19 March
2024
Eagle Eye Solutions Group
plc
("Eagle
Eye", the "Group", or the "Company")
Half Year Results for the
six months ended 31 December
2023
Continuing momentum as retailers move towards personalised
marketing
Eagle Eye, a leading SaaS
technology company that creates digital connections enabling
personalised, real-time marketing through coupons, loyalty, apps,
subscriptions and gift services, is pleased to announce its
unaudited interim results for the six
months ended 31 December 2023 (the
"Period" or "H1 2024").
Financial Highlights
|
H1
2024
|
H1
2023
|
Change
|
Group revenue
|
£24.1m
|
£20.0m
|
+20%
|
Recurring subscription and
transaction revenue
|
£18.8m
|
£15.7m
|
+23%
|
Recurring revenue % of Group
revenue
|
78%
|
78%
|
-
|
Period end Annual Recurring
Revenue1
|
£35.4m
|
£28.1m
|
+26%
|
Net Revenue
Retention2
|
120%
|
127%
|
-7ppt
|
Gross profit
|
£23.1m
|
£18.8m
|
+23%
|
Adjusted
EBITDA3
|
£5.9m
|
£4.7m
|
+25%
|
Adjusted EBITDA margin
|
24.4%
|
23.5%
|
+0.9ppt
|
Adjusted profit before
tax4
|
£2.6m
|
£1.7m
|
+49%
|
Adjusted net cash5 at
31 December
|
£7.8m
|
£5.7m
|
+36%
|
1 Period end Annual Recurring Revenue ("ARR") is defined as
Period exit rate for recurring subscription and transaction revenue
(exc SMS) plus any professional services contracted for more than
12 months hence and secured new wins, excluding any seasonal
variations and lost contracts.
2 Net Revenue Retention ("NRR") rate is defined as the
improvement in recurring revenue excluding SMS and new wins in the
last 12 months.
3 EBITDA has been adjusted for the exclusion of share-based
payment charges along with depreciation, amortisation, interest and
tax from the measure of profit, along with costs of the acquisition
of Untie Nots in FY23
4 Profit before tax has been adjusted for the exclusion of
amortisation on intangible assets recognised under IFRS 3 on the
acquisition of Untie Nots and share-based payments
5 Adjusted net cash is
defined as cash and cash equivalents less financial liabilities and
in H1 23 excludes the placing proceeds associated with the
acquisition of Untie Nots which were paid out following completion
on 3 January 2023.
Positive customer momentum and strong international growth
continues
·
|
Revenue growth and EBITDA margins
in line with our "Rule of 40+ Objective", with revenue up 20% and
an adjusted EBITDA margin of 24.4% (up 0.9ppt).
|
·
|
Particularly strong international
performance, with revenue from North America increasing 21% and
APAC increasing 39%, enhancing our presence in two of the fastest
growing loyalty markets.
|
·
|
Group ARR increased by 26% to
£35.4m, providing a strong basis for continued expansion, driven
by:
|
|
o
|
The winning of two five-year
contracts in North America, including the first win for EagleAI, a
three-year contract with an Australian retailer and a three-year
contract with The Ivy Collection in the UK;
|
|
o
|
Ongoing deepening across our
customer base, delivering strong levels of NRR at 120%, including
expansion with Woolworths in Australia and Asda in the UK, the
further roll-out of the large US grocer won in partnership with
Neptune Retail Solutions, Untie Nots expansion with existing French
customers, including E.Leclerc and first successful cross sale to
existing Eagle Eye customer, Morrisons.
|
Innovation to capitalise on expanding market
opportunity
·
|
'EagleAI - Personalised
Promotions', the Group's new AI solution, launched at the world's
largest retail trade show, NRF in January 2024, with first two
customers secured and a growing pipeline of opportunities across
existing and new customers.
|
·
|
Untie Nots' AI-Powered Challenges
solution re-branded as 'EagleAI - Personalised Challenges',
bringing both AI-powered solutions under the EagleAI
brand
|
·
|
Launched new Social and
Behavioural Actions capability within AIR, enabling retailers to
award customers points for non-transactional behaviours and
deployed the ability to auto-exchange points into cash
vouchers.
|
·
|
New partnership agreement with
commercetools to enable commercetools customers to access the AIR
platform on their eCommerce websites through a single, ready-to-use
connection.
|
Investment in our Purple People
·
|
Roll out of the Group's Purple
Playbook and bespoke training programmes to deliver on the ambition
to be the best company to work for.
|
·
|
Moved up the rankings to 7th place
in the UK's Best Companies to Work for and named the 7th most
innovative marketing technology company in the world in the recent
TMW 100 awards, where Eagle Eye also received the prestigious
Judges Pick accolade.
|
Confident in continued
success
·
|
Exited the Period with a sales
pipeline 2.5x higher than a year ago, with the two EagleAI
solutions accounting for 30% of the pipeline.
|
·
|
Trading since the Period end has
continued well providing confidence in delivering another year of
profitable growth in line with the Board's expectations.
|
Tim Mason, Chief Executive of Eagle
Eye, said:
"We have laid out our ambitions and strategy to be a much
bigger business, and these results demonstrate we are progressing
on that journey, thanks to our Purple People, powerful platform,
product innovation and growing roster of customer success stories
around the world.
"Our ability to deliver highly personalised
messages to consumers at unparalleled speed and scale, positions us
at the centre of the innovations taking place across the world of
retail marketing. With a considerable and growing pipeline,
we remain confident in our ability to deliver on our
ambitions."
Enquiries:
Eagle Eye Solutions Group plc
|
Tel: 0844 824 3686
|
Tim Mason, Chief Executive
Officer
|
|
Lucy Sharman-Munday, Chief
Financial Officer
|
|
|
|
Investec Bank plc (Nominated Adviser & Joint
Broker)
|
Tel: +44 20 7597 5970
|
David Anderson, Nick Prowting, St
John Hunter
|
|
|
|
Shore Capital (Joint Broker)
|
Tel: +44 20 7408 4090
|
Corporate Advisory: Daniel Bush,
David Coaten, Lucy Bowden
Corporate Broking: Henry
Willcocks
|
|
|
|
Alma Strategic Communications
|
Tel: +44 20 3405 0205
|
Caroline Forde, Hannah Campbell,
Kinvara Verdon
|
|
About Eagle Eye
Eagle Eye is a leading SaaS
technology company enabling retail, travel and hospitality brands
to earn the loyalty of their end customers by powering their
real-time, omnichannel and personalised consumer marketing
activities.
Eagle Eye AIR is a cloud-based
platform, which provides the most flexible and scalable loyalty and
promotions capability in the world. More than 750 million
personalised offers are executed via the platform every week, and
it currently hosts over 200 million individual loyalty members for
businesses all over the world. We are trusted to deliver a secure
service at hundreds of thousands of physical POS destinations
worldwide, enabling the real-time issuance and redemption of
promotional coupons, loyalty offers, gift cards, subscription
benefits and more.
The Eagle Eye AIR platform is
currently powering loyalty and customer engagement solutions for
enterprise businesses all over the world, including Asda, Tesco,
Morrisons, Waitrose and John Lewis & Partners, JD Sports, Pret
a Manger, Loblaws, Southeastern Grocers, Giant Eagle, and the
Woolworths Group. In January 2024, Eagle Eye launched EagleAI, a
next-generation data science solution for personalisation, already
being used by leading retailers worldwide including Carrefour,
Auchan and Pattison Food Group. Web - www.eagleeye.com
Strategic Report
At our Capital Markets Event in
February 2024, we announced our medium-term ambition to achieve the
next milestone of a £100m revenue and 25% EBITDA margin business,
built upon the strong foundations of the business and our growth
strategy to take advantage of the increasing demand for
personalised marketing at scale.
I am pleased to be reporting
results today that demonstrate the continued successful execution
of that strategy, delivering revenue growth and EBITDA margins that
align with our "Rule of 40+ Objective", with revenue up 20% and
adjusted EBITDA margin up 0.9ppt to 24.4%. ARR grew 26% to £35.4m
as we continued to secure new customers in the UK and
internationally, including two five-year contracts in North
America, and the first win for EagleAI, and deepened our existing
relationships, across all key geographies, supporting the Group's
continued strong level of NRR.
We now have a presence in all key
loyalty market geographies, with North America now accounting for
approximately half of Group revenue. International regions
delivered the highest growth rates in the Period, with North
America up 21% and APAC up 39%, alongside 15% growth in our more
established European market. With strong and growing pipelines,
these regions represent considerable expansion opportunities for
the Group.
The launch of EagleAI in January
2024 at NRF, the world's leading annual retail event, held in New
York, marked a significant step forward on our journey to power the
personalised marketing revolution, and is already driving a
considerable increase in our sales pipeline.
The strength of our offering,
growing global customer base, exciting market backdrop, outstanding
team and high-quality business model provides the Board with
confidence in our ability to achieve our ambitions.
Growing market opportunity
In the fast-evolving landscape of
global retail, establishing meaningful digital connections with
consumers has never been more crucial. Retailers worldwide are
evaluating the optimal ways to offer highly targeted, personalised
promotions and loyalty programmes to their customer base, in
response to changing consumer shopping behaviour, the inflationary
crisis and the advances in cloud-native technologies, data science
and AI.
The loyalty market is currently
estimated to be worth $10.2 billion worldwide and is projected to
reach $22.8 billion by 2028 [1], growing
at a CAGR between 2023 and 2028 of 17.5%. The market is global and
sector agnostic, providing a considerable runway of growth for
Eagle Eye.
Personalised loyalty in its
broadest form is regarded as a highly effective means for retailers
to drive sales growth, with Boston Consulting Group estimating that
redirecting 25% of US mass promotional spending to personalised
offers would increase ROI by 200%. We estimate, however, that even
those retailers with the most advanced loyalty offerings are not
even at 10% of their spend.
Added to this is the desire by
retailers to take advantage of the advances in AI. AI, however,
needs data, and one of the most efficient methods for retailers to
gather customer data is through the implementation of loyalty
programmes, which themselves cannot run without the connection to
consumers in order to execute on the data. Eagle Eye's AIR platform
powers loyalty, creates connections and executes data - placing us
right at the centre of this key driver in the loyalty market. AI
needs AIR.
Delivering against our growth
strategy
Our next milestone is to become a
£100m revenue business with a 25% EBITDA margin and we believe that
the five measures in our strategic framework, alongside an
expanding market and a great team, will enable us to achieve our
ambitions.
I am pleased to report good
progress across all of the five aspects of our growth strategy
during the first half of the financial year:
1. "Win, Transact and
Deepen"
-
|
'Win': bring more customers on to the
Eagle Eye AIR platform;
|
-
|
'Transact': drive higher redemption and interaction volumes through the
platform; and
|
-
|
'Deepen': encourage our customers to adopt more of our product
portfolio as they become more adept at digital
marketing.
|
Win
A key focus for Eagle Eye is to
continue to 'Win' to drive growth and during the Period we secured
a good number of new 'wins', growing our presence in the UK,
Europe, Asia and North America. We now have eight customers in
North America reflecting the growing recognition within the
region of the importance of personalised digital loyalty
programmes. During the Period, we secured a five-year loyalty
contract with a large pet supply company in the region, to support
their re-imagined loyalty programme and a five-year contract with
Pattison Food Group (PFG), Western Canada's largest grocery
retailer, for the use of Eagle Eye's AIR platform to enhance its
loyalty programme, More Rewards. This also includes the first win
for EagleAI, which will see PFG use Eagle Eye's new AI tools to
generate and autonomously target personalised offers for
its 3.5 million More Rewards members.
A second win for the EagleAI
solution was secured post Period end in France, where Untie Nots
extended their relationship with Carrefour
through the addition of EagleAI via Médiaperformances, the leader
in shopper marketing in France. Médiaperformances will use
the AI based promotion picking capability to offer relevant
personalised offers that they have sourced to Carrefour's
customers.
Further wins include a three-year
contract with an Australian retailer and a three-year contract with
The Ivy Collection in the UK, a popular group of brasseries and
cafes, to power its colleague discount scheme.
In the Period, we also signed a
partnership agreement with commercetools, a global leader in
composable commerce headquartered in Germany, and together we have
now launched an integration-led partnership to enable commercetools
customers to access the power of the Eagle Eye AIR platform and its
associated Loyalty and Promotional capabilities on their eCommerce
websites through a single, ready-to-use connection.
Our high level of customer
retention means that each new customer win significantly adds to
our growth prospects, through expanding the use of the platform and
the addition of new services.
Transact
Chargeable AIR redemption and
interaction volumes, a key measure of usage of Eagle Eye AIR,
increased by 65% to 2.6bn (H1 2023: 1.6bn).
A significant contribution to this
growth was generated by Asda following the full launch of its
loyalty programme in 2022, which in 2023 saw over 400m redemptions
throughout the year. We also benefitted from a full period impact
from Woolworths Group "Real-Time Loyalty" programme in Australia
following its go live in August 2022. Volumes also grew due to the
further roll-out of the large U.S. grocer won in partnership with
Neptune Retail Solutions, which went live in May 2022 and other
general increases in the use of the platform by our
customers.
Deepen
The Group's continued strong
performance has been supported by the deepening of existing
relationships, including expansion with Woolworths in Australia and
Asda in the UK.
We have also seen good levels of
deepening for Untie Nots since joining the Group in January 2023.
Untie Nots has expanded with existing customers, including
E.Leclerc, who have signed a 12-month renewal for the Challenges
product, which is to be delivered through the Google Cloud
Marketplace, and secured entry into the UK market through a win
with existing Eagle Eye customer, Morrisons, benefitting from Eagle
Eye's larger marketing reach and relationships.
The success of this is reflected
in the continued strong NRR of 120% (H1 FY23: 127%).
Pleasingly, our long-term contract customer churn
rate by value remains very low at 1.2% (H1 2023: 0.0%),
with good levels of renewals taking place.
2.
Innovation
Innovation continues to lie at the
heart of our proposition, investing in the capabilities of Eagle
Eye AIR to ensure that our technology continues to enrich the lives
of our customers, and their consumers. In addition to EagleAI, we
have continued to invest in innovation, to capitalise on the
expanding market opportunity.
EagleAI: newly launched
Personalised Promotions solution
Our newly launched Personalised
Promotions solution, powered by EagleAI, was built on the
capabilities brought into the Group with the acquisition of Untie
Nots. This offering uniquely automates the process of connecting
and structuring customer data across touchpoints, and then applies
machine learning and AI to create uniquely personalised offers for
customers rather than curating the 'best fit' set of offers based
on a finite number available. This approach sets a new global
standard for retail personalisation, and significantly expands our
market opportunity as we can now deliver a more packaged end-to-end
personalisation use case for enterprise retailers
globally.
Following a successful 12-month
integration period, the acquired AI-based Personalised Challenges
solution will also now be marketed under the EagleAI brand,
alongside Personalised Promotions, while still being sold as
individual products. Together, these two AI-based offerings
accounted for 30% of the Group's considerably increased sales
pipeline at the end of the Period, demonstrating the strong
interest globally from retailers for AI.
Extending our
functionality
A significant area of focus has
been on launching our new Social and Behavioural Actions capability
which enables retailers to award customers points for
non-transactional behaviours including writing product reviews,
referring friends, downloading an app and much more. In addition to
this, we have deployed the ability to auto-exchange points into
cash vouchers, have enabled "pending points" which aims to reduce
fraud on larger ticket items as well as supporting multi-stage
fulfilment of points which ensures that points are only credited to
customers as the items from their order are shipped to the
customer.
Speed and Scale
Investing in the overarching
strength of the platform continues to remain a priority, and this
is governed by our customer promise and its pillars of Security,
Speed, Scale, Stability and Support. Transaction volumes going
through the platform continue to grow, with 23% growth in the year
to December 2023 compared to 2022, therefore, our teams are
continually focused on delivering improvements to our API response
times as these volumes grow.
In the Period, we also added
additional sophistication to our Cloud-Based Adjudication service,
incorporating a number of new campaign qualification rules, but
reduced our POS Connect response times simultaneously.
3. International
Growth
The benefits of our investment
into international expansion are becoming increasingly evident,
with the new wins in North America, and the deepening of our
customer relationships in Europe during the Period.
We see opportunities for
international expansion across all four regions:
-
|
Within our established European
markets, we are focused on the cross sale of AIR into Untie Nots'
customer base and Untie Nots' Challenges into the Eagle Eye
customer base.
|
-
|
In the DACH region, where we are
just at the start of our journey, we have invested in a German
speaking salesperson on the ground to build our
pipeline.
|
-
|
We are seeing strong momentum in
North America, the largest promotions and loyalty market in the
world, and have a direct sales team of 9 as well as a partnership
with Neptune Retail Solutions to address the significant CPG
promotions market.
|
-
|
In APAC, the fastest growing
loyalty market in the world, we now have a good presence in
Australia, New Zealand, and Singapore.
|
In order to capitalise on this
increased presence and opportunity, we increased investment in
marketing activities in the Period, attending more trade shows than
before, as it is becoming increasingly evident that they are an
effective way to meet new prospects as well as advance existing
discussions. For the first time we exhibited at Groceryshop in Las
Vegas and Tech for Retail in Paris, introducing Eagle Eye to Untie
Nots' clients in France as well as meeting potential French
prospects. Post Period end, we attended a number of high-profile
retail events including FMI in January 2024, increasing our profile
in front of top North American retailers, and EuroCIS in February
2024, meeting with leading German and European prospects. We
exhibited at NRF in January 2024, the world's largest retail trade
show, where we doubled the number of prospects from the previous
year and launched EagleAI. The Group is also planning to attend NRF
Singapore for the first time later this year.
Our increased international
presence, expanded offering, growing international direct sales and
marketing activities, and continued support from our Google
partnership has contributed to an increase in the number of
opportunities entering our sales pipeline, the value of which is
2.5x larger than a year ago.
4. "Better, Simpler,
Cheaper"
While investing in innovation and
growing the business, we simultaneously look for inherent
productivity and efficiencies coming from the scale of what we do.
We have developed a proven business model to grow our EBITDA margin
whilst also investing, as we 'Win', in sales & marketing and
enhancements to the product to generate new opportunities for
growth. The success of this approach can be seen in our growing
EBITDA margin, which reached 24.4% in the Period.
Our people costs, net of
capitalisation, represent 61% of the operating costs of the
business in the Year (H1 FY23: 55%) and we recognise they are our
biggest asset. We will see further cost base expansion in the
second half, largely as a result of salary increases, which is
supported by our model.
We continue to follow our stated
model of investing c.30p back into the growth of the business for
every £1 of new win (c.50p representing the cost of running the
business). In the Period, we invested 16% of revenue into product
development (H1 FY23: 15%) and 10% into sales and marketing
activity (H1 FY23: 8%), delivering an overall Group EBITDA margin
of 24.4%.
5. M&A
It has now been a year since the
successful acquisition of Untie Nots, a high-growth SaaS
company that enables retailers to develop highly personalised,
profitable, and gamified promotions at scale, strengthening the
opportunity for both businesses by providing an additional channel
for growth and increased cross-sale opportunities, as well as
bringing valuable AI capabilities into the business.
The successful acquisition of
Untie Nots demonstrates the benefits Eagle Eye can bring to other
businesses looking to scale and the Group continues to assess the
market for earnings enhancing acquisition opportunities as part of
its growth strategy. We have a proven, strong organic growth
strategy that is enabling us to deliver in line with our Rule of
40+ objective and any future M&A can be considered as a lever
for accelerating us towards our vision to be a £100m revenue
business plus 25% EBITDA margin.
Our People
Creating value for our customers
sits at the heart of Eagle Eye, which we believe is the foundation
of our successful business. This value is created by the efforts of
our Purple People who are guided by the Golden Rule: to treat
people the way they want to be treated which is the guiding
principle of behind the Group's world-class culture and what we
believe is the very heart of personalisation. The strength of our
Purple People and world class culture was recognised during the
Period, as we moved up the rankings to 7th place in the
UK's Best Companies to Work for and were named the 7th
most innovative marketing technology company in the world in the
recent TMW 100 awards, where we also received the prestigious
Judges Pick accolade. These awards mark the continued successful
embodiment of the Golden Rule as well as our market-leading
products which enable retailers to treat their customers as they'd
like to be treated through the power of personalisation. We
continued to invest in the development of our employees with the
roll out of our Purple Leaders bespoke training series globally
during the Period and additional training at individual team member
level, aligned with our Purple Pathways career development
initiative. The Group's eNPS score, a metric assessing employees'
job satisfaction, remains high indicating strong employee
engagement as we focus on developing our people for the Group's
next phase of growth.
Our ambition is to be the best
company to work for and we will continue to focus on moving up the
rankings as at Eagle Eye we strongly believe the best company to
work for is the best company to work with. During H2 we will focus
on rolling out our Purple Playbook training series which is
designed to embed our values further into the organisation to
deliver on our ambition to be the best company to work
for.
As previously announced, Malcolm
Wall, Chair of Eagle Eye, retired from his position following the
Group's AGM in November 2023. Malcolm has provided significant
guidance to the business since Eagle Eye joined AIM in 2014, and I
would like to thank him for his service and wish him all the very
best for the future. Non-Executive Director, Anne de Kerckhove, has
since assumed the Chair role, bringing a wealth of experience in
the technology, media, and entertainment industries and in leading
and advising high growth, international businesses. We are excited
to have Anne on board, who has already contributed positively since
joining.
Financial Review
Key performance indicators
|
H1 2024
|
H1 2023
|
|
|
|
Financial
|
£m
|
£m
|
Revenue
|
24.1
|
20.0
|
Recurring revenue
|
|
|
AIR licence
revenue
|
£7.1m
|
30%
|
£7.4m
|
37%
|
AIR transaction
revenue
|
£8.4m
|
35%
|
£7.0m
|
34%
|
Untie Nots licence &
transaction revenue
|
£2.1m
|
9%
|
-
|
-%
|
SMS transaction
revenue
|
£1.2m
|
4%
|
£1.3m
|
7%
|
Total recurring revenue
|
£18.8m
|
78%
|
£15.7m
|
78%
|
Adjusted
EBITDA1
|
5.9
|
4.7
|
Adjusted EBITDA1
margin
|
24.4%
|
23.5%
|
Adjusted profit before
tax2
|
2.6
|
1.7
|
Reported (loss)/profit before
tax
|
(0.4)
|
0.9
|
Adjusted net
cash3
|
7.8
|
5.7
|
Cash and cash equivalents
excluding FY23 net placing proceeds
|
9.0
|
7.7
|
Short term borrowings
|
(1.2)
|
(2.0)
|
Net placing proceeds
|
-
|
6.7
|
|
|
|
Non-financial
|
|
|
Chargeable AIR redemption and
interaction volumes
|
2.6bn
|
1.6bn
|
Long term contract customer churn
by value
|
1.2%
|
0.0%
|
1 Adjusted EBITDA
excludes share-based payment charges along with depreciation,
amortisation, interest and tax from the measure of profit, along
with costs of the acquisition of Untie Nots SAS in FY23
2 Profit before tax has
been adjusted for the exclusion of amortisation on intangible
assets recognised under IFRS 3 on the acquisition of Untie Nots and
share-based payments
3 Adjusted net cash is
cash and cash equivalents less borrowings and in H1 23 excludes Placing proceeds associated with the
acquisition of Untie Nots which were paid out following completion
on 3 January 2023
Revenue and gross
profit
During the Period, the Group
delivered continued revenue growth of 20% to £24.1m (H1 2023:
£20.0m), particularly driven by growth in international revenues,
including the impact of the acquisition of Untie Nots in
2023.
Revenue generated from recurring
subscription fees and transactions over the network represented 78%
(H1 2023: 78%) of total revenue for the Period. This recurring revenue increased by 20% to £18.8m (H1 2023:
£15.7m) driven by higher transactional volumes across all regions.
In the North American business, we saw growth with the major grocer
won in association with Neptune. In the APAC region, growth was
primarily driven by the full Period effect of transaction volume
expansion of the Woolworths service. In EMEA, the continued
expansion of loyalty by Asda as well as new client wins such as
Morrisons and the acquisition of Untie Nots has had a positive
effect on revenue for the half year Period. Growth in EMEA was
dampened due to a UK grocery customer
contract reaching the end of its lifecycle, which contributed to
churn moving from 0.0% to 1.2% in the Period, a figure which
remains incredibly low. Overall,
AIR redemption and interaction volumes, a key
measure of usage of the AIR platform, increased 65% from 1.6bn to
2.6bn.
Professional services revenue
increased by 21% to £5.2m (H1 2023: £4.3m), driven by
implementation support for the new customers secured in North
America and Woolworths in APAC as they further expand their
offering.
In the commoditised SMS market,
revenue fell to £1.2m (H1 2023: £1.3m) due to continued
inflationary cost headwinds in the SMS market and we anticipate
this decline in revenue will accelerate in H2.
Under IFRS 15, a SaaS business
will typically recognise revenue (including implementation revenue
from professional services) over time. In some cases, this means
implementation revenue is now recognised over the period the
service is live. Therefore, during the period of implementation for
a new client, no revenue will be recognised, although directly
attributable associated costs are also deferred and spread over the
same period, matching revenue and costs on a client-by-client
basis. Revenue from professional services that has been deferred
into future periods, but delivered and billed, was £6.0m at 31
December 2023 (31 December 2022: £4.3m).
The Group's Annual Recurring
Revenue ("ARR"), which is our period exit rate for recurring
subscription and transaction revenue (excluding SMS) plus any
professional services contracted for more than 12 months hence and
secured new wins, excluding any seasonal variations and lost
contracts, increased by 26% to £35.4m (H1 2023: £28.1m). The growth
rate is ahead of the recurring revenue growth rate of 23% due to
the timing of growth in transactional revenue volumes through the
Period, in particular with Asda, Leclerc and the US grocer won in
association with Neptune.
The Group's Net Revenue Retention
("NRR") rate, which is the improvement in recurring revenue
excluding new wins in the last 12 months and SMS remains strong at
120% (H1 2023: 127%) with the slight reduction reflecting the
timing of new wins. Long-term contract customer churn by value
remains low at 1.2% (H1 2023: 0.0%). This reflects the scale and
breadth of our offering in meeting our customers' needs.
Gross profit grew 23% to £23.1m
(H1 2023: £18.8m) with gross margin increasing to 96% (H1 2023:
94%). The change in gross margin reflects the reduction of the
lower margin SMS business to 5% of Group revenue (H1 2023: 7%).
Cost of sales includes the cost of sending SMS messages, revenue
share agreements and outsourced bespoke development work. All
internal resource costs are recognised within operating costs, net
of capitalised development and contract costs.
Adjusted EBITDA and operating
expenses
Adjusted EBITDA grew by 25% to
£5.9m (H1 2023: £4.7m), due to revenue growth and continued control
over net operating expenses, which increased in line with the
increase in gross profit at 23%. 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. In H1 2023 it also
excludes costs incurred in relation to the acquisition of Untie
Nots, completed on 3 January 2023.
The GAAP measure of operating loss
before interest and tax was £(0.3)m (H1 2023: profit of £0.9m), the
decrease reflecting amortisation of intangible assets recognised
under IFRS 3 on the acquisition of Untie Nots of £1.1m and higher
share-based payment charges of £1.8m (H1 2023: £0.9m) primarily due
to a higher payout following FY23 performance.
Adjusted operating expenses
increased to £17.3m (H1 2023: £14.1m) as the business has invested
in line with our planned growth investment model. Headcount has
risen from an average of 222 in FY 2023 to 258 at 31 December 2023,
resulting in an increase in net staff
costs, which represent 61% of adjusted operating costs (H1 2023:
55%) to £10.6m (H1 2023: £7.8m). The
increase also reflects the impact of annual pay awards and
performance related bonuses. IT infrastructure costs increased
behind the 20% rate of recurring revenue growth, up 10% to £4.6m
(H1 2023: £4.1m) as we benefitted from previous investment in the
platform to enhance its speed, stability, and security. Work
continues to optimise our infrastructure spend. Other operating
costs (excluding those in H1 2023 related to the acquisition of
Untie Nots), which are either discretionary or are not correlated
to changes in revenue, were unchanged at £2.2m (H1 2023:
£2.2m).
We have continued to invest in the
Group's products where total spend in the Period was £3.8m (H1
2023: £3.1m). Capitalised product development costs were £1.1m (H1
2023: £1.1m) whilst amortisation of capitalised development costs
was £1.2m (H1 2023: £1.0m). Contract costs (including costs to
obtain contracts and contract fulfilment costs), recognised as
assets under IFRS 15, were £2.1m (H1 2023: £1.3m) and amortisation
of contract costs was £1.7m (H1 2023: £0.7m). This profile reflects
the phasing of recognition of costs as we approach contract
renewals for some of our major customers.
The Group continues to manage the
business with the aim of at least achieving the Rule of 40+
(Revenue growth + Adjusted EBITDA margin = 40+), with an
expectation that the Adjusted EBITDA margin achieved for the Group
will be at least 20% on an annualised basis. In the Period our
result versus this metric was 45.
Earnings per share
Net finance expenses were £0.07m
(H1 2023: £0.03m) reflecting the partial utilisation of the Group's
revolving credit facility, following the acquisition of Untie Nots
in H2 2023 and the cost of the debt acquired with Untie
Nots.
The tax charge of £0.1m (H1 2023:
credit of £0.2m) reflects the improved profitability of operations
internationally, offset by an R&D tax credit receivable in
France. The Group reported a statutory loss after taxation of £0.4m
(H1 2023: profit of £1.0m). Adjusted basic earnings per share
improved to 8.63p (H1 2023: 7.17p) primarily reflecting the
improvement in EBITDA. Adjusted basic earnings per share excludes
the cost of amortisation of intangible assets recognised under IFRS
3 on the acquisition of Untie Nots and share-based payment charges
from the reported measure of earnings per share. This measure
provides a better guide to the underlying operating performance of
the business.
Statement of financial
position
The Group had net assets of £25.1m
at the end of the Period (June 2023: £24.0m), with the increase
driven by the operating performance of the business, offset by the
impact of payments for annual bonuses and commission in H1
2024.
Cash and net debt
The Group ended the Period with
adjusted net cash of £7.8m (H1 2023: £5.7m excluding funds raised
for the acquisition of Untie Nots). The
business moved to a cash outflow for the period of £0.9m excluding
deferred consideration paid on the acquisition of Untie Nots (H1
2023: inflow of £2.1m excluding funds raised for the acquisition of
Untie Nots), reflecting expected H1 working capital outflows (in
particular in relation to performance related bonuses and
commission for FY 2023) and a move to a net tax payment as our
improved profitability in the UK means that a research and
development tax credit is no longer received in cash. We expect the
business to be cash generative in the second half of the
year.
The Company has a £5.0m revolving
credit facility with HSBC Innovation, against which it had drawn
down £1.0m at 31 December 2023. Subsequent to the Period end this
has been repaid in full and the Board does not expect any further
requirement to use the facility for normal operations.
In the light of the economic
environment and our increasing global customer base, we hedge
elements of our foreign currency net receipts to ensure that the
Group is protected from significant and sudden adverse movements in
foreign currency exchange rates. There were no open hedges at 31
December 2023 (30 June 2023: none).
Outlook
We have entered the second half of
the financial year with good momentum. Our sales pipeline has
increased considerably versus this time last year, with EagleAI now
accounting for 30% of the pipeline, demonstrating the strong
interest in the product. As the wins previously announced go live,
we will see continued growth in all areas of Win, Transact and
Deepen revenue. Trading since the Period
end has continued well, providing confidence in the delivery of
another year of profitable growth, in line with
the Board's expectations.
With a growing roster of customer
success stories around the world, a fantastic team and powerful
offering, we are confident in our ability to capture a growing
share of the global loyalty market and deliver on our
ambitions.
Consolidated unaudited interim statement of total
comprehensive income for the six months ended 31 December
2023
|
|
Unaudited
|
|
Unaudited
|
|
Audited
|
|
|
6 months
to
|
|
6 months
to
|
|
Year
to
|
|
|
31
December
|
|
31
December
|
|
30
June
|
|
|
2023
|
|
2022
|
|
2023
|
|
Note
|
£000
|
|
£000
|
|
£000
|
Continuing operations
|
|
|
|
|
|
|
Revenue
|
3
|
24,068
|
|
20,015
|
|
43,074
|
Cost of sales
|
|
(974)
|
|
(1,172)
|
|
(2,091)
|
|
|
|
|
|
|
|
Gross profit
|
|
23,094
|
|
18,843
|
|
40,983
|
Operating expenses
|
|
(23,491)
|
|
(17,963)
|
|
(41,725)
|
Other income
|
|
111
|
|
-
|
|
122
|
Adjusted EBITDA
(1)
|
5
|
5,861
|
|
4,703
|
|
8,789
|
|
|
|
|
|
|
|
Acquisition costs
|
|
-
|
|
(1,068)
|
|
(1,298)
|
Share-based payment
charge
|
|
(1,838)
|
|
(888)
|
|
(2,426)
|
Depreciation and
amortisation
|
|
(4,309)
|
|
(1,867)
|
|
(5,685)
|
|
|
|
|
|
|
|
Operating profit/(loss)
|
|
(286)
|
|
880
|
|
(620)
|
Finance income
|
|
19
|
|
-
|
|
30
|
Finance expense
|
|
(88)
|
|
(25)
|
|
(170)
|
|
|
|
|
|
|
|
(Loss)/profit before
taxation
|
|
(355)
|
|
855
|
|
(760)
|
Taxation
|
|
(61)
|
|
165
|
|
1,948
|
|
|
|
|
|
|
|
(Loss)/profit after taxation for
the financial period
|
(416)
|
|
1,020
|
|
1,188
|
Foreign exchange
adjustments
|
|
(344)
|
|
(237)
|
|
(410)
|
Total comprehensive (loss)/profit
attributable to the owners of the parent for the financial
period
|
(760)
|
|
783
|
|
778
|
|
|
Earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From continuing
operations
|
|
|
|
|
|
|
Basic
|
4
|
(1.42)p
|
|
3.84p
|
|
4.25p
|
Diluted
|
4
|
(1.42)p
|
|
3.38p
|
|
3.79p
|
|
|
|
|
|
|
|
Adjusted basic
(2)
|
4
|
8.63p
|
|
7.17p
|
|
17.75p
|
Adjusted diluted
(2)
|
4
|
7.71p
|
|
6.33p
|
|
15.80p
|
(1) Adjusted EBITDA excludes share-based payment charge,
depreciation, amortisation and the costs of the acquisition of
Untie Nots from the measure of profit
(2) Adjusted earnings per share excludes amortisation of
intangible assets recognised under IFRS 3 on the acquisition of
Untie Nots and share-based payment charge from the measure of
earnings per share
|
|
|
|
|
|
|
| |
Consolidated unaudited interim statement of financial
position as at 31 December 2023
|
|
Unaudited
|
|
Unaudited
|
|
Audited
|
|
|
31
December
|
|
31
December
|
|
30
June
|
|
|
2023
|
|
2022
|
|
2023
|
|
|
£000
|
|
£000
|
|
£000
|
Non-current assets
|
|
|
|
|
|
|
Intangible assets
|
|
18,816
|
|
6,753
|
|
19,458
|
Contract fulfilment
costs
|
|
2,646
|
|
2,126
|
|
2,562
|
Property, plant and
equipment
|
|
1,339
|
|
774
|
|
1,444
|
Deferred taxation
|
|
1,666
|
|
127
|
|
1,626
|
|
|
|
|
|
|
|
|
|
24,467
|
|
9,780
|
|
25,090
|
Current assets
|
|
|
|
|
|
|
Trade and other
receivables
|
|
10,044
|
|
12,902
|
|
11,085
|
Current tax receivable
|
|
816
|
|
444
|
|
762
|
Cash and cash
equivalents
|
|
9,003
|
|
14,409
|
|
10,615
|
|
|
|
|
|
|
|
|
|
19,863
|
|
27,755
|
|
22,462
|
|
|
|
|
|
|
|
Total assets
|
|
44,330
|
|
37,535
|
|
47,552
|
|
|
|
|
|
|
|
Current liabilities
Trade and other
payables
|
|
(9,934)
|
|
(13,827)
|
|
(14,252)
|
IFRS 15 deferred income
|
|
(3,734)
|
|
(2,228)
|
|
(3,086)
|
Current tax payable
|
|
(40)
|
|
-
|
|
(74)
|
Financial liabilities
|
|
(1,125)
|
|
(2,000)
|
|
(1,102)
|
|
|
(14,833)
|
|
(18,055)
|
|
(18,514)
|
Non-current liabilities
|
|
|
|
|
|
|
IFRS 15 deferred income
|
|
(2,256)
|
|
(2,032)
|
|
(2,670)
|
Other payables
|
|
(1,999)
|
|
(436)
|
|
(2,131)
|
Financial liabilities
|
|
(114)
|
|
-
|
|
(197)
|
|
|
(4,369)
|
|
(2,468)
|
|
(4,998)
|
Total liabilities
|
|
(19,202)
|
|
(20,523)
|
|
(23,512)
|
|
|
|
|
|
|
|
Net assets
|
|
25,128
|
|
17,012
|
|
24,040
|
|
|
|
|
|
|
|
Equity attributable to owners of the parent
|
|
|
|
|
|
Share capital
|
|
294
|
|
278
|
|
293
|
Share premium
|
|
29,934
|
|
24,445
|
|
29,925
|
Merger reserve
|
|
3,278
|
|
3,278
|
|
3,278
|
Share option reserve
|
|
8,697
|
|
6,264
|
|
7,291
|
Retained losses
|
|
(17,075)
|
|
(17,253)
|
|
(16,747)
|
|
|
|
|
|
|
|
Total equity
|
|
25,128
|
|
17,012
|
|
24,040
|
Consolidated unaudited interim statement of changes in equity
for the six months ended 31 December 2023
|
Share
capital
|
Share
premium
|
Merger
reserve
|
Share option
reserve
|
Retained
losses
|
Total
|
|
£000
|
£000
|
£000
|
£000
|
£000
|
£000
|
Balance at 1 July 2022
|
264
|
17,685
|
3,278
|
5,549
|
(18,209)
|
8,567
|
|
|
|
|
|
|
|
Profit for the period
|
-
|
-
|
-
|
-
|
1,020
|
1,020
|
Other comprehensive income
Foreign exchange
adjustments
|
-
|
-
|
-
|
-
|
(237)
|
(237)
|
|
-
|
-
|
-
|
-
|
783
|
783
|
Transactions with owners
|
|
|
|
|
|
|
Issue of share capital
|
13
|
6,702
|
-
|
-
|
-
|
6,715
|
Exercise of share
options
|
1
|
58
|
-
|
-
|
-
|
59
|
Fair value of share options
exercised in the period
|
-
|
-
|
-
|
(173)
|
173
|
-
|
Share-based payment
charge
|
-
|
-
|
-
|
888
|
-
|
888
|
|
14
|
6,760
|
-
|
715
|
173
|
7,662
|
|
|
|
|
|
|
|
Balance at 31 December 2022
|
278
|
24,445
|
3,278
|
6,264
|
(17,253)
|
17,012
|
Profit for the period
|
-
|
-
|
-
|
-
|
168
|
168
|
Other comprehensive income
Foreign exchange
adjustments
|
-
|
-
|
-
|
-
|
(173)
|
(173)
|
|
-
|
-
|
-
|
-
|
(5)
|
(5)
|
Transactions with owners
|
|
|
|
|
|
|
Issue of share capital
|
9
|
5,446
|
-
|
-
|
-
|
5,455
|
Issue costs
|
-
|
(285)
|
-
|
-
|
-
|
(285)
|
Exercise of share
options
|
6
|
319
|
-
|
-
|
-
|
325
|
Fair value of share options
exercised
|
-
|
-
|
-
|
(511)
|
511
|
-
|
Share-based payment
charge
|
-
|
-
|
-
|
1,538
|
-
|
1,538
|
|
15
|
5,480
|
-
|
1,027
|
511
|
7,033
|
Balance at 30 June 2023
|
293
|
29,925
|
3,278
|
7,291
|
(16,747)
|
24,040
|
|
|
|
|
|
|
|
Loss for the period
|
-
|
-
|
-
|
-
|
(416)
|
(416)
|
Other comprehensive income
Foreign exchange
adjustments
|
-
|
-
|
-
|
-
|
(344)
|
(344)
|
|
-
|
-
|
-
|
-
|
(760)
|
(760)
|
Transactions with owners
|
|
|
|
|
|
|
Exercise of share
options
|
1
|
9
|
-
|
-
|
-
|
10
|
Fair value of share options
exercised in the period
|
-
|
-
|
-
|
(432)
|
432
|
-
|
Share-based payment
charge
|
-
|
-
|
-
|
1,838
|
-
|
1,838
|
|
1
|
9
|
-
|
1,406
|
432
|
1,848
|
|
|
|
|
|
|
|
Balance at 31 December 2023
|
294
|
29,934
|
3,278
|
8,697
|
(17,075)
|
25,128
|
Included in "retained losses" is a
cumulative foreign exchange loss of £68,000 (June 2023:
£103,000).
Consolidated unaudited interim statement of cash flow for the
six months ended 31 December 2023
|
Unaudited
|
Unaudited
|
|
Audited
|
|
|
6 months
to
|
6 months
to
|
|
Year
to
|
|
|
31
December
|
31
December
|
|
30
June
|
|
|
2023
|
2022
|
|
2023
|
|
|
£000
|
£000
|
|
£000
|
Cash flows from operating activities
|
|
|
|
|
(Loss)/profit before
taxation
|
(355)
|
855
|
|
(760)
|
Adjustments for:
|
|
|
|
|
|
Depreciation
|
336
|
187
|
|
487
|
Amortisation
|
3,974
|
1,680
|
|
5,198
|
Share-based payment
charge
|
1,838
|
888
|
|
2,426
|
Finance income
|
(19)
|
-
|
|
(30)
|
Finance expense
|
88
|
25
|
|
170
|
Decrease/(increase) in trade and
other receivables
|
814
|
(3,049)
|
|
(3)
|
(Decrease)/increase in trade and
other payables
|
(3,173)
|
4,144
|
|
3,850
|
Income tax paid
|
(189)
|
(56)
|
|
(56)
|
Income tax received
|
-
|
426
|
|
960
|
Net cash flows from operating activities
|
3,314
|
5,100
|
|
12,242
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
Payments to acquire property,
plant and equipment
|
(128)
|
(277)
|
|
(171)
|
Payments to acquire intangible
assets
|
(3,467)
|
(2,462)
|
|
(5,444)
|
Acquisition of Untie Nots, net of
cash and cash equivalents acquired
|
(654)
|
-
|
|
(6,347)
|
Net cash flows used in investing activities
|
(4,249)
|
(2,739)
|
|
(11,962)
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
Net proceeds from issue of
equity
|
10
|
6,774
|
|
7,097
|
Proceeds from
borrowings
|
-
|
2,000
|
|
2,000
|
Repayment of borrowings
|
(60)
|
-
|
|
(1,627)
|
Capital payments in respect of
leases
|
(262)
|
(96)
|
|
(217)
|
Interest paid in respect of
leases
|
(44)
|
(11)
|
|
(31)
|
Interest received
|
19
|
-
|
|
4
|
Interest paid
|
(44)
|
(14)
|
|
(113)
|
Net cash flows from financing activities
|
(381)
|
8,653
|
|
7,113
|
|
|
|
|
|
|
Net (decrease)/increase in cash and cash equivalents in the
period
|
(1,316)
|
11,014
|
|
7,393
|
Foreign exchange
adjustments
|
(296)
|
(237)
|
|
(410)
|
Cash and cash equivalents at
beginning of period
|
10,615
|
3,632
|
|
3,632
|
Cash and cash equivalents at end of period
|
9,003
|
14,409
|
|
10,615
|
Notes to the consolidated unaudited interim financial
statements
1. Basis of preparation
The Group's half-yearly financial
information, which is unaudited, consolidates the results of Eagle
Eye Solutions Group plc and its subsidiary undertakings up to 31
December 2023. The Group's accounting reference date is 30
June. Eagle Eye Solutions Group plc's shares are listed on
AIM, the market of that name operated by the London Stock
Exchange.
The Company is a public limited
liability company incorporated and domiciled
in England & Wales. The presentational and
functional currency of the Group is Sterling. Results in this
consolidated financial information have been prepared to the
nearest £1,000.
Eagle Eye Solutions Group plc and
its subsidiary undertakings have not applied IAS 34, Interim
Financial Reporting, which is not mandatory for UK AIM listed
groups, in the preparation of this half-yearly financial
report.
The accounting policies used in the
preparation of the financial information for the six months ended
31 December 2023 are in accordance with the recognition and
measurement criteria of International Financial Reporting Standards
('IFRS') as adopted by the European Union and are consistent with
those which will be adopted in the annual financial statements for
the year ending 30 June 2024.
The profit before interest, tax,
depreciation, amortisation and share-based payment charge is
presented in the statement of total comprehensive income as the
Directors consider this performance measure provides a more
accurate indication of the underlying performance of the Group and
is commonly used by City analysts and investors.
While the financial information
included has been prepared in accordance with the recognition and
measurement criteria of IFRS, as adopted by the European Union,
these interim financial statements do not contain sufficient
information to comply with IFRS.
The comparative financial
information for the year ended 30 June 2023 has been extracted from
the annual financial statements of Eagle Eye Solutions Group plc.
These interim results for the period ended 31 December 2023, which
are not audited, do not comprise statutory accounts within the
meaning of section 434 of the Companies Act 2006. The financial
information does not therefore include all of the information and
disclosures required in the annual financial statements.
Full audited accounts of the Group
in respect of the year ended 30 June 2023, which received an
unqualified audit opinion and did not contain a statement under
section 498(2) or (3) of the Companies Act 2006, have been
delivered to the Registrar of Companies.
2. Going concern basis
As part of their going concern
review the Directors have followed the guidelines published by the
Financial Reporting Council entitled "Guidance on Risk Management and
Internal Control and Related Financial and Business
Reporting''. The Directors have prepared
detailed financial forecasts and cash flows looking beyond 12
months from the date of this half-yearly financial information. In
developing these forecasts, the Directors have made assumptions
based upon their view of the current and future economic conditions
that will prevail over the forecast period.
On the basis of the above
projections, the Directors are confident that the Group has
sufficient working capital to honour all of its obligations to
creditors as and when they fall due. In
reaching this conclusion, the Directors have considered the
forecast cash headroom, the resources available to the Group and
the potential impact of changes in forecast growth and other
assumptions, including the potential to avoid or defer certain
costs and to reduce discretionary spend as mitigating actions in
the event of such changes. Accordingly,
the Directors continue to adopt the going concern basis in
preparing this half-yearly financial information.
3.
Segmental analysis
The Group is organised into one
principal operating division for management purposes. Revenue is
analysed as follows:
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
6 months
to
|
|
6 months
to
|
|
Year
to
|
|
|
31
December
|
|
31
December
|
|
30
June
|
|
|
2023
|
|
2022
|
|
2023
|
|
|
£000
|
|
£000
|
|
£000
|
Development and set up
fees
|
|
5,240
|
|
4,321
|
|
8,563
|
Subscription and transaction
fees
|
|
18,828
|
|
15,694
|
|
34,511
|
|
|
24,068
|
|
20,015
|
|
43,074
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
6 months
to
|
|
6 months
to
|
|
Year
to
|
|
|
31
December
|
|
31
December
|
|
30
June
|
|
|
2023
|
|
2022
|
|
2023
|
|
|
£000
|
|
£000
|
|
£000
|
AIR revenue
|
|
20,803
|
|
18,697
|
|
38,440
|
Untie Nots revenue
|
|
2,109
|
|
-
|
|
2,212
|
Messaging revenue
|
|
1,156
|
|
1,318
|
|
2,422
|
|
|
24,068
|
|
20,015
|
|
43,074
|
The majority of the Group's
revenue comes from services which are transferred over
time.
4. Earnings per share
The calculation of basic earnings
per share is based on the result attributable to ordinary
shareholders divided by the weighted average number of ordinary
shares in issue during the period. The calculation of diluted
earnings per share is based on the result attributable to ordinary
shareholders divided by the weighted average number of ordinary
shares in issue during the period, diluted for the effect of
options being converted to ordinary shares. The adjusted measures
exclude the cost of amortisation of intangible assets recognised
under IFRS 3 on the acquisition of Untie Nots and share-based
payment charges from the reported basic and diluted measures of
earnings per share. Basic and diluted earnings per share from
continuing operations are calculated as follows:
|
Unaudited
H1 2024
Earnings
per
share
pence
|
|
Unaudited
H1 2024
(Loss)/
Profit
£000
|
|
Unaudited
H1 2024
Weighted average number of
ordinary shares
|
|
Unaudited
H1
2023
Earnings
per share
pence
|
|
Unaudited
H1
2023
Profit
£000
|
|
Unaudited
H1
2023
Weighted
average number of ordinary shares
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic (loss)/ earnings per
share
|
(1.42)
|
|
(416)
|
|
29,281,665
|
|
3.84
|
|
1,020
|
|
26,595,355
|
Diluted (loss)/ earnings per
share
|
(1.42)
|
|
(416)
|
|
32,792,651
|
|
3.38
|
|
1,020
|
|
30,146,994
|
Adjusted basic earnings per
share
|
8.63
|
|
2,528
|
|
29,281,665
|
|
7.17
|
|
1,908
|
|
26,595,355
|
Adjusted diluted earnings per
share
|
7.71
|
|
2,528
|
|
32,792,651
|
|
6.33
|
|
1,908
|
|
30,146,994
|
5.
Alternative performance
measure
Adjusted EBITDA is a key
performance measure for the Group and is derived as
follows:
|
Unaudited
6 months
to
31
December
2023
|
Unaudited
6 months
to 31 December
2022
|
Unaudited
Year to
30
June
2023
|
|
£000
|
£000
|
£000
|
|
|
|
|
(Loss)/profit before
taxation
Add back:
|
(355)
|
855
|
(760)
|
Costs associated with acquisition
of Untie Nots
|
-
|
1,068
|
1,298
|
Finance income and
expense
|
69
|
25
|
140
|
Share-based payments
|
1,838
|
888
|
2,426
|
Depreciation
|
336
|
187
|
487
|
Amortisation of
intangible assets recognised under IFRS 3 on the
acquisition of Untie Nots
|
1,106
|
-
|
1,344
|
Other amortisation
|
2,867
|
1,680
|
3,854
|
Adjusted EBITDA
|
5,861
|
4,703
|
8,789
|
EBITDA has been adjusted to
exclude share-based payment charges along with depreciation,
amortisation, interest and tax from the measure of profit, along
with costs of the acquisition of Untie Nots in FY23.
6. Adjusted net
cash
|
30 June
2023
|
Cash
flow
|
Foreign
exchange adjustments
|
31 December
2023
|
|
£000
|
£000
|
£000
|
£000
|
|
|
|
|
|
Cash and
cash equivalents
|
10,615
|
(1,316)
|
(296)
|
9,003
|
Financial liabilities
|
(1,299)
|
60
|
-
|
(1,239)
|
Adjusted net cash
|
9,316
|
(1,256)
|
(296)
|
7,764
|
7. Availability of this Interim
Announcement
Copies of this announcement are
available on the Company's website, www.eagleeye.com.