H1 Trading Update and Notice of Results

RNS Number : 0445N

Eagle Eye Solutions Group PLC

18 January 2023

 

18 January 2023

Eagle Eye Solutions Group plc

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

H1 Trading Update

and

Notice of Results

Continued strong trading and confident outlook reflecting the growing global demand for personalised loyalty and promotional programmes

Eagle Eye (LSE: "EYE"), a leading SaaS technology company that creates digital connections enabling personalised, real-time marketing,  is pleased to provide an update on the Group's trading for the six months ended 31 December 2022 (the "Period").

Highlights

	H1 2023	H1 2022	% change
Group Revenue	£20.0m	£15.1m	+32%
Recurring revenue ( subscription fees and transactions)	78%	76%	+2ppt
Adjusted EBITDA *	£4.7m	£3.1m	+50%
Net cash at 31 December**	£5.7m	£1.8m	+215%

·	Continued strong trading momentum, including the full launch of the Woolworths Group contract in Australia and ongoing deepening of engagements in North America during the Period
·	Combined with a healthy new business pipeline, this gives the Company confidence in continued strong growth from its Win, Transact and Deepen strategy
·	Adjusted EBITDA * margin of 23% (H1 2022: 21%), reflecting the growth in Group revenues alongside the Company's balanced on-going investment into the business
·	Trading since the Period end has continued to be strong, and the Board is confident in delivering another year of profitable growth in line with its expectations
·	Successful acquisition of Untie Nots, a high growth France based SaaS business, completed in January 2023, with a number of cross-sell discussions already underway and integration progressing as planned

The Group delivered another strong performance during the Period, with organic revenue growth of 32%, to £20.0m (H1 FY22: £15.1m), and a 50% increase in adjusted EBITDA* to £4.7m (H1 FY22: £3.1m), driven by all areas of the customer strategy: Win, Transact and Deepen. The Group generated net cash inflows of £2.0m in the Period (H1 FY22: £1.0m inflow) and had a net cash** position of £5.7m at 31 December 2022 (30 June 2022: £3.6m), excluding the net proceeds of the placing to finance the Untie Nots acquisition, ahead of the Board's expectations. Net cash including the net proceeds of the placing, which were paid out following completion of the Untie Nots acquisition on 3 January 2023, was £12.4m.

Eagle Eye continued to deliver for its customers across all its target geographies, with highlights including the full go-live of the five-year contract with Woolworths Group, the largest retailer in Australia, the support of Asda's new loyalty programme in the UK, and the continued deepening of engagements with its North American customers.

The Group delivered an adjusted EBITDA margin of 23% in the Period, an increase of 2 ppts compared to both H1 2022 and FY 2022 as a whole. The healthy underlying growth and the flexibility of the Company's business model continues to provide the management team with the confidence to invest in its people and offering, while successfully managing the inflationary environment within budget.

The Group continues to benefit from the scalability of its hosting on Google Cloud and was delighted to get its listing on the Google Cloud Marketplace during the Period. Retailers using Google Cloud can now access and purchase Eagle Eye's solutions faster and more efficiently through the Google Cloud Marketplace.

On 3 January 2023, post Period end, Eagle Eye completed the acquisition of Untie Nots, a high-growth SaaS company that enables retailers to develop highly personalised, profitable, and gamified promotions at scale . The acquisition provides Eagle Eye with accelerated entry into the French digital promotions market, bringing some of Europe's largest grocers into the Group, and provides a wealth of cross-sale opportunities. Several positive new business conversations are already underway, and the integration is progressing as planned.

Outlook

The retail industry is becoming increasingly aware that data driven, personalised promotions are one of the most effective ways to drive increased trade and retain customer loyalty. The proven ability of the Eagle Eye AIR platform to deliver personalised promotions in real-time and at scale means it is in a strong position to address this customer need and drive further growth.

While conscious of the challenging wider economic backdrop, the Group's performance in the Period, its healthy new business pipeline, and the growing international opportunity in the US, Europe, and Asia, coupled with the additional growth opportunity following the acquisition of Untie Nots, underpins the Board's confidence in delivering another year of profitable growth, in line with management expectations for the full year to 30 June 2023.

Notice of Results

The Group expects to announce its audited results for the six months ended 31 December 2022 on Tuesday, 14 March 2023.

Investor briefing

Eagle Eye will be hosting an in-person teach-in for investors and equity research analysts on Thursday, 2 February 2023 in London, providing a deeper dive into the Untie Nots offering. Should you wish to attend please contact Alma at [e-mail] . No material new information will be provided on the day.

Tim Mason, Chief Executive of Eagle Eye , said:

"We are delighted to have delivered another period of strong profitable growth. Through the continued drive of our exceptional team, we are at the forefront of the digital transformation taking place in the world of retail marketing.

"The acquisition of Untie Nots will allow us to bring a compelling and expanded offering to the global retail industry and, on behalf of the Board, I would like to thank both new and existing shareholders for their support in making this possible.

" Never has digital engagement with consumers been of more relevance and, as a Group, we believe we can unlock this considerable growth opportunity. Accordingly, we remain confident in the outlook for the business ."

Notes:   

All financials are based on unaudited figures  

All figures exclude the results of Untie Nots, which was acquired after the end of the Period

*EBITDA has been adjusted for the exclusion of share-based payment charges along with depreciation, amortisation, interest and tax from the measure of profit. H1 2023 EBITDA figure has also been adjusted to exclude costs associated with the acquisition of Untie Nots.

** Net cash is defined as cash and cash equivalents less financial liabilities and excludes placing proceeds raised associated with the consideration for the acquisition of Untie Nots, which was paid out following completion of the acquisition on 3 January 2023.

Enquiries:

Eagle Eye Solutions Group plc	Tel: [phone]
Tim Mason, Chief Executive Officer
Lucy Sharman-Munday, Chief Financial Officer
Investec Bank plc (Sole Financial Adviser, Nominated Adviser & Joint Broker)	Tel: [phone]
Corporate Broking & PLC Advisory: David Anderson, Nick Prowting
Shore Capital (Joint Broker)	Tel: [phone]
Corporate Advisory: Daniel Bush, David Coaten, Lucy Bowden Corporate Broking: Henry Willcocks
Alma PR (Financial PR)	Tel: [phone]
Caroline Forde, Hannah Campbell

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. The Group creates 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, PizzaExpress; in North America, Loblaws, Shoppers Drug Mart, Southeastern Grocers and Staples US Retail and in Australia & New Zealand, Woolworths Group and The Warehouse Group. In January 2023, the Group acquired France based Untie Nots, a personalised promotions business, adding Carrefour, E. Leclerc, Auchan and other leading brands to its European customer base.

Web -   www.eagleeye.com

 

END

 

 

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