The company's shares were rocked at the beginning of February when it revealed first half revenues were lower than management had been expecting, largely as a result of a delay in certain contract implementations, but it said in Thursday's interim results it is on track to meet revised full-year expectations.
Revenues in the six months to 31 December 2015 rose 30% to £3.0mln from £2.3mln, driven by 108% year-on-year growth in transactional revenues from its AIR platform.
The Eagle Eye AIR platform comprises four key products: Eagle Eye Promote, Eagle Eye Gift, Eagle Eye Reward and Eagle Eye Engage.
Gross profit climbed to £2.24mln from £1.51mln the year before, but this is still an early stage company – it listed on Aim less than two years ago – and adjusted operating expenses rose even faster, to £3.5mln from £2.3mln, result in a wider loss before tax of £1.27mln versus a loss of £763,000 the year before.
Cash and cash equivalents at the end of 2015 had risen to £2.73mln from £1.35mln at the end of 2014, which the group said was ahead of budget.
Trading in 2016 has been good, the company revealed, with the transaction volume run-rate on the AIR platform rising to more than 3.7mln transactions per month from 1.3mln in the same period of 2015, reflecting the roll-out of the platform at more than 600 Asda outlets.
The company has a number of well-known retail names among its customer base, such as Asda, J. Sainsbury, JD Sports and Tesco, and reckons more will come on board as the promotions and rewards markets continues its move towards digital offerings.
The company said this would open up significant new revenues for its platform, while it noted that it has already bagged its first major international client, ahead of schedule.
“As a result, the board expects that the growth from the first half of 2016, coupled with the successes post period end, puts the company on track to deliver against revised expectations,” the company's results statement said.
“The AIR platform has demonstrated significant growth in both transactions on our network and in revenue growth which reflects the structural market shift to the digital delivery and validation of promotions and loyalty,” said Phil Blundell, chief executive officer of Eagle Eye.
“Our success in signing another two tier 1 grocers clearly demonstrates the value our platform brings to our customers. Our recent significant international win is a major milestone for our company and provides a significant opportunity for growth into a new important territory,” he added.
Shares were off 2.5p at 160p in early deals.