Eagle Eye Regulatory News (EYE)

 17 November 2020

Eagle Eye Solutions Group plc

("Eagle Eye", the "Group", or the "Company")

AGM Statement

Significant Australian win adds to a positive start to trading in the new financial year

Eagle Eye, a leading SaaS technology company that creates digital connections enabling personalised, real-time marketing through coupons, loyalty, apps, subscriptions and gift services, is pleased to provide the following update ahead of the Company's Annual General Meeting ("AGM"), to be held at 12:00 p.m. today.

Eagle Eye has had a positive start to the financial year, with highlights including the launch of the Pret a Manger coffee subscription service and winning the recently announced five-year contract with Woolworths Group, the largest retailer in Australia, underlining the enterprise capabilities of the AIR platform and underpinning the Group's continued growth.

While COVID-19 has continued to impact revenue growth, the Group nonetheless delivered revenue growth for Q1 FY21 of 11% on the prior year. The ongoing strategic management of the cost base and investment in line with revenue has resulted in a substantial increase in adjusted EBITDA profit for Q1 FY21, comfortably in line with management expectations. The Group continues to benefit from high levels of recurring revenue and extremely low levels of customer churn. Cash management continues to be strong, with the full headroom within the Group's £5 million banking facility with Barclays available at the end of Q1 FY21, ahead of management expectations and sufficient to support the Group's existing growth plans.

The Group was delighted to announce on 11 November 2020 the five-year contract win with Woolworths Group, the largest retailer in Australia, contributing to revenue from November 2020 onwards. Having signed a contract in 2019 with The Warehouse Group, one of largest retailing groups in New Zealand, Eagle Eye now has a strong position in the Australian and NZ markets, providing a platform for Eagle Eye's entry into the wider Asia Pacific region, where the Board believes there to be a good level of enterprise level prospects. Investment will increase into the Australia market from Q2, in line with the Group's growing revenue profile in the region.

The Group continues to make positive progress in the US, with the planned expansion of the Southeastern Grocers, Inc. implementation going well. Three phases of the eight-phase implementation are now live. The Board is encouraged by the increasing number of sales opportunities entering our pipeline, both through our direct marketing activities and via our partners in the US.

Following the lifting of lockdown in the UK earlier this year, the Group saw a partial recovery in Food & Beverage, Non-Grocery retail and Brand revenues, which accounted for 10% of Group revenue prior to COVID-19. However, with new lockdown restrictions recently introduced the Board anticipates this segment of the customer base and revenue will continue to be impacted for some time. Likewise, whilst the Group has a growing number of opportunities domestically and internationally, the Board anticipates that new customer discussions may continue to be protracted in the current environment.

Outlook

While COVID-19 is likely to continue to impact on the Group's F&B and Non-Grocery customer segment (10% of Group revenue prior to COVID-19) and new business discussions in the short-term, the global pandemic has prompted the acceleration of digital transformation in the retail sector and never has digital engagement with consumers been of more relevance. The news of a potential vaccine is extremely encouraging, for all of us on many levels, however, the Board will continue to ensure the business and Eagle Eye team are well protected until a more normalised environment returns.

Through the growth of Eagle Eye's international customer base, and the addition of Woolworths Group, the Group has strengthened footholds in the US and Asia Pacific alongside its continued strong presence domestically in the UK. This provides an expanding opportunity and is expected to drive accelerated growth in the remainder of the year, in line with management expectations. The Group will continue to invest in its people, product development, sales and marketing, and in new geographies in line with customer demand, whilst carefully managing the business and cost-base, to capitalise on this momentum.

Notes:

All financials based on unaudited figures.

Adjusted EBITDA excludes share-based payment charges along with depreciation, amortisation, interest and tax from the measure of profit.

About Eagle Eye

Eagle Eye is a leading SaaS technology company transforming marketing by creating digital connections that enable personalised performance marketing in real time through coupons, loyalty, apps, subscriptions and gift services. 

Eagle Eye AIR enables the secure issuance and redemption of digital offers and rewards at scale, across multiple channels, enabling a single customer view. We create a network between merchants, brands and audiences to enable customer acquisition, interaction and retention at lower cost whilst driving marketing innovation.

The Company's current customer base comprises leading names in UK Grocery, Retail and Food & Beverage sectors, including Asda, Sainsbury's, Tesco, Waitrose and John Lewis & Partners, JD Sports, Greggs, Mitchells & Butlers, Pizza Express; in North America, Loblaws, Shoppers Drug Mart, Esso and Southeastern Grocers and in Australia & New Zealand, Woolworths Group and The Warehouse Group.