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LONDON (Alliance News) - Eagle Eye Solutions Group PLC said on Wednesday trading was boosted in the first half of its financial year by revenue from its AIR platform, a growth which looked set to continue as the company announced a multi-year contract with Loblaw Inc for the deployment of the platform.
However, Eagle Eye said delays in contract implementations and lower messaging revenue meant it had not met management expectations for revenue.
The company, which makes software for promotional activity in the retail and leisure sectors, said its overall AIR platform revenue accounted for 68% of its total revenue for the six months to December 31, after its AIR transactional revenue doubled to GBP1.6 million from the same period last year.
This meant total revenue from its AIR platform sat at GBP2.0 million for the half, of the GBP3.0 million total revenue, driven by the impact of new tier 1 customer wins, such as grocer J Sainsbury PLC, and increased transactional revenue from existing customers.
However, whilst group revenue was up 30% for the six months, from GBP2.3 million for the same period last year, messaging revenue fell 19% to GBP0.9 million, on the back of changes to the way messages are delivered for the company's clients. The company said this, along with delays in "certain contract implementations" as well as the phasing of new business wins meant its revenue for the first half of its financial year did not meet management expectations.
Elsewhere the company announced a multi-year contract win in Canada with grocer Loblaws for the deployment of its AIR platform.
No financial details of the contract were provided.
"I am pleased with the strategic progress Eagle Eye has made in the first half of the year. The AIR platform has demonstrated significant growth in both transactions on our network and in revenue growth which reflects the structural market shift to the digital delivery and validation of promotions and loyalty," said Phill Blundell, chief executive of Eagle Eye.
Eagle Eye shares were down 3.9% at 210.00 pence on Wednesday morning.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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