Eagle Eye Sol Gp PLC - Trading Update and Contract extensions
("Eagle Eye", the "Group", or the "Company")
Contract extensions with Sainsbury's and Asda
Eagle Eye, a leading SaaS technology company that creates digital connections enabling personalised, real-time marketing through coupons, loyalty, apps, subscriptions and gift services, today provides an update on trading for the year ending
· Business responding as anticipated to the COVID-19 lock-down:
o Supermarket customers remain extremely active, with associated revenue resilient
o All large customer implementations and projects progressing to plan
o Food & Beverage, Leisure and Retail (non-grocery) clients have been impacted, representing a 10% decrease in monthly Group revenue during COVID-19 lock-down period
o Cost management actions taken to mitigate revenue impact of COVID-19
o The sales pipeline continues to develop, but as anticipated new contract signings taking longer
· Contract extensions with
· Adjusted EBITDA for the year ending
· Continued improvements to cashflow, with net debt tracking better than management expectations
· Current funding position is secure and sufficient headroom remains within the Group's
Trading in the weeks following the release of our Final Results on
Revenues from supermarket clients have remained resilient. Our large client implementations and projects are progressing well and to plan. Food & Beverage, Retail (non-grocery) and Leisure clients have been impacted as we anticipated, representing a 10% decrease in monthly Group revenue for the period of the COVID-19 lock-down.
The longer-term social distancing measures likely to be a part of the gradual re-opening of the economy are prompting retailers to consider how to prepare their businesses to re-open in a safe manner, including assessing where digital engagement with customers can replace direct interactions.
We are experiencing normal levels of new business activity and a growing sales pipeline, however new contract signings are taking longer to close, as anticipated.
We have continued to invest in enhancements to our AIR platform and anticipate R&D spend in the second half to be broadly in line with the first half of the year.
We have maintained our strong focus on operational cost control and implemented a reduction in run rate cost in response to COVID-19, including a reduction in ad hoc spend, travel costs and variable overheads related to Food & Beverage. The Company has benefited from its agile structure, which has facilitated the redeployment of existing
The improved profit performance and continued focus on cash management means that the Group's net debt position is tracking better than management expectations. As a prudent measure we have engaged the Group's lender, Barclays, in discussions with regards to increasing the flexibility of the facility, should it be required. However, the Group's current funding position is secure and sufficient headroom remains within the Group's
The Company is pleased to announce the extension of existing relationships with two of its
The Company has signed two new two-year contracts with
The Company has also signed a two-year contract renewal and extension with Walmart-owned
Supporting Asda to deliver the National Voucher Scheme
As part of the services being delivered to Asda, Eagle Eye is supporting Asda in safely and securely powering their part of the National Voucher Scheme, to provide free school meals to eligible children while schools are closed due to COVID-19. Due to the AIR platform's sophisticated integration at the Point of
"We are conscious we are only at the start of the impact of COVID-19 on the economy and the retail sector in particular and, therefore, while we believe digital, personalised connections with customers will continue to grow in relevance, we will maintain our strong focus to ensure we successfully navigate these challenging times for all."
For further information, please contact:
Tel: 0844 824 3686
Investec (Nominated Advisor and Joint Broker)
Tel: 020 7597 5970
Shore Capital (Joint Broker)
Tel: 020 7408 4090
Tel: 020 3405 0205
About Eagle Eye
Eagle Eye is a leading SaaS technology company transforming marketing by creating digital connections that enable personalised performance marketing in real time through coupons, loyalty, apps, subscriptions and gift services.
Eagle Eye AIR enables the secure issuance and redemption of digital offers and rewards at scale, across multiple channels, enabling a single customer view. We create a network between merchants, brands and audiences to enable customer acquisition, interaction and retention at lower cost whilst driving marketing innovation.
The Company's current customer base comprises leading names in
For more information, please visit www.eagleeye.com
This information is provided by RNS, the news service of the
Quick facts: Eagle Eye Solutions Group PLC
Market Cap: £56.7 m
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