REG - Eagle Eye Solutions - Final Results
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RNS Number : 4235Z Eagle Eye Solutions Group PLC 16 September 2025
16 September 2025
Eagle Eye Solutions Group PLC
("Eagle Eye", the "Group" or the "Company")
Final Results for the year ended 30 June 2025
Double-digit SaaS growth supports AI execution at scale
Eagle Eye, a leading SaaS and AI technology company that creates digital
connections enabling personalized, real-time marketing at scale, is pleased to
announce its audited results for the year ended 30 June 2025 (the "Year").
Financial Highlights
FY 2025 FY 2024 Change
Group revenue £48.2m £47.7m +1%
SaaS Revenue £40.2m £36.1m +11%
AIR SaaS £34.5m £31.6m +9%
revenue
EagleAI SaaS £5.7m £4.4m +30%
revenue
Professional Services Revenue £7.5m £10.2m (26)%
SMS Revenue £0.5m £1.4m (64)%
Recurring revenue % of Group revenue 84% 79% +5ppt
Period end Annual Recurring Revenue(1) £34.0m £39.7m (14)%
Net Revenue Retention(2) 109% 109% -
Direct profit £34.5m £34.8m (1)%
Adjusted EBITDA(3) £12.2m £11.3m +8%
Adjusted EBITDA margin 25.3% 23.6% +1ppt
Adjusted EBITA(4) £6.6m £4.6m +43%
Adjusted EBITA margin 13.6% 9.6% +4ppts
Profit before tax £3.0m £0.7m +315%
Net cash flows from operations £13.5m £9.5m +42%
Net cash(5) at 30 June 2025 £12.3m £10.4m +18%
Strategic Highlights
Major OEM agreement secured and progressing well
· AIR platform embedded into the product offerings of one of the largest
software providers in the world - 25+ initial enterprise scale targets
identified by the OEM
· Product development milestones have been successfully achieved; full product
launch and first customer contracts anticipated in Q2 FY26 as planned
· On track for material revenue generation from FY27
Financial performance in line with revised guidance, demonstrating ongoing
SaaS transformation
· Double digit SaaS revenue growth, strong margin performance and significant
PBT increase
· Ongoing customer adoption of AI offerings, with EagleAI revenue up 30% to
£5.7m
· Previously announced loss of the Neptune Retail Solutions (NRS) contract, due
to isolated corporate developments at NRS, reduced exit ARR
· Excluding NRS, organic ARR growth was 5% on a constant currency basis
· Net cash increased by 18%, ahead of expectations, even after payment of
Promotional Payments Solutions (PPS) acquisition consideration
Wins secured in new geographies and markets, alongside renewals and
expansions, strengthen the Group's global blue-chip customer base and provide
further validation of Eagle Eye's leading market position
· New wins secured in the Year, including OTR Group and Transurban in Australia,
Galeries Lafayette in France, Metro Limited in Singapore and a Mexican
subsidiary of one of the world's largest retailers
· Secured several multi-year renewal contracts with major customers, including
Loblaw, Southeastern Grocers, E.Leclerc and Greggs, alongside deepening
engagement across existing customers
Tangible opportunities to accelerate growth, with three clear routes to market
(Direct, Partners, OEM)
· Reinvigorated Direct sales effort, led by US-based CRO and with a focus to
capture the significant North American opportunity
· Major Systems Integrators now on board, including Deloitte, Accenture Song,
Infosys and Epam, and first win via an SI referral secured in the Year
Acquisition of PPS strengthening Eagle Eye's offering and market position
· Earnings enhancing acquisition completed on 27 June 2025 of PPS, a SaaS
company specialising in digital promotions and loyalty solutions, adding
approximately €3m ARR
Confident in delivering progress in FY26 and beyond
· Trading in H1 FY26 has started well, with new Wins secured with a leading
European value retailer, Central Thailand and a UK builders' merchants
· The Board is confident in maintaining a double-digit adjusted EBITDA margin
for FY26 and improving adjusted EBITDA progression as the year progresses,
with a target FY26 exit run rate EBITDA margin of 20%
· Commencement of a £1m share buyback programme post period end, of which
£0.9m remaining
· With strong momentum in our EagleAI business, a clear growth strategy across
our expanded routes to market, an increasingly scalable technology proposition
and opportunities continuing to progress through the pipeline, the Board is
confident in a return to double digit revenue and EBITDA growth in FY27, and
in Eagle Eye's significant medium-term growth prospects.
Tim Mason, Chief Executive of Eagle Eye, said:
"FY25 was a year of strategic progress for Eagle Eye, despite its challenges.
We have initiated programmes to reinvigorate organic growth, seen ongoing
adoption of our proven AI offerings, and commenced the integration of our
technology into the new cloud hosted loyalty management solution of one of the
world's largest enterprise software vendors.
"Eagle Eye is now in a very different position to where it was when we started
our concerted move towards becoming a global SaaS business a year ago, and we
are confident these expanded routes to market and major structural changes
will support reinvigorated growth. Whilst we have taken actions in light of
the loss of the NRS contract, the scale of the opportunity ahead demands that
we remain steadfast in our strategy and continue to invest to drive long-term
value creation.
"With a strengthened leadership team, extensive blue-chip customer base, an
authentic leadership position in AI and a proven offering delivering
compelling ROI, I am confident Eagle Eye is well positioned to seize the
considerable opportunity ahead."
(1) Period end Annual Recurring Revenue ("ARR") is defined as period exit rate
for recurring subscription and transaction revenue (exc SMS) plus any
professional services contracted for more than 12 months hence and secured new
wins, excluding any seasonal variations and lost contracts.
(2) Net Revenue Retention ("NRR") rate is defined as the improvement in
recurring revenue excluding SMS and new wins in the last 12 months.
(3) EBITDA has been adjusted for the exclusion of share-based payment charges
along with depreciation, amortisation, interest, restructuring costs, costs
associatd with acquisitions and tax from the measure of profit and is
reconciled to profit before taxation note 6.
(4) EBITA has been adjusted for the exclusion of share-based payment charges
along with IFRS3 amortisation associated with acquisitions, interest,
restructuring costs, costs associated with acquisitions and tax from the
measure of profit and is reconciled to profit before taxation in note 6.
[Adjusted EBITA is stated after IFRS 3 amortisation has been deducted]
(5) Net cash is defined as cash and cash equivalents less financial
liabilities.
Enquiries:
Eagle Eye Solutions Group plc Tel: 0844 824 3686
Tim Mason, Chief Executive Officer
Lucy Sharman-Munday, Chief Financial Officer
Investec Bank plc (Nominated Adviser and Joint Broker) Tel: +44 20 7597 5970
David Anderson / Nick Prowting / James Smith
Shore Capital (Joint Broker) Tel: +44 20 7408 4090
Corporate Advisory: Daniel Bush, David Coaten, Lucy Bowden
Corporate Broking: Henry Willcocks
Alma Strategic Communications Tel: +44 20 3405 0205
Caroline Forde, Hannah Campbell, Kinvara Verdon
About Eagle Eye
Eagle Eye is a leading SaaS and AI company, enabling retail, travel and
hospitality brands to earn lasting customer loyalty through harnessing the
power of real-time, omnichannel and personalized marketing. Our powerful
technology combines the world's most flexible and scalable loyalty and
promotions capability with cutting edge, built-for-purpose AI to deliver 1:1
personalization at scale for enterprise businesses, globally.
Our growing customer base includes Loblaws, Southeastern Grocers, Giant Eagle,
Asda, Tesco, Morrisons, JD Sports, E.Leclerc, Carrefour, the Woolworths Group
and many more. Each week, more than 1 billion personalized offers are
seamlessly executed via our platform, and over 700 million loyalty member
wallets are managed worldwide.
AI-powered, API-based and cloud-native, Eagle Eye's enterprise-grade
technology is fully certified by the MACH Alliance and has received
recognition from leading industry bodies, including Gartner, Forrester, IDC
and QKS.
Web - www.eagleeye.com
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Chair Statement
FY25 has been a pivotal year in Eagle Eye's transformation into a global SaaS
business, achieving several important strategic milestones that will increase
scalability and accelerate progress towards our growth ambitions. These
included strengthening our leadership team, reorganising our sales team and
processes, streamlining our operations and increasing our technology's
attractiveness to Partners. While we faced a short-term setback with the loss
of the Neptune Retail Solutions' ("NRS") related contract in June 2025, we
undertook a cost base review and appropriate levels of head-count reductions
have been made, while maintaining our ability to capitalise on the compelling
medium-term opportunity we see in front of us.
In a rapidly changing world, Eagle Eye's proven AI offerings and capability
puts it in a strong and authentic position at the forefront of the
personalized marketing revolution taking place globally. In 2023, Eagle Eye
acquired Untie Nots, a personalized marketing technology business, founded in
2016, with AI and Machine Learning at its core. Since the acquisition, the
technology has been improved yet further, through the incorporation of
transformer technology which has significantly increased customer affinity via
system generated recommendations. These capabilities are deployed at scale
across multiple countries, in collaboration with some of the world's largest
and most innovative retailers, achieving proven ROI for customers of 7:1. As
organisations increasingly consider how they can incorporate AI into their
marketing strategies, so our opportunity grows. Zyed Jamoussi, who joined the
Group as part of the Untie Nots acquisition, became Group CTO in April this
year, reflecting Eagle Eye's increasing focus on productisation and AI
innovation.
A key moment in the Year came in January 2025, with the signing of a global
OEM agreement with one of the world's largest enterprise software vendors. The
agreement will see our technology embedded within the vendor's next generation
cloud hosted loyalty management solution, providing Eagle Eye with a new,
scalable route to market, through leveraging the power of a leading technology
ecosystem to extend into new sectors and markets. The size of the vendor's
existing on-premise customer base gives the Board confidence this channel will
generate substantial additional revenue from FY27 onwards, with the potential
to double the size of the business in the medium-term.
Alongside AI development, we have continued to advance our core platform as
part of our SaaS-focused strategy. Leveraging the best of Google's modern
cloud technology, we are enhancing speed, capacity and scalability, to support
our global growth ambitions, while reducing costs. At the same time, we are
investing in our integration capabilities with partners, reducing time to
value for our clients and simplifying implementation, both directly and
through System Integrators ("SIs"), to make it easier for our customers to
adopt and benefit from our solutions. These efforts ensure that Eagle Eye is
well positioned to support large scale, multi-channel deployments across all
routes to market.
As part of executing our growth strategy, the Group completed the acquisition
of Promotional Payments Solutions (PPS), a SaaS company specialising in
digital promotions and loyalty solutions, just prior to the Year end,
broadening our product suite and strengthening Eagle Eye's position as the
end-to-end platform for personalized promotions globally.
As we look ahead, accelerating our Win rate remains a focus for FY26 and we
are starting to see momentum, with a greater number of opportunities
progressing through our substantial sales pipeline, following a reorganisation
of our sales processes and leadership structure. With a strengthened
leadership team, extensive blue-chip customer base and a proven offering
delivering compelling ROI, the Board is confident that the fundamentals of the
business are strong and Eagle Eye is well positioned to seize the opportunity
ahead.
Financial performance
The financial performance in FY25 reflects the transition of the business
towards a full SaaS model. While the level of growth has not been what we had
initially anticipated for the Year, the Group delivered stable revenue, within
which recurring Subscription and Transaction revenues grew 11% to £40.2m, now
representing 83% of total revenue (FY24: £36.1m; 76% of total). Continued
strong cost discipline resulted in an Adjusted EBITDA increase of 8% to
£12.2m, with margin improving to 25%, and a strong net cash position of
£12.3m. Despite a 19% drop in organic ARR to £32.0m (exclusive of the
contribution from PPS) due to the contract loss with NRS, underlying growth in
constant currency ARR excluding this was 5%, driven by a strong EagleAI
performance.
Driving our EBITDA margin
Cost reduction initiatives in response to the lost contract have now been
completed, however the Board continues to assess the productivity and
effectiveness of the cost base. These, coupled with the move towards a System
Integrator model of implementation, ongoing efficiency, scalability and margin
enhancement programmes, provide the Board with confidence in maintaining a
double-digit adjusted EBITDA margin for FY26, with an improving adjusted
EBITDA progression by the end of FY26 that will give confidence in returning
to a 20% margin in FY27.
The commencement of a £1m share buyback in July 2025 reflects the Board's
confidence in the Group's prospects.
People
Eagle Eye has an experienced and committed leadership team that we continued
to strengthen during the year, making key hires to support the scaling of the
Company through increased sales execution capability, particularly in the US,
and increased SaaS, AI and Partner focus.
As part of this, we have recruited a highly experienced North American based
Chief Revenue Officer, Jeff Baskin, whose expertise will accelerate our
business development globally, with a particular focus in the US where there
is a significant opportunity. We have also recently appointed an experienced
Senior Customer Success Manager in North America to support scaling in the US,
and have reorganised our sales leadership under Jeff, to have experienced
regional heads in-situ in Europe and APAC. The promotion of Zyed Jamoussi,
Untie Nots co-founder and one of the leading AI innovators in retail, to Chief
Technology Officer, reflects our ongoing commitment to AI-driven innovation;
and Al Henderson has transitioned into the role of Chief Partnership Officer,
overseeing the important OEM relationship and the Group's expanding base of
partners.
The Group's founder and Chief Information Officer, Steve Rothwell, stepped
back from his operational role in April 2025, as part of the leadership
evolution. I would like to sincerely thank Steve for his visionary leadership,
unwavering passion, and exceptional contribution to Eagle Eye, which have been
instrumental in shaping the Company's success. We are delighted that Steve
continues to provide his counsel to the Board as an adviser.
Culture and employee engagement remain priorities. During the transformation
undergone this year, our team has demonstrated agility and dedication,
underpinning our capacity to deliver at pace.
Governance
We maintain a strong focus on risk management, particularly around platform,
data, and systems security. The Board regularly reviews the risk register and
performance metrics, and we continuously invest in advanced security tools,
supported by internal checks and external audits. Additionally, we are
leveraging AI across Eagle Eye which helps future-proof the business and
reinforces our security posture.
We have adopted the new QCA code and report against each of its 10 principles,
the details on which can be found in the Group's Annual Report. At the heart
of this is the Group's values-based culture and 'Purple Standard', which
promotes upholding the highest standards of governance.
Well positioned for the future
Eagle Eye is built on a solid, high performing foundation, and we have taken
decisive actions to reinvigorate organic growth. With a strong sales pipeline,
an industry leading offering and customer base, and considerably expanded
routes to market, including a potentially game-changing OEM agreement, our
long-term vision remains unchanged and we are confident in the Group's ability
to achieve its ambitions.
Anne De Kerckhove
Chair of the Board
CEO Statement
FY25 has been a year of strategic progress for Eagle Eye, in which we have
initiated programmes to reinvigorate organic growth, seen ongoing adoption of
our proven AI offerings, augmented our customer base and offering through the
acquisition of PPS, and commenced the integration of our technology into the
new cloud hosted loyalty management solution of one of the world's largest
enterprise software vendors. The signing of this agreement in January 2025 was
a ringing endorsement of the power of our technology, and we are laser focused
on making it a success, with the first customer contracts anticipated in the
coming months.
The loss of the NRS contract in June 2025, due to corporate developments at
NRS, was an isolated event, and while it will have a financial impact on FY26,
as previously announced, the Board is clear that this change is no reflection
on our product capabilities and has no impact on the Group's growth
opportunities, which remain strong. We have adjusted our cost base accordingly
and are making concerted strides forward in our transition towards a more
scalable, high-margin SaaS business.
A highlight of the Year, and a major validation of the power of our industry
leading suite of AI offerings, was the continued double-digit growth in
EagleAI revenue, up 30% to £5.7m. AI as a concept is poised to transform
retail, but wielding its power requires the creation of tools and features
that directly impact retailers' engagement and promotional capabilities. This
is where we excel. EagleAI is revolutionising retail personalization and
setting a new global standard by combining advanced data science and real-time
execution. With leading innovators in retail - a group of companies that
together combine to over £200bn of retail revenue - using or trialling our AI
technology, it is clear this is a significant jewel in our crown and a major
growth accelerator of the business.
Bringing more EagleAI offerings to market to meet the demand of our global
customer base, integrating AI across our platform, and accelerating the use of
AI within our own operations, are all focuses for FY26.
Another area of considerable opportunity is the North American market, which
accounts for 40% of the global loyalty market and where we believe, with our
Direct Sales team and marketing activities now more focused on this region, we
can better convert what is a considerable pipeline of current opportunities.
The appointment in H2 of Jeff Baskin, an experienced US-based enterprise SaaS
sales leader, is already seeing us take strides forward in this regard.
As evidenced by the success of the Untie Nots acquisition in 2023, we believe
the right M&A activity can continue to play a role in our journey, as we
look for innovative offerings and opportunities in new sectors and
geographies. We were delighted to welcome the Dublin-based PPS team into the
Group just prior to the Year end, taking us into the CPG couponing market,
bringing new enterprise customers and deepening our engagement with mutual
customers.
Eagle Eye is not a business that stands still. Accelerating our growth rate is
a strategic priority, and we have a clear set of tangible opportunities to
achieve this: AI leadership, US market penetration, delivering on the
transformational OEM opportunity and scaling through Partners. We know what
levers to pull to drive both growth and profitability and have clear line of
sight to achieving our ambitions of delivering £100m of revenue and +30%
EBITDA margin.
Increasingly well placed to capitalise upon the growing market opportunity
The global loyalty market is undergoing a rapid transformation, as businesses
double down on using loyalty to build rich customer data assets to drive
growth, differentiation, and profitability. The global Loyalty Programmes
market has a projected CAGR of 13.4% from 2025-2029, and within this, the
Loyalty Management Software market, where Eagle Eye operates, is expected to
reach $11bn by 2032, with a CAGR of 14.5%. 1 (#_edn1) With customers across
Europe, Asia-Pacific, North America, and South America, we have flagship
customers in all major loyalty markets. A focus for the coming year is
expansion in North America, which represents 40% of the global loyalty market
and includes over 230 of our target ICP customers.
Several technology trends are expected to drive market growth. Personalization
is enabling retailers to meet customer expectations and delivering proven
profitability through real-time engagement, dynamic offers, and predictive
recommendations. Retail media adds further momentum, as loyalty programmes
unlock clean, first-party data to fuel targeted advertising. Omnichannel,
real-time execution, and data security have become non-negotiables for
enterprise buyers, while AI is rapidly redefining the landscape, enhancing
experiences, streamlining operations, and cutting costs. Together, these
trends are reshaping the market and reinforcing the critical role of loyalty
and personalization in any modern retail organisation.
With our proven ability to support AI-powered, personalized loyalty and
promotional programmes for some of the world's leading businesses, Eagle Eye
is well positioned to capitalise on this growing opportunity. We are
innovating alongside top retailers and partners, developing solutions that
maximise value for our customers. This includes new AI-powered engagement
tactics to deepen loyalty and integrating Agentic AI into our platform to
streamline the B2B user experience.
As a cloud-native and API-driven platform, fully certified by the MACH
alliance, Eagle Eye can deliver this benefit to customers seamlessly through
both our direct sales channels, and from later this year via the OEM agreement
for those businesses seeking a single-point solution.
The quality and competitive positioning of our offering is gaining growing
recognition from leading industry analysts, experts, and award bodies,
including Gartner's Market Guide for Loyalty, IDC's Loyalty Marketscape, QKS's
2025 Loyalty SPARK Matrix, and Forrester's Loyalty Landscape. Our position as
a trusted partner was endorsed by BCG, who described Eagle Eye as having
solved the technical challenge of personalization for grocers. And our
AI-powered solutions have won multiple high-profile awards, including with
Tesco at the International Loyalty Awards and Retail Systems Awards, and with
Woolworths Group in New Zealand at the APAC Loyalty Awards.
With robust infrastructure, deep industry expertise, proven AI capabilities, a
growing partner network, and a strong customer base, we are well-positioned to
capitalise on the growing demand for AI-powered loyalty and personalization.
Leaders in AI Innovation for retail
As described above, Eagle Eye is leading the technological innovation taking
place in the retail marketing industry with our advanced, enterprise-ready AI
solutions delivering proven results for customers around the world.
Combining EagleAI with AIR brings together some of the most advanced AI
capabilities in the market with one of the most scalable technology stacks for
execution. Our AI models process and learn from 2.8 billion customer
interactions per minute, always optimising to power the next best personalized
action to take for every customer.
A key advancement in FY25 was the evolution of EagleAI's "affinity engine,"
which combines neural networks with machine learning to significantly improve
offer distribution and personalization. Our dedicated team is continuously
incorporating breakthroughs in AI to ensure our solutions become smarter,
faster, and more scalable over time, and that our platform remains future
ready and differentiated in a rapidly changing landscape. This is overseen by
our Chief AI Officer, Jean-Matthieu Schertzer, an alumnus of the prestigious
École Polytechnique, who brings a rich background in applied mathematics and
extensive AI experience gained through roles as a research engineer, R&D
data scientist, and data science consultant.
We are also harnessing the latest cloud technology to improve the platform's
scalability, speed and stability, whilst reducing its running and maintenance
costs, and we were proud to become a certified member of the MACH Alliance in
the Year, an endorsement of the quality of the Company's technology offering.
In furtherance of this, we added OpenAI's Codex into our engineers' toolkits,
to increase the speed of coding.
We are committed to staying at the forefront of innovation and continuously
evaluate emerging technologies, review the latest research, and test new tools
to maintain our competitive edge. A major milestone this year was the launch
of our first feature developed entirely by AI, with no manual coding, guided
solely by our Data Science team, representing a significant step forward in
our automation capabilities.
We continue to advance EagleAI's portfolio, including applications that
develop audience building, personalized prices and personalized content. One
such example is the Personalized Flyer we continue to develop in conjunction
with E.Leclerc, following the pilot going live in December 2024. This
collaboration enhances our presence in the French and US markets, where
digital flyers are already well established.
Looking ahead, EagleAI's mission is to simplify hyper-personalization. Our
goal is to deliver a fully AI-powered campaign manager, capable of generating
and executing real-time, personalized offers at the point of sale-effortlessly
and autonomously.
Expanded Routes to Market
Following the strategic advancements achieved in FY25, the Group now has three
clear routes to market to exploit: 1) Direct sales led by our new US-based
CRO; 2) via the OEM agreement; and 3) through Partnerships.
1. Direct Sales - accelerating pipeline conversion
We continue to see great value in our Direct sales effort and believe that
with the right investment and focus, it can be more effective. Through our
existing customer base we have a global network of strong advocates of Eagle
Eye technology, a wealth of compelling customer case studies and a proven
ability to manage complex loyalty programmes, at scale.
The appointment of Jeff Baskin as CRO is driving forward our global sales
efforts, supported by a restructured regional sales team, with Cédric
Chéreau leading EMEA and Aaron Crowe, leading APAC, based in Singapore. Jeff
has a particular focus on, and experience in, accelerating growth in North
America, as the region represents over 40% of the global loyalty market and
55% of our current gross pipeline. We have also made targeted hires in our
sales team in France and Asia and have plans to grow the team in the US in
line with the opportunity, alongside increased marketing and events targeting
our core Ideal Customer Profiles (ICPs), including convenience and fuel.
A new blueprint for the Group's 'revenue journey' has been implemented,
designed to reduce the sales cycle, improve the quantity and quality of the
pipeline, and increase the win rate and average deal size. Included within
this are redesigned product demos, which are delivering improved customer
responses and accelerating pipeline progression. New KPIs have been introduced
to ensure we track progress accurately.
Meanwhile, specific Customer Success Strategic Action Plans have been
developed, that cover customer health, project health, expand (upsell)
opportunities, stakeholder health and customer advocacy, to support continued
customer expansion.
2. OEM is a significant, long-term growth driver
The five-year global OEM agreement presents a transformational opportunity. It
will embed AIR into the OEM partner's product offerings, enabling access to
new sectors and customers globally. There has been initial customer interest
from new sectors, such as Travel, Hotels, Luxury and CPG, considerably
increasing Eagle Eye's addressable market.
The product has been successfully launched at two global customer events and
25+ initial enterprise scale targets have been identified by the OEM. The
vendor's sales team is currently being trained in the new offering, and the Go
To Market content and strategy is in place, ahead of General Release, which is
anticipated to take place at a customer event with c.1000 delegates at the
start of Q2 FY26. The first commercial contracts are expected at that time,
and material revenue from FY27 onwards. The contractual arrangements will be
direct between the OEM and the customers, with Eagle Eye revenue based on a
transactional model.
I am very pleased with the pace that we have met our development milestones on
the OEM initiative.
3. Growing with partners
Eagle Eye remains focused on partnering with SIs and technology partners to
scale faster, reduce delivery costs, and access larger client bases, with a
medium-term goal of achieving 50% of new ARR through partners. In FY25, 42% of
Win ARR came from partners, with a well progressed partner pipeline across all
partnership types.
System Integrators
In FY25, 31% of our global pipeline was referred or influenced by partners,
with 90% of those referrals coming from SIs across all regions. In H2, we
added CGI, one of the largest independent IT and business consulting services
firms in the world, and Deloitte EMEA, as partners, alongside existing
partners EPAM, Infosys and NETCONOMY. Pleasingly, we signed our first SI win
in H2 FY25 with Galeries Lafayette.
Technology Partners
Technical integrations have always been at the heart of how Eagle Eye operates
due to our central position within an integrated loyalty programme software
stack, and we continue to build on this via new technology partnerships,
adding value to our existing customer base and facilitating smoother sales
processes and additional referrals. Pre-packaged integrations and Eagle Eye
Connect, our new integration platform, now enable faster, lower-cost
connectivity to the AIR platform, including rapid build of Marketing
Automation and CDP connectors.
Google
We continue to work closely with Google, who were a major contributor to Eagle
Eye's Win ARR in FY25. We have been awarded Premier Partner status for Google
Cloud, assigned to companies that have demonstrated the highest capability and
performance with Google Cloud, which was achieved less than two years since we
launched on the Google Cloud Marketplace and demonstrates the scalability of
the AIR platform. In FY25 we ran a joint GTM activity with Google in each
region and closed several deals referred by Google.
Productisation to be Partner ready
To fuel greater growth through alliances, we're making our technology easier
to scale and sell by packaging our offerings, simplifying onboarding to move
closer to "one click" provisioning, simplifying the addition of modules by
customers to accelerate deepening, and streamlining documentation and support
materials. Eagle Eye connect is a great example of this, allowing us to turn
on pre-integrated solutions with industry partners such as Bloomreach,
Segment, mParticle and Braze, in minutes rather than weeks. Together, these
initiatives provide the foundation for increased scalability.
Continuing to Win and Deepen with Customers
Eagle Eye secured several new wins in the Year, including in new geographies
and markets, which added £2.8m in ARR and further strengthened our global
blue-chip customer base.
New contracts secured in H2 include:
· Galeries Lafayette (France): six-year Loyalty contract, to be launched in
2026, with the iconic French omnichannel retailer, marking Eagle Eye's first
AIR customer in France, with expansion potential.
· Viva Energy Australia Group (OTR Group): three-year Loyalty contract with a
two-year extension option for the OTR Group. The OTR Group consists of 1000+
Retail, Convenience, and Quick Service Restaurants, including Reddy Express
(formerly known as Coles Express).
· Metro Limited (Singapore): three-year Loyalty contract with a leading
department store retailer to relaunch the Metro Loyalty program.
· Transurban (Australia, Canada, US): A four-year Loyalty contract, with a
two-year extension option, with a leading global toll road operator to expand
to the Transurban Linkt Rewards program, which has eight Rewards partners
across fuel, travel, parking and serves over 1.4m Rewards members.
· Major global retailer (Mexican subsidiary): an initial six-month contract for
AI-powered Personalized Challenges. As one of the world's largest retailers,
ensuring the success of this first engagement is a focus for the team, given
the significant deepen potential.
The Group has secured multi-year renewal contracts in the Year with many of
its largest customers, including Loblaw, Southeastern Grocers and Greggs, and
continued to Deepen engagement with existing customers, including Morrisons,
Tesco and E.Leclerc, resulting in an NRR of 109% (FY24: 109%).
Post-period end, the Group has seen encouraging momentum across multiple
geographies with several new Wins secured including:
· A three-year loyalty and promotions contract, with a two-year extension
option, with the 1 Central Limited. The 1 is established as a loyalty
programme under Central Group with business units and partners that operate
the leading digital lifestyle and loyalty platform in Thailand.
· A three-year contract with a leading European value retailer for the AIR
platform's Personalized Receipts solution.
· A three-year AIR contract with the UK's leading Cash and Carry trade only
builders' merchant, to support its loyalty and promotional capabilities. This
win represents Eagle Eye's fist contract with a builder's merchant in the UK
market.
People and culture underpin our success
Our Purple culture permeates throughout the business and is key to its
success. It has enabled us to attract and retain talented individuals as we
scale. The team's resilience through FY25's challenges has been outstanding,
and we continue to earn high rankings in Best Companies to Work For-6th in the
UK's Best Mid-Sized Companies and 7th in Technology.
In FY25, we executed a targeted transformation to boost productivity and
agility, including a new Customer Success Management function to deepen client
relationships and a shift to a SI-led delivery model in Professional Services.
We launched the next version of our Purple Playbook-a modular learning
platform designed to embed cultural behaviours, strengthen soft skills, and
foster AI adoption across all levels of the organisation. This foundational
work is critical as we continue to invest in building a SaaS-enabled,
AI-powered workforce.
A new Performance Management Framework was introduced to align individual and
team objectives with business priorities, raising standards through clearer
accountability and OKR-driven impact. Senior leadership is leading by example,
with our Gardeners Model fostering ownership, collaboration, and a relentless
focus on execution.
We remain strongly committed to Equity, Diversity & Inclusion (EDI),
launching the EDI Alliance and expanding initiatives like demographic data
collection and the Purple Women speaker series to drive meaningful engagement
and cultural strength.
This year also marked a founder transition. Steve Rothwell, Eagle Eye founder
and CIO, announced in April 2025 that he will step back from his operational
role within the business. We are delighted he is still part of the business in
an advisory capacity, enabling us to benefit from his passion and customer
focus, which has been so key to Eagle Eye's success to date. I would like to
thank Steve for his visionary leadership and remarkable contributions to Eagle
Eye as CIO.
As we enter FY26, our focus is on embedding these foundational changes,
scaling our AI and SaaS capabilities, and deepening leadership accountability
across the organisation. With a re-shaped, agile organisation and a
strengthened leadership team, we are confident in our ability to unlock the
full potential of our people, delivering lasting value for our clients,
employees, and shareholders
Positive outlook
The business is now in a very different position to where it was when we
started our concerted move towards becoming a global SaaS business a year ago.
Our technology has been made easier to scale and integrate, we have secured a
major OEM agreement which has the potential to double the size of Eagle Eye
over the medium term, we have considerably increased our Direct Sales
capabilities, and our AI business continues to fire on all cylinders.
We are confident these expanded routes to market and major structural changes
will support reinvigorated growth. The scale of the opportunity ahead demands
that we remain steadfast in our strategy and continue to invest to drive
long-term value creation. While the termination of the NRS related contract
will have a material impact on our near-term financial performance, as
previously disclosed, cost reduction initiatives and ongoing efficiency,
scalability, and margin enhancement programmes reinforce the Board's
confidence in maintaining a double-digit adjusted EBITDA margin for FY26, with
improving adjusted EBITDA progression as the year progresses to target a run
rate EBITDA margin of 20% at the end of FY26.
Trading in the first few months of the year has started well, winning three
new customers to date, and with good opportunities progressing through our
pipeline, we remain confident in delivering positive momentum as we continue
through the year and progress in our significant medium-term growth prospects.
Tim Mason
Chief Executive Officer
Strategic Opportunity
We have built the world's most powerful transaction engine, strengthened our
capabilities through the acquisition of a leading data science business, and
are transitioning our platform to be fully 'SI-ready'. The market opportunity
ahead is substantial, and over the past 12 months we have defined clear growth
drivers to capture it. With these foundations in place, we are now strongly
positioned to execute on our strategy, giving us a clear path toward achieving
our ambition of becoming a £100m revenue and +30% EBITDA margin business.
1. Delivering our organic plan - deepening with our existing customers
Problem we solve: Over the years we have successfully delivered on our
customer strategy of 'Win, Deepen & Transact' demonstrated by the 19%
revenue CAGR and average NRR of 121% over the last 5 years. Each new win adds
substantial additional value given our high level of customer retention, and
revenue from our largest customers typically increases by a multiple of over
three times by the end of their third year on the AIR platform, through both
increased use of the platform and the addition of new services.
Size & maturity of opportunity: our top 10 customers on average take only
two of our four core services, providing significant deepen opportunity.
2. Winning in our biggest market, the USA
Problem we solve: The USA is the biggest loyalty and promotions market in the
world, estimated to be worth around $26bn, due both to the size of population
and also the appetite for what is largely still paper coupons and offers. The
demand is for companies to create personalized and digital experiences and
communications. Our solution enables companies to execute personalized
marketing, at the scale required. This is a geography where we have recently
invested in incremental sales capability and will continue to do so as we get
proof points of success.
Size & maturity of opportunity: There are over 230 retailers in our ICP in
North America. We are currently working with 7 and therefore even small
increments of Win rate improvement in this territory can make a significant
impact on the growth of the business. Due to the size of retailers in the US
being significantly larger than Europe, the average deal size can be 3x our
current average Loyalty engagement.
Our target is to add one significant enterprise account a year and then
deepening with our usual model.
3. Winning new clients through System Integrators & Partnerships
Problem we solve: Retailers are often interested in using System Integrators
to deliver a breadth of technology solutions across their business. Having
partnerships with global players enables us to service retailers in
conjunction with their trusted partners and often gives early insight into new
opportunities. Meanwhile, integrations with Technology Partners are essential
to retailers that are looking to re-platform with a best in class offering for
different components of the solution. Our accreditation with the MACH alliance
validates this approach.
Size & maturity of opportunity: 42% of win ARR in FY25 has been partner
influenced. We have a medium-term target 50% of new ARR should be partner
referred or influenced.
Together, we anticipate these three organic opportunities will deliver between
15-20% annual growth.
4. Winning new Personalized Data Science / EagleAI customers
Problem we solve: AI powered personalized data science that can deliver hyper
personalized offers and challenges without the associated analytical resource
heft of traditional technology.
Size & maturity of opportunity: We currently have maturity in France,
servicing c.57% of the total grocery market but are in the early stages of
growth in EMEA outside France and in the US.
Our target annual rate of growth: 30% growth in the EagleAI business.
5. OEM agreement with one of the largest software providers in the
world
Problem we solve: We have been chosen by one of the largest software providers
in the world to embed our loyalty and promotions capability into their
cloud-based loyalty management solution. The vendor has an existing on-premise
solution that is being sunsetted and they required a partner that could offer
a best-in-class enterprise solution to replace their existing offering.
Size & maturity of opportunity: The software provider currently has over
300,000 customers of which it is estimated that c.10% are the existing
installed base that uses the heavily customised on-premise software. Not all
of this population will migrate over, but the universe and the opportunity is
significant, opening up new sectors and geographies. First contracts are
expected to be won from Q2 FY26, driving ARR growth, with material revenue
from FY27. With the potential for between 4 and 8 new customers a year, this
channel has the potential to become the size of the current Eagle Eye business
today given the vendor's scale and customer relationships. We believe the
opportunity can be game changing.
Our target contribution: incremental annual revenue of between 15% - 30%,
leading to a doubling of the business within the medium term.
M&A provides opportunity to accelerate
We have successfully acquired two businesses to date, expanding our offering,
customer base and geographic reach while being earnings enhancing - Untie Nots
in January 2023, bringing powerful data science capabilities into the Group
and latterly PPS, adding a new CPG related offering and additional Enterprise
customers. Looking ahead, we will continue to assess opportunities to
accelerate our organic growth through the acquisition of businesses that
expand our offering, technical capabilities, geographic reach or customer
base.
Summary of the future revenue drivers
Overall, these five channels represent revenue opportunities of a magnitude
greater than market forecasts and our £100m revenue target, illustrating the
opportunity for our business model over the medium term.
Crucially, not all these channels need to deliver for targets to be achieved
but if they do, the timeline for achieving the goal will accelerate at pace.
Financial Review
Key Performance Indicators
Financial FY25 FY24
£m £m Var
Revenue 48.2 47.7 1%
Subscription and transaction revenue:
- SaaS revenue £40.2m 83% £36.1m 76% 11%
- Professional services revenue £7.5m 16% £10.2m 21% (26)%
- SMS transaction revenue £0.5m 1% £1.4m 3% (64)%
Total subscription and transaction revenue £48.2m 100% £47.7m 100% 1%
Annual recurring revenue 34.0 39.7 (14)%
Net revenue retention rate 109% 109% -
Direct profit 34.5 34.8 (1)%
Direct profit margin 71.6% 73.0% (1.4)ppt
Adjusted EBITDA ((1)) 12.2 11.3 8%
Adjusted EBITDA ((1)) margin 25.3% 23.6% 1.7ppt
Adjusted EBITA ((2)) 6.6 4.6 43%
Adjusted EBITA ((2)) margin 13.6% 9.6% 4.0ppt
Profit before tax 3.0 0.7 315%
Net cash ((3)) 12.3 10.4 18%
Cash and cash equivalents 12.3 10.6 17%
Financial liabilities (0.0) (0.2) (58)%
Non-financial FY25
FY24
Long-term contract customer churn by value 23.1% 1.7% 21.4ppt
((1)) Adjusted EBITDA excludes costs and changes in the fair value of
contingent consideration associated with acquisitions, restructuring costs,
share-based payment charges along with depreciation, amortisation, interest
and tax from the measure of profit and is reconciled to the GAAP measure of
profit before taxation in note 6.
((2)) Adjusted EBITA excludes costs and changes in the fair value of
contingent consideration associated with acquisitions, amortisation arising on
those acquisitions, restructuring costs, share-based payment charges, interest
and tax from the measure of profit and is reconciled to the GAAP measure of
profit before taxation in note 6.
((3)) Net cash is cash and cash equivalents less financial liabilities.
Revenue
During FY25 the Group delivered revenue of £48.2m, a year-on-year increase of
1% (FY24: £47.7m), driven by double digit growth in overall SaaS revenue,
with a particularly strong contribution from EagleAI. 48% of revenue was
generated in North America (FY24: 49%) and fluctuations in foreign exchange
rates, in particular between Sterling and the US Dollar, impacted the reported
revenue growth of the Group. Revenue growth was 5% on a constant currency
basis.
SaaS revenue accounted for 83% of total revenue (FY24: 76%). Within this,
EagleAI revenue was up 30% to £5.7m (FY24: £4.4m), demonstrating the
increasing demand for integrated AI-driven loyalty and personalization
solutions, which now represent 19% of total ARR (FY24: 15%).
Professional services revenue declined significantly by 26% to £7.5m as the
Group continues its transition to a SI delivery model. Under IFRS 15, a SaaS
business will typically recognise revenue (including implementation revenue
from professional services) over time. In some cases, implementation revenue
is recognised over the period the service is live. Therefore, during the
period of implementation for a new client, no revenue will be recognised,
although directly attributable associated costs are also spread over this
period, matching revenue and costs. Revenue from professional services that
has been deferred into future periods, but delivered and billed, was £5.7m at
30 June 2025 (30 June 2024: £5.9m).
The low margin SMS transactional revenue continued to taper as expected;
revenue for the Period was £0.5m (FY24: £1.4m).
Annual Recurring Revenue, Churn, and Retention
At the period end, organic ARR stood at £32.0m-a 19% decrease (16% on a
constant currency basis) from the prior year's £39.7m. This reduction was
mainly attributable to the previously announced loss of a significant contract
through NRS. Excluding this customer, underlying ARR grew approximately 5% on
a constant currency basis, supported by a 10% increase in EagleAI ARR and a
steady stream of wins and expansions. Importantly, customer renewal strength
persevered: 83% of revenue from the current top 10 customers (excluding NRS)
is contracted to at least FY27, anchoring future stability. Following the
acquisition of Promotional Payments Solutions on 27 June 2025, total group ARR
is £34.0m.
Net Revenue Retention (NRR) excluding NRS remained at 109%, unchanged year on
year, evidencing the Group's capability to deepen relationships and expand
wallet share with existing clients despite the isolated contract churn.
Overall long-term contract customer churn by value increased to 23.1% (FY24:
1.7%), primarily reflecting the NRS contract exit, but also influenced by two
North American customers that went into administration. No other customers are
contracted through NRS, and direct costs associated with these departures are
being actively removed from the cost base.
Profitability, Margins, and Cost Discipline
Direct profit was broadly steady at £34.5m (FY24: £34.8m) reflecting a 72%
margin (FY24: 73%). We remain committed to improving our direct margin through
1) our transition to an SI model and 2) work on the platform to drive
efficiencies and reduce cost as a percentage of recurring revenue. We expect
to start to see the benefits of these initiatives as we progress through FY26.
Group indirect operating expenses were tightly controlled and were reduced by
£2.5m in the Year, as a result of a lower bonus payment due to performance,
together with ongoing efficiency programmes following the NRS contract loss
and on-going transition to a SI model. Part of the cost savings have been
reinvested back in the business, primarily by increased investment in sales
and marketing to drive our Win. Average headcount reduced to 250 (FY24: 257).
This cost control also resulted in adjusted EBITDA increasing by 8% to £12.2m
(FY24: £11.3m) with margin improving to 25% (FY24: 24%).
Our cost management program continues into FY26 to target our medium team goal
of at least 30% EBITDA and a FY26 EBITDA exit run rate position of 20%,
despite the impact on revenue from client churn. Cost reduction initiatives
regarding the contract loss are now complete and we are focused on the
following areas for margin enhancement:
· Shift to an SI model that will reduce % of revenue from
professional service than has a lower direct margin;
· Platform enhancement to be 'OEM & partnership ready' will
reduce % of GCP cost to revenue;
· Cost synergies that are in progress from PPS on an already high
margin EBITDA business will add to margin enhancement;
· Continued assessment of productivity & effectiveness of cost
base of our people and tools;
· Operational leverage from fixed cost elements with growth.
Adjusted EBITA, which excludes only amortisation of acquired intangibles,
along with share based payments, interest and costs associated with
acquisitions and restructuring from profit before tax to which it is
reconciled in note 6, improved by 43% to £6.6m with margin increasing to 14%
(FY24: 10%) primarily reflecting a reduction in amortisation of costs
capitalised under IFRS 15 as the business transitions to the SI model, along
with the improved underlying EBITDA performance.
We have continued to invest in the Product, where total spend in the Period
was £9.0m (FY24: £9.7m). Capitalised product development costs were £2.9m
(FY24: £2.9m), whilst amortisation of capitalised development costs was
£3.2m (FY24: £2.9m). Contract costs (including costs to obtain contracts and
contract fulfilment costs), recognised as assets under IFRS 15, were £2.9m
(FY24: £3.8m) and amortisation of contract costs was £2.3m (FY24: £3.6m).
£0.8m of costs related to the acquisition costs for Promotional Payments
Solutions along with restructuring costs to reflect the use of SIs and
following the NRS contract loss, are excluded from the reported alternative
performance measures due to their one-off natures, which do not reflect
underlying trading performance.
Profit before tax rose to £3.0m (FY24: £0.7m). Finalisation of the FY24 tax
computations allowed the Group to finalise its losses available for deduction
against future taxable profits in the UK and France. In order to reflect the
actual losses available, the tax credit for FY24 has been restated to £3.8m,
benefitting from the recognition of a deferred tax asset for historic losses
brought forward now being recognised, given the improvements in underlying
profitability seen by the Group. After tax, profit was £1.6m (FY24 restated:
£4.5m), resulting in basic earnings per share of 5.49p (FY24 restated:
15.45p).
Cashflow, Net Cash, and Balance Sheet
The Group had net assets of £32.7m at 30 June 2025 (30 June 2024 restated:
£32.9m), including capitalised intellectual property of £6.1m (30 June 2024:
£5.4m). The movement in net assets primarily reflects the underlying profit
made during the Year and the impact of the acquisition of Promotional Payments
Solutions on 27 June 2025, offset by a reduction in the deferred tax net asset
reflecting the utilisation of losses and the impact of the movement in the
Company's share price on the share-based payment deferred tax asset.
The Group generated net cash from operations up 42% to £13.5m (FY24: £9.5m),
supported by improved collections efficiency and operating profitability.
Capital investment in IP, product platform, and contract fulfilment costs
totalled £6.0m, and net €5.5m was spent to complete the Promotional
Payments Solutions acquisition.
Eagle Eye closed the year with a net cash balance of £12.3m (FY24: £10.4m),
ahead of consensus expectations despite acquisition-related outflows. The
Group's £10m revolving credit facility, extended during the year, is undrawn.
The Group maintains significant cash and liquidity headroom to support ongoing
investment and product enhancement.
The Group hedges elements of foreign currency net receipts to ensure that it
is protected from significant and sudden adverse movements in foreign currency
exchange rates. There were no open hedges at 30 June 2025 (30 June 2024:
none).
Share buyback programme
The Board announced after Year end a £1.0m share buyback programme. As at 12
September 2025 the Company has acquired 60,000 ordinary shares which are held
in treasury for a total consideration of £0.1m. The Board will continue to
deploy the remainder of the £1.0m buyback in due course.
Dividend
The Board has determined that no dividend will be paid in the period (FY24:
£nil). The Group is primarily seeking to achieve capital growth for
shareholders and believes that in the current phase of the Group's
development, it is in the best interest to retain distributable profits to
prioritise investment growth and provide optionality on M&A, alongside the
implementation of the Share Buyback Programme.
Consolidated statement of profit or loss and total comprehensive income
for the year ended 30 June 2025
Restated and re-presented
Note 2025 2024
Continuing operations £000 £000
Revenue 2 48,196 47,733
Direct costs (13,695) (12,903)
Direct profit 34,501 34,830
Indirect operating expenses (31,690) (34,194)
Other income 162 195
12,193 11,260
Adjusted EBITDA ((1))
Acquisition costs (423) -
Restructuring costs (418) -
Change in fair value of contingent consideration - 1,303
Share-based payment charge (539) (2,835)
Depreciation and amortisation (7,840) (8,897)
Operating profit 2,973 831
Finance income 98 41
Finance expense (84) (153)
Profit before taxation 2,987 719
Taxation 3 (1,358) 3,831
1,629 4,550
Profit after taxation for the financial year
(779) (333)
Foreign exchange adjustments
Total comprehensive profit attributable to the owners of the parent for the 850 4,217
financial year
((1)) Adjusted EBITDA excludes share-based payment charge, depreciation and
amortisation from the measure of profit along with restructuring costs and the
costs associated with the acquisition of Promotional Payments Solutions in
2025 and changes in fair value of contingent consideration due on the 2023
acquisition of EagleAI.
Earnings per share
From continuing operations
5.49p
Basic 4 15.45p
Diluted 4 4.89p 13.78p
Consolidated statement of financial position
as at 30 June 2025
Restated
2025 2024
Note £000 £000
Non-current assets
Intangible assets 20,748 17,804
Contract fulfilment costs 2,884 2,610
Property, plant and equipment 793 1,175
Non-current tax receivable 306 -
Deferred taxation 5 4,821 8,449
29,552 30,038
Current assets
Trade and other receivables 9,673 10,349
Current tax receivable 467 183
Cash and cash equivalents 12,327 10,576
22,467 21,108
Total assets 52,019 51,146
Current liabilities (12,375) (10,583)
Trade and other payables (176) -
Current tax payable
IFRS 15 deferred income (2,358) (3,002)
Financial liabilities (51) (122)
(14,960)
(13,707)
Non-current liabilities
Other payables (303) (412)
IFRS 15 deferred income (3,299) (2,927)
Deferred taxation (789) (1,178)
Financial liabilities - (50)
(4,391) (4,567)
(19,351) (18,274)
Total liabilities
Net assets 32,668 32,872
Equity attributable to owners of the parent
Share capital 297 296
Share premium 30,135 30,089
Merger reserve 3,278 3,278
Share option reserve 9,189 9,084
Retained losses (10,231) (9,875)
Total equity 32,668 32,872
Consolidated statement of changes in equity
for the year ended 30 June 2025
Share Share Merger Share Retained Total
capital premium reserve option losses
reserve
£000 £000 £000 £000 £000 £000
Balance at 1 July 2023 293 29,925 3,278 7,291 (16,747) 24,040
Profit for the financial year- restated - - - - 4,550 4,550
Other comprehensive income
Foreign exchange adjustments - - - - (333) (333)
- - - - 4,217 4,217
Transactions with owners recognised in equity
Exercise of share options 3 164 - - - 167
Fair value of share options exercised in the year - - - (1,042) 1,042 -
Share-based payment charge - - - 2,835 - 2,835
Deferred tax on share-based payments - - - - 1,549 1,549
Deferred tax on losses - - - - 64 64
3 164 - 1,793 2,655 4,615
296 30,089 3,278 9,084 (9,875) 32,872
Balance at 30 June 2024- restated
Profit for the financial year - - - - 1,629 1,629
Other comprehensive income
Foreign exchange adjustments - - - - (779) (779)
- - - - 850 850
Transactions with owners recognised in equity
Exercise of share options 1 46 - - - 47
Fair value of share options exercised in the year - - - (430) 430 -
Fair value of share options lapsed in the year - - - (4) 4 -
Share-based payment charge - - - 539 - 539
Deferred tax on share-based payments - - - - (1,640) (1,640)
1 46 - 105 (1,206) (1,054)
297 30,135 3,278 9,189 (10,231) 32,668
Balance at 30 June 2025
Included in Retained losses is a cumulative foreign exchange profit of
£1,009,000 (2024: loss of £230,000).
Consolidated statement of cash flows
for the year ended 30 June 2025
2025 2024
£000 £000
Cash flows from operating activities
Profit before taxation 2,987 719
Adjustments for:
Depreciation 702 718
Amortisation 7,137 8,180
Share-based payment charge 539 2,835
Finance income (98) (41)
Finance expense 84 153
Decrease in trade and other receivables 798 544
Increase/(decrease) in trade and other payables 966 (2,019)
Movement on contingent consideration for acquisition of EagleAI - (1,303)
Income tax paid (509) (313)
Income tax received 896 10
13,502 9,483
Net cash flows from operating activities
Cash flows from investing activities
Payments to acquire property, plant and equipment (155) (346)
Payments to acquire intangible assets and contract fulfilment costs (6,024) (6,711)
Interest received 53 41
Acquisitions, net of cash and cash equivalents acquired (4,184) (654)
(10,310) (7,670)
Net cash flows used in investing activities
Cash flows from financing activities
Net proceeds from issue of equity 46 167
Repayment of borrowings (121) (1,123)
Capital payments in respect of leases (526) (545)
Interest paid in respect of leases (52) (80)
Interest paid (32) (73)
(685) (1,654)
Net cash flows used in financing activities
Net increase in cash and cash equivalents in the year 2,507 159
Foreign exchange adjustments (756) (198)
Cash and cash equivalents at beginning of year 10,576 10,615
12,327 10,576
Cash and cash equivalents at end of year
Notes to the consolidated financial statements
1 Accounting policies
Basis of preparation
The financial information set out herein does not constitute statutory
accounts as defined in Section 434 of the Companies Act 2006. The financial
information for the Year ended 30 June 2025 has been extracted from the
Group's audited financial statements which were approved by the Board of
Directors on 16 September 2025 and which, if adopted by the members at the
Annual General Meeting, will be delivered to the Registrar of Companies for
England and Wales.
The financial information for the Year ended 30 June 2024 has been extracted
from the Group's audited financial statements which were approved by the Board
of Directors on 17 September 2024 and which have been delivered to the
Registrar of Companies for England and Wales.
The reports of the auditor on both these financial statements were
unqualified, did not include any references to any matters to which the
auditors drew attention by way of emphasis without qualifying their report and
did not contain a statement under Section 498(2) or Section 498(3) of the
Companies Act 2006.
The information included in this preliminary announcement has been prepared on
a going concern basis under the historical cost convention, and in accordance
with UK-adopted International Accounting Standards in conformity with the
requirements of the Companies Act 2006 and the International Financial
Reporting Interpretations Committee (IFRIC) interpretations issued by the
International Accounting Standards Board ("IASB") that are effective as at the
date of these financial statements.
The Company is a public limited Company incorporated and domiciled in England
& Wales and whose shares are quoted on AIM, a market operated by The
London Stock Exchange.
Going concern
As part of their going concern review the Directors have followed the
guidelines published by the Financial Reporting Council entitled "Guidance on
the Going Concern Basis of Accounting and Reporting on Solvency and Liquidity
Risks- Guidance for directors of companies that do not apply the UK Corporate
Governance Code".
The Directors have prepared detailed financial forecasts and cash flows
looking 3 years beyond the date of these consolidated financial statements. In
developing these forecasts, the Directors have made assumptions based upon
their view of the current and future economic conditions that will prevail
over the forecast period.
On the basis of the above projections, the Directors are confident that the
Group has sufficient working capital and available funds to honour all of its
obligations to creditors as and when they fall due. In reaching this
conclusion, the Directors have considered the forecast cash headroom,
including the impact of the revolving credit facility with HSBC Innovation
Bank and the covenants associated with it, the resources available to the
Group and the potential impact of changes in forecast growth and other
assumptions, including the potential to avoid or defer certain costs and to
reduce discretionary spend as mitigating actions in the event of such changes.
Accordingly, the Directors continue to adopt the going concern basis in
preparing these consolidated financial statements.
2 Segmental analysis
The Group is organised into two principal operating divisions for management
purposes. These reflect the organic Eagle Eye business and the EagleAI
business acquired in 2023. All non-current assets are held in the organic
Eagle Eye business in the United Kingdom, other than the right of use asset
relating to the lease for the Paris office of EagleAI and capitalised
intellectual property of EagleAI of £1.0m.
Organic EagleAI Total Organic EagleAI Total
2025 2025 2025 2024 (re-presented) 2024 (re-presented) 2024 (re-presented)
£000 £000 £000 £000 £000 £000
Revenue 42,452 5,744 48,196 43,309 4,424 47,733
Direct costs (12,759) (936) (13,695) (11,848) (1,055) (12,903)
29,693 4,808 34,501 31,461 3,369 34,830
Direct profit
Adjusted indirect operating costs (18,347) (3,961) (22,308) (20,472) (3,098) (23,570)
11,346 847 12,193 10,989 271 11,260
Adjusted EBITDA
Revenue is analysed as follows:
Service 2025 2024
£000 £000
Development and set up fees 7,501 10,249
Subscription and transaction fees 40,695 37,484
48,196 47,733
Product 2025 2024
£000 £000
AIR revenue 41,948 41,911
EagleAI revenue 5,744 4,424
Messaging revenue 504 1,398
48,196 47,733
3 Taxation
( )
2025 Restated
2024
£000 £000
Current tax
UK Corporation tax at 25.00% (2024: 25.00%) - -
Overseas tax 443 164
Adjustments in respect of prior years (438) 37
5 201
Deferred tax
In respect of current year 1,120 (3,230)
In respect of prior years 233 (802)
1,353 (4,032)
1,358 (3,831)
Tax charge/(credit) on profit for the period
( )
Tax reconciliation
Profit before tax 2,987 719
Tax using UK corporation tax rate of 25.00% (2024: 25.00%) 747 180
Non-deductible expenses 40 213
Variance in overseas tax rates 64 268
Share-based payments, net of employee share acquisition relief 708 352
Overseas tax - (1,455)
Unrelieved tax losses 25 (2,150)
Adjustment in respect of prior years (205) (1,090)
Research and development tax credit claim (21) (149)
Tax charge/(credit) on profit for the period 1,358 (3,831)
4 Earnings per share
The calculation of basic earnings per share is based on the result
attributable to ordinary shareholders divided by the weighted average number
of ordinary shares in issue during the year. The calculation of diluted
earnings per share is based on the result attributable to ordinary
shareholders divided by the weighted average number of shares in issue during
the year, diluted for the effect of options being converted to ordinary
shares. Basic and diluted earnings per share from continuing operations is
calculated as follows:
Earnings per Profit 2025 Restated earnings per Restated profit 2024
share £000 Weighted average number of ordinary shares share £000 Weighted average number of ordinary shares
pence pence
Basic earnings per share 5.49 1,629 29,658,581 15.45 4,550 29,447,934
Diluted earnings per share 4.89 1,629 33,290,154 13.78 4,550 33,023,177
5 Deferred tax
The elements of deferred taxation are as follows:
2025 Restated
2024
£000 £000
Accelerated capital allowances and intellectual property 1,406 1,658
Tax losses (4,201) (5,200)
Share-based payments (1,432) (3,699)
Other timing differences 208 (14)
IFRS 16 Right of use assets 132 217
IFRS 16 Lease liabilities (145) (233)
(4,032) (7,271)
Movement in deferred tax:
Other timing differences Share based payments Accelerated Tax losses Total
capital allowances & intellectual
property
£000 £000 £000 £000 £000
- - 2,311 (3,937) (1,626)
At 1 July 2023- restated
Credited to income statement (3) (2,150) (517) (560) (3,230)
Prior year adjustments- restated (11) - (152) (639) (802)
Deferred tax in equity - (1,549) - (64) (1,613)
(14) (3,699) 1,642 (5,200) (7,271)
At 30 June 2024- restated
(Credited)/charged to income statement 218 607 (550) 845 1,120
Prior year adjustments 4 20 55 154 233
Deferred tax in equity - 1,640 - - 1,640
Acquisitions - - 246 - 246
208 (1,432) 1,393 (4,201) (4,032)
At 30 June 2025
Deferred tax assets and liabilities can only be offset, inter alia, to the
extent they occur in the same jurisdiction. The following is the analysis of
deferred tax balances after offset:
2025 Restated
2024
£000 £000
Deferred tax assets 4,821 8,449
Deferred tax liabilities (789) (1,178)
(4,032) (7,271)
6 Alternative performance
measures
Adjusted EBITDA and adjusted EBITA are key performance measures for the Group
and are derived as follows:
2025 2024
£000 £000
Profit before taxation 2,987 719
Add back:
Net finance income and expense (credit)/charge (14) 112
Share-based payments 539 2,835
Restructuring costs 418 -
Change in fair value of contingent consideration - (1,303)
Acquisition costs 423 -
IFRS 3 amortisation 2,212 2,212
6,565 4,575
Adjusted EBITA
Depreciation and IAS 38/IFRS 15 amortisation 5,628 6,685
Adjusted EBITDA 12,193 11,260
Direct profit is a new performance measure for the Group which is more
comparable to the gross profit measure of other SaaS companies and is derived
as follows:
2025 2024
£000 £000
Profit before taxation 2,987 719
Add back:
Net finance income and expense (credit)/charge (14) 112
Share-based payments 539 2,835
Depreciation and amortisation 7,840 8,897
Acquisition costs 423
Restructuring costs 418 -
Change in fair value of contingent consideration - (1,303)
Other income (162) (195)
Indirect operating expenses 22,470 23,785
Direct profit 34,501 34,850
7 Net cash
Net cash is a key performance measure for the Group and is defined as follows:
30 June Cash flow Foreign exchange adjustments 30 June 2025
2024
£000 £000 £000 £000
Cash and cash equivalents 10,576 2,693 (942) 12,327
Financial liabilities (172) 121 - (51)
2,814 (942)
Net cash 10,404 12,276
8 Prior period adjustments
Re-presentation
The consolidated statement of profit and loss and total comprehensive income
has been represented for the prior year to provide consistency of margin
reporting with other SaaS businesses by reporting our Direct Margin rather
than Gross Profit. As the business has grown and technology has evolved, the
infrastructure of SaaS businesses has moved from being fixed in actual data
centres to being in the cloud and more variable in line with transactional
volumes and data stored. In addition, Eagle Eye has moved away from the low
margin SMS business which traditionally would have represented the majority of
cost of sales. The Group's direct costs now include costs directly
attributable to sales including the cost of the Group's cloud infrastructure,
the Customer Success team, sending SMS messages, revenue share agreements and
bespoke development and implementation work. There is no change to Adjusted
EBITDA, Profit before tax or any other lines within the statement of profit
and loss and total comprehensive income.
Restatement
During the year the Directors finalised the FY24 tax computations and the
losses available for deduction against future taxable profits in the UK and
France. Since the consolidated financial statements were finalised, there had
been revisions to the classification of deferred tax balances by category and
the total amount of losses available for utilisation in the future has been
updated. These changes resulted in a reduction of the deferred tax asset
relating to trading losses of £1.2 million compared with the amounts
previously reported.
In addition to this reduction, a change has been made to present deferred tax
liabilities arising on acquired intangibles separately from deferred tax
assets related to trading losses of acquired entities. In the prior year, such
deferred tax balances were presented on a net basis within non-current assets.
The impact of these changes on the consolidated statement of profit or loss
and total comprehensive income, the consolidated statement of financial
position and earnings per share are shown in the table below for the prior
year. There was no impact to the cash flows of the group.
The impact of these changes are shown below.
As previously reported Re-presentation Restated Re-presented and restated
2024 2024
£000 £000 £000 £000
Changes to the consolidated statement of profit or loss and total
comprehensive income
Revenue 47,733 - - 47,733
(1,283) 1,283 - -
Previous presentation
Cost of sales
46,450 1,283 - -
Gross profit
- (12,903) - (12,903)
Revised presentation
Direct costs
- (11,620) - 34,830
Direct margin
(Indirect) Operating expenses (45,814) 11,620 - (34,194)
Other income 195 - - 195
831 - -
Operating profit 831
41 - - 41
Finance income
Finance expense (153) - - (153)
719 - - 719
Profit before taxation
5,015 - (1,184) 3,831
Taxation
5,734 - (1,184) 4,550
Profit after taxation
19.47p - (4.02)p 15.45p
Changes to earnings per share
Basic earnings per share
Diluted earnings per share 17.36p - (3.58)p 13.78p
Changes to the consolidated statement of financial position
8,455 - (6) 8,449
Non current assets
Deferred tax asset
- - (1,178) (1,178)
Non-current liabilities
Deferred tax liability
Net assets 34,056 - (1,184) 32,872
Retained losses (8,691) - (1,184) (9,875)
Total equity 34,056 - (1,184) 32,872
Gross profit in the year to 30 June 2025 under the previous presentation would
have been £47.6 million.
There is no impact on cash flows as reported for the year ended 30 June 2024.
9 Business combinations
On 27 June 2025, Eagle Eye Holdings Limited, a 100% subsidiary of the Company,
completed the acquisition of 100% of the issued share capital of Promotional
Payments Solutions Limited. The consideration for the acquisition comprised of
an initial cash consideration of €7.5m, which includes receipt of c€2
million of unrestricted cash on Promotional Payments Solutions' balance sheet,
plus further estimated deferred consideration of €0.2m which is due to be
paid over the 3 year period to 30 June 2028, upon receipt of finalised
Research and Development tax credits related to claims filed in periods prior
to the acquisition.
Book value Provisional fair value adjustment Provisional fair value
£000 £000 £000
Intangible assets 2,481 (798) 1,683
Trade and other receivables 774 - 774
Non-current tax receivable 72 - 72
Current tax receivable 78 - 78
Cash and cash equivalents 2,210 - 2,210
Trade and other payables (647) - (647)
Deferred tax liability - (246) (246)
Provisional fair value of identified net assets 3,924
Provisional goodwill 2,620
Fair value of consideration 6,544
Satisfied by:
Cash 6,394
Contingent consideration 150
6,544
10 Report and accounts
A copy of the Annual Report and Accounts for the Year ended 30 June 2025 will
be sent to all shareholders in due course, together with notice of the Annual
General Meeting, and will be available to view and download from the Company's
website at www.eagleeye.com (http://www.eagleeye.com) .
1 (#_ednref1) Loyalty Programs Market Intelligence and Future Growth
Dynamics report by Research & Markets
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