Trading Update

RNS Number : 4446N

Eagle Eye Solutions Group PLC

28 July 2014

 



28 July 2014

Eagle Eye Solutions Group PLC

("Eagle Eye" or "Company")

Trading Update

Eagle Eye, a leading UK provider of digital consumer engagement solutions to the retail and hospitality industries, is pleased to announce the following trading update ahead of its audited preliminary results for the year ended 30 June 2014 (the "Period") which are expected to be announced on 22 September 2014.

Highlights:

·      Successful acquisition of 2ergo Limited and IPO on AIM in April 2014

·      Based on unaudited figures, FY 2014 revenues have grown by 157% to £1.8m* (FY 2013: £0.7m)

·      Transactional revenues represent 60% of total revenues

·      Strategy to develop industry-wide digital voucher network accelerating

·      Redemption volumes up 300% over the course of the financial year

·      Launch of a loyalty solution with Greggs

·      New strategic partners signed with Comtrex, K3, Toshiba and WEVE

·      Launch of 3rd generation Eagle Eye AIR platform supporting vouchers, giftcards, coupons, staff incentive programmes and loyalty

*includes contribution from 2ergo Limited following acquisition on 16 April 2014.

The Period has been a transformational year for the business. As well as the IPO on AIM in April, we have experienced rapid growth in revenues coupled with a doubling of clients using the Eagle Eye AIR network. The platform has been updated to support loyalty solutions as well as the core digital voucher and digital giftcard solutions. Greggs have launched a loyalty programme that includes offers, payments and a digital coffee stamp, using our technology. As our clients increasingly understand the value of our services, redemption volumes crossing our network have increased by 300% in the Period and now exceed 1 million per month.

Based on unaudited figures, turnover for the Period is expected to be in the region of £1.8m, a growth rate of 157% from prior year (FY 2013: £0.7m). The percentage of revenue from transactions is expected to be approximately 60%. We expect to report an EBITDA loss of £0.8m and cash of £2.5m which is in line with management expectations.

The acquisition of 2ergo Limited has been fully integrated into the main business without incident and its costs are now aligned with its revenues. This has been achieved by reducing all duplication of costs, focussing the remaining team on the core Eagle Eye AIR network and retaining their core client base. The first major milestone has been achieved with the valuable IPR acquired being fully integrated into our platform allowing new services and solutions to be offered across our extensive customer base. This has already resulted in projects with JD Sports, Mitchells & Butlers and One Stop.

We have successfully signed strategic partnerships both for the issuance and the redemption of vouchers, which is encouraging more customers to connect to our network. New partners such as Comtrex, K3, Toshiba and WEVE will bring their customers to Eagle Eye and help us to achieve our ultimate goal as the industry standard network for digital vouchers. There are now more than 80 retail and hospitality brands using the network, including recent live launches of Clarks, JD Sports, La Tasca, One Stop, Pets at Home and Spirit Pub Company.

We have also continued to strengthen our team with the appointment of Lucy Sharman-Munday as Chief Financial Officer and a director of the Company, as announced on 16 July 2014. Lucy brings highly valuable and relevant sector knowledge in technology and retail, together with experience in delivering international growth and expansion.

Phill Blundell, Chief Executive, said:

"I am delighted by the significant financial and operational progress that has been achieved in FY2014 as we deliver on our growth strategy as a public company. I would like to thank all the team for their hard work and enthusiasm in embracing the combined strategy and delivering a business ready for the anticipated future growth, and our shareholders who supported the successful IPO."

For further information, please contact:

Eagle Eye

Phill Blundell, Chief Executive Officer

Lucy Sharman-Munday, Chief Financial Officer Tel: [phone]

Panmure Gordon

Hugh Morgan/Callum Stewart, 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 leading UK provider of digital consumer engagement solutions to the retail and hospitality industries.

The Company provides a digital transaction platform for the secure multi-channel issuance, management and redemption of promotional offers, gift vouchers and loyalty-based rewards, replacing previously used paper-based methods. The coupons, gift vouchers and loyalty-based rewards markets are currently transitioning through substantial change as both retailers and consumers are moving away from paper and plastic to digital offers, rewards and loyalty. These markets, in aggregate, are estimated to be worth £54.8 billion, £4.7 billion and £210 million respectively.

The Eagle Eye platform comprises four key components: campaign creation; issuance; redemption and reporting. The Company's products supported by the Eagle Eye platform allow the Company's clients to deliver relevant offers, rewards and services to consumers in real time, in a simple and secure way, across multiple media including email, SMS messaging and loyalty apps. The offers and rewards 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 Aurora Fashion, Greggs, JD Sports, Ladbrokes, Marks & Spencer, Mitchells & Butlers, Orange, Pizza Express, Tesco and Thomas Pink.

Over the last year, the number of transactions conducted over the platform has increased significantly from an average of 200,000 a month in 2012 to 1,000,000 a month in 2013. Revenue has grown at a CAGR of 70 per cent. per annum for the last three years, with revenue for the year ending 30 June 2013 totalling £705,000. In the six months ending 31 December 2013, revenue was 75 per cent. greater than the six months to 31 December 2012.

The Group is headquartered in Guildford, Surrey.

 

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