AGM Trading Update

RNS Number : 9086F

Eagle Eye Solutions Group PLC

17 November 2015

 

17 November 2015

Eagle Eye Solutions Group plc

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

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, Bob Willett, the Chairman of Eagle Eye, will make the following statement on the Group's trading:

"The year ended 30 June 2015 was a breakthrough year for Eagle Eye with the business delivering excellent strategic progress. This progress is highlighted by the award of two significant contracts with Tier 1 grocery companies, Asda, in February, and Sainsbury's, in July, who together account for more than 30% of the UK grocery market.

During the first quarter of FY2016 the Group has continued to trade well delivering revenue of more than £1.3 million, an increase from the prior year of 30%. Of the total revenue, £0.9m was contributed from digital promotions on the AIR platform and represented a growth of 87% from Q1 2015. This was driven by new customer wins and increased transactional revenue.

As anticipated, messaging revenue of £0.4m fell by 27% due to a decrease in messaging volumes as a result of changes to the way messages are delivered for our key client. Nevertheless, this shortfall is expected to be recovered by new customer wins during the remainder of the financial year.

We have continued to make further progress against our KPIs. Revenue generated from subscription fees and transactions over the network grew to represent approximately 83% of total revenue for the first quarter of financial year 2016 (Q1 2015: 81.5%). The Group has also continued to make good progress in increasing the number of retailers and brands using the Eagle Eye AIR platform, which as of 30 September 2015 boasts more than 180 live users (30 June 2015: 150). This growth is a result of progress in attracting FMCG brands to our platform that account for 50 of the total live users (30 June 2015: 17).

The increased number of customers using our platform meant Eagle Eye AIR redeemed more than 5.3 million vouchers in the first quarter of financial year 2016, a 36% increase compared to 3.9 million vouchers in the comparable period in the prior financial year.

Since 1 July 2015, Eagle Eye has launched a number of exciting new projects including coupon functionality for The Restaurant Group and the deployment of a new loyalty App for Mitchells & Butlers. During the quarter R&D activities have focused on the consolidation of existing core services with particular attention paid to security and performance, increasing the overall scalability of the platform. New modules have been added including, but not limited to, enhanced reporting, scalable real-time basket analysis and consumer wallets linking promotions, stored value and stamp cards under a single customer identifier. The Group was also delighted to be recognised at this year's COGS awards for Eagle Eye's Greggs Rewards app.

The cash position at the end of the Period was £2.9m, in line with management's expectations.

With the adoption of our industry leading software platform by two Tier 1 grocers we have strong first mover advantage in a rapidly growing market as we transform customer engagement from analogue to digital. The Board remains excited and confident about the future."

For further information, please contact:

Eagle Eye Phill Blundell, Chief Executive Officer Lucy Sharman-Munday, Chief Financial Officer	Tel: [phone]
Panmure Gordon Fred Walsh/Duncan Monteith, Corporate Finance Charles Leigh-Pemberton, Corporate Broking	Tel: [phone]
Hudson Sandler Nick Lyon/Alex Brennan	Tel: [phone]

Information on Eagle Eye

www.eagleeye.com

Eagle Eye is a UK 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. The UK promotions market is currently transitioning through substantial change as both retailers and consumers are moving away from paper and plastic to digital. Last year there were in excess of 730m coupons redeemed in the UK, and 16bn digital coupons redeemed worldwide.

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 relevant 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 retail and hospitality including Asda, Greggs, JD Sports, Ladbrokes, Marks & Spencer, Mitchells & Butlers, Pizza Express, Sainsbury's, Tesco and Thomas Pink.

The Group is headquartered in Guildford and has an office in Manchester.

 

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