LONDON (ShareCast) - (Sharecast News) - Sofware-as-a-Service and artificial intelligence technology firm Eagle Eye Solutions revealed on Monday that it has lost a major US contract worth up to £10.0m in annual revenue.
Eagle Eye said the contract, which was for the provision of digital promotional services to a national US grocer, with effect from 2 August, was "high margin in nature", due to its incorporation of CPG-funded offers.

The AIM-listed group stated cost reduction programmes to mitigate the impact of the contract loss were already underway.

Despite the loss, Eagle Eye said it was "confident" that there would be no impact on its growth opportunities, which remain "strong".

The contract loss was not expected to meaningfully impact Eagle Eye's FY25 results, which it expects to be in line with current market expectations, and while Eagle Eye acknowledged that the impact on FY26 trading "will be material", it also anticipates maintaining a double-digit adjusted underlying earnings margin.

Chief executive Tim Mason said: "While the news of this contract termination is clearly disappointing, it reflects commercial changes at NRS, outside of our control, and we are taking measures to mitigate the financial impact of the loss. This is a short-term set back and the fundamentals of the business are strong. We have the industry-leading loyalty and promotions capability globally, with attractive growth prospects and an unchanged opportunity.

As of 1045 BST, Eagle Eye shares had sunk 37.22% to 221.0p.





Reporting by Iain Gilbert at Sharecast.com

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE