LONDON (Alliance News) - Eagle Eye Solutions Group PLC Thursday announced plans to raise GBP4.0 million in a share placing, as it posted a widened pretax loss for 2014 due to higher operating costs from its acquisition of competitor 2ergo Ltd last April.
Eagle Eye provides digital customer services for businesses, including loyalty, promotion and payment services, as well as messaging services.
Eagle Eye posted a pretax loss of GBP1.6 million for the half year to end-December 2014, widened from a pretax loss of GBP434,00 a year before, as a near quadrupling of revenue to GBP2.3 million from GBP604,000 was offset by a jump up in operating costs following the incorporation of 2ergo.
2ergo contributed GBP1.2 million to its revenues for the year. Excluding 2ergo revenue for 2014 was GBP1.1 million, driven by the addition of customers to Eagle Eye's AIR platform. There were more than 110 customers live on the platform at the end of 2014, compared to 40 at the end of 2013.
Following the year end the company signed a minimum two-year deal to deploy its platform in Asda stores in the UK.
Eagle Eye said that, on the back of its first half performance and this contract since the year end, it is confident in its full year outcome and long-term growth opportunities.
The company will raise GBP4.0 million through the placing of 2.0 million shares, or a 9.99% share of the company's existing share capital, via an accelerated bookbuilding process. The price of the placing will be announced following the close of the bookbuild.
Additionally, MXC Capital Ltd will sell up to 994,512 shares in the company.
"Eagle Eye is capitalising on its strong growth and momentum. The proceeds of the placing will allow us to accelerate our exploitation of ever increasing opportunities in the digital market both in the UK and internationally," said Chief Executive Officer Phill Blundell in a statement.
Shares in Eagle Eye are trading down 3.0% at 207.00 pence Thursday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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Eagle Eye (EYE)