Eagle Eye soars as Sainsbury's inks digital voucher contract for "material revenue"

Eagle Eye Solutions, the retail promotions and voucher specialist with ex-Tesco boss Sir Terry Leahy on its board, has inked a contract of "material" size with Sainsbury's and said its revenues soared 165% in the year to end-June.The AIM-listed company said Sainsbury's will deploy the Eagle Eye AIR digital transaction platform, which replaces retailers paper vouchers with real-time, multi-channel digital offers, vouchers and rewards."This contract will contribute material revenue to Eagle Eye," the company said, with chief executive Phill Blundell saying it was "a major endorsement".This deal means Eagle Eye, which acquired AIM-quoted voucher messaging rival 2ergo in the first half, now has over 30% of the UK grocery market on its AIR platform.A trading update released on the same day highlighted the company's 165% increase in revenues to £4.9m, of which organic growth represented nearly 90%, and cash of £4.3m in the bank at period end after a placing in March.More than 40 new customers and brands have been won during the year, including contracts with Asda and bookmaker Ladbrokes.Broker Panmure Gordon predicted the Sainsbury's deal would be aroud twice the size of the Asda deal for Eagle Eye."While delays in the implementation at a single large customer (longer than expected test sequence) resulted in 2015 falling short of our estimates, that implementation is now back on track," wrote analyst George O'Connor.He added: "Eagle Eye is becoming a key lever in retailers' struggle for customer loyalty and the industry standard network for digital vouchers."