Eagle Eye Solutions Group PLC Trading Update (6389V)

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: [phone] 
  Lucy Sharman-Munday, Chief Financial Officer 
 
   Investec (Nominated Advisor and Broker) 
 Corporate Finance: David Anderson / Sebastian     Tel: [phone] 
  Lawrence 
  Corporate Broking: Sara Hale / Helene Comitis 
 
   Alma PR 
 Caroline Forde / Rebecca Sanders-Hewett / Robyn   Tel: [phone] 
  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 [e-mail] or visit www.rns.com.

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July 25, 2018 02:00 ET (06:00 GMT)