REG - Eagle Eye Sol Gp PLC - H1 Trading Update and Notice of Results

Eagle Eye SolutionsAnnouncement

18/01/2023 07:00

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RNS Number : 0445N  Eagle Eye Solutions Group PLC  18 January 2023

 

18 January 2023

Eagle Eye Solutions Group plc

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

 

H1 Trading Update

and

Notice of Results

 

Continued strong trading and confident outlook reflecting the growing global
demand for personalised loyalty and promotional programmes

 

Eagle Eye (LSE: "EYE"), a leading SaaS technology company that creates digital
connections enabling personalised, real-time marketing, is pleased to provide
an update on the Group's trading for the six months ended 31 December 2022
(the "Period").

 

Highlights

 

                                                         H1 2023  H1 2022  % change
 Group Revenue                                           £20.0m   £15.1m   +32%
 Recurring revenue (subscription fees and transactions)  78%      76%      +2ppt
 Adjusted EBITDA(*)                                      £4.7m    £3.1m    +50%
 Net cash at 31 December**                               £5.7m    £1.8m    +215%

 

 

 ·             Continued strong trading momentum, including the full launch of the Woolworths
               Group contract in Australia and ongoing deepening of engagements in North
               America during the Period
 ·             Combined with a healthy new business pipeline, this gives the Company
               confidence in continued strong growth from its Win, Transact and Deepen
               strategy
 ·             Adjusted EBITDA(*) margin of 23% (H1 2022: 21%), reflecting the growth in
               Group revenues alongside the Company's balanced on-going investment into the
               business
 ·             Trading since the Period end has continued to be strong, and the Board is
               confident in delivering another year of profitable growth in line with its
               expectations
 ·             Successful acquisition of Untie Nots, a high growth France based SaaS
               business, completed in January 2023, with a number of cross-sell discussions
               already underway and integration progressing as planned

 

The Group delivered another strong performance during the Period, with organic
revenue growth of 32%, to £20.0m (H1 FY22: £15.1m), and a 50% increase in
adjusted EBITDA* to £4.7m (H1 FY22: £3.1m), driven by all areas of the
customer strategy: Win, Transact and Deepen. The Group generated net cash
inflows of £2.0m in the Period (H1 FY22: £1.0m inflow) and had a net cash**
position of £5.7m at 31 December 2022 (30 June 2022: £3.6m), excluding the
net proceeds of the placing to finance the Untie Nots acquisition, ahead of
the Board's expectations. Net cash including the net proceeds of the placing,
which were paid out following completion of the Untie Nots acquisition on 3
January 2023, was £12.4m.

 

Eagle Eye continued to deliver for its customers across all its target
geographies, with highlights including the full go-live of the five-year
contract with Woolworths Group, the largest retailer in Australia, the support
of Asda's new loyalty programme in the UK, and the continued deepening of
engagements with its North American customers.

 

The Group delivered an adjusted EBITDA margin of 23% in the Period, an
increase of 2 ppts compared to both H1 2022 and FY 2022 as a whole. The
healthy underlying growth and the flexibility of the Company's business model
continues to provide the management team with the confidence to invest in its
people and offering, while successfully managing the inflationary environment
within budget.

 

The Group continues to benefit from the scalability of its hosting on Google
Cloud and was delighted to get its listing on the Google Cloud Marketplace
during the Period. Retailers using Google Cloud can now access and purchase
Eagle Eye's solutions faster and more efficiently through the Google Cloud
Marketplace.

 

On 3 January 2023, post Period end, Eagle Eye completed the acquisition of
Untie Nots, a high-growth SaaS company that enables retailers to develop
highly personalised, profitable, and gamified promotions at scale. The
acquisition provides Eagle Eye with accelerated entry into the French digital
promotions market, bringing some of Europe's largest grocers into the Group,
and provides a wealth of cross-sale opportunities. Several positive new
business conversations are already underway, and the integration is
progressing as planned.

 

Outlook

 

The retail industry is becoming increasingly aware that data driven,
personalised promotions are one of the most effective ways to drive increased
trade and retain customer loyalty. The proven ability of the Eagle Eye AIR
platform to deliver personalised promotions in real-time and at scale means it
is in a strong position to address this customer need and drive further
growth.

 

While conscious of the challenging wider economic backdrop, the Group's
performance in the Period, its healthy new business pipeline, and the growing
international opportunity in the US, Europe, and Asia, coupled with the
additional growth opportunity following the acquisition of Untie Nots,
underpins the Board's confidence in delivering another year of profitable
growth, in line with management expectations for the full year to 30 June
2023.

 

Notice of Results

 

The Group expects to announce its audited results for the six months ended 31
December 2022 on Tuesday, 14 March 2023.

 

Investor briefing

 

Eagle Eye will be hosting an in-person teach-in for investors and equity
research analysts on Thursday, 2 February 2023 in London, providing a deeper
dive into the Untie Nots offering. Should you wish to attend please contact
Alma at eagleeye@almapr.co.uk (mailto:eagleeye@almapr.co.uk) . No material new
information will be provided on the day.

 

Tim Mason, Chief Executive of Eagle Eye, said:

 

"We are delighted to have delivered another period of strong profitable
growth. Through the continued drive of our exceptional team, we are at the
forefront of the digital transformation taking place in the world of retail
marketing.

 

"The acquisition of Untie Nots will allow us to bring a compelling and
expanded offering to the global retail industry and, on behalf of the Board, I
would like to thank both new and existing shareholders for their support in
making this possible.

 

"Never has digital engagement with consumers been of more relevance and, as a
Group, we believe we can unlock this considerable growth opportunity.
Accordingly, we remain confident in the outlook for the business."

 

Notes:

All financials are based on unaudited figures

All figures exclude the results of Untie Nots, which was acquired after the
end of the Period

*EBITDA has been adjusted for the exclusion of share-based payment charges
along with depreciation, amortisation, interest and tax from the measure of
profit. H1 2023 EBITDA figure has also been adjusted to exclude costs
associated with the acquisition of Untie Nots.

** Net cash is defined as cash and cash equivalents less financial liabilities
and excludes placing proceeds raised associated with the consideration for the
acquisition of Untie Nots, which was paid out following completion of the
acquisition on 3 January 2023.

 

Enquiries:

 Eagle Eye Solutions Group plc                                             Tel: 0844 824 3686
 Tim Mason, Chief Executive Officer
 Lucy Sharman-Munday, Chief Financial Officer

 Investec Bank plc (Sole Financial Adviser, Nominated Adviser & Joint      Tel: +44 20 7597 5970
 Broker)
 Corporate Broking & PLC Advisory: David Anderson, Nick Prowting

 Shore Capital (Joint Broker)                                              Tel: +44 20 7408 4090
 Corporate Advisory: Daniel Bush, David Coaten, Lucy Bowden

 Corporate Broking: Henry Willcocks

 Alma PR (Financial PR)                                                    Tel: +44 20 3405 0205
 Caroline Forde, Hannah Campbell

 

 

About Eagle Eye

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.
The Group creates 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, PizzaExpress; in North America,
Loblaws, Shoppers Drug Mart, Southeastern Grocers and Staples US Retail and in
Australia & New Zealand, Woolworths Group and The Warehouse Group. In
January 2023, the Group acquired France based Untie Nots, a personalised
promotions business, adding Carrefour, E. Leclerc, Auchan and other leading
brands to its European customer base.

 

Web - www.eagleeye.com (http://www.eagleeye.com/)

 

 

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