Source - LSE Regulatory
RNS Number : 5773F
Eagle Eye Solutions Group PLC
19 July 2021
 

 

19 July 2021

Eagle Eye Solutions Group plc

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

 

FY 2021 Trading Update

 

Exiting the year with positive momentum

 

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 an update on the Group's trading for the year ended 30 June 2021 ("the Year").

 

Highlights

 

 

FY 2021

FY 2020

% Change

Group Revenue

£22.8m

£20.4m

12%

Recurring revenue (subscription fees and transactions)

£16.9m

£14.9m

13%

Adjusted EBITDA1

£4.2m

£3.3m

28%

Cash inflow/ (outflow), excluding COVID-19 measures

£0.91m

£0.78m

    17%

Closing net cash position

£0.8m

£1.5m

-46%

 

·      Strong close to the financial year, with accelerated revenue growth of 27% in Q4 compared to the prior year

·      Multiple new customer wins, including Pret a Manger in the UK, Woolworths in Australia, and Staples US Retail, providing a strong platform for further growth in FY 2022 and beyond

·      New business pipeline continues to grow at record levels in all regions

·      Considerable increase in adjusted EBITDA1 to £4.2m, 28% (FY 2020: £3.3m), ahead of market expectations

·      Strong cash performance, ahead of market expectations

·      Entered FY 2022 with an expanded underlying business and positive trajectory

 

Eagle Eye has enjoyed a strong close to the year, delivering 27% growth in Q4 revenues as a result of the winning of enterprise customers, 'Deepen' progress with key contracts and the relaxation of COVID-19 restrictions driving increased transaction levels at the Group's UK Food & Beverage customers.

 

The Group delivered a strong new business 'Win' performance in the Year, including the launch of the pioneering Pret a Manger coffee subscription service, the winning of a five-year contract with Woolworths Group, the largest retailer in Australia, and securing Staples US Retail, the Group's second US customer.

 

While COVID-19 measures negatively impacted the Group's UK Food & Beverage customers and brands for large parts of the year (c.10% of Group revenue pre-COVID-19), the Group's high levels of recurring revenue (approx. 74% of revenues) and increased win rate in the Year meant Eagle Eye delivered revenue growth of 12% to £22.8m (FY 2020: £20.4m). Careful management of the cost base, in line with our revenue profile, alongside continued investment in the product and sales & marketing, resulted in an increase in adjusted EBITDA1 for the Year of 28% to £4.2m (FY 2020: £3.3m), and grew the adjusted EBITDA margin to 17% margin (FY2020: 16%), ahead of market expectations.

 

The Group delivered an improved underlying cash performance in the Year, which saw a cash inflow, excluding COVID-19 related cash management measures, of £0.91m (FY 2020: like-for-like inflow of £0.78m). The Group closed the Year with a net cash position of £0.8m, (FY 2020: £1.5m) being ahead of market expectations, driven by the increase in adjusted EBITDA1 and management of working capital, including COVID-19 VAT deferrals of £0.4m which is expected to be paid in the current financial year ending 30 June 2022 (being the only outstanding Government COVID-19 support received and not yet returned). The Group continues to have access to its £5m banking facility which, combined with the Group's net cash, is sufficient to support its existing growth plans.

 

Outlook

Eagle Eye enters FY 2022 with a considerably expanded underlying business and positive trajectory.

 

The impact of the pandemic has been to accelerate the digital engagement strategies of retailers around the world. The proven enterprise capabilities of the Eagle Eye AIR platform position the Group well to capture a growing proportion of this expanding market.

 

With a growing customer base and record sales pipeline the Board looks to the future with increased confidence.

 

Tim Mason, Chief Executive of Eagle Eye, said: "I am proud of the performance of our team this year; securing fantastic new retailers around the world and delivering innovative solutions that add value for our customers, while dealing with the challenges of the pandemic. This has driven a good financial performance, and importantly, we have exited the year with strong momentum.

 

"With the AIR platform sitting at the heart of the digital marketing programmes at a growing number of the world's largest retailers, we have demonstrated our credentials in an accelerating market, providing us with confidence in our ability to continue to deliver future growth."

 

Notes:

 

All financials based on unaudited figures

1Adjusted EBITDA has been adjusted for the exclusion of share-based payment charges along with depreciation, amortisation, interest and tax from the measure of profit and is reconciled to the GAAP measure of loss before tax.

 

 

For further information, please contact:

 

Tim Mason, Chief Executive Officer

Lucy Sharman-Munday, Chief Financial Officer

 

 

 

Tel: 0844 824 3686

Investec (Nominated Advisor and Joint Broker)

Corporate Finance: David Anderson / Sebastian Lawrence

Corporate Broking: Sara Hale / Will Brinkley / Charlotte Young

 

Tel: 020 7597 5970

 

Shore Capital (Joint Broker)

Corporate Finance: Hugh Morgan/ Daniel Bush/ Sarah Mather

Corporate Broking: Henry Willcocks

 

Tel: 020 7408 4090

Alma PR

Caroline Forde, Robyn Fisher, Molly Gretton

 

Tel: 020 3405 0205

 

About Eagle Eye Solutions

 

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, Leisure and Food & Beverage sectors, including Asda, Sainsbury's, Tesco, Waitrose and John Lewis & Partners, Virgin Red, JD Sports, Pret a Manger, Greggs, Mitchells & Butlers, Pizza Express; in North America, Loblaws, Shoppers Drug Mart and Southeastern Grocers and in Australia & New Zealand, Woolworths Group and The Warehouse Group.

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