TIDMEYE
RNS Number : 5017F
Eagle Eye Solutions Group PLC
17 November 2020
17 November 2020
Eagle Eye Solutions Group plc
("Eagle Eye", the "Group", or the "Company")
AGM Statement
Significant Australian win adds to a positive start to trading
in the new financial year
Eagle Eye, a leading SaaS technology company that creates
digital connections enabling personalised, real-time marketing
through coupons, loyalty, apps, subscriptions and gift services, is
pleased to provide the following update ahead of the Company's
Annual General Meeting ("AGM"), to be held at 12:00 p.m. today.
Eagle Eye has had a positive start to the financial year, with
highlights including the launch of the Pret a Manger coffee
subscription service and winning the recently announced five-year
contract with Woolworths Group, the largest retailer in Australia,
underlining the enterprise capabilities of the AIR platform and
underpinning the Group's continued growth.
While COVID-19 has continued to impact revenue growth, the Group
nonetheless delivered revenue growth for Q1 FY21 of 11% on the
prior year. The ongoing strategic management of the cost base and
investment in line with revenue has resulted in a substantial
increase in adjusted EBITDA profit for Q1 FY21, comfortably in line
with management expectations. The Group continues to benefit from
high levels of recurring revenue and extremely low levels of
customer churn. Cash management continues to be strong, with the
full headroom within the Group's GBP5 million banking facility with
Barclays available at the end of Q1 FY21, ahead of management
expectations and sufficient to support the Group's existing growth
plans.
The Group was delighted to announce on 11 November 2020 the
five-year contract win with Woolworths Group, the largest retailer
in Australia, contributing to revenue from November 2020 onwards.
Having signed a contract in 2019 with The Warehouse Group, one of
largest retailing groups in New Zealand, Eagle Eye now has a strong
position in the Australian and NZ markets, providing a platform for
Eagle Eye's entry into the wider Asia Pacific region, where the
Board believes there to be a good level of enterprise level
prospects. Investment will increase into the Australia market from
Q2, in line with the Group's growing revenue profile in the
region.
The Group continues to make positive progress in the US, with
the planned expansion of the Southeastern Grocers, Inc.
implementation going well. Th ree phases of the eight-phase
implementation are now live. The Board is encouraged by the
increasing number of sales opportunities entering our pipeline,
both through our direct marketing activities and via our partners
in the US.
Following the lifting of lockdown in the UK earlier this year,
the Group saw a partial recovery in Food & Beverage,
Non-Grocery retail and Brand revenues, which accounted for 10% of
Group revenue prior to COVID-19. However, with new lockdown
restrictions recently introduced the Board anticipates this segment
of the customer base and revenue will continue to be impacted for
some time. Likewise, whilst the Group has a growing number of
opportunities domestically and internationally, the Board
anticipates that new customer discussions may continue to be
protracted in the current environment.
Outlook
While COVID-19 is likely to continue to impact on the Group's
F&B and Non-Grocery customer segment (10% of Group revenue
prior to COVID-19) and new business discussions in the short-term,
t he global pandemic has prompted the acceleration of digital
transformation in the retail sector and never has digital
engagement with consumers been of more relevance. The news of a
potential vaccine is extremely encouraging, for all of us on many
levels, however, the Board will continue to ensure the business and
Eagle Eye team are well protected until a more normalised
environment returns.
Through the growth of Eagle Eye's international customer base,
and the addition of Woolworths Group, the Group has strengthened
footholds in the US and Asia Pacific alongside its continued strong
presence domestically in the UK. This provides an expanding
opportunity and is expected to drive accelerated growth in the
remainder of the year, in line with management expectations. The
Group will continue to invest in its people, product development,
sales and marketing, and in new geographies in line with customer
demand, whilst carefully managing the business and cost-base, to
capitalise on this momentum.
Notes:
All financials based on unaudited figures.
Adjusted EBITDA excludes share-based payment charges along with
depreciation, amortisation, interest and tax from the measure of
profit.
For further information, please contact:
Tim Mason, Chief Executive Officer Tel: 0844 824 3686
Lucy Sharman-Munday, Chief Financial
Officer
Investec (Nominated Advisor and Joint Tel: 020 7597 5970
Broker)
Corporate Finance: David Anderson / Sebastian
Lawrence
Corporate Broking: Sara Hale / Toba Fatimilehin
Shore Capital (Joint Broker) Tel: 020 7408 4090
Corporate Finance: Hugh Morgan/ Daniel
Bush/ Sarah Mather
Corporate Broking: Henry Willcocks
Tel: 020 3405 0205
Alma PR
Caroline Forde, Robyn Fisher, Harriet
Jackson, Molly Gretton
About Eagle Eye
Eagle Eye is a leading SaaS technology company transforming
marketing by creating digital connections that enable personalised
performance marketing in real time through coupons, loyalty, apps,
subscriptions and gift services.
Eagle Eye AIR enables the secure issuance and redemption of
digital offers and rewards at scale, across multiple channels,
enabling a single customer view. We create a network between
merchants, brands and audiences to enable customer acquisition,
interaction and retention at lower cost whilst driving marketing
innovation.
The Company's current customer base comprises leading names in
UK Grocery, Retail and Food & Beverage sectors, including Asda,
Sainsbury's, Tesco, Waitrose and John Lewis & Partners, JD
Sports, Greggs, Mitchells & Butlers, Pizza Express; in North
America, Loblaws, Shoppers Drug Mart, Esso and Southeastern Grocers
and in Australia & New Zealand, Woolworths Group and The
Warehouse Group.
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END
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