Eagle Eye Solutions' revenues strong but short of expectations

Reporting on the year ended 30 June, the company said revenues increased by 33% compared to the previous year, rising to £14.8m, but falling short of expectations due to "certain strategic contract negotiations" extending beyond the end of the financial year.

Approximately 77% of Eagle Eye’s total revenues are now comprised of recurring revenue generated from subscription fees and transactions generated over the network.

Volumes through Eagle Eye’s platform grew 556% year-on-year to £403.7m, driven by growth in coupons and promotions, as well as the new PC Optimum loyalty programme from Loblaw.

The successful February launch with Loblaw has spawned Canada's leading loyalty programme, a move that the AIM-listed company said illustrated its international reach and scalability.

Chief executive Tim Mason said: "Outside the Loblaw project, we have continued to deliver against our strategy, which has seen us win new customers, increase transactions from existing customers and deepen our customer relationships both in the UK and internationally."

New contracts signed include Boparan, Scottish fashion chain M&Co and Greene King, while the firm also signed several new partners including Groupon and Google.

Eagle Eye’s net cash position at 30 June was £0.4m, down from £3.7m the year before, which provides the company with headroom of £5.4m when coupled with an extended banking facility with Barclays Bank.

"We are comfortable with our cash position and banking facility, giving us the headroom to support the company's existing growth plans. The strong growth in recurring revenues in the year, our healthy pipeline of new business opportunities and our strong proposition, give us confidence in the ongoing success of the business," said Mason.

Eagle Eye Solutions shares were down 13.24% to 147.50p at 0913 BST.