AGM Statement

RNS Number : 5494H

Eagle Eye Solutions Group PLC

16 November 2018

 

 16 November 2018

Eagle Eye Solutions Group plc

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

AGM Statement

Strong customer momentum delivers Q1 revenue growth of 26% and narrowing EBITDA loss

Entry into Quick Service Restaurant sector

Eagle Eye is the SaaS technology company that allows businesses to create a real-time connection to attract and retain their customers through digital promotions and loyalty services. At the Company's Annual General Meeting ("AGM"), to be held at 1:00 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 2018 was a breakout year for Eagle Eye in which a key highlight was the successful launch of the PC Optimum digital loyalty programme for Canada's leading retail group, Loblaw Companies Limited ("Loblaw"). With over 150m offer permutations being delivered each week to the millions of Loblaw customers, we have conclusively proven the scale and capabilities of our AIR platform. We also reported on significant investment made to our people, processes and product, including the launch of the Digital Wallet, which broadens Eagle Eye's capability from existing digital promotions and gift services to include loyalty. This innovation increases the relevance of our offering across our existing and potential customer base and will provide us with growth opportunities, both in the UK and internationally.

Trading update

The Group's momentum has continued into the current financial year and Q1 FY2019 has delivered revenue growth of 26% compared to Q1 FY2018, with revenue generated by the AIR platform growing by 36%. The growth has been driven by the impact of wins at the end of the last financial year, transaction growth from activity through brands together with continued deepening of existing customer engagements. Redemption and interaction volumes were 200.5m for the quarter, a 507% increase compared to the same period last year, driven predominantly by the continued expansion of Loblaw's PC Optimum loyalty programme and the deepening of the relationship with other Tier 1 retailers.

The quarter saw new customer wins, together with the addition of new issuance partners, providing our customers a wider audience to which they can promote. We expect both of these aspects to translate to further volume growth through the platform during the year, in line with expectations

The challenge we have set ourselves this year of running the business 'Better, Simpler, Cheaper' is now well under way and the initial impact of these initiatives, supported by the growth in revenue, have meant that the Group's adjusted EBITDA loss has materially reduced compared to Q1 FY2018. We remain on track for our move to EBITDA profitability, in line with management expectations.

The Group's funding position of cash and its £5 million banking facility with Barclays are in line with management expectations and continue to be sufficient to support the Group's existing growth plans.

First Quick Service Restaurant customer

At the start of the year we set an objective to expand into new sectors. We recently signed a three-year contract with Burger King UK Group ("Burger King") for 74 outlets, our first quick service restaurant ('QSR') customer, demonstrating the attraction of the platform outside our traditional grocery and food & beverage sectors. The AIR platform and Digital Wallet have broad applicability across sectors and we have a growing pipeline of additional opportunities, both in the UK and internationally.

Outlook

The growth in revenues and volumes is expected to continue into Q2 FY2019, from the annualisation of Tier 1 contracts, the impact of new wins and the strong growth of the issuance network in the first quarter. With our recurring revenue remaining high, at 72% of Group revenue, very low levels of customer churn and an expanding addressable market opportunity, the Board looks to the remainder of the year and beyond with confidence."

* 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 Lucy Sharman-Munday, Chief Financial Officer	Tel: [phone]
Investec (Nominated Advisor and Broker)
Corporate Finance: David Anderson / Sebastian Lawrence Corporate Broking: Sara Hale / Helene Comitis	Tel: [phone]
Alma PR
Caroline Forde / Rebecca Sanders-Hewett / Robyn Fisher	Tel: [phone]
Information on Eagle Eye www.eagleeye.com

Eagle Eye is a leading SaaS marketing technology company that enables businesses to create a real-time connection to attract and retain customers, through digital promotion and loyalty services.

The Company's digital marketing platform, Eagle Eye AIR, enables the secure issuance and redemption of digital offers and rewards at scale, across multiple channels, enabling a single customer view. Our platform creates a network effect between merchants, distributors and brands enabling stronger connections and value to all parties, allowing them 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, Marks & Spencer, Mitchells & Butlers, Pizza Express, Tesco and Loblaw in Canada.  

 

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