Eagle Eye Regulatory News (EYE)

20 January 2015

Eagle Eye Solutions Group PLC

("Eagle Eye" or "Group")

Trading Update - Continued strong financial progress

Eagle Eye, a leading UK provider of digital consumer engagement solutions to the retail and hospitality industries, is pleased to announce the following trading update ahead of its unaudited interim results for the six months ended 31 December 2014 (the "Period").

Highlights for the Period:

· Revenues grown by 276% to £2.3m (H1 2014: £0.6m)*

· Transactional revenues represent 81% of total revenues (H1 2014: 61%)

· Redemption volumes up 200% year-on-year to more than 8.3m (H1 2014: 2.7m)

· Messaging volumes from the acquired 2ergo business up 96% to 23.2m

· Solid cash position at £1.4m

*Based on unaudited figures

Trading

Eagle Eye has exceeded management expectations in the first half of the year delivering a 276% increase in revenues to £2.3m (H1 2014: £0.6m), of which 81% is transactional revenue (H1 2014: 61%), in line with the Company's strategic focus.  Of the total revenue for H1 2015, an incremental £1.2m was contributed by the 2ergo acquisition made in the middle of April 2014. Excluding 2ergo, organic revenue increased by 81% to £1.1m. This growth reflects both the increasing understanding of the value that Eagle Eye's services offer to retailers and brands as well as the growing number of customers using the Company's network.

Redemption volumes on the Eagle Eye Air platform increased by 200% year on year to more than 8.3 million vouchers, versus 2.7 million in the comparable period in the prior financial year.

Messaging volumes at the now fully integrated 2ergo business increased significantly to 23.2 million (H1 2014: 11.8 million), further evidencing the success of the acquisition and its integration.

Customers

The Group has continued to make good progress in increasing the number of retailers and brands using the Eagle Eye AIR platform, with more than 110 customers live at 31 December 2014 (31 December 2013: 40). This momentum reflects the growing awareness and understanding of the significant operational cost savings, enhanced consumer experiences and competitive advantage that Eagle Eye offers. New projects included a coupon app for One Stop, the Tesco-owned convenience store chain, a loyalty app for Nicholson's Pubs, which includes a digital stamp card for rewarding frequency of visits, and a barista stamp card app for Marks and Spencer, rewarding coffee consumption.

The Group was also delighted to be recognised with a number of key industry awards for Eagle Eye's Greggs Rewards programme during the period.

Phill Blundell, Chief Executive, said:

"I am very pleased with the excellent progress Eagle Eye has continued to make in the first half of the year. We have delivered exceptionally strong growth in both transactions on our network to 8.3 million and in revenue, which reflects the structural market shift to the digital delivery of promotions, giftcards and rewards. In addition, we have successfully integrated and grown the Messaging business, acquired from 2ergo in April 14, volumes from which were 23.2m, up 97% from prior year.

We are clearly demonstrating the value our business brings to our customers as well as seeing the results of the hard work and commitment from the excellent team that we have assembled. The Board and I look forward to announcing further progress alongside our interim results in March."

For further information, please contact:

Eagle Eye

Phill Blundell, Chief Executive Officer

Lucy Sharman-Munday, Chief Financial Officer Tel: 01483 246 426

Panmure Gordon

Hugh Morgan/Duncan Monteith, Corporate Finance

Charles Leigh-Pemberton, Corporate Broking Tel: 020 7886 2500

Hudson Sandler

Nick Lyon/Alex Brennan Tel: 020 7796 4133

Information on Eagle Eye

www.eagleeye.com

Eagle Eye is a leading UK provider of digital consumer engagement solutions, enabling the retail and hospitality industries to deliver real-time digital promotions.

The Company provides a digital transaction platform, Eagle Eye AIR, for the secure, real-time, multi-channel issuance, management and redemption of digital offers, vouchers and rewards, replacing previously used paper-based methods.

The coupons, stored value and loyalty-based rewards markets are currently transitioning through substantial change as both retailers and consumers are moving away from paper and plastic to digital offers, vouchers and rewards. These markets, in aggregate, are estimated to be worth £54.8 billion, £4.7 billion and £210 million respectively.

The Eagle Eye platform comprises four key components: campaign creation; issuance; redemption and reporting. The Company's products supported by the Eagle Eye platform allow the Company's clients to deliver relevant offers, vouchers and rewards to consumers in real time, in a simple and secure way, across multiple media including email, SMS messaging and loyalty apps. The promotions can be redeemed securely by the consumer through any enabled point of sale channel.

The Company's current customer base comprises leading names in UK retail and hospitality including Aurora Fashion, Greggs, JD Sports, Ladbrokes, Marks & Spencer, Mitchells & Butlers, Orange, Pizza Express, Tesco and Thomas Pink.

The Group is headquartered in Guildford, Surrey and has an office in Manchester.