Eagle Eye soars as contracts with Sainsbury and Asda help sales fly

Eagle Eye Solutions, the provider of digital coupons for retailers, more than doubled annual gross profits after a transformational second year as a listed company but also saw losses nearly double.

The software as a service (SaaS) technology company released its audited preliminary results for the financial year ended 30 June 2015 that showed revenue increased 165% to £4.9m, of which £2.1m was contributed from the acquisition of 2ergo.

The company, which validates and redeems digital promotions in real-time for the grocery, retail and hospitality industries, generated gross profits of £3.5m, up 150% from last year.

But after adjusted EBITDA losses of £1.5m, much expanded from the previous £0.8m, cash and cash equivalents stood at £4.3m helped by a placing of the new shares during the year.

Including those brought on with 2ergo, the company added 60 new customer and brands including major contracts with Sainsbury's and Asda for the deployment of their Eagle Eye AIR product in both grocers' UK stores.

Eagle Eye chief executive Phill Blundell said the company delivered excellent progress against its strategy to become the global leader in digital marketing, including securing those two major grocery contracts.

“These important wins clearly demonstrate that Eagle Eye is at the centre of a major change in the grocery, retail and hospitality industries as we transform customer engagement from the analogue world of yesterday to the digital world of today.”

Blundell said their revenue growth demonstrated the strength of their recurring business model and the underlying momentum of the business.

“We have strong first mover advantage in a rapidly growing digital promotions market, of which we have made significant progress into the UK grocery sector this year with our proven technology.”

The results are also giving the company confidence to look offshore.

“This gives the business a strong foundation to dominate the UK market and expand internationally,” said Blundell.

The company’s stock surged on the back of the results, opening this morning at 214.5p, up 6.7% from 201p.