Trading Update

Eagle Eye Solutions Group PLC

11 July 2023

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF REGULATION 2014/596/EU AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("MAR"). UPON PUBLICATION OF THIS ANNOUNCEMENT THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC.

11 July 2023

Eagle Eye Solutions Group plc

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

FY2023 Trading Update

Strong revenue and profit growth ahead of expectations

Eagle Eye (LSE: "EYE"), a leading SaaS technology company that creates digital connections enabling personalised, real-time marketing, is pleased to provide an update on the Group's trading for the year ended 30 June 2023 ("the Year").

Financial Highlights

	FY 2023	FY 2022	% change
Group Revenue	£43.1m	£31.7m	+36% (29% organic)
Recurring revenue (subscription fees and transactions)	79%	76%	+3ppts
Adjusted EBITDA*	£8.6m	£6.5m	+32%
Closing net cash** position	£9.3m	£3.6m	+158%

·	Strong trading momentum through the year has delivered revenue and adjusted EBITDA* growth of 36% and 32% respectively, ahead of Board expectations
·	Adjusted EBITDA* margin of approximately 20% (FY22: 20.5%), reflecting the growth in Group revenues  alongside the Group's strategy to reinvest into the future growth of the business
·	Strong cash generation resulting in net cash** of £9.3m at 30 June 2023 (30 June 2022: £3.6m), ahead of Board expectations
·	An increasingly international business, expanding in all target geographies, with strong growth in North America and APAC, including continued expansion into South East Asia
·	Successful acquisition of Untie Nots completed in January 2023 and positive performance since acquisition, in line with the Group's expectations, including first joint win
·	Growing new business pipeline across all territories

Eagle Eye delivered another successful year of profitable growth, ahead of Board expectations, with Group revenue up 36% to £43.1m (FY22: £31.7m) and underlying organic revenue growth of 29%, excluding Untie Nots. Adjusted EBITDA* increased by 32% to approximately £8.6m (FY22: £6.5m). This growing level of profits has driven strong cash generation and the Group closed the year with a net cash** position of £9.3m at 30 June 2023 (30 June 2022: £3.6m), providing Eagle Eye with the continued ability to invest to support future growth.

The Group continues to benefit from high levels of recurring revenue, providing a strong basis for continued positive performance, and expects to report good growth in Annual Recurring Revenues and a continued strong Net Revenue Retention metric.

Eagle Eye continues to expand across all key geographies during the year. Highlights include the full go-live of the five-year contract with Woolworths Group, the largest retailer in Australia, the national rollout of Asda's new loyalty programme, the winning of multi-year contract with Morrisons in the UK and wins with a substantial Canadian retailer and IKEA in Taiwan. The strong performance over the last 12 months across all key territories reflects the growing relevance of the Group's AIR platform, as retailers globally become increasingly aware that data driven, personalised promotions are one of the most effective ways to drive increased trade and retain customer loyalty.

In January 2023, Eagle Eye successfully completed the acquisition of Untie Nots, a rapidly growing AI-powered gamification promotions company. In the first months post-acquisition, the newly enlarged Group is already seeing the benefits of working together, reinforcing the Board's belief that Untie Nots' solution resonates well with retailers globally. Introduced by Eagle Eye, Untie Nots secured a loyalty contract with NTUC FairPrice Co-Operative Ltd, Singapore's largest supermarket chain. This was the first win for the Group in the region and demonstrates the benefit to Untie Nots of Eagle Eye's international marketing reach, and the speed of the sales cycle for the Untie Nots offering.

Outlook

The market in which Eagle Eye operates is expanding, as retailers globally develop their omnichannel capabilities to address the rapidly changing consumer shopping behaviours, particularly in the current cost conscious climate. With new technology, such as AI, rapidly increasing the sophistication of promotions, Eagle Eye's central position as the technology that enables the execution of these programmes increases. Eagle Eye expects this shift towards digitisation and personalisation to continue to accelerate and for Eagle Eye to be a beneficiary of that acceleration.

Eagle Eye enters the new financial year in a very strong position, with a growing presence in North America and Australasia, alongside its long-standing European customers. The acquisition of Untie Nots has provided an additional channel for growth, as well as bringing valuable AI capabilities into the Group. Together with the Group's growing ARR, profitability and cash generation, the Board, therefore, looks to the future with confidence.  

Notice of Results

The Group expects to announce its results for the year ended 30 June 2023 on Tuesday 19 September 2023.

Tim Mason, Chief Executive of Eagle Eye, said:

"This has been another outstanding year for Eagle Eye. Our tremendous team have successfully delivered across all areas of our customer strategy, in every target geography. We also completed the acquisition of Untie Nots, bringing new capabilities and fantastic talent into the Group.

"As consumers grapple with the impact of inflation and retailers seek ways to leverage the advances in AI, our ability to enable retailers to execute targeted, personalised promotions and loyalty campaigns has never been more relevant, providing us with yet more growth opportunities.

"With a growing tier-1 customer base, every time we win we are able to invest in increasing our sales and marketing organisation, enabling further growth."

Notes:  

All financials are based on unaudited figures 

*EBITDA has been adjusted for the exclusion of share-based payment charges along with depreciation, amortisation, interest and tax from the measure of profit. 2023 EBITDA figure has also been adjusted to exclude costs associated with the acquisition of Untie Nots.

** Net cash is defined as cash and cash equivalents less financial liabilities.

The person responsible for arranging the release of this announcement on behalf of Eagle Eye is Lucy Sharman-Munday, Chief Financial Officer.

Enquiries:

Eagle Eye Solutions Group plc	Tel: [phone]
Tim Mason, Chief Executive Officer
Lucy Sharman-Munday, Chief Financial Officer
Investec Bank plc (Nominated Adviser & Joint Broker)	Tel: [phone]
Corporate Broking: David Anderson, Nick Prowting
Shore Capital (Joint Broker)	Tel: [phone]
Corporate Advisory: Daniel Bush, David Coaten, Lucy Bowden
Corporate Broking: Henry Willcocks
Alma PR (Financial PR)	Tel: [phone]
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 100 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 Manager, Loblaws, Southeastern Grocers, Giant Eagle and the Woolworths Group.

In January 2023, the Group acquired France-based Untie Nots, an AI-powered personalised promotions business, adding Carrefour, E. Leclerc, Auchan and other leading brands to its European customer base.

 

END