REG - Eagle Eye Solutions - FY25 Trading Update

Eagle Eye SolutionsAnnouncement

Yesterday 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250715:nRSO0317Ra&default-theme=true

RNS Number : 0317R  Eagle Eye Solutions Group PLC  15 July 2025

 

 

 

 

15 July 2025

Eagle Eye Solutions Group PLC

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

 

FY25 Trading Update

Resilient H2 trading and strategic progress underpin a confident outlook

 

Eagle Eye, a leading SaaS and AI company that creates digital connections
enabling personalised, real-time marketing at scale, today provides an update
on the Group's trading for the year ended 30 June 2025 ("the Year" or "FY25").

 

Highlights

                                                               FY25     FY24     % change
 Group Revenue                                                 £48.2m   £47.7m   +1%
 Recurring revenue (subscription fees and transactions)        £40.2m   £36.1m   +11%
 Recurring revenue as a % of Group revenue                     83%      76%      +7ppts
 Group Period end organic Annual Recurring Revenue (ARR((1)))  £32.0m   £39.7m   -19%
 Adjusted EBITDA((2))                                          £12.2m   £11.3m   +9%
 Adjusted EBITDA(()(2)) margin                                 25%      24%      +1ppt
 Net cash position((3))                                        £12.3m   £10.4m   +18%

 

 ·         Trading in H2 has delivered adj. EBITDA ahead of current market
           expectations((4)) for the Year, and a strong cash performance.
 ·         Organic ARR decreased by 19% to £32.0m (16% on a constant currency basis),
           reflecting the previously announced loss of a significant contract via Neptune
           Retail Solutions ("NRS"), partially offset by underlying organic growth. No
           other customers are contracted through NRS and the removal of costs directly
           related to the lost contract are underway.
 ·         Underlying growth in constant currency organic ARR, excluding the lost
           contract, was 5% in the Year, benefitting from strong growth in EagleAI ARR of
           10%.
 ·         6 new blue-chip customers won in H2 including Galeries Lafayette in France,
           Viva Energy Australia and Metro Singapore, adding to earlier FY25 Wins,
           Renewals and expansions, which include with Southeastern Grocers, Loblaw,
           E.Leclerc, and Tesco Ireland.
 ·         Growth in adjusted EBITDA((2)) margin to 25% (FY24: 24%) demonstrating strong
           cost discipline.
 ·         The transformational OEM agreement with one of the world's largest enterprise
           software vendors is progressing well, with the first customer contracts
           anticipated to be signed on schedule in H1 FY26, and substantial revenue
           generation expected from FY27, given existing customer demand.
 ·         Earnings accretive acquisition of Promotional Payments Solutions completed at
           the end of the Year, bringing new enterprise customers and a real-time CPG
           couponing offering.
 ·         The Board has separately announced today the commencement of a share buyback
           programme of up to £1m million to be executed over the next seven months,
           reflecting the Board's confidence in the Group's growth prospects, its ability
           to execute against them, and the Group's strong cash generation.

 Outlook
 ·         Strong sales pipeline together with ARR provide a solid foundation for the new
           financial year.
 ·         New three-pronged sales strategy implemented, incorporating: reorganised
           Direct sales team & approach, led by new US-based CRO; OEM; and
           Partnerships.
 ·         Cost reduction initiatives in response to the lost contract and the move
           towards a System Integrator model, alongside 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.
 ·         The Group's industry-leading global offering, the growing market adoption of
           personalisation, and the transformational potential of the global OEM
           agreement provide the Board with continued confidence in the Group's
           medium-term growth prospects.

 

Trading Update

 

The Group exited the Year with organic ARR of £32.0m (FY24: £39.7m).
Underlying organic ARR, excluding NRS, grew approximately 5% on a constant
currency basis, to £32.0m (FY24: £31.5m or £30.4m at constant currency)
with new Win ARR and expansions offset somewhat by two customers entering
administration in H2. The strength of renewals in the Year means that 83% of
revenue from the current top 10 customers is under contract to at least FY27.

 

Group revenue increased 1% to £48.2m (FY24: £47.7m). SaaS and transaction
revenue experienced growth of 11% to £40.2m (FY24: £36.1m), offsetting a 27%
reduction in Professional Services revenue as the Group transitions to a
Systems Integrator model.

 

Through the Group's acquisition of EagleAI, formerly Untie Nots, in early
2024, it has developed and is quickly evolving a range of compelling AI
products. Revenue from the Group's AI offerings increased by 30% to £5.7m
(FY24: £4.4m), incorporating recurring revenue growth of 28%, meaning they
now account for 19% of ARR (FY24: 15%).

 

The Group has maintained strong cost discipline, delivering adjusted EBITDA(2)
of approximately £12.2m, an increase of 9% (FY24: £11.3m). This represents
an increased adjusted EBITDA(2) margin of 25% (FY24: 24%).

 

As a result of the loss of the NRS-related contract and the Group's move
towards a System Integrator model of implementation, the Group's cost base has
been reviewed and appropriate head-count reductions commenced in FY25, with
further under way. These actions, coupled with ongoing margin enhancement
programmes, mean the Board anticipates maintaining a double digit adjusted
EBITDA margin for FY26 as a whole, and to be on a materially improving
trajectory by the end of FY26, supporting a 20% adjusted EBITDA margin in
FY27, alongside double digit revenue growth.

 

The Group was cash generative in H2 and the Year overall with strong cash
collection of customer receipts at Year end. The Group closed the Year with a
net cash position(3) of £12.3m (30 June 2024: £10.4m), considerably ahead of
market expectations, after having paid out £4.7m for the Promotional Payments
Solutions acquisition.

 

The strength of Eagle Eye's balance sheet provides it with the ability to
continue to invest to support future growth while also facilitating the share
buyback programme, which has been announced separately this morning.

 

Global OEM agreement

 

The Group continues to make substantial progress with the global OEM agreement
with one of the world's largest enterprise software vendors, embedding Eagle
Eye's technology into their new cloud-based loyalty solution. The Board
believes the agreement has the potential to drive considerable growth, given
the size of the vendor's existing on-premise customer base, and the progress
being achieved across the workstreams in support of full availability.

 

The product has been successfully launched by the OEM at two global customer
events; pilot customers are now engaged in the early adoption programme and
the pipeline of global enterprises is considerable and growing in several key
geographies. Eagle Eye's product development to support this OEM continues at
pace, with all milestones achieved to date. The Board continues to expect the
first contracts to be signed in H1 FY26, with substantial revenue generation
from FY27 onwards.

 

Notice of Results

 

The Group expects to announce its results for the year ended 30 June 2025 on
16 September 2025.

 

Tim Mason, CEO of Eagle Eye, commented, "We are pleased to report a solid set
of results for FY25, demonstrating the strong fundamentals of the business and
our continued cost discipline. While the previously announced loss of the
NRS-related contract will have a short-term financial impact, it has driven a
sharpened approach to our SaaS transition, and Eagle Eye will emerge a
stronger organisation as a result.

 

"We have continued to take steps to drive the business forward, including the
earnings accretive acquisition of Promotional Payments Solutions and the
commencement today of a share buyback programme, demonstrating the Board's
confidence in the business.

 

"Our blue-chip customer base continues to grow, our products evolve and we
continue to strengthen our team. Our powerful loyalty engine combined with
innovative AI-powered Personalisation offerings provide us with a major
competitive advantage in the global retail marketing industry, and we are
sharpening our go to market approach with the new sales team to capture that
opportunity. Meanwhile, the excellent progress being achieved alongside the
global OEM provides us with confidence in material revenue generation in FY27.

 

"We have a clear set of focus areas to scale the business and drive
profitability and are confident in our ability to execute."

 

 

Notes:

All financials are based on unaudited figures.

 

((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. Organic ARR is
exclusive of ARR from the acquisition of PPS.

((2)) EBITDA has been adjusted for the exclusion of share-based payment
charges along with depreciation, amortisation, interest, tax and exceptional
items related to the acquisition of PPS and costs associated with changing the
business model from the measure of profit.

((3)) Net cash is defined as cash and cash equivalents less financial
liabilities.

((4)) In so far as the Board is aware, as at 14 July 2025, consensus market
expectations for FY25 were for Revenue of £47.7m, adjusted EBITDA of £11.3m
and Net cash of £6.85m.

 

This announcement contains inside information for the purposes of article 7 of
the Market Abuse Regulation (EU) 596/2014 which is part of UK law by virtue of
the European Union (Withdrawal) Act 2018. The person responsible for arranging
release of this announcement on behalf of Eagle Eye is Lucy Sharman-Munday,
Chief Financial Officer.

 

 

 

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 the loyalty of their end customers by powering
their real-time, omnichannel and personalised consumer marketing activities,
at scale.

 

Eagle Eye AIR is a cloud-based platform, which provides the most flexible and
scalable loyalty and promotions capability in the world. More than 1 billion
personalised offers are executed via the platform every week, and it currently
hosts over 500 million loyalty member wallets for businesses all over the
world. Eagle Eye is a certified member of the MACH Alliance and is trusted to
deliver a secure service at hundreds of thousands of physical POS destinations
worldwide, enabling the real-time issuance and redemption of promotional
coupons, loyalty offers, gift cards, subscription benefits and more.

 

The Eagle Eye AIR platform is currently powering loyalty and customer
engagement solutions for enterprise businesses all over the world, including
Asda, Tesco, Morrisons, Waitrose and John Lewis & Partners, JD Sports,
Pret a Manger, Loblaws, Southeastern Grocers, Giant Eagle, and the Woolworths
Group. In January 2024, Eagle Eye launched EagleAI, a next-generation data
science solution for personalisation, already being used by leading retailers
worldwide including Carrefour, Auchan and Pattison Food Group. Web
- www.eagleeye.com
(https://url.avanan.click/v2/r02/___http:/www.eagleeye.com___.YXAxZTpzaG9yZWNhcDphOm86OTZhYTVmMmQ2ZWY2OWI3NjkxN2VmYmQ2NDYyYzJhYTY6Nzo5MTBhOjNlNDA0ZGNkZjMxZTU0NTY0MTlmZWFmYTAzZDQwZmRjYWM0OGM1ZTRlNjg2MzQxOTA0MzRlZmE5NWRiMTBjMGM6cDpGOk4)

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTGPUAUMUPAPWC