TIDMEYE
RNS Number : 8278M
Eagle Eye Solutions Group PLC
26 January 2021
26 January 2021
Eagle Eye Solutions Group plc
("Eagle Eye", the "Group", or the "Company")
H1 Trading Update
Strong profit growth and new domestic and international customer
wins
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 an update on the Group's trading for the 6
months ended 31 December 2020 ("the Period").
Highlights
H1 2021 H1 2020
--------- ---------- -----
Group Revenue GBP10.8m GBP10.1m +8%
Recurring revenue ( subscription
fees and transactions) 74% 73%
Adjusted EBITDA (1) GBP2.1m GBP1.3m +62%
Net cash/ (debt) at 31 December GBP0.1m GBP(2.2)m
-- Good new business "Win" performance in the UK and
Internationally, securing Woolworths Group in Australia, Pret a
Manger in the UK and a leading speciality office and home products
& services retailer in the US
-- New business pipeline continues to grow at record levels internationally
-- COVID-19-related UK lockdown continues to negatively impact
the Group's Food & Beverage, Non-Grocery retail and Brand
customer revenue streams
-- Considerable increase in adjusted EBITDA(1) to GBP2.1m (H1
2020: GBP1.3m), ahead of Board expectations
-- Strong cash performance, ahead of Board expectations
-- Despite the impact of COVID-19, profit for the financial year
ending 30 June 2021 remains in line with the Board's
expectations
Eagle Eye has had a positive start to the financial year,
continuing to deliver for its clients and win new customers, with
highlights including the launch of the Pret a Manger coffee
subscription service, the winning of a five-year contract with
Woolworths Group, the largest retailer in Australia, and securing
the Group's second US customer, a leading speciality office and
home products & services retailer . These wins demonstrate the
enterprise capabilities of the AIR platform and the Group's
broadening international reach.
The impacts of COVID-19, and most recently the UK national
lockdown 3, continue to negatively impact the Group's UK Food &
Beverage and Non-Grocery customers, which accounted for
approximately 10% of Group revenue pre-COVID-19. Despite this,
Eagle Eye has delivered targeted levels of revenue growth, up 8% to
GBP10.8m in the first half. Additionally, continued careful
management of the cost base whilst ensuring the necessary
investment in the business continues, resulted in an increase in
adjusted EBITDA (1) for the Period of 62% to GBP2.1m (H1 2020:
GBP1.3m).
The Group closed the Period with a net cash position of GBP0.1m,
being ahead of the Board's expectations, following an improved cash
performance in the Period, driven by the increase in adjusted
EBITDA (1) . The Group saw a cash outflow in the Period of GBP1.4m
(H1 2020: outflow of GBP0.9m) due to the unwinding of approximately
GBP1.1m of certain COVID-19 related cash management measures. The
Group continues to have access to its undrawn GBP5m banking
facility which, combined with the Group's net cash, is sufficient
to support its existing growth plans.
Outlook
COVID-19 may continue to cause new contract discussions to be
extended, and is expected to continue to impact the Group's F&B
and Non-Grocery customer segment, causing the Board to remain
cautious in its outlook for this segment. However, the careful
management of the business, successful new wins in the first half
of the year and growth of the existing customer base, mean profit
for the financial year ending 30 June 2021 remains in line with the
Board's expectations.
Never has digital engagement with consumers been of more
relevance to the global retail sector. The
Group's new business pipeline continues to grow at record levels
internationally, including multiple enterprise level opportunities,
providing the Board with confidence in the ongoing success of the
business.
Tim Mason, Chief Executive of Eagle Eye , said: "The pandemic
has highlighted the need for retailers to digitally engage with
their customers, and yet the digital transformation of the global
loyalty, promotion and gift markets is still very much in its
infancy . With our growing international customer base we have
proven that Eagle Eye has the potential to sit at the heart of this
transformation, presenting us with an exciting long-term growth
opportunity .
"While it is clear COVID will adversely impact a section of our
customer base for the remainder of the financial year, we are
confident that we will continue to grow our sales and profits, and
our pipeline has never been stronger both in quality and
quantity.
" With high levels of recurring revenue, very low levels of
customer churn and an expanding customer base, the Board is
encouraged by the significantly increased breadth of Eagle Eye's
opportunity and believes there is considerable potential for
expansion as the situation normalises. "
Notes:
All financials based on unaudited figures
(1) Adjusted EBITDA has been adjusted for the exclusion of
share-based payment charges along with depreciation, amortisation,
interest and tax from the measure of profit and is reconciled to
the GAAP measure of loss before tax.
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
Alma PR
Caroline Forde, Robyn Fisher, Molly Gretton Tel: 020 3405 0205
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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