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Eagle Eye Sol Gp PLC (EYE)

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Thursday 09 November, 2017

Eagle Eye Sol Gp PLC

AGM Statement

RNS Number : 9886V
Eagle Eye Solutions Group PLC
09 November 2017
 

 

9 November 2017

 

Eagle Eye Solutions Group plc

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

 

AGM Trading Update

 

Eagle Eye is the SaaS technology company that allows businesses to create a real-time connection with their customers. At the Company's Annual General Meeting ("AGM"), to be held at 12:30 p.m. today, Malcolm Wall, Non-Executive Chairman of Eagle Eye, will make the following statement on the Group's trading:

 

"As previously announced, the year ended 30 June 2017 was a successful period for Eagle Eye that saw us exceed management's original revenue expectations, put in the foundations for scale and execute against our growth strategy.

 

The Group's momentum has continued into the current financial year and Q1 FY2018 has delivered revenue growth of 36% to £3.1m, in line with previous guidance. The Group's cash position at the end of Q1 FY2018 was ahead of management expectations at £1.7 million.

 

In addition to delivering on our strategy of win, transact and deepen, as reported below, we are excited to provide an update on our contract with Loblaw Companies Limited ("Loblaw").

 

LOBLAW

 

On 8 November Loblaw announced1 it will be merging two of Canada's most popular loyalty programs into one, PC Optimum. This will link analogue and digital channels together through one card, one app and one currency.

 

The Eagle Eye AIR platform sits at the heart of the PC Optimum loyalty platform and is integrated with Loblaw's channels and systems, enabling a single customer view. Eagle Eye AIR will enable omni-issuance and omni-redemption, allowing customers to receive loyalty offers through their preferred channels.

 

The PC Optimum programme is scheduled to go live on 1 February 2018, at which time the Eagle Eye AIR platform will be supporting all loyalty interactions for Loblaw supermarkets, Shoppers Drug Mart locations, PCF Financial bank services and online.

 

 

WIN

 

In October 2017, Scottish fashion chain M&Co. signed a five-year contract with Eagle Eye to digitise their current customer reward programme and introduce a new gift offering, supporting both digital and traditional plastic gift cards.

 

Also in October 2017 Eagle Eye signed a contract with Greene King to support on its Season Ticket programme and digital promotions. This important win further solidifies our position in the UK food and beverage market to 80% coverage2 and offers our brand partners greater opportunities to run measurable campaigns through an extended redemption network.

 

TRANSACT

 

Redemption volumes have seen a 50% growth on the previous quarter to 32.6m, and a 179% increase compared to the same period last year. Volume was primarily driven by growth with Sainsbury's which initially went live in Q4. In Q4 FY2017 all Sainsbury newly created instore coupons included barcodes issued and redeemed by the Eagle Eye AIR platform. In Q1 FY2018 further capability was added to include the online channel, meaning a Sainsbury's customer can receive a coupon instore and redeem it online, as long as it is connected to a loyalty identity, enabling a truly omnichannel experience.  

 

Issuance partners form a key part of our transact strategy and during the period we were delighted to sign new framework agreements with both Groupon and Google EMEA. These two major global digital players will enable us to reach a significantly increased number of people, offering our connected merchants and brands an extended target audience and opportunity for customer acquisition. 

 

Google

The Google contract was signed in October 2017 and the first campaign powered by our Eagle Eye AIR platform is already live with Google for 'Visa tap & win'. This enables new Visa and Android Pay users who tap to pay at any location, between now and 31 January 2018, to earn chances to win instant prizes. These include vouchers up to £50, redeemable at five Eagle Eye participating merchants; Greggs, Casual Dining Group, Mitchells and Butlers, M&S and Pizza Express3 proving the power of the Eagle Eye merchant network to both Google and merchants.

 

DEEPEN

 

Revenue generated from client subscription fees and transactions over the network represented 72% of total revenue in Q1 FY2018 (FY2017: 68%), illustrating the start of the transition of our key Tier 1s into the next phase of their contracts.

 

We are also pleased to also announce the renewal of two important clients within our food and beverage sector: Greggs (five-year contract) and Mitchells and Butlers (three-year contract). These renewals reflect the continued relevance of our solution and in both cases the Eagle Eye AIR platform is being used to power an enhanced digital experience for the customer."

 

 

For further information, please contact:

 Tim Mason, Chief Executive Officer

 Lucy Sharman-Munday, Chief Financial Officer

Tel: 0844 824 3686

 

  Investec (Nominated Advisor and Broker)

Corporate Finance: David Anderson / Sebastian Lawrence

Tel: 020 7597 5970

Corporate Broking: Matt Lewis / Rob Baker

 

  Hudson Sandler

  Nick Lyon/Hattie O'Reilly  

Tel: 020 7796 4133

 

  Information on Eagle Eye

  www.eagleeye.com

 

Eagle Eye is a leading SaaS technology company that allows businesses to create a real-time connection with their customers.

 

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 Company's current customer base comprises leading names in UK grocery, retail and hospitality including John Lewis, Asda, J Sainsbury, Greggs, JD Sports, Ladbrokes, Marks & Spencer, Mitchells & Butlers, Pizza Express, Tesco and Thomas Pink.

 

Notes:

 

1.   Source: http://media.loblaw.ca/English/media-centre/press-releases/press-release-details/2017/Two-of-Canadas-most-popular-loyalty-programs---Shoppers-Optimum-and-PC-Plus---to-come-together-as-the-PC-Optimum-program-increasing-convenience-and-rewards-for-millions-of-Canadians/default.aspx

2.   Source calculated based on top ten pub and bar restaurants, MCA Eating out Report 2016

3.   Source as of 9 November 2017: https://www.android.com/intl/en_uk/pay/promotions/visa/

 

 

All financial information included in this announcement is sourced from unaudited management accounts and excludes any specific items. This announcement contains certain forward-looking statements that are based on management's current expectations or beliefs as well as assumptions about future events.  These are subject to risk factors associated with, amongst other things, the economic and business circumstances occurring from time to time in the countries and sectors in which Eagle Eye operates.  It is believed that the expectations reflected in these statements are reasonable, but they may be affected by a wide range of variables which could cause actual results, and Eagle Eye's plans and objectives, to differ materially from those currently anticipated or implied in the forward-looking statements.  Investors should not place undue reliance on any such statements. Nothing in this announcement should be construed as a profit forecast.


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