REG - Eagle Eye Solutions - US Contract Update

Eagle Eye SolutionsAnnouncement

02/06/2025 07:00

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RNS Number : 9703K  Eagle Eye Solutions Group PLC  02 June 2025

 

 

 

 

 

2 June 2025

Eagle Eye Solutions Group PLC

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

 

US contract update

 

Eagle Eye, a leading SaaS and AI technology company that creates digital
connections enabling personalised, real-time marketing at scale, announces
that the Company has been notified by Neptune Retail Solutions ("NRS") of the
termination of a contract with an annual value of between £9m and £10m in
revenue, for the provision of digital promotional services to a national US
grocer, with effect from 2 August 2025. This follows NRS's acquisition of
Quotient Technology Inc, a digital promotions and content provider, in 2023.
Eagle Eye does not have any further customers that are contracted through NRS.

 

The contract was high margin in nature, due to its incorporation of CPG funded
offers. Cost reduction programmes to mitigate the impact of the contract loss
are now underway, in parallel with the Group's previously stated drive towards
greater efficiency, scalability and margin expansion, as part of its SaaS
transition.

 

The Board is confident that this change has no impact on the Group's growth
opportunities, which remain strong. The Board's vision to significantly grow
the business and deliver enhanced EBITDA margins is unchanged and it remains
committed to investing in key areas to fuel growth. These include the ongoing
acceleration of the Group's SaaS transition, business readiness for the OEM
partnership and Sales and Marketing in the US.

 

The strength of recent renewals means that 83% of revenue from the remaining
top 10 customers is under contract to at least FY27. NRR excluding the NRS
contract remains strong at 117%, as at 30 April 2025.

 

The contract loss is not expected to meaningfully impact the Company's
financial performance in the financial year to 30 June 2025 ("FY25") and the
Board expects to report results for FY25 in line with current market
expectations*. The Group's balance sheet remains robust, with a strong net
cash position of £12.5m as at 30 April 2025 and £20m of undrawn facilities.
Further details on trading and the outturn for FY25 will be included in the
Company's FY25 full year trading update, expected to be announced in mid-July
2025.

 

While the impact on FY26 performance will be material, the Board anticipates
maintaining a double digit adjusted EBITDA margin. The positive progress with
the global OEM agreement, strength of the sales pipeline, new Wins in
Australia and the UK alongside ongoing expansion with existing customers, and
cost reduction actions are expected to support a return to double digit
revenue growth and a 20% adjusted EBITDA margin in FY27.

 

Global OEM agreement progressing well

 

The Group continues to make good progress with the transformational global OEM
agreement with one of the world's largest enterprise software vendors. 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
Eagle Eye's product development has progressed well. The Board therefore
continues to expect the first contracts to be signed in H1 FY26, providing
confidence in the Group's long-term prospects.

 

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

 

"The transformational global OEM agreement is progressing well, which
alongside our increased focus on the US market and growing customer adoption
of our powerful AI-powered offerings, provides confidence in the return to
double digit growth and 20% adjusted EBITDA margin in FY27, and the
achievement of our medium-term milestones of £100m revenue and at least 30%
adjusted EBITDA margin."

 

 

* Prior to this announcement, the Board understands market expectations for
FY25 to be Revenue of £47.7m with an Adjusted EBITDA margin of 23.8%.

 

 

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 technology 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
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