LONDON (ShareCast) - (Sharecast News) - Software-as-a-service marketing technology company Eagle Eye Solutions Group reported a 30% rise in revenue in its interim results on Wednesday, to £8m.
The AIM-traded firm said it saw revenue growth of 41% in its 'Eagle Eye AIR' platform in the six months ended 31 December, to £7.5m, with that making up 93% of group revenue, up from 85% in the first half of the 2018 financial year.

Like-for-like revenue on the Eagle Eye AIR platform increased 36% over the prior period, which the board said demonstrated "strong traction" with its existing customer base.

Revenue from subscription fees and transactions over the network totalled £5.8m, which was an increase of 23%, and represented 72% of total revenue, down from 76%.

Eagle Eye's gross margin improved to 93% from 88%, while its gross margin relating to AIR was maintained at 97%.

The company's adjusted EBITDA loss narrowed materially to £0.3m from £1.4m, while it swung to net debt of £1.8m as at 31 December, from net cash of £0.4m on 30 June.

On the operational front, redemptions and interactions volumes increased by 414% to 431 million.

Eagle Eye reported a number of blue-chip client wins in Waitrose post period-end, and Burger King, while its customer churn rate by value reduced to 0.4% from 1.5%.

The company expanded its network audience partners, with the addition of Wuntu, Kids Pass and Blue Light Card, while the board reported continued product innovation to increase speed and capability of its platform, investing £1.9m in the period - the same amount as the comparative period.

There was additional traction reported from the firm's recently-launched products, including the adoption of the 'Digital Wallet' by additional Tier 1 customers and sales of the Eagle Eye app and gift services.

Good progress was reported in the company's transition to the Google Cloud Platform, which was the firm's lead 'better, simpler, cheaper' initiative.

Looking ahead, Eagle Eye said its current trading remained in line with the board's expectations.

Growth in revenues and volumes was expected to continue into the second half of 2019, from the annualisation of Tier 1 contracts, the impact of significant new wins and the strong growth of the audience network.

Eagle Eye said its current funding position was "comfortable", with sufficient headroom remaining with its £5m banking facility to support existing growth plans.

"We are pleased to report on a first half in which we have delivered against all our stated objectives," said chief executive Tim Mason.

"We continue to make strong financial and operational progress."

Mason said the board was "delighted" to add Waitrose and Burger King to its client roster, which he said gave the firm further evidence that major blue chip companies saw the Eagle Eye AIR platform as a "key part" of competing in the digital retail environment.

"With high levels of recurring revenue, increasing transaction volumes and a significant sales pipeline, the board looks to the remainder of the year and beyond with confidence."

As at 1153 GMT, shares in Eagle Eye Solutions Group were down 0.7% at 141p.

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