TIDMEYE
RNS Number : 6389V
Eagle Eye Solutions Group PLC
25 July 2018
25 July 2018
Eagle Eye Solutions Group plc
("Eagle Eye", the "Group", or the "Company")
Trading update
Breakout year sees delivery of world leading digital loyalty
programme for Loblaw
Eagle Eye, the SaaS technology company that enables businesses
to create a real-time connection with their customers, is pleased
to announce the following trading update ahead of its audited
results for the year ended 30 June 2018 (the "Period")*, which are
expected to be announced on 18 September 2018.
-- Group revenue increased 33% to GBP14.8m (FY17: GBP11.1m)
-- Recurring revenue increased to c. 77% of Group revenue (FY17:
68%) and grew by 51% from the prior year
-- Adjusted EBITDA** loss of GBP(2.0)m (FY17: GBP(1.8)m)
-- Net cash position as at 30 June 2018 circa GBP0.4m (30 June
2017: GBP3.7m), which coupled with the extended banking facility
with Barclays Bank PLC of GBP5.0m, provides the Company with
headroom of GBP5.4m at 30 June 2018
-- Total volumes through the platform increased 556% to 403.7m (FY17: 61.5m)
-- Successful launch of Canada's leading loyalty programme with
Loblaw, illustrating the Group's international reach and
scalability
-- Significant blue-chip client and partner wins including
Boparan, M&Co, Greene King, Groupon and Google
-- Board confident in the ongoing success of the business
Trading update
Momentum has continued throughout the Period with revenue
increasing 33% to circa GBP14.8m, which while growing strongly was
slightly behind management expectations due to certain strategic
contract negotiations extending into the new year. Importantly,
recurring revenue, generated from subscription fees and
transactions over the network, increased to approximately 77% of
total revenue (FY17: 68%).
Reflecting our focused investment in technological and
operational capabilities, adjusted EBITDA* loss for the Period is
expected to be circa GBP(2.0)m (FY17: GBP(1.8)m), ahead of
management expectations and having a positive impact on cash.
The net cash position, as at 30 June 2018, is circa GBP0.4m.
This, in addition to the extended banking facility with Barclays
Bank PLC of GBP5.0m, provides the Company with headroom of GBP5.4m
at 30 June 2018, reflecting the stronger EBITDA performance and
careful management of working capital.
Operational progress
The Company has extended its suite to include a world class
loyalty offering which has increased volumes through the platform,
growing 556% year-on-year to 403.7m (FY17: 61.5m). Alongside the
growth in coupons and promotions, volume growth was primarily
driven by the new PC Optimum loyalty programme from Loblaw going
live in February 2018 and the full year impact of other Tier 1s
transacting through the platform. In addition, volumes were boosted
by increased volumes from existing Food & Beverage clients
where revenue has grown by 38%.
New contracts signed include Boparan (a group owning brands such
as Ed's Easy Diner, Giraffe, Harry Ramsden's and Fishworks),
Scottish fashion chain M&Co and Greene King.
Notably, we have also signed several new partners including
Groupon and Google, and ran a number of brand campaigns through our
Food & Beverage network with leading brands including Old Mout,
Bacardi and Gordons.
* All financials based on unaudited figures.
**Adjusted EBITDA excludes share-based payment charges along
with depreciation, amortisation, interest and tax from the measure
of profit.
Tim Mason, Chief Executive of Eagle Eye, said:
"The successful launch of PC Optimum for Loblaw, one of Canada's
leading loyalty programmes, has now positioned Eagle Eye as one of
the leaders in loyalty technology. The programme delivers
personalised offers at scale and across multi-channels, with the
Eagle Eye platform supporting the volumes and complexity required
for this scale of deployment, generating over 100 million
permutations per week. This capability now opens up further
opportunities with the world's biggest retailers wanting to bridge
online and offline marketing activities.
"Outside the Loblaw project, we have continued to deliver
against our strategy, which has seen us win new customers, increase
transactions from existing customers and deepen our customer
relationships both in the UK and internationally.
"Important investments have been made in the year and
considering this, the delivery of our EBITDA position ahead of
expectations is particularly pleasing. We are comfortable with our
cash position and banking facility, giving us the headroom to
support the Company's existing growth plans. The strong growth in
recurring revenues in the year, our healthy pipeline of new
business opportunities and our strong proposition, give us
confidence in the ongoing success of the business."
For further information, please contact:
Tim Mason, Chief Executive Officer Tel: 0844 824 3686
Lucy Sharman-Munday, Chief Financial Officer
Investec (Nominated Advisor and Broker)
Corporate Finance: David Anderson / Sebastian Tel: 020 7597 5970
Lawrence
Corporate Broking: Sara Hale / Helene Comitis
Alma PR
Caroline Forde / Rebecca Sanders-Hewett / Robyn Tel: 020 8004 4217
Fisher
Information on Eagle Eye
www.eagleeye.com
Eagle Eye is a leading SaaS technology company that enables
businesses to create a real-time connection with their
customers.
The Company's digital marketing platform, Eagle Eye AIR, enables
the secure issuance and redemption of digital offers and rewards at
scale, across multiple channels, enabling a single customer view.
Our platform creates a network effect between merchants,
distributors and brands enabling stronger connections and value to
all parties, allowing them 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, Marks & Spencer, Mitchells &
Butlers, Pizza Express, Tesco and Loblaw in Canada.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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