TIDMEYE
RNS Number : 5205V
Eagle Eye Solutions Group PLC
31 January 2017
31 January 2017
Eagle Eye Solutions Group PLC
("Eagle Eye", "Group" or the "Company")
Trading Update
Strong operational progress and accelerating momentum
Eagle Eye, the SaaS technology company that validates and
redeems digital promotions in real-time for the grocery, retail and
hospitality industries, is pleased to announce the following
trading update ahead of its unaudited interim results for the six
months ended 31 December 2016 (the "Period").
Financial Highlights*:
-- Group revenue increased by c.72% to GBP5.1m (H1 2016:
GBP3.0m) and ahead of market expectations of GBP4.8m
-- Accelerating revenue growth half-on-half, 44% H1 2017 on H2 2016 (H1 FY16 to H2 FY16: 19%)
-- Redemption volumes of 25.2m, an increase of 81% (H1 2016: 13.9m)
-- SMS volumes of 19.0m, an increase of 2% (H1 2016: 18.8m)
-- Revenue from subscription fees and transactions over the
network represented 66% of total revenue in H1 2017 (H1 2016:
84%)
-- Net debt position expected to be GBP0.2m (June 2016: Cash of GBP1.3m)
* Based on unaudited figures
Trading
During the first half of FY2017 the Group has continued to trade
well delivering revenue of GBP5.1 million, a 72% increase on the
prior year and 6% ahead of market expectations of GBP4.8m. The pace
at which the Group is growing has significantly accelerated with
the half-on-half revenue growth rate when compared to H2 FY16 at
44% (H1 FY16 to H2 FY16: 19%).
Overall AIR platform revenue of GBP4.3m represented 85% of total
revenue, up from 68% in the comparable prior year period (H1 FY16:
GBP2.0m), driven by the deepening of our tier 1 customer
relationships and increased transaction revenue from existing
customers.
Total redemption volumes for the Period increased by 81% to
25.2million (H1 2016: 13.9 million). This growth followed Asda's
nationwide roll-out in February 2016 which continued to favourably
impact redemption volumes on the AIR platform. During the Period,
Asda acted as a nationwide redemption channel to run an effective
campaign with Coke Zero Sugar, generating a redemption rate of over
10%. This demonstrates Eagle Eye's ability to successfully drive
higher redemption rates through the power of digital. Eagle Eye has
also run several successful digital campaigns through our food and
beverage network with leading drinks brands including Sol,
Desperados and Bulmers.
The balance of revenue is generated from messaging services.
Despite the Public Health England Stoptober campaign not including
an SMS element this year, SMS volumes increased 2% to 19.0m (H1 16:
18.8m). Overall messaging revenue fell to GBP0.8m (H1 16: GBP1.0m)
reflecting the lower margin on new contract wins between the
periods.
Revenue generated from subscription fees and transactions over
the network represented approximately 66% of total revenue in H1
2017 (H1 2016: 84%). This reflects the progress we are making in
deepening Eagle Eye's system capability within major accounts,
which will open up recurring transactional revenues in future
Periods.
The Group has continued to make progress in increasing the
number of retailers and brands using the Eagle Eye AIR platform,
which as at the end of H1 2017 has 215 live users including 70
brands (H1 2016: 190, including 56 brands).
The Group's net debt position at the end of the Period was in
line with Board expectations at GBP0.2 million (30 June 2016: Cash
of GBP1.3 million).
Tim Mason, Chief Executive, said:
"The Group has continued to trade well in the first half of the
year, accelerating its growth and delivering revenue ahead of
expectations.
This reflects a period of strong operational progress where we
have continued to deepen our tier 1 customer relationships and
increase transactions through the platform. This strong operational
momentum gives the Board confidence in the Group's prospects
including delivering expectations for the full year.
We look forward to providing a full update on the half year's
trading and strategy when we announce our half year results in
March."
For further information, please contact: Eagle Eye
Tim Mason, Chief Executive Officer Tel: 0844 824 3686
Lucy Sharman-Munday, Chief Financial
Officer
Investec (Nominated Advisor and Broker)
Dominic Emery/ David Anderson, Corporate Tel: 020 7886 2500
Finance
Matt Lewis, Corporate Broking
Hudson Sandler
Nick Lyon/Alex Brennan Tel: 020 7796 4133
Information on Eagle Eye
www.eagleeye.com
Eagle Eye is a 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 Company's current customer base comprises leading names in
UK grocery, retail and hospitality including Asda, J Sainsbury,
Greggs, JD Sports, Ladbrokes, Marks & Spencer, Mitchells &
Butlers, Pizza Express, Tesco and Thomas Pink.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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