TIDMEYE
RNS Number : 5205M
Eagle Eye Solutions Group PLC
22 September 2021
22 September 2021
Eagle Eye Solutions Group plc
("Eagle Eye", the "Group", or the "Company")
Final Results for the year ended 30 June 2021
Growing profitability following record win performance, exiting
the year with momentum
Eagle Eye, a leading SaaS technology company that creates
digital connections enabling personalised, real-time marketing
through coupons, loyalty, apps, subscriptions and gift services, is
pleased to announce its results for the financial year ended 30
June 2021 (the "Year").
Financial Highlights
FY21 FY20 Change
--------------------------------- --------- ---------- -------
Group revenue GBP22.8m GBP20.4m +12%
Recurring subscription and
transaction revenue GBP16.9m GBP14.9m +13%
Recurring subscription and
transaction revenue % of Group
revenue 74% 73% +1ppt
Adjusted EBITDA* GBP4.2m GBP3.3m +29%
Adjusted EBITDA* margin 18% 16% +2ppt
Profit / (loss) before tax GBP0.1m GBP(0.3)m
Net cash GBP0.8m GBP1.5m -46%
* EBITDA has been adjusted for the exclusion of share-based
payment charges along with depreciation, amortisation, interest and
tax from the measure of profit.
Operational Highlights
-- Strong close to the Year, delivering 27% growth in Q4
FY21 revenues as compared with Q4 FY20, entering the
new financial year with positive momentum
-- Continued growth of the Group's Tier 1 customer base,
despite COVID-19 headwinds, resulting in an uplift in
"win" related revenue
-- New customers won in the Year included Woolworths Group
in Australia and New Zealand, Staples US Retail in North
America and our first client in the food services sector,
Vermaat in the Netherlands
-- Innovations on behalf of our customers included enabling
Virgin Red, Virgin's new rewards club, a comprehensive
personalised digital marketing programme for Southeastern
Grocers, and a UK first - the Pret A Manger's 'YourPret
Barista' subscription service
-- Chargeable AIR redemption and interaction volumes grew
by 11% to 952m (FY20: 856m)
-- Long term contract customer churn rate by value remained
very low at 0.3% (FY20: 0.9%)
Post Period End Highlights
-- Go live of the Woolworths programme just 10 months since
contract signing
-- Assisting the start of a global rollout of subscriptions
for Pret A Manger, starting in the US
Outlook
-- Following record new client wins during FY21, Eagle Eye
has entered FY22 with a considerably expanded underlying
business and positive trajectory
-- Trading in the current year is in line with Board expectations
and the Board is confident in achieving a positive year
of growth in FY22
Tim Mason, Chief Executive of Eagle Eye , said: " The pandemic
has accelerated the digital engagement strategies of retailers
around the world. We have seen personalised marketing coming to the
fore which plays to our strengths. Our proven capabilities in
enterprise retail, food and beverage and new sectors won in the
year combined with our increased international presence positions
us well to capture a growing proportion of this expanding market.
We will continue to invest in our people and offering, in line with
revenue growth, to ensure that we remain at the forefront of this
growing industry.
"Our people are key to the success of Eagle Eye and with the
challenges presented through this year, their support and
cooperation has been paramount. They have continued to successfully
deliver value for our clients, and I would like to put on record my
thanks and gratitude to each and every one of them.
"Following record new client wins during FY21, Eagle Eye has
entered FY22 with a considerably expanded underlying business and
positive trajectory. In addition to securing new enterprise
customers across multiple geographies, we have increased our
engagement with existing customers and expanded the AIR platform,
while carefully managing our cost base and cash resources,
delivering a maiden full year profit before tax. We have entered
the new financial year with a record pipeline and look to the
future with confidence."
For further information, please contact:
Tim Mason, Chief Executive Officer Tel: 0844 824 3686
Lucy Sharman-Munday, Chief Financial
Officer
Investec (Nominated Advisor and Joint Tel: 020 7597 5970
Broker)
Corporate Finance: David Anderson / Sebastian
Lawrence
Corporate Broking: Sara Hale / Will Brinkley
/ Charlotte Young
Shore Capital (Joint Broker) Tel: 020 7408 4090
Corporate Finance: Hugh Morgan / Daniel
Bush
Corporate Broking: Henry Willcocks
Alma PR Tel: 020 3405 0205
Caroline Forde / Robyn Fisher / Molly
Gretton
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
UK Grocery, Retail, Leisure and Food & Beverage sectors,
including Asda, Sainsbury's, Tesco, Waitrose and John Lewis &
Partners, Virgin Red, JD Sports, Pret A Manger, Greggs, Mitchells
& Butlers, Pizza Express; in North America, Loblaws, Shoppers
Drug Mart, Southeastern Grocers and Staples US Retail and in
Australia & New Zealand, Woolworths Group and The Warehouse
Group.
Chairman's Statement
I am pleased to be in a position to update shareholders on a
year of achievement and growth at Eagle Eye, against what has been
a challenging backdrop for all. With the lockdown measures
introduced to tackle the COVID-19 pandemic impacting approximately
10% of Group revenues at the time and elongating sales cycles, it
would be natural to expect the business to hunker down and enter
protection mode to ride out the storm. However, that is not the
Eagle Eye way.
What I have seen in the Eagle Eye team has been an enhanced
sense of passion and purpose to support enterprises through these
difficult times, helping them to connect with their customers in
new and exciting ways. This passion has seen the business continue
to add innovative new functionality to the Eagle Eye AIR platform,
increasing the attractiveness of the platform and as a result,
winning new customers around the world. New customers secured in
the Year included the pioneering Pret A Manger coffee subscription
service, the winning of a five-year contract with Woolworths Group,
the largest retailer in Australia, and securing Staples US Retail,
the Group's second US customer. It is particularly encouraging to
note that the Woolworths programme has gone live in August 2021,
following the end of the year, just ten months since contract
signing, representing a remarkable achievement by the joint
team.
As a result of these wins, our key contracts moving into the
next stage of their lifecycle and the relaxation of COVID-19
restrictions , the Group enjoyed a strong close to the year,
delivering 27% growth in Q4 FY21 revenues as compared with Q4 FY20,
and importantly entered the new financial year with positive
momentum.
Financial Results
Overall, the benefits of the Group's high quality SaaS business
model can be seen in the robust financial performance in the Year.
The Group's high levels of recurring revenue (approx. 74% of
revenues), low customer churn and increased win rate meant Eagle
Eye delivered double digit revenue growth of 12% to GBP22.8m (FY20:
GBP20.4m). Careful management of the cost base, in line with the
Group's revenue profile, alongside continued investment in the
product and sales and marketing, resulted in an increase in
adjusted EBITDA for the Year of 29% to GBP4.2m (FY20: GBP3.3m), and
an increased adjusted EBITDA margin of 18% (FY20: 16%), ahead of
market expectations. The Group is pleased to report a maiden full
year profit before tax for FY21 of GBP0.1m (FY20: loss of
GBP0.3m).
The Group continues to have access to its GBP5m banking facility
which, combined with the Group's net cash, is sufficient to support
its existing growth plans. Following the year end, the Group has
extended the term of the facility to November 2022.
ESG and Our People and Values
Over the past year, we have seen a rapid acceleration in the
importance of Environmental, Social and Governance issues for
businesses, consumers and investors with the pandemic highlighting
to all the importance of these topics. As a Board, we are committed
to high standards of ESG and we are already seeing the early
progress made by our initiatives, building on our existing
foundation of responsible business practice. We are measuring our
progress through KPIs and comparing to the market median to allow
focus on areas of improvement.
Eagle Eye is a business which places the success and happiness
of its people at its heart. The themes of the Company's recent
Annual Company Day, which I was delighted to attend, were value
creation by enriching the lives of everyone with whom we come into
contact and the introduction of a Purple Women inititiative aimed
at supporting women through all aspects of their work/home life.
This is a key initiative which we will build upon in FY22 as our
business strives to become a role model for women in tech by being
an excellent place for women to work.
At this event, and throughout the year, I am continually struck
by the culture that the team have created, where its people are
supported and rewarded and where the management team constantly
strive to make Eagle Eye an exceptional place to work. You can read
more about the culture of Eagle Eye in our People section within
this report and on behalf ot the Board, I once again thank the
Eagle Eye team for their continued commitment during another
challenging year for all. They are exceptional.
As a business, we already have a low Environmental footprint and
we will continue to identify ways to improve on this. Our offering
itself eliminates the use of paper coupons and vouchers. We will
maintain our strong corporate governance framework which we have
already adopted by following the QCA Code.
Opportunity
Eagle Eye has entered FY22 with a considerably expanded
underlying business and positive trajectory. The impact of the
pandemic has been to accelerate the digital engagement strategies
of retailers around the world and the proven enterprise
capabilities of the Eagle Eye AIR platform position the Group well
to capture a growing proportion of this expanding market.
With a growing customer base, including some of the world's
largest retailers, and a record sales pipeline, the Board looks to
the future with increased confidence.
Malcolm Wall, Non-Executive Chairman
CEO's Statement
I am proud of the exceptional performance and high energy our
team has maintained this Year; securing fantastic new retail
clients around the world and delivering innovative solutions that
create value for our customers, while dealing with the challenges
of the pandemic. The business has delivered a good financial
performance, and importantly, we have exited the year with strong
momentum.
The AIR platform sits at the heart of the digital marketing
programmes of a growing number of the world's largest retailers.
Alongside our long-standing Tier 1 customers in the UK, we can now
point to a range of landmark customers internationally, increasing
our profile and demonstrating our credentials in an accelerating
market, where personalised, digital marketing is coming to the
fore.
The success of this Year provides us with a strong position as
we enter the new financial year, focused on creating exceptional
value for our clients and becoming the most flexible and scalable
promotions and loyalty platform in the world.
Market opportunity
In a year in which retailers globally have had to face huge
upheaval and change, the shift to digital has continued at pace,
with retailers of all kinds developing their omnichannel
capabilities to address rapidly changing consumer shopping
behaviours.
McKinsey's latest US Consumer Sentiment research shows that 77%
of consumers tried new shopping behaviours in the past year, and
that they were primarily driven to it by a need for value,
convenience, and availability (Source: US consumer sentiment during
the coronavirus crisis). Ecommerce sales also continue to grow
according to a report by eMarketer which showed worldwide retail
ecommerce sales had grown 28% in 2020. (Source: Global Ecommerce
Update 2021 - January 2021).
This shift has, in turn, driven an acceleration of retailers'
digital engagement strategies. They have been forced to reassess
their marketing spend to ensure they have remained competitive and
attractive in the face of growing and new competition, retaining
the loyalty of existing customers while seeking to win new ones.
They are looking for new ways to harness the increased availability
of customer data, machine learning and AI to power personalised
connections and prosperous long-term relationships.
According to a report by Euromonitor and the National Retail
Federation, 72% of retail professionals say COVID-19 has
accelerated the company's digital transformation by at least a year
(Source: Using Retail Tech Innovation to Enhance the Customer
Experience, June 2021).
However, achieving true personalisation is not easy across
multiple customer touchpoints as it requires data to be aligned
across a retailer's multitude of systems in real time, the
analytics to determine the customer message and the transaction
capability to deliver personalisation at scale; Eagle Eye enables
its clients to address these very issues.
Competitive strength
The proven capabilities of the Eagle Eye AIR platform and the
breadth of solutions we are able to offer across loyalty,
promotional coupons, apps, subscriptions and gifting; position
Eagle Eye well to capture a growing proportion of this expanding
digital loyalty and promotions market.
The competitive advantage we offer can be illustrated by the way
we solve client pain points. There are vendors in the market that
specialise in standalone solutions such as loyalty or gift, but not
at the same scale or range of capabilities that our platform
offers. Typically, the main competition we face is from retailers
who want to try to build a comparable solution to the Eagle Eye AIR
platform in-house. However, by choosing to work with Eagle Eye,
retailers can focus on building the experiences for their end
customers whilst we manage the enabling technology. We help clients
deploy faster, manage their costs, control the risk and ensure
security and data compliance.
The Eagle Eye platform unlocks the power of omnichannel
personalisation, removing any existing channel or technology
limitations on the scale at which retailers can deploy personalised
communications and offers. We are also able to create multiple ways
for retailers to engage with their consumers, from full-scale
loyalty initiatives to cashback programmes, digital stamp cards,
charity donations and more. This allows retailers to develop their
own unique range of promotions and loyalty tactics which work for
their business.
Our platform can automate feeds into finance systems to create a
single source of truth for supplier funds and also consolidate a
retailer's array of legacy systems, centralising all loyalty and
promotions set-up and execution onto one platform which then
creates a single customer view rather than having data in silos
across multiple systems. As a real time platform, Eagle Eye enables
retailers to react faster, providing the capability for them to
view and respond to customer interactions as they happen.
These capabilities have led Eagle Eye to become one of the most
proven and flexible loyalty platforms in the world, powering some
of the largest and most sophisticated marketing and loyalty
programmes globally.
We are pleased to be gaining recognition from industry analysts,
with Eagle Eye referenced in two different sector reports in recent
months. In May 2021, we were included in Loyalty360's 2021
Technology Today Report where Eagle Eye was listed as an "all in
one supplier" within the grocery, retail and c-store sectors and in
August 2021 we were delighted to be included in Forrester's Now
Tech: Promotions and Offer Management Providers, Q3 2021 Report
where we were included in both the loyalty standalone and loyalty
embedded functionality segments within the grocery, retail, and
hospitality vendor market focuses. Inclusion in these two reports
reinforces the value and commitment Eagle Eye delivers to
clients.
Strategic Partnerships and Collaborations
Eagle Eye AIR has the ability to sit across the entire marketing
ecosystem, connecting all the elements required to deliver
personalised marketing at scale. As part of our growth strategy, we
will continue to create partnerships and collaborations with other
businesses in the industry, using their expertise to strengthen our
offering and leveraging their marketing reach.
New partnerships in the year include Oracle MICROS Simphony POS
System (to deliver YourPret Barista); Outra, a predictive data
science business, to help retailers, hospitality operators and
branded CPG (Consumer Packaged Goods) to enhance the effectiveness
of their promotional marketing investments; and Artificial
Intelligence provider Peak to help retailers leverage customer data
for loyalty and promotional campaigns. We have continued to build
out our own brand capabilities with CPGs by bringing on partners
such as Gladcloud, Engage Interactive, X Influence and Voxly who
all use our APIs to create consumer facing digital experiences that
help brands to engage with consumers and drive transactions. We
partnered with Chargebee, initially to help retail and hospitality
operators drive customer engagement and recurring revenue through
subscription services; we are now engaged on joint sales and
marketing initiatives.
During the year, the Liberty omnichannel gift programme was
enabled through our integration with Salesforce Commerce Cloud, a
powerful ecommerce solution from the world's largest CRM provider
which enables Eagle Eye to deploy our solutions quickly to the
wider Salesforce customer base. We recently signed our first client
in the food services sector, Vermaat in the Netherlands. Vermaat
has o ver 20 STACH coffee shops that are currently using the Eagle
Eye app and the integration with our partner Qikserve to enable
click and collect for food and beverage orders.
We are continuing to harness relationships to optimise our
expansion into the US. Our partnerships and collaborations with
Neptune Retail Solutions (previously News America Marketing) the
premier marketing services company in the US and Canada, Ecrebo,
the receipt marketing technology provider and dunnhumby, a global
leader in customer data analytics, all continue to progress
well.
We are encouraged by the increasing number of opportunities
entering our sales pipeline via our partners and maintaining these
relationships will be a key focus for us as we continue to scale
internationally.
Delivering against all elements of our growth strategy
I am pleased to report the following progress across all four
elements of our growth strategy:
1."Win, Transact and Deepen"
Our customer strategy is to:
-- 'Win': bring more customers on to the Eagle Eye AIR platform;
-- 'Transact': drive higher redemption and interaction volumes through the platform; and
-- 'Deepen': encourage our customers to adopt more of our
product portfolio as they become more adept at digital
marketing.
Our high level of customer retention means that each new
customer win significantly adds to our growth prospects, with
revenue from our largest revenue-generating customers typically
increasing by a multiple of over three times by the end of their
third year on the AIR platform, through both increased use of the
platform and the addition of new services.
Win
During the Year we saw an increase in win rate both in the UK
and internationally. New customers secured in the Year included a
five-year contract with Woolworths Group in Australia & New
Zealand; a three-year contract with Staples US Retail in North
America; and we signed our first client in the food services
sector, Vermaat, which included the launch of an app to enable
digital loyalty stamp cards for coffee and sandwiches at their
STACH coffee shops in the Netherlands. Wins in the UK included a
three-year contract with Liberty Retail Limited, the luxury
department store, to support their omnichannel gift programme and a
two year contract with Robinsons Brewery, who have approximately
260 pubs, inns and hotels across the North West of England and
North Wales, to run their gift programme.
We were pleased to confirm our role as a key technology provider
for Virgin Red, Virgin's new rewards club during the past year. The
Eagle Eye platform was chosen to support Virgin Red because of its
ability to process and manage the billions of Virgin Points being
earned and spent across multiple organisations globally, bringing
together the Virgin companies and beyond, across multiple sectors.
Our platform has also successfully helped transition Virgin
Atlantic Flying Club miles to Virgin Points and since March 2021,
Virgin Trains Ticketing has been added to the programme, where
members can earn points when booking train tickets within the
UK.
We have been delighted by the success of the Pret Coffee
Subscription. Now a year old, this was the UK's first ever in-shop
coffee subscription, allowing subscribers to enjoy up to five
barista-prepared drinks per day for a fixed monthly fee, including
the first month for free. The service was built on the Eagle Eye
AIR platform as part of Pret A Manger's new digital infrastructure
and was Pret's first major step in delivering against its new
digitally-led, omnichannel strategy.
A first for the UK high street, the new in-shop digital service
capability is providing Pret with new data-led customer insights.
Since launch in September 2020, we are pleased that Pret have been
utilising more of the capabilities of the AIR platform which has
assisted in the start of an international rollout of subscriptions
starting in in the US. We continue to work closely with them as
they seek to drive customer engagement as a digitally-led,
multichannel business.
The increased win rate demonstrates the range of capabilities
being delivered by the Eagle Eye AIR platform, with the ways in
which businesses are using Eagle Eye AIR increasing at pace,
providing us with a strong base for future expected growth.
Transact
Chargeable AIR redemption and interaction volumes, a key measure
of usage of Eagle Eye AIR, grew by 11% to 952m (FY20: 856m),
primarily reflecting an increased number of loyalty transactions
following the successful launch of new customer programmes,
including for Southeastern Grocers ("SEG") and the full Year effect
of Sainsbury's, offset by the impact of COVID-19.
The Year saw an 88% increase in SMS volumes to 85m (FY20: 45m)
driven by the growth of Click & Collect offerings at a
selection of our high-street retail customers during the pandemic
and also from supporting clients following the UK Government's Test
and Trace guidelines. We do not anticipate similar growth rates in
SMS volumes moving forward and overall expect SMS to represent a
decreasing proportion of revenues in coming years.
Brands & Audiences
The Eagle Eye AIR platform is also used by brands to run
campaign activations across our growing Retailer, Operator and
Audience Network. This was one of the key areas of the business
impacted by the COVID-19 lockdown. Overall, t he revenue from
branded drinks campaigns decreased to GBP0.1m (FY20: GBP0.3m),
which was effectively delivered during the still heavily restricted
periods of Q1 FY21 and Q4 FY21. Affiliate revenue held steady at
GBP0.5m (FY20: GBP0.5m), bringing total brand and audience revenue
to GBP0.6m (FY20: GBP0.8m).
We now have over 7,100 hospitality venues connected to the Eagle
Eye AIR platform, creating an attractive platform for Brands to
exploit once lockdown restrictions are lifted, as they seek the
means to recapture lost revenue and strengthen their
businesses.
Deepen
COVID-19 has caused some contract expansion to be delayed and
lower transactional volumes in our Food and Beverage clients which,
together with its effect on brand revenue, has impacted circa 10%
of the Group's pre COVID-19 revenue base. However, throughout the
Year , we have continued to have a wide range of discussions across
our customer base as they consider how to continue on their journey
towards personalised omnichannel loyalty, promotion and gift
offerings. Our 'Deepen' pipeline continues to grow with several new
customers having commenced transacting in the Year, including Pret
A Manger and Virgin Red in the UK and, with our international
customers also continuing with their roll-outs, we anticipate our
recurring, transactional revenues to increase in future
periods.
Pleasingly, our long-term contract customer churn rate by value
remains very low at 0.3% (FY20: 0.9%), with good levels of renewals
taking place, including multi-year contracts with 16 customers.
2. Innovation and the AIR platform
Innovation
Innovation continues to lie at the heart of our proposition,
investing in the capabilities of our flexible Eagle Eye AIR
platform to find new ways to deliver value to our customers, and
their consumers.
POS Connect
Last year, we launched our POS Connect capability, a next
generation approach to enable us to enhance the way we integrate
with our clients' Points of Sale systems. POS Connect was designed
to provide retailers with greater flexibility in their ability to
provide their customers with a diverse range of offer types (e.g.
points and discounts), executed in real time and at huge scale.
During the year, we have continued to invest in this area,
providing our clients with new and innovative ways to engage with
their customers using our cloud-based adjudication service. Using
this service, we are able to execute incredibly complex
calculations in real time at the POS, using Eagle Eye AIR to adjust
customers' basket totals based on any valid discount, points,
multibuy or other promotions that are available them. These
calculations can be complex and involve millions of permutations
which previously would not have been possible to handle by
retailers' existing POS systems. Using POS Connect, retailers are
set free from the limitations they would have faced regarding the
number and/or type of offers they could deliver to their customers,
thus unlocking the power of true omnichannel personalisation.
Message At Till
In the Year we launched our new, personalised Message At Till
capability, enabling the delivery of real-time, relevant and
targeted promotions to customers at the till, through physical
coupons or digital coupons, SMS and in-app push notifications
following a transaction, based on their customers' basket content
and buying behaviour.
This functionality is particularly important in the US, acting
as a digital replacement for the widely prevalent receipt-based
couponing market, adding further capability for our US enterprise
customers while opening-up a new segment of the US retail
market.
Load to Card
Our Load to Card functionality is now live and in use at
Southeastern Grocers. This allows retailers to leverage data
analytics and artificial intelligence ("AI") to recommend and issue
personalised digital rewards via digital channels such as a website
or an app. A consumer is able to select the offers they wish to
redeem and load them to their digital loyalty card.
App
Our app solution is now used in more countries across the world
as IMO rolled out their car wash app in an additional seven
countries and Vermaat launched their STACH coffee app in the
Netherlands.
3. International growth
We have continued to deliver on our international growth
strategy in the Year, winning new customers, and strengthening our
positions in our new territories. Revenue from international
customers grew by 32% to GBP9.3m (FY2020: GBP7.0m).
North America
In December 2020, we were pleased to secure our second US
customer, Staples US Retail.
We are making great progress with Southeastern Grocers (SEG)
since signing them in December 2019, helping them connect with
customers on a personal level, whether that is in stores or through
digital platforms. Eagle Eye and dunnhumby are collaborating to
enable the personalisation of promotions for SEG, and to provide
the retailer with a deeper understanding of its customers'
behaviours and preferences. Once fully integrated, it is expected
to produce more than 200 million digital offers, coupons and
recommendations to customers monthly.
We have now gone live with six media channels, with further
channels to follow. We have also modernised SEG's loyalty offering
and become their points master, enabling SEG to execute more types
of campaigns and support their wider personalised media
objectives.
Through the success of this customer programme we have
demonstrated our ability to manage the digital marketing needs of
US retailers.
In Canada, our relationship with Loblaw Companies Ltd ("Loblaw")
continues to strengthen. During the Year, Eagle Eye supported the
launch of their PC Health app which provides live chat to members
with registered nurses and dietitians, plus the opportunity to earn
PC Optimum(TM) rewards through custom digital health programmes.
More recently, we supported both the Holiday Insiders and Summer
Insiders programmes which are highly anticipated programmes used to
introduce new and exciting products to Canadians and give customers
the opportunity to earn points through the PC Optimum programme. We
also supported the launch of the PC Money Account, a new, no
monthly fee account that lets customers earn PC Optimum points for
their everyday banking.
Australasia
In November 2020, we secured a five-year agreement with
Woolworths Group, Australia's largest retailer; the Group operates
1,400 stores in Australia and New Zealand. Woolworths are using
Eagle Eye AIR to support their personalised real-time digital
marketing programme. Eagle Eye's services allows Woolworths Group
to enable the end-to-end management of real-time personalised
digital promotions and support its transition to a digitally led
rewards programme. Woolworths deploys the proposition across
touchpoints including its app, its eCommerce business and various
other digital media. Eagle Eye AIR is also used to enable a
real-time integration with a network of partners. Implementation
commenced on contract signature and our local team in the region is
supporting Woolworths to deploy our Eagle Eye AIR platform across
Woolworths' network of Australian and New Zealand stores.
Post our financial year end, the programme went live in August
2021, just 10 months after contract signing, to the members of the
Everyday Rewards loyalty scheme, following a successful pilot. This
marked the point at which Eagle Eye's full fees were payable and
the start date of the five-year agreement announced on 10th
November 2020.
We continued our work with The Warehouse Group, one of the
largest retailing groups in New Zealand. The Warehouse Group is
successfully piloting an app-first loyalty programme within its
largest retail banner, The Warehouse.
With two of the largest retailers in the Australasia region now
as customers, we are investing in the team as a platform for Eagle
Eye's entry into the wider Asia Pacific region. The Group believes
there to be a good level of enterprise-level prospects in the
region.
Eagle Eye provides digital loyalty and personalised promotion
services to several of the world's leading grocers, we are uniquely
strong in the UK food and beverage sector and we have added new
clients such as Virgin Red and Pret A Manger opening up the travel
and ('Quick Serve Restaurant') QSR sector alongside the likes of JD
Sports and others. We have established a management structure in
EMEA, North America and APAC where the regional heads and their
teams are using our diverse and loyal existing client base as proof
points to build a strengthened pipeline around the world.
4. "Better, Simpler, Cheaper"
We have developed a proven business model to grow our EBITDA
margin whilst also investing as we 'Win' in sales and marketing to
generate new opportunities for growth, enhancements to the product
to add value to our customers and the 'spine of the business' to
ensure the health of Eagle Eye is maintained. This agility means we
can control our costs through periods of adversity and
prosperity.
Our agility extended to our operational approach at the time of
the COVID-19 pandemic, enabling us to swiftly implement home
working and the change of working practices required to ensure its
successful execution. As we now hopefully emerge from the pandemic,
we remain agile and are moving to a hybrid model of working for our
employees, allowing them to work effectively from home some of the
time but ensuring that when they do come to the office that it was
worth the commute. We will ensure that going to the office meets
the three C's: Culture - it helps to grow the Eagle Eye culture and
improve teamwork; Collaboration - it allows our teams to take part
in brainstorming and blue sky thinking sessions to aid innovation
and kick off meetings for new projects to ensure everyone is
aligned; and Coaching - to continue to enhance the skills
capabilities of our employees.
Our new agile methodologies have enabled us to supplement our
local teams by our global resource pool, enabling us to open up
these geographies in a cost-efficient and scalable manner.
The performance of Eagle Eye AIR continues to benefit from our
move to the Google Cloud. We are improving the speed and scale of
the AIR platform as API response times at the POS improved by 30%
and volumes increased by 11%. We were, therefore, able to increase
our scalability and flexibility, being able to grow compute power
as we sign up new customers and as our existing customers require
it. This has seen our direct IT infrastructure costs increase by
only 5% despite an 11% increase in volumes.
We have now introduced site reliability engineering (SRE) with a
major focus on customers in order to be more scalable, automated,
reliable, standardised and secure. We have created a Customer
Reliability Engineering team who follow SRE principles that allow
us to focus on reducing manual or repetitive tasks, automating our
platforms with a focus on keeping our services running, making them
better and faster. It is our intention to introduce the SRE
concepts and principles across the business and to our clients.
During the year we have achieved ISO27001 recertification and
added our Canadian, Australian and US businesses to the
certification. SOC2 Type2 has also been completed and extended to
cover all of our offices in all geographies, providing our
enterprise clients with assurance around the quality of our systems
and the safeguarding of data.
Our People and Beliefs
Creating value for our customers sits at the heart of Eagle Eye
and we believe this is the foundation of our successful business.
We aim to enrich the lives of everyone we come into contact with by
creating exceptional value for them and by being kind, thoughtful,
friendly, generous and considerate. We passionately believe that
the culture we have created sets us apart.
We are committed to delivering value to our clients by
partnering with them to solve their problems in the "Purple way."
By collaborating with clients to deliver solutions that solve their
pain points and to help maximise their return on investment, we
secure customer loyalty. New customer collaboration initiatives
recently commenced include the implementation of Professional
Services Satisfaction Reports and Net Promoter Scores, to monitor
how we are performing.
All the value we create is thanks to our people. Our goal is to
be an exceptional place to work, which will lead us to deliver
exceptional results. We measure our success via our employee NPS
scores, as well as our annual stress survey tool, and annual
Company Day vision and strategy survey. Our June 2021 NPS scores
were +47 (How likely is it that you would recommend Eagle Eye as a
place to work?) and +56 ( How likely is it that you would recommend
Eagle Eye's products and services?), which are above the industry
standard where a score over 30 is considered good. B y training
well and rewarding our employees, we are better able to create and
deliver more value to our customers. To promote our values we have
introduced Company Value Awards, Purple Awards and quarterly
communications on financial and operational company performance.
Having had a successful and popular company day for years we have
now introduced quarterly communications sessions where we promote
our values, give awards for purple performance and update on
financial and operational progress. We also meet for 30 minutes
every Monday at a meeting called 'Tea with Teams' where we keep
everyone up to date on achievements and reasons to celebrate.
Last year we launched Employee Resource Groups (ERGs) where
employee volunteers can update their friends and colleagues on
events that are important to them; through this, we have learnt
from our black colleagues what 'BLM' means to them, we've also
learnt about Diwali, Ramadan and Passover. In conjunction with the
progress of our ERG's launched last year we have also built upon
its success by launching a 'Purple Women's Group' which every woman
in the Company has voluntarily attended. The key areas where we
strive to make a difference for women are by providing a platform
for their voice; supporting them through their career journey;
developing family friendly policies/benefits; creating more
diversity through encouraging more women in tech; and looking to
tackle important health issues that impact people in the
workplace.
We have strengthened our compensation reviews to incorporate
loyalty and to reward our people based on the value they bring, in
addition to our normal annual review process. We believe this will
only further increase engagement and strengthen our retention which
is currently at 91%.
Looking forward to FY22 we have partnered with 52 Lives, a
charity built around the concept of 'kindness' who find people who
need help and then deliver it. We believe that this partnership
will make Eagle Eye a better place and if we are successful not
only will we help 52 Lives to help more people but create a model
for them to expand their charity and help even more people. Working
with our charity committee, this is a whole company effort to team
build, be more kind, and raise important funds for those in need
within our communities.
Outlook
Following record new client wins during the Year, Eagle Eye
enters FY22 with a considerably expanded underlying business and
positive trajectory. In addition to securing new enterprise
customers across multiple geographies, we have increased our
engagement with existing customers and expanded the AIR platform,
while carefully managing our cost base and cash resources,
delivering a maiden full year profit before tax. We have proven the
strength of our business model, growing revenues and profits,
during a challenging year. Our r ecurring revenues, breadth of
customer base, strong customer retention, extent of pipeline and
growing market need have all kept driving the business forward.
Trading in the current year is in line with Board expectations
and the Board is confident in achieving a positive year of growth
in FY22.
The pandemic has accelerated the digital engagement strategies
of retailers around the world. We have seen personalised marketing
coming to the fore which plays to our strengths. Our proven
capabilities in enterprise retail, food and beverage and new
sectors won in the year combined with our increased international
presence positions us well to capture a growing proportion of this
expanding market. We will continue to invest in our people and
offering, in line with revenue growth, to ensure that we remain at
the forefront of this growing industry.
Our people are key to the success of Eagle Eye and with the
challenges presented through the Year their support and cooperation
has been paramount. They have continued to successfully deliver
value for our clients, and I would like to put on record my thanks
and gratitude to each and every one of them.
We have entered the new financial year with a record sales
pipeline and we look to the future with confidence.
Tim Mason, Chief Executive Officer
Financial review
Key Performance Indicators
Financial FY21 FY20
GBP000 GBP000
Revenue 22,800 20,421
Recurring revenue 16,913 14,916
Adjusted EBITDA (1) 4,215 3,278
Profit/(loss) before tax 126 (332)
Net cash (2) 813 1,519
Cash and cash equivalents 1,713 1,519
Short-term borrowings (900) -
--------------------------- -------- ---------
Non-financial FY21 FY20
AIR volumes 951.6m 855.8m
Recurring revenue:
* Licence revenue GBP7.9m 34% GBP7.7m 38%
* AIR transaction revenue GBP2.6m 12% GBP1.2m 6%
* SMS transaction revenue GBP6.4m 28% GBP6.0m 29%
--------- ---- --------- ----
Total recurring revenue GBP16.9m 74% GBP14.9m 73%
Long-term contract customer churn
by value 0.3% 0.9%
------------------------------------- --------------- ---------------
(1) Adjusted EBITDA excludes share-based payment charges along
with depreciation, amortisation, interest and tax from the measure
of profit and is reconciled to the GAAP measure of profit before
taxation in note 5.
(2) Net cash is cash and cash equivalents less borrowings.
Group results
Revenue
Revenue growth for the Group was 12% for the Year (FY20: 21%),
reflecting an increased win rate in the Year, offset by the
continuing impact of the COVID-19 pandemic. However, with
successful client implementations in Q4 2021 the revenue growth
rate on exiting the year was 27% compared to Q4 2020.
COVID-19 saw many of the Group's clients in the UK shut or only
partially open throughout the Year, impacting circa 10% of the
Group's pre COVID-19 revenue base. The impact of this was on brand
and F&B transactional revenue but there was also an impact on
the continued deepening of client accounts that we would
traditionally see.
Chargeable AIR redemption and interaction volumes, a key measure
of usage of the Eagle Eye AIR platform, grew by 11% year-on-year to
951.6m for the year (FY20: 855.9m) with AIR revenue increasing to
GBP20.2m (FY20: GBP19.2m). As expected, UK non-grocery volumes were
significantly impacted by COVID-19, but the gradual relaxation of
restrictions from late March 2021 onwards and increased
international transactions as those clients ramped up their
services helped drive 20% quarter-on-quarter volume growth in Q4
2021.
SMS messaging revenue grew by 110% to GBP2.6m (FY20: GBP1.3m),
reflecting changing consumer shopping habits during the pandemic
from clients where the Group is integrated for both their High
Street stores and their eCommerce offering, as well as use of the
Group's SMS messaging platform to support clients in following the
UK Government's Test & Trace guidelines. As pandemic
restrictions ease, SMS is expected to represent a decreasing
proportion of the business in future years.
Overall, GBP16.9m of revenue was generated from subscription
fees and transactions over the network, representing 74% of total
revenue (FY20: 73%, GBP14.9m). The balance, GBP5.9m, relates to
implementation fees for new customers or new services for existing
customers and represents 26% of total revenue (FY20: 27%, GBP5.5m).
The increase in implementation fees primarily reflects contract
wins in North America, including the full year effect of SEG, and
Australia.
In addition to winning new business and deepening existing
accounts, the Group successfully maintained an extremely low rate
of long-term contract customer churn by value at 0.3% (FY20: 0.9%).
This reflects the scale and breadth of the AIR platform in meeting
our customers' needs.
Gross profit
Gross profit grew 8% to GBP20.7m (FY20: GBP19.1m), although
gross margin fell to 91% (FY20: 94%). The underlying gross margin
from AIR platform revenues increased to 98% (FY20: 97%) but this
was offset by the impact of the increased share of revenue from the
lower margin SMS messaging business which accounted for 4% of gross
profit (FY20: 2%).
Costs of sales include the cost of sending SMS messages, revenue
share agreements and outsourced, bespoke development work. All
internal resource costs are recognised within operating costs, net
of capitalised development and contract costs.
Adjusted operating expenses
The global uncertainties caused by the COVID-19 pandemic have
meant that the Group has chosen to carefully manage its cost base,
in line with our revenue profile in particular internationally,
whilst continuing to invest in the product and sales &
marketing. This has seen growth in adjusted operating expenses
limited to just 4% at GBP16.5m (FY20: GBP15.8m). This cost
represents sales and marketing, product development (net of
capitalised costs), operational IT, general and administration
costs.
The 7% increase in staff costs to GBP13.0m (FY20: GBP12.1m)
reflected standard annual pay awards and increased commission/bonus
reflecting the increased new customer win rate and the Group's
strong EBITDA performance. Average headcount for the year was 141
(FY20: 139). We continue to invest in the product and sales and
marketing; within staff costs, gross expenditure on product
development increased to GBP4.3m (FY20: GBP4.0m) and sales and
marketing spend was GBP2.8m (FY20: GBP2.9m).
The benefits of the migration of our environments to the Google
Cloud continue to be felt. Although transaction volumes grew by 11%
and further infrastructure investment was required to support new
international clients, infrastructure costs increased by just 2% to
GBP4.5m (FY20: GBP4.4m). Reflecting the Group's agile investment
strategy and cost control measures during COVID-19, marketing,
travel and administration costs were 13% lower than in FY20 at
GBP1.8m (FY20: GBP2.1m).
Capitalised product development costs were GBP2.2m (FY20:
GBP2.4m), whilst amortisation of capitalised development costs was
GBP2.2m (FY20: GBP2.0m). Contract costs (including costs to obtain
contracts and contract fulfilment costs), recognised as assets
under IFRS 15, were GBP0.7m (FY20: GBP0.5m) and amortisation of
contract costs was GBP0.6m (FY20: GBP0.5m).
Adjusted EBITDA and Profit before tax
The growth in revenue, continued tight control of costs and net
furlough receipts of GBP0.1m have resulted in a significant
increase in adjusted EBITDA which was up 29% at GBP4.2m (FY20:
GBP3.3m) for the year, with EBITDA margin improving to 18% (FY20:
16%). To provide a better guide to the underlying business
performance, adjusted EBITDA excludes share-based payment charges
along with depreciation, amortisation, interest and tax from the
measure of profit. The GAAP measure of operating profit before
interest and tax was GBP0.2m (FY20: GBP0.04m loss) reflecting the
EBITDA profit achieved in the year, offset by increased
amortisation and the non-cash share-based payment charge of GBP0.9m
(FY20: GBP0.5m), reflecting the successful EBITDA performance this
year and the strong position the Group is now in to deliver
increased revenue and profits which are reflected in future
performance related vesting assumptions.
The Group is pleased to report a maiden full year profit before
tax for FY21 of GBP0.1m (FY20: loss of GBP0.3m) reflecting the
improved profit before interest and tax and a reduction in finance
expense to GBP0.1m (FY20: GBP0.3m) due to lower utilisation of the
Group's revolving loan facility during the year as expected
following careful working capital management and improved operating
performance.
EPS and dividend
The Group's international businesses have continued to grow
successfully and as a result, overseas tax charges increased to
GBP0.4m (FY20: GBP0.3m). The impact of this is partially mitigated
in the UK by the continued successful R&D tax claims and the
deferred tax asset recognised in relation to a proportion of the
historic losses brought forward.
As a result, loss after taxation was GBP0.1m (FY20: GBP0.5m) and
reported basic and diluted loss per share improved by 88% to 0.22p
(FY20: loss per share 1.77p).
Group Statement of Financial Position
The Group had net assets of GBP5.4m at 30 June 2021 (30 June
2020: GBP4.4m), including capitalised intellectual property of
GBP3.6m (30 June 2020: GBP3.7m). The movement in net assets
reflects the improved EBITDA performance in the year and the
exercise of share options during the year.
Current assets increased by GBP1.8m primarily due to higher
revenue in the year and the timing of significant receipts,
including the research and development tax credit of GBP0.2m
received in July 2021. Liabilities increased by GBP0.7m due to the
value of the drawdown of the Group's revolving credit facility,
offset by a lower overseas corporate tax creditor due to payments
made on account during the year.
Cashflow and net cash
The Group ended the year with net cash of GBP0.8m (30 June 2020:
net cash of GBP1.5m) being better than the Board's expectations.
During FY20, the Group made use of a number of COVID-19 linked
schemes in order to manage its working capital, including the
deferral of VAT and PAYE in the UK. As a result, GBP1.7m of cash
outflow was deferred from FY20 to FY21 with a further GBP0.4m
deferred to FY22 in line with agreed payment plans. Stripping out
the impact of these schemes, the underlying net cash inflow for the
year was GBP0.9m (FY20: GBP0.8m inflow). Overall net cash outflow
for the year was GBP0.7m (FY20: inflow of GBP2.8m).
The main components to the net cash inflow (unadjusted for the
impact of COVID-19 deferral schemes) were the operating cash inflow
of GBP2.4m (FY20: inflow of GBP6.1m), reflecting the EBITDA profit
of GBP4.2m (FY20: GBP3.3m), a working capital outflow of GBP1.2m
(FY20: GBP2.6m inflow), including COVID-19 deferral repayments, and
net tax payments of GBP0.6m (FY20: GBP0.2m net receipt), offset by
capital investment in the AIR platform and other infrastructure of
GBP2.4m (FY20: GBP2.4m), contract costs capitalised under IFRS 15
of GBP0.6m (FY20: GBP0.5m), payments in respect of leases GBP0.1m
(FY20: GBP0.3m) and interest due on the Group's revolving credit
facility with Barclays GBP0.1m (FY20: GBP0.2m).
The Board does not feel it appropriate at this time to commence
paying dividends and continues to invest in its growth
strategy.
Banking facility
The Group has remained comfortably within its banking covenants
which relate to available headroom and adjusted EBITDA performance.
Following the year end, the Group has extended the term of its
GBP5.0m revolving loan facility with Barclays Bank PLC to November
2022. The Group's gross cash of GBP1.7m (FY20: GBP1.5m) and the
undrawn GBP4.1m of the GBP5.0m facility (FY20: GBP5.0m undrawn)
gives the Group GBP5.8m of headroom, which the Directors believe is
sufficient to support the Group's existing growth plans.
Consolidated statement of profit or loss and total comprehensive
income
for the year ended 30 June 2021
2021 2020
Note GBP000 GBP000
Continuing operations
Revenue 3 22,800 20,421
Cost of sales (2,134) (1,318)
--------------------------------------- ----- --------------------- ------------------
Gross profit 20,666 19,103
Operating expenses (20,432) (19,145)
Adjusted EBITDA (1) 5 4,215 3,278
Share-based payment charge (877) (464)
Depreciation and amortisation (3,104) (2,856)
--------------------------------------- ----- --------------------- ------------------
Operating profit/(loss) 234 (42)
Finance income - 1
Finance expense (108) (291)
Profit/(loss) before taxation 126 (332)
Taxation (183) (122)
--------------------------------------- ----- --------------------- ------------------
Loss after taxation for the
financial year (57) (454)
Foreign exchange adjustments (100) (98)
--------------------------------------- ----- --------------------- ------------------
Total comprehensive loss attributable
to the owners of the parent
for the financial year (157) (552)
--------------------------------------- ----- --------------------- ------------------
(1) Adjusted EBITDA excludes share-based payment charge,
depreciation and amortisation from the measure of profit
Loss per share
From continuing operations
Basic and diluted 4 (0.22)p (1.77)p
--------------------------------------- ----- --------------------- ------------------
Consolidated statement of financial position
as at 30 June 2021
2021 2020
GBP000 GBP000
Non-current assets
Intangible assets 6,527 6,494
Contract fulfilment
costs 196 209
Property, plant and
equipment 826 903
Deferred taxation 121 121
7,670 7,727
----------------------------- ---------- ---------
Current assets
Trade and other receivables 6,194 4,840
Current tax receivable 221 -
Cash and cash equivalents 1,713 1,519
------------------------------- ---------- ---------
8,128 6,359
----------------------------- ---------- ---------
Total assets 15,798 14,086
------------------------------- ---------- ---------
Current liabilities
Trade and other payables (8,575) (7,879)
Financial liabilities (900) -
(9,475) (7,879)
Non-current liabilities
Other payables (928) (1,783)
Total liabilities (10,403) (9,662)
------------------------------- ---------- ---------
Net assets 5,395 4,424
------------------------------- ---------- ---------
Equity attributable
to owners of the parent
Share capital 261 257
Share premium 17,503 17,256
Merger reserve 3,278 3,278
Share option reserve 3,997 3,525
Retained losses (19,644) (19,892)
------------------------------- ---------- ---------
Total equity 5,395 4,424
------------------------------- ---------- ---------
Consolidated statement of changes in equity
for the year ended 30 June 2021
Share
Share Share Merger option Retained
capital premium reserve reserve losses Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Balance at 1
July 2019 255 17,066 3,278 3,236 (19,515) 4,320
----------------------- --------- --------- --------- --------- --------- ----------
Loss for the
financial year - - - - (454) (454)
Other comprehensive
income
Foreign exchange
adjustments - - - - (98) (98)
----------------------- --------- --------- --------- --------- --------- ----------
- - - - (552) (552)
----------------------- --------- --------- --------- --------- --------- ----------
Transactions
with owners
recognised in
equity
Exercise of
share options 2 190 - - - 192
Fair value of
share options
exercised in
the year - - - (175) 175 -
Share-based
payment charge - - - 464 - 464
2 190 - 289 175 656
----------------------- --------- --------- --------- --------- --------- ----------
Balance at 30
June 2020 257 17,256 3,278 3,525 (19,892) 4,424
----------------------- --------- --------- --------- --------- --------- ----------
Loss for the
financial year - - - - (57) (57)
Other comprehensive
income
Foreign exchange
adjustments - - - - (100) (100)
----------------------- --------- --------- --------- --------- --------- ----------
- - - - (157) (157)
----------------------- --------- --------- --------- --------- --------- ----------
Transactions
with owners
recognised in
equity
Exercise of
share options 4 247 - - - 251
Fair value of
share options
exercised in
the year - - - (405) 405 -
Share-based
payment charge - - - 877 - 877
4 247 - 472 405 1,128
----------------------- --------- --------- --------- --------- --------- ----------
Balance at 30
June 2021 261 17,503 3,278 3,997 (19,644) 5,395
----------------------- --------- --------- --------- --------- --------- ----------
Included in Retained losses is a cumulative foreign exchange
loss balance of GBP(69,000) (2020: profit GBP31,000).
Consolidated statement of cash flows
for the year ended 30 June 2021
2021 2020
GBP000 GBP000
Cash flows from operating
activities
Profit/(loss) before taxation 126 (332)
Adjustments for:
Depreciation 297 370
Amortisation 2,806 2,487
Share-based payment charge 877 464
Finance income - (1)
Finance expense 108 291
Increase in trade and other receivables (1,233) (1,222)
(Decrease)/increase in trade and other
payables (15) 3,793
Income tax paid (563) (180)
Income tax received - 389
Net cash flows from operating activities 2,403 6,059
------------------------------------------------ -------- --------
Cash flows from investing
activities
Payments to acquire property, plant and
equipment (221) (68)
Payments to acquire intangible
assets and contract fulfilment
costs (2,826) (2,815)
Net cash flows used in investing activities (3,047) (2,883)
------------------------------------------------ -------- --------
Cash flows from financing
activities
Net proceeds from issue of
equity 251 192
Proceeds from borrowings 2,200 2,000
Repayment of borrowings (1,300) (4,600)
Capital payments in respect
of leases (104) (224)
Interest paid in respect
of leases (38) (44)
Interest received - 2
Interest paid (71) (248)
Net cash flows from financing
activities 938 (2,922)
-------- --------
Net increase/(decrease) in cash and cash
equivalents in the year 294 254
Foreign exchange adjustments (100) (98)
Cash and cash equivalents
at beginning of year 1,519 1,363
------------------------------------------------ -------- --------
Cash and cash equivalents
at end of year 1,713 1,519
------------------------------------------------ -------- --------
Notes to the consolidated preliminary financial information
1 Basis of preparation
The financial information set out herein does not constitute
statutory accounts as defined in Section 434 of the Companies Act
2006. The financial information for the Year ended 30 June 2021 has
been extracted from the Group's audited financial statements which
were approved by the Board of Directors on 21 September 2021 and
which, if adopted by the members at the Annual General Meeting,
will be delivered to the Registrar of Companies for England and
Wales.
The financial information for the Year ended 30 June 2020 has
been extracted from the Group's audited financial statements which
were approved by the Board of Directors on 15 September 2020 and
which have been delivered to the Registrar of Companies for England
and Wales.
The reports of the auditor on both these financial statements
were unqualified, did not include any references to any matters to
which the auditors drew attention by way of emphasis without
qualifying their report and did not contain a statement under
Section 498(2) or Section 498(3) of the Companies Act 2006.
The information included in this preliminary announcement has
been prepared on a going concern basis under the historical cost
convention, and in accordance with International Accounting
Standards in conformity with the requirements of the Companies Act
2006 and the International Financial Reporting Interpretations
Committee (IFRIC) interpretations issued by the International
Accounting Standards Board ("IASB") that are effective as at the
date of these financial statements.
The Company is a public limited Company incorporated and
domiciled in England & Wales and whose shares are quoted on
AIM, a market operated by The London Stock Exchange.
2 Going concern
As part of their going concern review the Directors have
followed the guidelines published by the Financial Reporting
Council entitled "Guidance on the Going Concern Basis of Accounting
and Reporting on Solvency and Liquidity Risks- Guidance for
directors of companies that do not apply the UK Corporate
Governance Code".
The Directors have prepared detailed financial forecasts and
cash flows looking beyond 12 months from the date of approval of
these consolidated financial statements. In developing these
forecasts, the Directors have made assumptions based upon their
view of the current and future economic conditions that will
prevail over the forecast period. A number of forecasts have been
produced which take into consideration different assumptions on the
timing and extent of recovery from Covid-19, including the risk of
debtor default and the likely different recovery profiles of the
different sectors in which the Group's services are offered.
On the basis of the above projections, and although the Group
has net current liabilities at 30 June 2021, the Directors are
confident that the Group has sufficient working capital and
available funds to honour all of its obligations to creditors as
and when they fall due. In reaching this conclusion, the Directors
have considered the forecast cash headroom, including the impact of
the extension of the revolving credit facility with Barclays Bank
plc and the covenants associated with it, the resources available
to the Group and the potential impact of changes in forecast growth
and other assumptions, including the potential to avoid or defer
certain costs and to reduce discretionary spend as mitigating
actions in the event of such changes. Accordingly, the Directors
continue to adopt the going concern basis in preparing these
consolidated financial statements.
3 Segmental analysis
The Group is organised into one principal operating division for
management purposes. Therefore, the Group has only one operating
segment and segmental information is not required to be disclosed.
Revenue is analysed as follows:
2021 2020
GBP000 GBP000
Development and set up fees 5,887 5,505
Subscription and transaction
fees 16,913 14,916
22,800 20,421
------------------------------ ------- -------
2021 2020
GBP000 GBP000
AIR revenue 20,164 19,165
Messaging revenue 2,636 1,256
22,800 20,421
------------------- ------- -------
Continuing revenues can be attributed to the following
countries, based on the customers' location:
2021 2020
GBP000 GBP000
United Kingdom 13,494 13,398
North America 7,857 6,706
Rest of Europe 116 159
Asia Pacific 1,332 158
22,800 20,421
---------------- ------- -------
4 Loss per share
The calculation of basic and diluted loss per share is based on
the result attributable to ordinary shareholders divided by the
weighted average number of ordinary shares in issue during the
Year. The weighted average number of shares for the purpose of
calculating the basic and diluted measures is the same. This is
because the outstanding share options would have the effect of
reducing the loss per ordinary share and therefore would be
anti-dilutive. Basic and diluted loss per share from continuing
operations is calculated as follows:
2020
Loss 2021 Loss Weighted
per Weighted average per average number
share Loss number of share Loss of ordinary
pence GBP000 ordinary shares pence GBP000 shares
Basic and diluted
loss per share (0.22) (57) 25,850,194 (1.77) (454) 25,659,034
------------------- ------- -------- ------------------ ------- -------- ----------------
5 Alternative performance measure
EBITDA is a key performance measure for the Group and is derived
as follows:
2021 2020
GBP000 GBP000
Profit/(loss) before taxation 126 (332)
Add back:
Finance income and expense 108 290
Share-based payments 877 464
Depreciation and amortisation 3,104 2,856
------------------------------------------- -------- --------
EBITDA 4,215 3,278
------------------------------------------- -------- --------
6 Net cash/(debt)
Foreign
30 June exchange 30 June
2020 Cash flow adjustments 2021
GBP000 GBP000 GBP000 GBP000
Cash and cash equivalents 1,519 294 (100) 1,713
Financial liabilities - (900) - (900)
Net cash/(debt) 1,519 (606) (100) 813
--------------------------- -------- ---------- ------------- --------
The cash flow above includes GBP1.6m of Covid-19 repayments
relating to government schemes allowing deferral of certain taxes
due to the economic impact of the COVID-19 pandemic.
7 Report and Accounts
A copy of the Annual Report and Accounts for the Year ended 30
June 2021 will be sent to all shareholders in due course together
with notice of the Annual General Meeting
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
FR DFLFLFKLBBBV
(END) Dow Jones Newswires
September 22, 2021 01:59 ET (05:59 GMT)
Eagle Eye Solutions (LSE:EYE)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Eagle Eye Solutions (LSE:EYE)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024
