Eagle Eye sales soar but losses remain flat

Eagle Eye Solutions, the digital coupons and loyalty scheme specialist, said losses would be pretty much flat for the year to June despite a 71% increase in revenues.

On £11.1m of sales, a loss before interest, tax, depreciation and amortisation of £1.8m, the same as the previous year, reflecting investment in its AIR software platform and operational and marketing capabilities.

Ahead of the release of full year results in September, chief executive Tim Mason said: "The group has continued to trade well, whilst accelerating its growth.

"This reflects a period of strong operational progress where we have won new customers, increased transactions through the platform and continued to deepen our tier 1 customer relationships. Looking forward, following the successful placing in May 2017, the Group is in a strong position to capitalise on the business momentum and market opportunity."

Redemption volumes increased by 58% to 60.4m and while SMS volumes increased 10% to 44.4m, messaging revenue is expected to fall to £1.6m from £1.8m due to lower margins of what has become an increasingly competitive market.

Revenue from subscription fees and transactions over the network represented 68% of total revenue and towards the end of the period, in May, Eagle Eye won a three-year contract with John Lewis for the deployment of the AIR platform and extended its Toshiba-Asda contract for another two years.

Following a £5.8m fundraising in that same month, there was £3.7m cash in the bank at the 30 June year-end.