Shares in Eagle Eye Solutions Group PLC (AIM:EYE) tumbled 36% on Monday after the company revealed it would lose a major US contract worth up to £10 million in annual revenue.
The deal, which involved digital promotions for a national grocery chain, will end in August following changes at the client’s parent company, Neptune Retail Solutions.
The loss hits hard, as the contract was high margin and a key contributor to the group’s US growth.
Eagle Eye, which offers real-time, personalised marketing tools via its SaaS platform, said it is now launching cost-cutting measures to soften the blow.
The company insisted the long-term picture remains intact, pointing to strong recent renewals and progress with a global software partnership.
While next year’s numbers will take a hit, management expects to maintain double-digit profit margins and return to revenue growth in 2027.
Eagle Eye ended April with £12.5 million in cash and £20 million in unused credit facilities.
The stock tumbled 127p to 225p.