TIDMEYE
RNS Number : 4057L
Eagle Eye Solutions Group PLC
18 July 2017
18 July 2017
Eagle Eye Solutions Group PLC
("Eagle Eye", "Group" or the "Company")
Trading Update
Strong position to capitalise on market opportunity
Eagle Eye, the SaaS technology company that validates and
redeems digital promotions in real-time for the grocery, retail and
hospitality industries, is pleased to announce the following
trading update ahead of its audited results for the year ended 30
June 2017 (the "Period"), which are expected to be announced on 19
September 2017.
Financial Highlights*:
-- Group revenue increased by 71% to GBP11.1m (FY16: GBP6.5m)
-- Redemption volumes increased by 58% to 60.4m, (FY16: 38.4m)
-- SMS volumes of 44.4m, an increase of 10% (FY16: 40.3m)
-- Revenue from subscription fees and transactions over the
network represented 68% of total revenue (FY16: 80%)
-- 3 year contract signed with John Lewis PLC in May 2017 for
the deployment of the AIR platform
-- Cash position expected to be GBP3.7m (FY16: GBP1.3m) at 30 June 2017
-- Successful placing in May 2017 realised net proceeds of GBP5.8m
-- As announced on 6 July 2017 post year-end, a 2 year contract
renewal was signed with Toshiba Global Commerce Solutions for Asda
Stores Limited
* Based on unaudited figures
Trading
Based on unaudited figures, turnover for the Period is expected
to be in the region of GBP11.1m, up 71% on the prior year (FY16:
GBP6.5m). Overall revenue from the AIR platform is expected to be
c.85% of total revenue, GBP9.4m up 103% from prior year (FY16:
GBP4.6m). This result has been driven by delivering on our
strategy: winning new customers, increasing transactions from
existing customers and deepening our customer relationships.
In May 2017, the Company signed a three-year contract with John
Lewis PLC ("John Lewis") for the deployment of its Eagle Eye AIR
platform to deliver improved digital customer marketing. Since the
year end the Company announced the renewal of its contract with
Toshiba Global Commerce Solutions for Asda Stores Limited. Both
these UK contract announcements reinforce the clear competitive
benefits our solutions deliver to retailers.
Redemption volumes, which are a key measure of usage of the AIR
platform and delivering against our 'transact' strategy, are
expected to have grown by 58% year-on-year to 60.4m. Volume growth
was primarily driven by the full year effect of our coupon counting
solution for Asda going fully live in February 2016. In addition,
volumes were boosted by increased volumes from existing Food &
Beverage clients and initial transactions for Sainsbury's during
the fourth quarter. During the Period, Asda acted as a nationwide
redemption channel to run an effective campaign with Coke Zero
Sugar, generating a redemption rate of over 10%. Eagle Eye has also
run several successful digital campaigns through our Food &
Beverage network with leading drinks brands including Heineken,
Desperados and Bulmers.
Although SMS volumes increased 10% in the Period, as expected
overall messaging revenue is expected to fall to c.GBP1.6m for the
Period (FY16: GBP1.8m), reflecting lower margins in this
increasingly competitive market.
Revenue generated from subscription fees and transactions over
the network represented approximately 68% of total revenue (FY16:
80%). This reflects the progress we are making in deepening Eagle
Eye's system capability within major accounts, which will open up
recurring transactional revenues in future Periods.
The cash position as at 30 June 2017 is expected to be GBP3.7m.
During the Period the Company successfully raised GBP5.8m (net of
costs) from a placing of new shares, and has begun to invest in
operational and marketing capabilities to capitalise on recent
momentum in the business and pursue growth opportunities. In
addition, the Company extended its unutilised banking facility with
Barclays Bank PLC to GBP3.0m.
Reflecting our planned investment, group-adjusted EBITDA loss
for the Period is expected to be GBP1.8m (2016: loss GBP1.8m). To
provide a better guide to the underlying business performance,
adjusted EBITDA excludes share-based payment charges along with
depreciation, amortisation, interest and tax from the measure of
profit.
Tim Mason, Chief Executive, said:
"The Group has continued to trade well, whilst accelerating its
growth.
"This reflects a period of strong operational progress where we
have won new customers, increased transactions through the platform
and continued to deepen our tier 1 customer relationships. Looking
forward, following the successful placing in May 2017, the Group is
in a strong position to capitalise on the business momentum and
market opportunity.
"We look forward to providing a detailed update on the full
year's trading and strategy when we announce our full year results
in September."
For further information, please contact: Eagle
Eye
Tim Mason, Chief Executive Officer Tel: 0844 824
Lucy Sharman-Munday, Chief Financial 3686
Officer
Investec (Nominated Advisor and Broker)
Corporate Finance: Dominic Emery/ Tel: 020 7597
David Anderson, 5970
Corporate Broking: Matt Lewis/Rob Baker
Hudson Sandler
Nick Lyon/Hattie O'Reilly 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 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.
Cautionary statement
This announcement contains unaudited information based on
management accounts and forward-looking statements that are based
on current expectations or beliefs, as well as assumptions about
future events. These forward-looking statements can be identified
by the fact that they do not relate only to historical or current
facts and undue reliance should not be placed on any such
statements because they speak only as at the date of this
announcement and are subject to known and unknown risks and
uncertainties and can be affected by other factors that could cause
actual results, and the Group's plans and objectives, to differ
materially from those expressed or implied in the forward-looking
statements. Eagle Eye undertakes no obligation to revise or update
any forward-looking statement contained within this announcement,
regardless of whether those statements are affected as a result of
new information, future events or otherwise, save as required by
law and regulations.
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTGGUAUMUPMGWR
(END) Dow Jones Newswires
July 18, 2017 09:07 ET (13:07 GMT)
Eagle Eye Solutions (LSE:EYE)
Historical Stock Chart
From Apr 2024 to May 2024
Eagle Eye Solutions (LSE:EYE)
Historical Stock Chart
From May 2023 to May 2024