Eagle Eye Solutions Group PLC AGM Trading Update (5159P)

TIDMEYE

RNS Number : 5159P

Eagle Eye Solutions Group PLC

18 November 2016

18(th) November 2016

Eagle Eye Solutions Group PLC

("Eagle Eye" or "Group" or "Company")

AGM Trading Update

Eagle Eye is the SaaS technology company that validates and redeems digital promotions in real-time for the grocery, retail and hospitality industries. At the Company's Annual General Meeting ("AGM"), to be held at 12:00 p.m. today, Malcolm Wall, Non-Executive Chairman of Eagle Eye, will make the following statement on the Group's trading:

"The year ended 30 June 2016 saw continued progress against the Group's strategic and operational objectives. The significant contracts won and the developments to our software platform mean that we entered FY17 with strong momentum.

During the first quarter of FY17 the Group has accelerated its growth rate, delivering revenue of GBP2.3 million, an increase from the prior year of 74%. Of the total revenue, GBP1.9m (Q1 FY16: GBP0.9m) was contributed from the Eagle Eye AIR platform, representing a 105% year on year increase. This growth has been driven by the deepening of our Tier 1 relationships in the UK and internationally, as well as increased transactional revenue in both our grocery and hospitality accounts.

Total first quarter redemption volumes increased by 121% to 11.7 million (Q1 FY16: 5.3 million). This was significantly driven by Asda's nationwide roll-out in February 2016 which favourably impacted redemption volumes on the Eagle Eye AIR platform. Eagle Eye has also run several successful digital campaigns through our network with leading brands such as Coca-Cola and Heineken.

The Group has continued to make progress in increasing the number retailers and brands using the Eagle Eye AIR platform, which as of Q1 FY17 has 224 live users, including 75 brands (Q1 FY16: 180, including 50 brands).

Revenue generated from subscription fees and transactions over the network represented approximately 71% of total revenue in Q1 FY17 (Q1 FY16: 85%) reflecting the great progress we are making in building capability within our major accounts.

The Group's net cash position at the end of Q1 FY2017 was in line with Board expectations at GBP0.2 million (30 June 2016: GBP1.3 million). The Company agreed a new banking facility with Barclays Bank plc in June 2016 to support its growth ambitions.

Since the Board changes on 9 September 2016, the Company has solidified its customer strategy which now consists of three clearly defined stages; to 'Win' and bring customers onto the Eagle Eye AIR platform; 'Deepen' relationships with the Company's customers as the breadth of the product portfolio becomes more developed; 'Transact' higher redemption volumes through the platform as it becomes increasingly relevant to customers. The Board is very pleased that the first quarter has seen good progress against each of these stages.

This gives good visibility on delivering half year revenue in line with management's expectations and further gives confidence on the expectations for the full year."

 
 For further information, please contact: Eagle Eye 
 Tim Mason, Chief Executive Officer         Tel: [phone] 
  Lucy Sharman-Munday, Chief Financial 
  Officer 
 Investec (Nominated Advisor and Broker) 
 Dominic Emery/ David Anderson, Corporate   Tel: [phone] 
  Finance 
 Matt Lewis, Corporate Broking 
  Hudson Sandler 
 Nick Lyon/Alex Brennan                     Tel: [phone] 
 
   Information on Eagle Eye 
   www.eagleeye.com 
 

Eagle Eye is a leading SaaS technology company that securely validates and redeems digital promotions in real-time for the grocery, retail and hospitality industries.

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 UK promotions market is currently transitioning through substantial change as both retailers and consumers are moving away from paper and plastic to digital. In 2014 there were in excess of 730 million coupons redeemed in the UK(3) , and 16 billion digital coupons redeemed worldwide(4) .

The Eagle Eye AIR platform comprises four key products: Eagle Eye Promote - for the management of offers and promotions, Eagle Eye Gift - for gift cards and customer care, Eagle Eye Reward - for loyalty and reward schemes and Eagle Eye Engage - for digital messaging. These four products enable the Company's customers to deliver targeted promotions, gift vouchers and rewards to consumers in real time, in a simple and secure way, across multiple marketing communications channels including email, SMS messaging and loyalty apps. The promotions can be redeemed securely by the consumer through any enabled point of sale channel.

The Company's current customer base comprises leading names in UK grocery, retail and hospitality including Asda, J Sainsbury, Greggs, JD Sports, Ladbrokes, Marks & Spencer, Mitchells & Butlers, Pizza Express, Tesco and Thomas Pink.

Notes:

1. Based on Kantar grocery market share

2. Source: AIMIA

3. Source: Valassis 2014

4. Source: Statista 2014

This information is provided by RNS

The company news service from the London Stock Exchange

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November 18, 2016 02:00 ET (07:00 GMT)