LONDON (Alliance News) - Eagle Eye Solutions Group PLC on Thursday posted a wider pretax loss for the first half of its financial year as it invested in its technology, though revenue increased and its gross margin improved significantly.
Eagle Eye, which makes software for promotional activity in the retail and leisure sectors, said its pretax loss for the half to the end of December widened to GBP2.4 million, from GBP1.6 million a year earlier, as the group hiked investments into its technology, including digital wallet capabilities, in order to allow it to grow into the loyalty programme market.
Revenue rose 30% to GBP3.0 million from GBP2.3 million, driven by growth in revenue from Eagle Eye's AIR transaction platform and higher subscription revenue. Total customer numbers rose to 190 at the end of the half from 110 a year earlier, including a major contract with grocer J Sainsbury PLC.
Cost of sales remained broadly flat, meaning the group's gross margin improved to 76% from 66%.
"The market opportunity created by the advancement in mobile technology supports our core competency of digital promotions and rewards. Given this performance, the doubling of AIR revenues, and our better than expected cash position, the Board is excited both in the group's full year outcome and its long-term growth prospects," said Tim Mason, Eagle Eye's chairman.
Shares in Eagle Eye were up 0.9% to 164.00 pence.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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Eagle Eye (EYE)