Eagle Eye Solutions Group PLC AGM Trading Update (5159P)
November 18 2016 - 2:00AM
UK Regulatory
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: 0844 824 3686
Lucy Sharman-Munday, Chief Financial
Officer
Investec (Nominated Advisor and Broker)
Dominic Emery/ David Anderson, Corporate Tel: 020 7886 2500
Finance
Matt Lewis, Corporate Broking
Hudson Sandler
Nick Lyon/Alex Brennan Tel: 020 7796 4133
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
END
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