Eagle Eye maintains momentum after 'breakout' 2018 year
By Josh White
Date: Friday 16 Nov 2018
(Sharecast News) - Investors in software-as-a-service technology company Eagle Eye Solutions Group were told on Friday that its momentum seen in the year ended 30 June had carried over into the new financial year, as they gathered for the annual general meeting.
The AIM-traded firm had described the 2018 financial year as a "breakout year" for it, in which a key highlight was the successful launch of the 'PC Optimum' digital loyalty programme for Canada's leading retail group, Loblaw Companies.
"The group's momentum has continued into the current financial year and the first quarter has delivered revenue growth of 26% compared to the first quarter of 2018, with revenue generated by the AIR platform growing by 36%," non-executive chairman Malcolm Wall told the gathered shareholders.
"The growth has been driven by the impact of wins at the end of the last financial year, transaction growth from activity through brands together with continued deepening of existing customer engagements.
"Redemption and interaction volumes were 200.5m for the quarter, a 507% increase compared to the same period last year, driven predominantly by the continued expansion of Loblaw's PC Optimum loyalty programme and the deepening of the relationship with other Tier 1 retailers."
Wall said the quarter saw new customer wins, together with the addition of new issuance partners, providing customers a wider audience to which they could promote.
He said the board expected both of those aspects to translate to further volume growth through the platform during the year, in line with expectations
"The challenge we have set ourselves this year of running the business 'better, simpler, cheaper' is now well under way and the initial impact of these initiatives, supported by the growth in revenue, have meant that the group's adjusted EBITDA loss has materially reduced compared to the first quarter of 2018.
"We remain on track for our move to EBITDA profitability, in line with management expectations."
The group's funding position of cash and its £5m banking facility with Barclays were also in line with management expectations, Wall said, and continued to be sufficient to support Eagle Eye's existing growth plans.
"At the start of the year we set an objective to expand into new sectors," Wall said.
"We recently signed a three-year contract with Burger King UK Group for 74 outlets, our first quick service restaurant customer, demonstrating the attraction of the platform outside our traditional grocery, and food and beverage sectors."
The AIR platform and 'Digital Wallet' had broad applicability across sectors, Wall explained, adding that the board had a growing pipeline of additional opportunities, both in the UK and internationally.
"The growth in revenues and volumes is expected to continue into the second quarter of 2019, from the annualisation of Tier 1 contracts, the impact of new wins and the strong growth of the issuance network in the first quarter.
"With our recurring revenue remaining high, at 72% of group revenue, very low levels of customer churn and an expanding addressable market opportunity, the board looks to the remainder of the year and beyond with confidence."
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