TIDMEYE
RNS Number : 5773F
Eagle Eye Solutions Group PLC
19 July 2021
19 July 2021
Eagle Eye Solutions Group plc
("Eagle Eye", the "Group", or the "Company")
FY 2021 Trading Update
Exiting the year with positive momentum
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 year
ended 30 June 2021 ("the Year").
Highlights
FY 2021 FY 2020 % Change
---------- ---------- ---------
Group Revenue GBP22.8m GBP20.4m 12%
Recurring revenue ( subscription fees
and transactions) GBP16.9m GBP14.9m 13%
Adjusted EBITDA (1) GBP4.2m GBP3.3m 28%
Cash inflow/ (outflow), excluding
COVID-19 measures GBP0.91m GBP0.78m 17%
Closing net cash position GBP0.8m GBP1.5m -46%
-- Strong close to the financial year, with accelerated revenue
growth of 27% in Q4 compared to the prior year
-- Multiple new customer wins, including Pret a Manger in the
UK, Woolworths in Australia, and Staples US Retail, providing a
strong platform for further growth in FY 2022 and beyond
-- New business pipeline continues to grow at record levels in all regions
-- Considerable increase in adjusted EBITDA(1) to GBP4.2m, 28%
(FY 2020: GBP3.3m), ahead of market expectations
-- Strong cash performance, ahead of market expectations
-- Entered FY 2022 with an expanded underlying business and positive trajectory
Eagle Eye has enjoyed a strong close to the year, delivering 27%
growth in Q4 revenues as a result of the winning of enterprise
customers, 'Deepen' progress with key contracts and the relaxation
of COVID-19 restrictions driving increased transaction levels at
the Group's UK Food & Beverage customers.
The Group delivered a s trong new business 'Win' performance in
the Year, including the launch of the pioneering Pret a Manger
coffee subscription service, the winning of a five-year contract
with Woolworths Group, the largest retailer in Australia, and
securing Staples US Retail, the Group's second US customer.
While COVID-19 measures negatively impacted the Group's UK Food
& Beverage customers and brands for large parts of the year (
c.10% of Group revenue pre-COVID-19) , the Group's high levels of
recurring revenue (approx. 74% of revenues) and increased win rate
in the Year meant Eagle Eye delivered revenue growth of 12% to
GBP22.8m (FY 2020: GBP20.4m). Careful management of the cost base,
in line with our revenue profile, alongside continued investment in
the product and sales & marketing, resulted in an increase in
adjusted EBITDA (1) for the Year of 28% to GBP4.2m (FY 2020:
GBP3.3m), and grew the adjusted EBITDA margin to 17% margin
(FY2020: 16%), ahead of market expectations.
The Group delivered an improved underlying cash performance in
the Year, which saw a cash inflow, excluding COVID-19 related cash
management measures, of GBP0.91m (FY 2020: like-for-like inflow of
GBP0.78m). The Group closed the Year with a net cash position of
GBP0.8m, (FY 2020: GBP1.5m) being ahead of market expectations,
driven by the increase in adjusted EBITDA(1) and management of
working capital, including COVID-19 VAT deferrals of GBP0.4m which
is expected to be paid in the current financial year ending 30 June
2022 (being the only outstanding Government COVID-19 support
received and not yet returned). The Group continues to have access
to its GBP5m banking facility which, combined with the Group's net
cash, is sufficient to support its existing growth plans.
Outlook
Eagle Eye enters FY 2022 with a considerably expanded underlying
business and positive trajectory.
The impact of the pandemic has been to accelerate the digital
engagement strategies of retailers around the world. The proven
enterprise capabilities of the Eagle Eye AIR platform position the
Group well to capture a growing proportion of this expanding
market.
With a growing customer base and record sales pipeline the Board
looks to the future with increased confidence.
Tim Mason, Chief Executive of Eagle Eye , said: "I am proud of
the performance of our team this year; securing fantastic new
retailers around the world and delivering innovative solutions that
add value for our customers, while dealing with the challenges of
the pandemic. This has driven a good financial performance, and
importantly, we have exited the year with strong momentum.
"With the AIR platform sitting at the heart of the digital
marketing programmes at a growing number of the world's largest
retailers, we have demonstrated our credentials in an accelerating
market, providing us with confidence in our ability to continue to
deliver future growth."
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 / Will Brinkley
/ Charlotte Young
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 Solutions
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, Leisure and Food & Beverage sectors,
including Asda, Sainsbury's, Tesco, Waitrose and John Lewis &
Partners, Virgin Red, JD Sports, Pret a Manger, Greggs, Mitchells
& Butlers, Pizza Express; in North America, Loblaws, Shoppers
Drug Mart and Southeastern Grocers and in Australia & New
Zealand, Woolworths Group and The Warehouse Group.
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END
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