TIDMEYE
RNS Number : 5494H
Eagle Eye Solutions Group PLC
16 November 2018
16 November 2018
Eagle Eye Solutions Group plc
("Eagle Eye", the "Group", or the "Company")
AGM Statement
Strong customer momentum delivers Q1 revenue growth of 26% and
narrowing EBITDA loss
Entry into Quick Service Restaurant sector
Eagle Eye is the SaaS technology company that allows businesses
to create a real-time connection to attract and retain their
customers through digital promotions and loyalty services. At the
Company's Annual General Meeting ("AGM"), to be held at 1:00 p.m.
today, Malcolm Wall, Non-Executive Chairman of Eagle Eye, will make
the following statement on the Group's trading:
"As previously announced, the year ended 30 June 2018 was a
breakout year for Eagle Eye in which a key highlight was the
successful launch of the PC Optimum digital loyalty programme for
Canada's leading retail group, Loblaw Companies Limited ("Loblaw").
With over 150m offer permutations being delivered each week to the
millions of Loblaw customers, we have conclusively proven the scale
and capabilities of our AIR platform. We also reported on
significant investment made to our people, processes and product,
including the launch of the Digital Wallet, which broadens Eagle
Eye's capability from existing digital promotions and gift services
to include loyalty. This innovation increases the relevance of our
offering across our existing and potential customer base and will
provide us with growth opportunities, both in the UK and
internationally.
Trading update
The Group's momentum has continued into the current financial
year and Q1 FY2019 has delivered revenue growth of 26% compared to
Q1 FY2018, with revenue generated by the AIR platform growing by
36%. The growth has been driven by the impact of wins at the end of
the last financial year, transaction growth from activity through
brands together with continued deepening of existing customer
engagements. Redemption and interaction volumes were 200.5m for the
quarter, a 507% increase compared to the same period last year,
driven predominantly by the continued expansion of Loblaw's PC
Optimum loyalty programme and the deepening of the relationship
with other Tier 1 retailers.
The quarter saw new customer wins, together with the addition of
new issuance partners, providing our customers a wider audience to
which they can promote. We expect both of these aspects to
translate to further volume growth through the platform during the
year, in line with expectations
The challenge we have set ourselves this year of running the
business 'Better, Simpler, Cheaper' is now well under way and the
initial impact of these initiatives, supported by the growth in
revenue, have meant that the Group's adjusted EBITDA loss has
materially reduced compared to Q1 FY2018. We remain on track for
our move to EBITDA profitability, in line with management
expectations.
The Group's funding position of cash and its GBP5 million
banking facility with Barclays are in line with management
expectations and continue to be sufficient to support the Group's
existing growth plans.
First Quick Service Restaurant customer
At the start of the year we set an objective to expand into new
sectors. We recently signed a three-year contract with Burger King
UK Group ("Burger King") for 74 outlets, our first quick service
restaurant ('QSR') customer, demonstrating the attraction of the
platform outside our traditional grocery and food & beverage
sectors. The AIR platform and Digital Wallet have broad
applicability across sectors and we have a growing pipeline of
additional opportunities, both in the UK and internationally.
Outlook
The growth in revenues and volumes is expected to continue into
Q2 FY2019, from the annualisation of Tier 1 contracts, the impact
of new wins and the strong growth of the issuance network in the
first quarter. With our recurring revenue remaining high, at 72% of
Group revenue, very low levels of customer churn and an expanding
addressable market opportunity, the Board looks to the remainder of
the year and beyond with confidence."
* 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.
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 Tel: 020 3405 0205
/ Robyn Fisher
Information on Eagle Eye
www.eagleeye.com
Eagle Eye is a leading SaaS marketing technology company that
enables businesses to create a real-time connection to attract and
retain customers, through digital promotion and loyalty
services.
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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