Preliminary Results

RNS Number : 1621Z

Eagle Eye Solutions Group PLC

16 September 2015

 

16 September 2015

Eagle Eye Solutions Group plc

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

Preliminary Results for the year ended 30 June 2015

A breakthrough year of outstanding progress

Eagle Eye, the SaaS technology company that validates and redeems digital promotions in real-time for the grocery, retail and hospitality industries, today announces its audited preliminary results for the financial year ended 30 June 2015 (the "Period").

Financial and corporate highlights:

·     Group revenue increased 165% to £4.9m (FY14: £1.8m)

·     Organic revenue increased by 93% to £2.7m

·     Gross profit grew to £3.5m (2014: £1.4m), which represents a gross margin of 71%

·     Subscription and transactional revenues represented 80% of total revenues (FY14: 67%),  demonstrating the positive impact of the recurring business model

·     Cash position of £4.3m (2014: £2.3m)

Operational highlights:

·     Over 60 new customer and brand wins including major contracts with Sainsbury's and Asda for the  deployment of Eagle Eye AIR in both grocers' UK stores

·     Redemption volumes up 118% in the Period to 17.4m (2014: 8.0m)

·     Messaging volumes increased to 40.1m (2014: 31.6m)

·     Significant two year contract renewal with Ladbrokes for SMS services

·     Four new EPOS partners signed: Toshiba, K3, Zonal and Comtrex

·     Launch of third generation Eagle Eye AIR platform with enhanced functionality and reporting

·     Release of Eagle Eye Promote for the management of offers and promotions for FMCG brands, with  17 FMCG brands now signed to the Eagle Eye AIR platform

·     Three industry awards for Greggs Rewards app

·     New partnership signed with the leading business intelligence and data analytics company SAS

Phill Blundell, Chief Executive of Eagle Eye, said:

"The award of two significant contracts in the past 12 months with Tier 1 grocery companies, Asda and Sainsbury's, clearly demonstrate that Eagle Eye is at the centre of a major change as we transform customer engagement from the analogue world of the past, to the digital world of today. Revenue growth of 165%, of which 80% was generated from subscription and transactional fees, is demonstrating the strength of our recurring business model and the underlying momentum of the business.

We have strong first mover advantage in a rapidly growing digital promotions market, of which we have made significant progress into the UK grocery sector this year with our proven technology. This gives the business a strong foundation to dominate the UK market and expand internationally. The Board has considerable confidence in Eagle Eye's growth prospects for the future as we continue to build on the strong strategic progress made in 2015."

For further information, please contact: Eagle Eye
Phill Blundell, Chief Executive Officer Lucy Sharman-Munday, Chief Financial Officer	Tel: [phone]
Panmure Gordon
Hugh Morgan/Fabien Holler/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

About Eagle Eye

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. 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. Last year there were in excess of 730 million coupons redeemed in the UK¹, and 16 billion digital coupons redeemed worldwide².

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, Greggs, JD Sports, Ladbrokes, Marks & Spencer, Mitchells & Butlers, Pizza Express, Sainsbury's, Tesco, Thomas Pink and Young's.

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

 

Chairman's statement

This has been a breakthrough year for Eagle Eye with the business delivering excellent progress against its strategy to become the global leader in digital marketing. This included the award of two significant contracts with Tier 1 grocery companies, Asda and Sainsbury's. These important wins clearly demonstrate that Eagle Eye is at the centre of a major change in the grocery, retail and hospitality industries as we transform customer engagement from the analogue world of yesterday to the digital world of today. Revenue growth of 165%, which excludes any transactional contribution from these two major contract wins, demonstrates the outstanding underlying momentum in the business.

As well as new customer wins, during the year we signed important new strategic partnerships with Toshiba, K3, Zonal and Comtrex, taking our list of electronic point-of-sale ("EPOS") partners to six of the top ten providers. This will accelerate the adoption of Eagle Eye's technology in the retail and hospitality industries and also gives us a springboard to enter new international markets. In March 2015, we signed a contract with our first international customer, VF Corporation, to whom we have provided a digital gift solution covering 11 countries and 13 brands, including Gant, Wrangler and North Face.

Redemption volumes crossing our network continued to surge, growing by 118% in the Period to 17.4 million (2014: 8.0 million). Overall the number of customers and brands on the platform increased significantly from 90 to 156.

Underpinning this strong progress is our continued investment in, and substantial development of, the Eagle Eye AIR platform. This included the introduction during the Period of new functionality to fully support the promotional activity of our supermarket customers; the creation, issuing and tracking of marketing campaigns by FMCG companies; and full support for multi-language and multi-currency customers.

To take advantage of the major market opportunity both in the UK and internationally, in March 2015 we completed a successful fundraise at a price 22% above the Company's initial flotation price. This raised approximately £4.0 million (before expenses) which we will continue to use to accelerate both sales and marketing investment and to further expand the platform's capabilities.

Financial results

Group revenue increased by 165% to £4.9 million (2014: £1.8 million) for the Period. Of total revenue, £2.1 million was contributed by 12 months of revenue from the 2ergo acquisition which completed in the middle of April 2014. Excluding 2ergo, organic revenue increased by 93% to £2.7 million.

The adjusted EBITDA loss was £1.5 million (2014: £0.8 million loss). The Group's gross profit was £3.5 million, representing a gross margin of 71% (2014: £1.4 million, 78%). The Group has a robust balance sheet with net assets of £8.8 million (2014: £7.8 million), including cash and cash equivalents of £4.3 million (2014: £2.3 million).

People

The Company assembled a deeply experienced Board of Non-Executives ahead of the 2014 IPO and this has been complemented by a talented and ambitious management team that has benefited from their advice and experience to position the business for continued growth. In addition to the arrival of Lucy Sharman-Munday as CFO in July 2014, the management team has been strengthened by the recruitment of a new Sales Director, Abeed Janmohamed, in May 2015. Employees have risen in number, from an average 29 in 2014 to 56 at the end of the year, primarily to extend the functionality of the AIR platform and give us the resources to meet our aggressive sales target.

It is a credit to the management team that this expansion has been achieved successfully with the creation of a high achieving, innovative culture that gives me confidence in the delivery of our targets and goals.

On behalf of the Board, I want to thank the team for their dedication, hard work and success in further building the platform for future growth.

Outlook 

The adoption of our software platform by two Tier 1 grocers is strong evidence that our vision of migrating the market for promotions and marketing from analogue to digital is attainable. We have strong first mover advantage in a rapidly growing market and the Board believes that now the breakthrough has been made into the UK grocery sector the flow of customers to the Eagle Eye AIR platform will accelerate. This is expected to drive significant subscription and transactional revenue growth, giving the business a strong foundation to dominate the market and expand internationally. The Board remains excited and confident about the future.

 

Chief Executive Officer's report

A breakthrough year

Our focus during the Period has been on delivering organic growth and further progress against our stated strategic goal to become the global leader in digital marketing. We are extremely pleased with our progress during the year, with total revenue of £4.9m being up 165%, the expansion of the customer base, including our first wins in the UK grocery sector, the launch of our 3^rd generation software platform, Eagle Eye AIR, and the signing of 17 FMCG brands to the platform.

The major contract wins with Asda³ and Sainsbury's⁴ demonstrate the compelling sales proposition we have developed as well as the strength of our market-leading technology. It also confirms that the mainstream shift to digital promotions - replacing their paper equivalents - is well underway and we are at the heart of this transformation. This is the breakthrough we have worked towards and gives us a very exciting future.

Market overview

Eagle Eye's primary addressable market is promotional marketing, which includes promotions and shopper marketing. In combination, in the UK alone promotional marketing is worth £55bn per annum⁵. So far only a small fraction of this spend, less than 5%, has moved to digital promotions with the vast majority still devoted to analogue promotions. Despite broader, established shifts across society to digital communications, the major hurdle to adoption in the promotions industry has been the ability for retailers to cope with real-time redemption of digital promotions at the point of sale in their bricks and mortar retail stores. Consequently, most promotions remain paper-based and rely on inefficient and after-the-event validation. This can lead to significant costs to the customer and fraud.

Shopper marketing spend remains focused on in-store discounts that, when redeemed by consumers, are not tracked back to retailers and brands. This means that the retailers and brands that are offering the discounts do not get a full picture of which consumers are using their discounts and whether they are generating the required return on investment. 

It is our vision that with Eagle Eye's solution to the issue of real-time redemption in stores, digital marketing spend will migrate to a more efficient digital platform. We are already seeing this in the hospitality industry where redemption volumes of our customer discounts and promotions across our platform increased 118% in the year to 17.4 million.

In the UK, the number of paper vouchers redeemed in the grocery sector exceeded 1 billion in 2014, an increase of 21% on 2013, and we are confident that over the next few years this volume will migrate to digital. Our new contracts with Asda and Sainsbury's put us in prime position to grab a large market share as part of this transition.

Continued strong strategic progress

Our mission is to be the global leader in digital marketing, and in 2014 we set the goal of securing our position as the UK leader. We believe that this has been achieved during the year through our two major contracts in the grocery sector coupled with the other significant customer wins. Over the next couple of years, we anticipate at least a third of the UK digital promotions market will transition to our technology.

Expanding the customer base remains a key priority and during the year we welcomed over 60 new merchants and brands to the platform including Asda, Gant, Garfunkel's and Young's. Looking forward we have a number of high profile UK customers including Sainsbury's joining the platform to create, issue and securely redeem promotions, rewards and payments. Furthermore, our existing customers have continued to embrace the opportunities offered by our platform which is evidenced by a 118% increase in redemption volumes to 17.4 million.

Growing the number of partners embedded on our platform who conduct business on behalf of their clients is a priority within our strategy. In the year, long-term contracts have been signed with EPOS providers Comtrex and Zonal which, combined with our existing Oracle partnership, means that we now have access to over 75% of the casual dining market, which is a fast growing segment of the hospitality sector. Strengthened relationships with Toshiba and K3 will enable the delivery of new customers in the retail sector as well as helping to support the implementation of our international strategy, as demonstrated by our collaboration with Toshiba for the Eagle Eye AIR platform's deployment in Asda. Following on from the recent Tier 1 grocer wins, SAS, the global data analytics company, has signed a partnership agreement with us to develop new big data products and we expect this to help Eagle Eye grow in new geographies.

The biggest budgets in the digital marketing sector are owned by the FMCG companies and it is now our objective to connect them to our platform. The success of the Coke Zero campaign run in May 2014, where MediaCom ran a promotional campaign to give away Coke Zeros using unique digital codes from Eagle Eye across nine issuance channels and 2,500 real-time redemption points in stores, has demonstrated the power of our technology. Mediacom was able to track redemptions by both individuals and by channel in real-time, enabling them to divert marketing spend to the most effective channel which resulted in a powerful 20% redemption rate, compared to less than 5% in traditional campaigns. This has provided a compelling case study in our effort to attract FMCG brands to our platform and 17 brands are now signed up. We expect this growth to accelerate in the next 12 months.

Innovation is a key priority as we continue to deliver value to our customers. We have developed new functionality and extended the number of products supported by the software platform. The launch of the third generation platform, Eagle Eye AIR, 12 months ago saw us leapfrog our competitors and we have continued to invest ever since. Our guiding principles are More, Easier and Faster.

The 'More' means adding new features, which in the past 12 months has included personalised push notifications to apps; location-based messaging using beacons; and tools for creating dynamic campaigns. In addition, our four core products, Promote, Gift, Reward and Engage were transitioned to the new version of the platform and four existing customers have already been migrated to AIR with enhanced functionality.

The 'Easier' means providing tools to simplify the integration process for partners and customers and providing self-service tools to allow customers to create, issue, and analyse in real-time their own digital marketing campaigns. It also means making it easier for the end consumer to engage with their favourite brands, which we have enabled by developing advanced rulesets around location, demographic and historical information, which enables our customers to set up campaigns that are more personalised making the user experience more enjoyable and relevant.

Finally, 'Faster' means scaling the platform to support the Tier 1 grocers' expanded needs. This allows much higher volumes to be processed with improved performance both at the transactional and reporting levels. For example, we are now able to analyse every basket within a Tier 1 grocer in real-time in under one second, making our customers' experience simple, fast and seamless.

The confirmation of the quality of our technology is further evidenced by three further major industry awards won in the Period. At the Payments Awards, we were overall winner and winner of the Engagement and Loyalty Scheme of the Year and at the Retail Systems Awards we won Loyalty Programme of the Year, all for our market-leading Greggs Rewards loyalty platform.

The confidence gained through the rapid adoption of the platform has allowed us to grow the team from an average of 29 in 2014 to 56 at the end of the Period. These new additions have primarily strengthened our technical team and our sales team. The increase in technical staff has facilitated the enhancements to the software platform and will allow for significant new IP in the coming year. The sales team has been expanded from nine to 15 in anticipation of the delivery of our aggressive revenue growth targets. I want to put on record my thanks to all staff for their commitment, skill and passion that have contributed to another highly successful year.

Going forward we will be working with our existing customers to make the most of the new platform, helping them to engage more effectively with their consumers. This is expected to lead to more transactions on the platform and therefore higher subscriptions and transactional revenues to us. Our new EPOS partners will help us recruit more customers to the platform and also help us to expand overseas.

 

Financial Review 2015

Group Results

KPIS

	2015 £000	2014 £000
Financial
Revenue	4,854	1,835
EBITDA loss	(1,521)	(817)
Cash and cash equivalents	4,292	2,275
	2015	2014
Non-Financial
Number of redemptions	17.4m	8.0m
Like for like messaging volumes	40.1m	31.6m
% of subscription transaction revenue	80%	67%
Customers and brands on the platform	156	90

Group results

The group generated strong revenue growth of 165% for the Period, with revenue increasing to £4.9 million (2014: £1.8 million). Of the total revenue for 2015, £2.1 million (2014: £0.4 million) was contributed by 12 months of revenue from the 2ergo Limited ("2ergo") acquisition which completed in the middle of April 2014. Excluding 2ergo, organic revenue increased by 93% to £2.7 million (2014: £1.4 million) demonstrating the attraction of our proven technology that delivers key benefits to our customers including an enhanced consumer experience, significant operational cost savings and accelerated innovation.

£3.9 million of revenue generated from subscriptions fees and transactions over the network represent 80% of total revenue (2014: 67%, £1.2 million). This positive 13 percentage points year-on-year growth in revenue mix is in-line with our recurring subscription business model with limited upfront licence fees. The balance, £1.0 million, relates to implementation fees for new customers and new services and represents 20% of total revenue (2014: 33%, £0.6 million).

Existing customers continue to derive benefits from Eagle Eye's platform, which is demonstrated by the growth in redemption volumes crossing our network, up 118% in the Period to 17.4 million (2014: 8.0 million). Messaging volumes at the now fully integrated 2ergo business increased to over 40.1 million (2014: 31.6 million), further evidencing the success of the acquisition and its integration.

The increased revenue was achieved without a significant impact on gross margin. The gross margin reduced from 78% to 71% in 2015 as gross profit grew to £3.5 million (2014: £1.4 million). The core gross margin increased from 83% to 87%, the fall in overall margin was driven by the increased level of lower gross margin campaign manager and SMS revenue in the Company's revenue mix as a result of a full year's revenue from 2ergo.

Operating Costs

Operating costs of £5.6 million (2014: £2.6 million) increased in line with expectations reflecting our planned strategic growth. Operating costs include sales and marketing, product development, operational IT, general, administration and share based payment costs. Gross expenditure on product development increased 50% to £1.2 million (2014: £0.8 million) reflecting our investment to enhance the capabilities of our platform. Capitalised product development costs at £1.0 million (2014: £0.6 million) represented 76% of gross development spend whilst amortisation of capitalised development costs was £1.4 million (2014: £0.5 million).

EBITDA

Group-adjusted EBITDA loss for the Period was £1.5 million (2014: loss £0.8 million). To provide a better guide to the underlying business performance adjusted EBITDA excludes share-based payment charges and one off acquisition costs along with depreciation, amortisation, interest and tax from the measure of profit.

Share placing

In March 2015 the Company completed a successful placing of 2,013,114 new shares that raised approximately £4 million (before expenses) and placed 994,512 existing shares. The net proceeds of the placing of the new shares are being used to accelerate investment in product development and infrastructure and to increase sales and marketing resources in order to capitalise on the market opportunity and drive international expansion.

EPS and dividend

Reported basic and diluted loss per share was 16.17p (2014: loss per share 10.65p). The Board does not feel it appropriate at this time to commence paying dividends.

Balance sheet, cash and cash flow

The Group has a robust balance sheet with net assets of £8.8 million at 30 June 2015 (2014: £7.8 million), including cash and cash equivalents of £4.3 million (2014: £2.3 million). The placing of the new shares has strengthened the balance sheet further during the year.

The main components to the gross cash increase of £2.0 million for the Period (2014: £0.9 million increase) were operating cash outflow of £0.8 million (2014: £1.3 million), capital investment in intangibles including product and development of £1.0 million (2014: £0.6 million) and the net receipts from the new share placing of £3.8 million (2014: £5.0 million).

 

Consolidated statement of total comprehensive income

for the year ended 30 June 2015

			2015	2014
Continuing operations	Note		£000	£000
Revenue	3		4,854	1,835
Cost of sales			(1,385)	(395)
Gross profit			3,469	1,440
Adjusted operating expenses (1)			(4,990)	(2,257)
Loss before interest, tax, depreciation, amortisation, share based payment charge and costs associated with acquisition of subsidiary			(1,521)	(817)
Share based payment charge			(593)	(119)
Depreciation and amortisation			(1,441)	(538)
Costs associated with acquisition of subsidiary			-	(269)
Operating loss and loss before taxation			(3,555)	(1,743)
Taxation			203	143
Loss and total comprehensive loss attributable to the owners of the parent for the financial year			(3,352)	(1,600)
(1) Adjusted operating expenses excludes share based payment charge and costs associated with the acquisition of Eagle Eye Solutions (North) Limited
Loss per share
From continuing operations
Basic and diluted	4		(16.17)p	(10.65)p

Consolidated statement of financial position

as at 30 June 2015

			2015	2014
			£000	£000
Non-current assets
Intangible assets			5,206	5,647
Property, plant and equipment			53	78
			5,259	5,725
Current assets
Trade and other receivables			1,417	1,353
Current tax receivable			-	61
Cash and cash equivalents			4,292	2,275
			5,709	3,689
Total assets			10,968	9,414
Current liabilities Trade and other payables			(1,839)	(1,420)
Non-current liabilities
Deferred tax liability			(290)	(192)
Total liabilities			(2,129)	(1,612)
Net assets			8,839	7,802
Equity attributable to owners of the parent
Share capital			221	201
Share premium			10,985	7,209
Merger reserve			3,278	3,278
Share option reserve			608	197
Retained losses			(6,253)	(3,083)
Total equity			8,839	7,802

 

Consolidated statement of changes in equity

for the year ended 30 June 2015

	Share capital	Share premium	Merger reserve	Share option reserve	Retained losses	Total
	£000	£000	£000	£000	£000	£000
Balance at 1 July 2013	136	-	3,278	78	(1,483)	2,009
Loss for the financial year	-	-	-	-	(1,600)	(1,600)
	-	-	-	-	(1,600)	(1,600)
Transactions with owners recognised in equity
Issue of share capital	65	8,181	-	-	-	8,246
Issue costs	-	(972)	-	-	-	(972)
Share based payment charge	-	-	-	119	-	119
	65	7,209	-	119	-	7,393
Balance at 30 June 2014	201	7,209	3,278	197	(3,083)	7,802
Loss for the financial year	-	-	-	-	(3,352)	(3,352)
	-	-	-	-	(3,352)	(3,352)
Transactions with owners recognised in equity
Issue of share capital	20	4,006	-	-	-	4,026
Issue costs	-	(230)	-	-	-	(230)
Fair value of share options lapsed in the year	-	-	-	(182)	182	-
Share based payment charge	-	-	-	593	-	593
	20	3,776	-	411	182	4,389
Balance at 30 June 2015	221	10,985	3,278	608	(6,253)	8,839

 

Consolidated statement of cash flows

for the year ended 30 June 2015

		2015	2014
		£000	£000
Cash flows from operating activities
Loss before taxation		(3,555)	(1,743)
Adjustments for:
Depreciation		42	32
Amortisation		1,399	506
Share based payment charge		593	119
Increase in trade and other receivables		(63)	(520)
Increase in trade and other payables		418	300
Income tax received		362	-
Net cash flows from operating activities		(804)	(1,306)
Cash flows from investing activities
Payments to acquire property, plant and equipment		(17)	(33)
Payments to acquire intangible assets		(958)	(568)
Purchase of business		-	(2,500)
Net cash flows used in investing activities		(975)	(3,101)
Cash flows from financing activities
Net proceeds from issue of equity		3,796	5,274
Net cash flows from financing activities		3,796	5,274
Net increase in cash and cash equivalents in the year		2,017	867
Cash and cash equivalents at beginning of year		2,275	1,408
Cash and cash equivalents at end of year		4,292	2,275

 

Notes to the consolidated preliminary financial information

1    Basis of preparation

The financial information set out herein does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006.  The financial information for the year ended 30 June 2015 has been extracted from the Group's audited financial statements which were approved by the Board of Directors on 15 September 2015 and which, if adopted by the members at the Annual General Meeting, will be delivered to the Registrar of Companies for England and Wales. 

The financial information for the year ended 30 June 2014 has been extracted from the Group's audited financial statements which were approved by the Board of Directors on 23 September 2014 and which have been delivered to the Registrar of Companies for England and Wales.

The reports of the auditor on both these financial statements were unqualified, did not include any references to any matters to which the auditors drew attention by way of emphasis without qualifying their report and did not contain a statement under Section 498(2) or Section 498(3) of the Companies Act 2006.

The information included in this preliminary announcement has been prepared on a going concern basis under the historical cost convention, and in accordance with International Financial Reporting Standards (IFRSs) as adopted by the EU and the International Financial Reporting Interpretations Committee (IFRIC) interpretations issued by the International Accounting Standards Board ("IASB") that are effective or issued and early adopted as at the date of these financial statements and in accordance with the provisions of the Companies Act 2006.

The Company is a public limited company incorporated and domiciled in England & Wales and whose shares are quoted on AIM, a market operated by The London Stock Exchange.

2    Going concern

As part of their going concern review the Directors have followed the guidelines published by the Financial Reporting Council entitled "Going Concern and Liquidity Risk Guidance for UK Companies 2009".

The Directors have prepared detailed financial forecasts and cash flows looking beyond 12 months from the date of approval of the consolidated financial statements for the year ended 30 June 2015.  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 these consolidated financial statements for the year ended 30 June 2015.

 

3    Segmental analysis

The Group is organised into one principal operating division for management purposes. Therefore the Group is considered to have only one operating segment and further segmental information is not required to be disclosed. Revenue is analysed as follows:

		2015	2014
		£000	£000
Development and set up fees		992	605
Subscription fees		643	174
Transaction fees		3,219	1,056
		4,854	1,835

Continuing revenues can be attributed to the following countries, based on the customers' location, as follows:

		2015	2014
		£000	£000
United Kingdom		4,515	1,625
Rest of Europe		194	-
Asia		145	210
		4,854	1,835

4    Loss per share

The calculation of basic and diluted loss per share is based on the result attributable to ordinary shareholders divided by the weighted average number of ordinary shares in issue during the year. The weighted average number of shares for the purpose of calculating the basic and diluted measures is the same. This is because the outstanding share options would have the effect of reducing the loss per ordinary share and therefore would be anti-dilutive. Basic and diluted loss per share from continuing operations is calculated as follows:

	Loss per share pence	Loss £000	2015 Weighted average number of ordinary shares	Loss per share pence	Loss £000	2014 Weighted average number of ordinary shares
Basic and diluted loss per share	(16.17)	(3,352)	20,721,298	(10.65)	(1,600)	15,017,626

5    Report and Accounts

A copy of the Annual Report and Accounts will be sent to all shareholders with notice of the Annual General Meeting.

 

---

[1] Source: Valassis 2014

[2] Source: Statista 2014

[3] Contract signed as a sub-contractor of Toshiba Global Commerce Solutions for the deployment of the Eagle Eye AIR platform within Asda Stores Ltd

("Asda"). The AIR platform integrates with the existing ASDA - Walmart POS

[4] Contract signed with Sainsbury's Stores Ltd ("Sainsbury's") for the deployment of the Eagle Eye AIR platform

[5] Source: Institute of Promotional Marketing 2013

 

END

 

 

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