TIDMEYE
RNS Number : 5960C
Eagle Eye Solutions Group PLC
23 January 2018
23 January 2018
Eagle Eye Solutions Group plc
("Eagle Eye", the "Group", or the "Company")
Trading Update
Continued progress against our three strategic pillars
Eagle Eye, the SaaS technology company that allows businesses to
create a real-time connection with their customers, is pleased to
announce the following trading update ahead of its unaudited
interim results for the six months ended 31 December 2017 (the
"Period").
Highlights*:
-- Group revenue increased by c.28% to GBP6.5m (H1 2017: GBP5.1m)
-- Loblaw to launch largest digital loyalty programme in Canada
on 1 February 2018 enabled by the Eagle Eye AIR platform
-- Redemption volumes of 82.8m, an increase of 228% year on year (H1 2017: 25.2m)
-- SMS volumes of 28.6m, an increase of 50% (H1 2017: 19.0m)
-- Revenue from subscription fees and transactions over the
network represented 75% of total revenue in H1 2018 (H1 2017:
66%)
-- Cash position of GBP0.8m (June 2017: Cash of GBP3.7m)
* Based on unaudited figures
TRADING
During the Period, the Group's strategy of 'win, transact,
deepen', has continued to deliver revenue growth resulting in a
revenue increase of 28% to GBP6.5m (H1 2017: GBP5.1m), in line with
management's expectations.
Revenue generated from client subscription fees and transactions
over the network increased to GBP4.8m (H1 2017: GBP3.4m),
representing 75% of total revenue in H1 2018 (H1 2017: 66%),
illustrating the start of the transition of our key Tier 1
customers into the next phase of their contracts.
The Group's cash position at the end of H1 FY2018 was ahead of
management expectations at GBP0.8m, with the committed GBP3.0m debt
facility with Barclays unutilised.
The Group's strong underlying transaction and revenue growth and
continued success in the Food and Beverage ("F&B") sector (41%
growth against H1 2017), combined with the significant opportunity
presented by the imminent Loblaw launch in February 2018, all
underpin the Board's confidence of delivering its expectations for
the financial year ending 30 June 2018.
WIN
In December 2017, Eagle Eye signed a contract with Boparan, (a
group owning brands such as Ed's Easy Diner, Giraffe, Harry
Ramsden's and Fishworks) to deliver digital promotions and gift
capability through the Eagle Eye AIR Platform. Through Eagle Eye
AIR Boparan will be able to deliver the same streamlined digital
promotion capabilities across its brands to ensure consistent
service levels are delivered to all customers. In addition, Eagle
Eye will replace all existing paper gift schemes with a digital
offering.
Additionally, in October 2017, Eagle Eye signed contracts with
Scottish fashion chain M&Co. and Greene King, the latter
further cementing our position in the UK F&B market. These
contract wins also benefit our brand partners as our extended
redemption network provides greater opportunities to run measurable
campaigns.
TRANSACT
Total redemption volumes for the Period increased by 228% to
82.2m (H1 2017: 25.2m) which was primarily driven by Sainsbury's
going live in H2 2017. In Q1 2018 further capabilities have been
added to include the online channel, meaning a Sainsbury's customer
can now receive a coupon instore and redeem it online, as long as
the coupon is connected to that customer's loyalty identity,
enabling a truly omnichannel experience. This enhancement helped to
increase redemption volumes by 135% from H2 2017 to H1 2018 (H2
2017: 35.2m).
Loblaw
On 8 November 2017, Loblaw, Canada's largest retailer
announced(1) it will be merging two of Canada's most popular
loyalty programs, which separately have 8 million and 11 million
members, into a single program, PC Optimum. The program will link
analogue and digital channels together through one card, one app
and one currency, and is scheduled to go live on 1 February
2018.
The Eagle Eye AIR platform sits at the heart of the PC Optimum
loyalty platform and is integrated with Loblaw's channels and
systems, enabling a single customer view. Eagle Eye AIR will enable
omni-issuance and omni-redemption, allowing customers to receive
loyalty offers through their preferred channels.
It is anticipated that from 1 February 2018, the revenue
generated from this contract will shift significantly from initial
implementation fees to recurring transaction fees.
Issuance Partners
Issuance partners form a key part of our transact strategy and
during the period we were delighted to sign several new framework
agreements. Most notably our two key partners, Groupon and Google,
have started to build momentum during the Period utilising the
benefits of the merchant network to extend their redemption
capability across multiple sectors.
DEEPEN
During the Period, revenue from the F&B sector grew by 41%
against H1 2017. As our F&B clients enjoy the early stage
benefits of our digital marketing platform, there is a trend for
them to use it more as a direct marketing channel. As a result, we
are seeing increased promotional activity across the sector.
There has also been strong growth in SMS volumes which increased
50% to 28.6m (H1 2017: 19.0m) as a result of additional services
provided for JD Sports and Paragon. Revenue growth was limited to
18% due to price pressures in a competitive and more mature
market.
We are also pleased to also announce the renewal of three
longstanding clients within our F&B sector: Greggs (five-year
contract), Mitchells and Butlers (three-year contract) and Pizza
Express (one-year contract). In all cases the Eagle Eye AIR
platform is being used to power an enhanced digital experience for
the customer. These renewals reflect the strength of our offering
and our lasting client relationships.
Tim Mason, Chief Executive, said:
"The Group has continued to execute on its strategy, delivering
revenue growth in H1 2018.
"During the Period we demonstrated good operational progress
where we have won new customers and renewed some key contracts,
ramped up transactions through the platform, giving an indication
of its capacity, and continued to deepen our F&B relationships.
Looking forward, we are excited about the imminent Loblaw launch
and the further opportunities that this opens for us in the second
half of the year.
"We look forward to providing a detailed update on the half
year's trading and strategy when we announce our half year results
in March."
Eagle Eye will announce its interim results for the six months
ended 31 December 2017 on 13 March 2018.
For further information, please contact:
Tim Mason, Chief Executive Tel: 0844 824 3686
Officer
Lucy Sharman-Munday, Chief
Financial Officer
Investec (Nominated Advisor Tel: 020 7597 5970
and Broker)
Corporate Finance: David
Anderson / Sebastian Lawrence
Corporate Broking: Rob Baker
Hudson Sandler Tel: 020 7796 4133
Nick Lyon / Hattie O'Reilly
Information on Eagle Eye
www.eagleeye.com
Eagle Eye is a leading SaaS technology company that allows
businesses to create a real-time connection with their
customers.
The Company's digital marketing platform, Eagle Eye AIR, enables
the secure, real-time, multi-channel issuance, management and
redemption of digital promotions and rewards, replacing previously
used paper-based methods. Our Eagle Eye platform creates a network
effect between merchants, distributors and brands enabling stronger
connections and value to all parties. Through our four products we
enable brands and merchants to reduce cost, improve their customer
offer and accelerate their innovation.
The Company's current customer base comprises leading names in
UK grocery, retail and hospitality including John Lewis, Asda, J
Sainsbury, Greggs, JD Sports, Ladbrokes, Marks & Spencer,
Mitchells & Butlers, Pizza Express, Tesco and Thomas Pink.
Notes:
1. Source: http://media.loblaw.ca/English/media-centre/press-releases/press-release-details/2017/Two-of-Canadas-most-popular-loyalty-programs---Shoppers-Optimum-and-PC-Plus---to-come-together-as-the-PC-Optimum-program-increasing-convenience-and-rewards-for-millions-of-Canadians/default.aspx
This information is provided by RNS
The company news service from the London Stock Exchange
END
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