss in the first half, narrowing the full-year adjusted EBITDA loss to just $2m-$3m. Automotive production volumes using the company's technology rose 195% to 4.5m units across the year, with the fourth quarter alone up 333% year-on-year to 2.1m units as OEMs ramped up ahead of the EU's General Safety Regulation, which made camera-based monitoring systems mandatory from 7 July. Cash rose to $4.3m from $3.4m at December, while trade receivables and royalties owed jumped to $25.3m from $11.6m as royalty revenue built through the final quarter. Guardian annual recurring revenue grew 12% to $15m, and the company landed $5.6m in Guardian orders from a robotaxi customer plus a roughly 1,100-unit fleet deployment.
"FY2026 was a pivotal year for Seeing Machines, with record Automotive production volumes, strong revenue growth and a profitable second half that demonstrates the operating leverage in our business," said Paul McGlone, chief executive of Seeing Machines.
The results mark an inflection point rather than a one-off beat: the regulatory mandate that drove the second-half surge is now permanent, and the operating leverage McGlone points to suggests the automotive royalty stream can keep compounding as OEM volumes build. The open question is the balance sheet, with the convertible loan note maturing 4 October, the company's exclusive refinancing talks now carry more weight than the earnings beat itself, and audited results due before the end of September will be watched closely for how that gets resolved.
Acuity RM lands prime defence contractor deal for STREAM
Acuity Rm Group (AIM:ACRM) has signed a new software agreement with a prime defence contractor to deploy its STREAM Classic risk management platform, supporting the contractor's role in a significant international defence programme. Shares dipped 3.26% to 0.653p despite the win, which covers two on-premises instances generating annual recurring revenue in excess of £100,000, with a separate implementation and configuration services agreement expected to follow shortly.
The on-premises delivery model reflects the security demands typical of defence-sector work, and chief executive David Rajakovich noted that defence is already the Group's largest industry sector by revenue. He described the new contract as sitting within "a significant international defence-related programme" that is "the subject of national media coverage," a level of visibility that marks a step up from Acuity's typical deal profile.
The size of the initial contract is modest against the company's market cap, but the strategic value lies in the credibility signal, landing inside a high-profile, security-cleared programme with a prime contractor gives Acuity a reference deployment it can point to in pursuing the other discussions it says are underway across the sector.
GenIP wins string of new and repeat contracts
GenIP (AIM:TEK) has secured a batch of new and recurring contracts worth a combined $87,000, with shares nudging up 0.37% to 4.115p. The largest order came from long-standing customer Universidad Autónoma de Chile, which ordered a further 25 Invention Evaluator reports and invited GenIP to join its Technical Advisory Committee, while a separate existing Chilean university placed a repeat order for 20 reports and a new Chilean research university, GenIP's third customer in the country, commissioned 15 more.
In the UK, a research university reengaged GenIP for 12 further Invention Evaluator reports, its second commission after an initial order of 10 last year, while a leading North American research university continues to purchase reports on a near bi-weekly basis. Chief executive Melissa Cruz said "the strengthening of our relationship with Universidad Autónoma de Chile, alongside new customer wins in the region, highlights the opportunity for further growth in Latin America," adding that GenIP remains confident in its ability to deliver further growth given its "growing international presence and a strong pipeline of opportunities."
The individual order values are small, but the pattern of repeat business from existing customers, several now on their second or third commission, is the more telling signal, pointing to a sticky, recurring revenue model rather than one-off sales.
SysGroup lands £1m cyber contracts via Rubrik tie-up
SysGroup (AIM:SYS) has secured two new three-year contracts worth a combined total of more than £1m, with shares up 0.32% to 31.1p. The customers are a UK housing association and an English further education provider, for whom SysGroup will deliver managed data protection, cyber resilience and recovery services built on Rubrik's technology platform.
Alongside the wins, SysGroup has become the first UK&I managed service provider to join Rubrik's MSP PayGo programme, a consumption-based commercial model that lets it offer Rubrik's cyber resilience tools without customers taking on upfront enterprise technology costs. The company said the arrangement also feeds its "MSP 3.0" and AI strategy, generating additional data and operational insight to support more automated, intelligence-led service delivery. Executive chairman Heejae Chae said "these two three-year agreements, across the social housing and further education sectors, demonstrate that this is not simply a technology partnership."
The PayGo tie-up matters as much as the contract values: removing upfront cost barriers should widen SysGroup's addressable pool of mid-market customers who previously balked at enterprise-grade cyber resilience pricing.
Optima Health tipped as a Buy ahead of results
A broker reiterated its Buy rating and 250p price target on Optima Health (OPT) ahead of next week's results, with shares essentially flat at 252.51p, down 0.19%. The call argues that the occupational health group's mid-term upside depends on integration progress and scale benefits that have yet to materialise fully.
That framing puts the onus on next week's numbers to show tangible evidence of the integration delivering, rather than simply confirming steady trading.
CML Microsystems flags earlier return to profitability
CML Microsystems (CML) shares surged 8.18% to 297.5p after the AIM-listed chipmaker said order intake is running ahead of expectations, pulling forward its expected return to operational profitability.
The update reverses the narrative roughly a company that had been managing a prolonged downturn in chip demand, with the stronger order book suggesting the destocking cycle across its end markets is turning faster than previously guided.
Synectics launches AI video search tool
Synectics (SNX) shares rose 3.33% to 201.49p after the physical security group launched Synergy SEARCH, a new AI video search tool. Chief executive Amanda Larnder said "with our first customer deployment complete, and further engagement underway, we are encouraged by the potential we see for Synergy SEARCH ahead of its full commercial launch later this year."
Having a live customer deployment already in place before the formal launch gives Synectics a reference case to show prospective buyers, which should help shorten the sales cycle once the product goes to broader market.
QBT court sets October auction for Sipiem property asset
Quantum Blockchain Technologies (QBT) said an Italian court has scheduled the sale of a confiscated property tied to its Sipiem judgment, with shares down 3.94% to 0.341p. The auction forms part of a wider three-asset recovery effort the company is pursuing through the Italian courts.
A confirmed auction date gives the recovery process a concrete timeline for the first time, though the eventual cash return to Quantum Blockchain remains contingent on sale proceeds and the outcome of the other two asset claims.
UK authorises second oral GLP-1 pill as MedPal eyes wider funnel
The MHRA has cleared Eli Lilly's once-daily oral weight-loss tablet, the UK's second oral GLP-1 approval in two months, a development that touches the private-only market MedPal AI (MPAL) already serves through its New Health clinic. Shares rose 2.47% to 4.15p.
A second approved oral option widens the range of treatments MedPal's clinic can offer private patients, potentially broadening its funnel of prospective customers as the oral GLP-1 category moves beyond injectable alternatives.
Nvidia offers "most attractive" risk-reward despite financing concerns
A London-based market analyst said Nvidia (NVDA) continues to offer among the "most attractive" risk-reward profiles in the market, with shares up 0.25% to 197.01p. The view holds despite flagged concerns over circular financing arrangements, sharpened by plans to mobilise up to $500bn of AI infrastructure investment.
The analyst's bullishness staying intact despite acknowledging the financing risk suggests the market's read is that Nvidia's near-term demand visibility still outweighs structural concerns about how that AI capex gets funded.
Aptitude Software names new CFO
Aptitude Software Group (APTD) has appointed Kenneth Paqvalén as Chief Financial Officer and Executive Director, effective 21 September, with shares up 1.1% to 200.1864p.
The appointment fills a key finance leadership role ahead of the new financial year, giving the company a settled executive team heading into its next reporting cycle.
