Eagle Eye Solutions ups guidance following contract extensions

(Sharecast News) - Software-as-a-Service provider Eagle Eye Solutions upped its full-year guidance on Friday after inking contract extensions with both Sainsbury's and Asda.
Eagle Eye secured the two-year contract extensions for the continued provision of the Eagle Eye AIR platform to support the Nectar rewards programme at Sainsbury's and a number of digital promotions at Asda.

The company said that its full-year adjusted underlying earnings were projected to be at least £500,000 ahead of market expectations despite seeing a 10% decrease in monthly group revenues as a result of the Covid-19 lockdowns.

Revenues from supermarket clients remained "resilient", while food and beverage, non-grocery retail and leisure revenues were all impacted.

The AIM-listed group said it was now experiencing normal levels of new business activity and a growing sales pipeline, however, new contract signings were taking longer to close, as anticipated.

Chief executive Tim Mason said: "We are conscious we are only at the start of the impact of Covid-19 on the economy and the retail sector in particular and, therefore, while we believe digital, personalised connections with customers will continue to grow in relevance, we will maintain our strong focus to ensure we successfully navigate these challenging times for all."

As of 0900 BST, Eagle Eye shares were up 7.40% at 167p.