LONDON (Alliance News) - Eagle Eye Solutions Group PLC Thursday said it has raised GBP4.0 million in a new 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, 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 revenue 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 with 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.
It also raised GBP4.0 million by issuing 2.0 million new shares at a price of 200 pence, money it said it will use to "accelerate investment in product development and infrastructure and increase sales and marketing resources to capitalise on the market opportunity and drive international expansion".
The new shares being issued represent just under 10% of the company's issued share capital prior to the placing.
Shareholder MXC Capital Ltd also sold 994,512 existing Eagle Eye shares, raising GBP2.0 million for MXC.
MXC Capital was invested in 2ergo when it was sold to Eagle Eye at that time of the latter's initial public offering in April last year. Eagle Eye's IPO funds of GBP6.0 million before expenses were partly put towards the acquisition of 2ergo, and the new placing is its first since the IPO.
Shares in Eagle Eye are trading down 1.6% at 210.00 pence Thursday afternoon.
"We are extremely pleased to have completed this successful fundraising, which will allow Eagle Eye to capitalise on its major growth opportunities.," said Chief Executive Officer Phill Blundell in a statement.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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Eagle Eye (EYE)