Your customer in focus - Eagle Eye
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Your customer
in focus
Eagle Eye Solutions Group plc
Interim Report 2018
01
Eagle Eye Solutions Group plc
Interim Report 2018
2018 highlights
OVERVIEW
Our SaaS technology Financial highlights Operational and
OVERVIEW
01 Highlights (based on unaudited figures): commercial highlight Post Period:
02 Eagle Eye at a glance
04 Connecting business to consumers
platform allows you STRATEGIC REPORT
06 Chairman’s Review
–– Group revenue increased by
28% to £6.5m (H1 2017: £5.1m)
–– Redemption volumes of 82.8m,
an increase of 228% year on
year (H1 2017: 25.2m) and an
–– Successful launch of Loblaw’s
new PC Optimum loyalty
programme on 1 February 2018,
to create a real-time
–– Revenue from subscription fees
increase of 135% on H2 2017 using the Eagle Eye AIR platform
FINANCIAL STATEMENTS and transactions over the
(35.2m)
11 Consolidated unaudited interim network up 44% to £4.8m (H1 –– After three weeks of operation,
connection with
statement of total comprehensive
income 2017: £3.4m) representing 75% –– SMS volumes of 28.6m, an PC Optimum has had more
12 Consolidated unaudited interim of total revenue in H1 2018 (H1 increase of 50% year on year than 6 million customer
statement of financial position 2017: 66%) (H1 2017: 19.0m) conversions, with customers
your customers
13 Consolidated unaudited interim
statement of changes in equity –– Adjusted EBITDA loss for the –– A total of 235 customers and earning and redeeming points
14 Consolidated unaudited interim
Period was £1.4m (H1 2017: brands on the AIR platform (H1 more than 32 million times
statement of cash flows
15 Notes to the consolidated unaudited loss £0.9m) 2017: 215), including 78 FMCG –– New contract signed with
interim financial statements brands (H1 2017: 70) a European client through
–– Cash position of £0.8m
COMPANY INFORMATION (June 2017: Cash of £3.7m) –– Enhanced the AIR platform’s the Group’s TCC European
17 Company information in addition to an unutilised £3m capability to now deliver over partnership
bank facility as at 31 December 3,000 transactions per second –– Global partnership signed
2017 with Aptos to provide digital
–– New product development to
allow customers to save offers connection to customers
in either Apple or Google without the need for till
wallets, encouraging wider integration
consumer choice
Group revenue £million Gross profit £million Redemption volumes £million
7 7 90
6 6 80
70
5 5 60
4 4 50
6.5 82.8
3 5.1 3 5.7 40
4.4 30
2 2
20 25.2
www.eagleeye.com
1 1 10
For current information on Eagle Eye Solutions Group Plc, 0 H1 17 H1 18 0 H1 17 H1 18 0 H1 17 H1 18
including the Annual Report 2017, please visit our website.
02 03
Eagle Eye Solutions Group plc Eagle Eye Solutions Group plc
Interim Report 2018 Interim Report 2018
Eagle Eye at a glance For more information, please visit:
www.eagleeye.com
OVERVIEW
Our core purpose How we make money
To allow businesses to create a real-time
connection with their customers Imp
lementation
fe
.
1. One off implementation fee
e
1
What we deliver
4. R
2. Recurring licence fee for access
2. Access fee
e
One One Accurate SaaS business to Eagle Eye AIR
de m ptio
platform, customer reporting model
3. Per issuance X pence – linked to value
many view
nf
products e 4. Per redemption 3-5 times issuance
e
3.
I s s u a n c e fe e
Easy to At scale, Omni
integrate, securely issuance,
easy to use and real-time omni Our competitive advantage
redemption
1 2 3 4 5
Our strategy and progress
Customer uses multiple Data is fed into the retailers’ Customer receives Retailer can track This process can
issuance channels CRM in real-time to analyse offers via mobile, customer activity through happen multiple times
and shops/dines in many preferences and deliver based on his interests to redemption, optimising during one shopping trip,
Win and bring Transact driving Deepen relationships locations – online and in
store, receiving multiple
insight to target customers
with truly relevant offers
and saves them to his
digital wallet
campaigns in real-time to
maximise success
to truly capitalise on the
customer engagement
customers onto higher redemption through the use of
STRATEGY
offer types along the way opportunity
Eagle Eye AIR volumes through additional products
the platform
AIR AIR AIR
235 82.2
CHANNEL LOCATION REWARD
%
customers million redemption volumes
41% % % OFF
Further capabilities added F&B revenue
PROGRESS
to Sainsburys Your CRM
£ OFF
1
1
New contracts with
Boparan and Greene King
New agreements with
Google, Groupon, Giftcloud
50%
sms volumes Next
and Hospitality Line Offer best
“Brain” action
Google campaign extended Renewed contracts with
with 100,000 redemptions and Greggs, Mitchells and
New contract with M&Co 25% redemption rate so far Butlers and Pizza Express
04 05
Eagle Eye Solutions Group plc Eagle Eye Solutions Group plc
Interim Report 2018 Interim Report 2018
Connecting businesses to consumers For more information, please visit:
www.eagleeye.com
OVERVIEW
Winning customers
through digital marketing
CUSTOMER JOURNEY
EXAMPLE USE CASES
– Bridge online to offline Targeted customer, Sees offer on social Clicks on Receives Code is “read” Customer ID now Data is fed back into
– Own marketing preferred social media that has been advert and fills in unique code at POS (scanned, known. “John” the CRM system for
channels set up on the Eagle personal details keyed, NFC) receives relevant future remarketing
– Brand campaigns Eye AIR platform by on landing page future offers based
– Promotion and games the brand on his profile
– Bought and owned media
– Real-time redemption
Developing customer Customer receives Customer can
services digitally receipt to his phone gain easy access
to information for
record or returns
– Offers – next trip, next product
Customer receives Customers leaves
– Gift
CUSTOMER JOURNEY
EXAMPLE USE CASES
e-gift for spending happy and can
– Customer survey over the threshold redeem gift during
– eReceipt next visit
– Eliminate fraud
Customer enters store and Customer scans his Data sent to AIR in Customer receives Customer heads
– Electronic coupon counting receives offer to his phone shopping at till along real-time to validate offer for favourite back into store to
– Staff reward through push notification with his offer and redeem offer and product based on redeem his offer for
via beacon capture basket data previous preferences favourite product
and behaviour
Offer counted and
verified in real-time
Rewarding customers
through digital loyalty
EXAMPLE USE CASES
CUSTOMER JOURNEY
– Wallet
– Offer and rewards
– Affiliate marketing
– Hyper personalisation Customer enters Customer buys Through payment Customer receives Customer saves
– Linking other wallets store/café coffee and uses app scan, customer reward to his phone reward to the wallet
to pay for it at the till fills last stamp in real-time, specific on his phone to use
– Next best action
on his stampcard to his preferences on his next visit
– Social based on previous
purchases
06 07
Eagle Eye Solutions Group plc Eagle Eye Solutions Group plc
Interim Report 2018 Interim Report 2018
Chairman’s Review For more information, please visit:
www.eagleeye.com
STRATEGIC REPORT
During the Period the WIN users to earn chances to win instant prizes For the F&B sector we have integrated
We made continued progress in adding at five Eagle Eye participating merchants; with Flypay to broaden our restaurant
Group’s proven strategy of new brands and retailers to the AIR Greggs, Casual Dining Group, Mitchells & app to support pay at table via a mobile
‘win, transact, deepen’, has platform during the Period. At 31 Butlers, M&S and Pizza Express. This application. In addition, we have
continued to deliver growth, December 2017 Eagle Eye had 235 campaign extension illustrates how continued to develop deeper
resulting in a revenue customers and brands on the AIR modern technology and appealing offers segmentation controls within the app
platform, including 78 FMCG brands, up drive increased and effective consumer user base to enable more relevant
increase of 28% to £6.5m from 215 customers including 70 FMCG engagement with Eagle Eye enabling over consumer engagement. We have also
(H1 2017: £5.1m), in line with brands at the end of H1 2017. 100,000 redemptions through its customer integrated with both Apple and Google
the Board’s expectations. network and a conversion rate of over 25% Wallets providing consumers with more
In October 2017, Eagle Eye signed so far. choice in how and where they save and
Post Period the business contracts with Scottish fashion chain redeem their coupons, stamp cards and
achieved a milestone event M&Co. and Greene King, the latter further DEEPEN gift vouchers.
with the launch of the PC cementing our position in the UK food During the Period, revenue from the F&B
and beverage (“F&B”) market. These sector grew by 41% against H1 2017. As
Optimum programme for contract wins also benefit our brand our F&B clients experience of our digital
Loblaw, Canada’s largest partners as our extended redemption marketing platform increases, there is a
retailer.
44%
network provides greater opportunities to trend for them to use it more. As a result,
run measurable campaigns. we are seeing increased promotional
INVESTMENT activity across the sector.
Following the successful equity In December 2017, Eagle Eye signed a
fundraising in June 2017, the first half of contract with Boparan, a group owning We are also pleased to announce the
brands such as Ed’s Easy Diner, Giraffe, renewal of three longstanding clients INCREASE IN REVENUE FROM
FY 2018 has been a period of investment SUBSCRIPTION FEES AND
for our next phase of growth. Harry Ramsden’s and Fishworks to within our F&B sector: Greggs (five-year TRANSACTIONS
deliver digital promotions and gift contract), Mitchells & Butlers (three-year
The platform has been enhanced to now capability through the Eagle Eye AIR contract) and Pizza Express (one-year
offer world class digital loyalty services, Platform. The platform will enable contract). In all cases the Eagle Eye AIR
which are now live with Loblaw. In Boparan to deliver the same streamlined platform is being used to power an
addition, we have integrated new digital promotion capabilities across its enhanced digital experience for the
technology and issuance partners, brands to ensure consistent service customer. These renewals reflect the
continuing to build out our network and levels for all customers. In addition, Eagle value and strength of Eagle Eye’s offering
audience reach. Eye will replace all existing paper gift as well as our lasting client relationships.
schemes with a digital offering.
Investment in operational capability in There has also been strong growth in
Canada was made to support both TRANSACT SMS volumes which increased 50% to
performance requirements of our Total redemption volumes for the Period 28.6m (H1 2017: 19.0m) due to additional
biggest client Loblaw and the Group’s increased by 228% to 82.8m (H1 2017: services provided for JD Sports and
growth within the Canadian market, 25.2m) which was primarily driven by Paragon. Revenue growth was limited to
where we see significant opportunity. Sainsbury’s going live in H2 2017. During 18% due to price pressures in a
We have begun to explore the market the Period further capabilities were added competitive and maturing market.
The first six months of FY18 has seen steady outside of Canada and have had initial to the Sainsbury’s programme helping to
financial progress with planned investment for conversations with Tier 1 retailers across increase redemption volumes by 135%
from H2 2017 to H1 2018 (H2 2017: 35.2m).
INNOVATION
With the launch of PC Optimum with
North America. This focussed approach
the next phase of growth. will continue whilst we build on the Loblaw, we have confirmed our position
success of Loblaw. Issuance Partners as a leading provider of digital loyalty
Issuance partners form a key part of our services, in addition to the personalised
We have expanded our ‘win’ resource ‘transact’ strategy and remain a promotion services we have offered until
both in sales and operations, to reflect significant channel for brands to run now. Underpinning our strategy to
the right combination of commercial innovative campaigns and extend their become a global leader in digital
management and product skills required audience. During the Period we were marketing, the Group remains committed
to successfully win new customers and delighted to sign several new framework to product leadership and innovation.
deepen existing relationships. To agreements, including contracts with
support Europe, we have created a TCC Hospitality Line and Giftcloud. Since the start of FY 2018 we have
‘win’ and presales team. transformed the AIR platform’s capability
Our two key partners, Groupon and to increase its performance to deliver
We have upskilled our senior Google, have started to build momentum over 3,000 transactions per second,
management layer and now have during the Period utilising the benefits of this transforms the scalability and
subject matter experts in loyalty, FMCG the merchant network to extend their availability of our Tier 1 clients.
brands and product marketing to ensure redemption capability across multiple For Loblaw we are servicing millions of
we continue to be relevant in today’s sectors. The Google ‘Visa tap & win’ customers with approximately 150
market and help us take our proposition campaign has been extended due to million personalised offers each week,
to the market quicker. high engagement from consumers supporting a loyalty scheme with vast
enabling new Visa and Android Pay scale and personalisation.08 Imagine if... 09
Tesco Clubcard and Boots
Eagle Eye Solutions Group plc
Interim Report 2018
Eagle Eye Solutions Group plc
Interim Report 2018
Advantage merged?
Effectively, from a volume and scale perspective, that’s
Chairman’s Review what Loblaw has just achieved by merging two of
continued
Canada’s most popular loyalty programs, PC Plus
For more information, please visit:
www.eagleeye.com
and Shoppers Optimum into one: PC Optimum
STRATEGIC REPORT
POST PERIOD The Eagle Eye AIR platform sits at the Key performance indicators
da heart of the PC Optimum programme 2018 2017
na Loblaw ecosystem and is integrated with Loblaw’s
Financial £000 £000
Who is Ca Loblaw successfully launched its new PC channels and systems, enabling a single Revenue 6,458 5,064
Optimum programme on 1 February 2018, customer view across Loblaw’s varying Adjusted EBITDA loss (1,446) (879)
Loblaw?
using the Eagle Eye AIR platform to deliver businesses, including Loblaw Loss before interest and tax (2,267) (1,815)
personalised, valuable and convenient supermarkets, Shoppers Drug Mart, PC
rewards to millions of Canadians. Financial and Joe Fresh. Cash and cash equivalents 767 324
Loblaw Companies Ltd is The PC Optimum programme has Jim Noteboom, Senior Vice President, Non-financial 2018 2017
Canada’s food and combined two of Canada’s most loved Loyalty and Consumer Insights, Loblaw Number of redemptions and interactions 82.8m 25.2m
loyalty programmes PC Plus and Companies Limited said: “We couldn’t Number of SMS sent 28.6m 19.0m
pharmacy leader, with a Shoppers Optimum, to become one of have achieved this milestone without Eagle
network of stores under Canada’s largest loyalty programmes. The Eye’s commitment and flexible approach. Percentage of subscription transaction revenue 75% 66%
several different banners two programmes had 8 million and 11 With their proven success in the UK and Customers and brands on the AIR platform 235 215
across Canada. ®
million members respectively. Merging unique offering, they were the right Customer churn by value 1.5% 2.8%
Discount
these two programmes creates a company to deliver against our plans both
state-of-the-art loyalty programme and today and for the future.” Activity with our brand partners continues Revenue generated from subscription
brings more redemption options and to progress, most recently in a campaign fees and transactions over the network
greater convenience to Canadians. This Partner updates with Diageo and its Gordon’s Gin brand, represented 75% (H1 2017: 66%) of total
relationship marks the first time two loyalty We are delighted to announce a new which aims to reward delayed rail revenue for the first half of FY 2018. This
programmes with customer data of this European retail client, that was signed in passengers with either a half price or a reflects the start of the transition of our
magnitude have been successfully March 2018, won through our European free gin and tonic. The service, called key Tier 1 customers into the next phase
integrated into one programme, making it TCC partnership. The programme, #YayDelay, uses an intelligent algorithm to of their contracts which helped to drive a
one of the largest in Canadian history. expected to go live later this year, will be monitor real-time train delays. When 31% increase in revenue from our Tier 1
led by TCC and will see the Eagle Eye consumers’ trains are delayed they are clients to £3.4m (H1 2017: £2.6m).
Since the launch of PC Optimum on 1 AIR platform underpinning the TCC encouraged to tweet the hashtag phrase
Canada’s Canada’s food Purpose: Owned by February 2018, more than 6 million smart connect proposition to deliver to be given access to the offer. The Eagle Customer churn fell in the Period to 1.5%
largest & pharmacy Live Life George customers have already converted to the 24-7 shopper engagement through their Eye AIR platform then activates this (H1 2017: 2.8%) reflecting the uniqueness
retailer leader Well Weston Ltd new programme, with customers earning digital campaigns. campaign by delivering unique coupons and robustness of the Eagle Eye AIR
and redeeming points more than 32 million to individuals initially at London’s Waterloo platform as well as its value to the
times in the first three weeks. The An important part of our growth strategy station with potential roll out nationally, Group’s customers. The high degree of
programme, which engages consumers is extending our network through redeemable in select venues. stickiness once a customer has been
digitally but gives them choice on relevant integrations with both won enhances the opportunities to
Loblaw at
redemption, generated on average more technology and issuance partners. FINANCIAL RESULTS deepen existing client relationships.
than 1.5 million PC Optimum app or web Integrations matter as they create During the Period, the Group delivered a
a glance...
visits every day since launch. According to ubiquity, increase ease of use for our revenue increase of 28% to £6.5m (H1 Gross profit grew 30% to £5.7m (H1
1,797
Loblaw’s internal customer net promoter retailers and make Eagle Eye a natural 2017: £5.1m). AIR platform revenue of 2017: £4.4m) and the gross margin
pharmacies score (NPS) survey, 80% of customers choice as a digital marketing platform. £5.6m represented 86% of total revenue increased by a further 2ppts to 89% (H1
were very satisfied with the new (H1 2017: 85%) and AIR transactional 2017: 87%). Gross margin improved due
programme specifically highlighting ease In March 2018 we also signed a global revenues grew 52% against the prior to the continued improvement in AIR
of converting points and participation. partnership with Aptos. Aptos is a global year to £4.0m (H1 2017: £2.6m), driven margin to 96% (H1 2017: 95%), reflecting
leading retail technology solutions provider primarily by the deepening of our Tier 1 the lessening requirement for revenue
198,000 Activity since launch is in line with the to more than 1,000 retail brands across 55 customer relationships and increased share agreements with partners and
employees
Board’s expectations and the revenue countries. The agreement will see us work transaction revenue from existing lower levels of outsourcing of non-core
generated from this contract will shift collaboratively with a pre-integrated customers. Although SMS volumes bespoke development work.
significantly from initial implementation solution to provide digital connection to increased significantly by 50% in the
fees to recurring transaction fees in H2 customers without the need for till Period, the overall messaging revenue
2018. integration. We currently have four joint UK increase was limited to 18% to £0.9m
customers, Clarks, Thomas Pink, M&Co (H1 2017: £0.8m), reflecting price
2,400+
and Pets at Home. As a result of this pressures in a competitive and
partnership we will look to expand our
stores under
more than 20
C$46 billion footprint in speciality retail globally.
increasingly mature market.
banners revenue
(CAD 2016)
each year,
Canadians make
1bn transactions
in stores
(majority of which are tied to
their loyalty programs)
Last year customers10 11
Eagle Eye Solutions Group plc Eagle Eye Solutions Group plc
Interim Report 2018 Interim Report 2018
Consolidated unaudited interim statement
Chairman’s Review continued of total comprehensive income For more information, please visit:
www.eagleeye.com
FINANCIAL STATEMENTS
FINANCIAL RESULTS continued Post Period, the launch of the new PC FOR THE SIX MONTHS ENDED 31 DECEMBER 2017
Operating expenses of £7.2m (H1 2017: Optimum programme with Loblaw is a
£5.3m) increased primarily as a result of significant milestone in the Group’s
Unaudited Unaudited Audited
the investment in people for our planned progress. This scale positions us as a 6 months to 6 months to Year to
strategic growth, together with legitimate loyalty service provider for any 31 December 31 December 30 June
incremental costs linked to revenue retailer in the world and demonstrates Note
2017
£000
2016
£000
2017
£000
growth and ensuring the robustness, the strengthened operational capability
scalability and security of the Eagle Eye of the business. This success, coupled Continuing operations
AIR platform. Within staff costs of £5.7m with the win with TCC Global as well as Revenue 3 6,458 5,064 11,058
(H1 2017: £4.3m), spend on product the new Aptos partnership demonstrates Cost of sales (725) (653) (1,297)
development increased 19% to £2.0m that the Eagle Eye AIR platform is
(H1 2017: £1.6m). The number of gaining scale internationally.
Gross profit 5,733 4,411 9,761
employees at the end of the Period
increased to 129 (H1 2017: 98). In the third quarter the Group has seen Adjusted operating expenses(1) (7,179) (5,290) (11,530)
an increased rate of growth driven by Loss before interest, tax, depreciation, amortisation and share-based
Adjusted EBITDA loss for the Period was increased volumes from key existing payment charge (1,446) (879) (1,769)
£1.4m (H1 2017: loss £0.9m), as a result clients, the launch of PC Optimum for Share-based payment charge (135) (77) (431)
of the increased investment in the Loblaw and further deepening of existing Depreciation and amortisation (686) (859) (1,643)
business despite the higher gross profit relationships. This increase in rate is
delivered during the Period. To provide a expected to continue aided by the recent
better guide to the underlying business new wins, partnerships announced today Operating loss (2,267) (1,815) (3,843)
performance, adjusted EBITDA excludes and conversion of some of the advanced
share-based payment charges along strategic opportunities in the Group’s Finance income – 3 –
with depreciation, amortisation, interest pipeline. This all gives the Board
and tax from the measure of profit. confidence in meeting its expectations for Finance expense – (15) (67)
the financial year ending 30 June 2018.
At the end of the Period, the Group held
Loss before taxation (2,267) (1,827) (3,910)
cash of £0.8m (June 2017: cash of
£3.7m) and its £3m revolving credit Malcolm Wall Taxation 429 432 391
facility with Barclays Bank Plc remained Non-executive Chairman
unutilised. The movement in cash Loss after taxation for the financial period (1,838) (1,395) (3,519)
reflected an operating cash outflow of Foreign exchange adjustments 8 29 33
£2.0m (including £0.6m of working
capital outflow due to an increase in
debtors as a result of the increase in Total comprehensive loss attributable to the owners of the parent for
revenue) and the capital investment in the financial period (1,830) (1,366) (3,486)
the Eagle Eye AIR platform of £0.9m.
Loss per share
The Group had net assets of £7.2m at From continuing operations
the end of the Period (June 17: £8.9m), Basic and diluted 4 (7.24)p (6.30)p (15.73)p
the expected reduction in net assets
reflecting the EBITDA loss. The current
(1) Adjusted operating expenses excludes share-based payment charge, depreciation and amortisation
tax receivable of £0.4m relates to a
research and development tax credit,
received in January 2018.
Outlook
The first six months of FY18 has seen
steady financial progress with planned
investment for the next phase of growth.
The Group’s revenue growth of 28% in
H1 2018 coupled with continued
success in winning new customers,
deepening customer relationships and
driving increased transactions through
the platform demonstrates the continued
momentum of the business.12 13
Eagle Eye Solutions Group plc Eagle Eye Solutions Group plc
Interim Report 2018 Interim Report 2018
Consolidated unaudited interim Consolidated unaudited interim
statement of financial position statement of changes in equity For more information, please visit:
www.eagleeye.com
FINANCIAL STATEMENTS
AS AT 31 DECEMBER 2017 FOR THE SIX MONTHS ENDED 31 DECEMBER 2017
Unaudited Unaudited Audited Share
31 December 31 December 30 June Share Share Merger option Retained
2017 2016 2017 capital premium reserve reserve losses Total
£000 £000 £000 £000 £000 £000 £000 £000 £000
Non-current assets Balance at 1 July 2016 222 10,991 3,278 1,230 (9,852) 5,869
Intangible assets 5,148 4,704 4,838
Property, plant and equipment 250 256 246 Loss for the period – – – – (1,395) (1,395)
5,398 4,960 5,084
Other comprehensive income
Foreign exchange adjustments – – – – 29 29
Current assets – – – – (1,366) (1,366)
Trade and other receivables 4,885 3,606 3,576
Current tax receivable 415 – – Transactions with owners
Cash and cash equivalents 767 324 3,724 Share-based payment charge – – – 77 – 77
6,067 3,930 7,300 – – – 77 – 77
Balance at 31 December 2016 222 10,991 3,278 1,307 (11,218) 4,580
Total assets 11,465 8,890 12,384 Loss for the period (2,124) (2,124)
– – – –
Other comprehensive income
Current liabilities Foreign exchange adjustments – – – – 4 4
Trade and other payables (4,105) (4,177) (3,348)
– – – – (2,120) (2,120)
Non-current liabilities Transactions with owners
Deferred tax liability (159) (133) (174) Issue of share capital 27 5,973 – – – 6,000
Issue costs – (240) – – – (240)
Exercise of share options 4 284 – – – 288
Total liabilities (4,264) (4,310) (3,522) Fair value of share options exercised – – – (319) 319 –
Net assets 7,201 4,580 8,862 Fair value of share options lapsed – – – (39) 39 –
Share-based payment charge – – – 354 – 354
Equity attributable to owners of the parent 31 6,017 – (4) 358 6,402
Share capital 254 222 253 Balance at 30 June 2017 253 17,008 3,278 1,303 (12,980) 8,862
Share premium 17,041 10,991 17,008
Merger reserve 3,278 3,278 3,278 Loss for the period – – – – (1,838) (1,838)
Share option reserve 1,438 1,307 1,303 Other comprehensive income
Retained losses (14,810) (11,218) (12,980) Foreign exchange adjustments – – – – 8 8
Total equity 7,201 4,580 8,862 – – – – (1,830) (1,830)
Transactions with owners
Exercise of share options 1 33 – – – 34
Share-based payment charge – – – 135 – 135
1 33 – 135 – 169
Balance at 31 December 2017 254 17,041 3,278 1,438 (14,810) 7,201
Included in “retained losses” is a cumulative foreign exchange balance of £57,000 (June 2017: £49,000) which could be recycled to profit and loss.14 15
Eagle Eye Solutions Group plc Eagle Eye Solutions Group plc
Interim Report 2018 Interim Report 2018
Consolidated unaudited interim Notes to the consolidated unaudited
statement of cash flows interim financial statements For more information, please visit:
www.eagleeye.com
FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2017 1. Basis of preparation The loss before interest, tax, depreciation, 2. Going concern basis
The Group’s half-yearly financial amortisation and share-based payment As part of their going concern review the
information, which is unaudited, charge is presented in the statement of Directors have followed the guidelines
Unaudited Unaudited Audited
6 months to 6 months to Year to
consolidates the results of Eagle Eye total comprehensive income as the published by the Financial Reporting
31 December 31 December 30 June Solutions Group plc and its subsidiary Directors consider this performance Council entitled “Guidance on Risk
2017
£000
2016
£000
2017
£000
undertakings up to 31 December 2017. measure provides a more accurate Management and Internal Control and
The Group’s accounting reference date indication of the underlying performance Related Financial and Business
Cash flows from operating activities is 30 June. Eagle Eye Solutions Group of the Group and is commonly used by Reporting’’. The Directors have prepared
Loss before taxation (2,267) (1,827) (3,910) plc’s shares are listed on the Alternative City analysts and investors. detailed financial forecasts and cash
Adjustments for: Investment Market of the London Stock flows looking beyond 12 months from
Depreciation 65 46 104 Exchange (AIM). While the financial information included the date of this half-yearly financial
Amortisation 621 813 1,539 has been prepared in accordance with information. In developing these
Share-based payment charge 135 77 431 The Company is a public limited liability the recognition and measurement forecasts, the Directors have made
Finance income – (3) – company incorporated and domiciled in criteria of IFRS, as adopted by the assumptions based upon their view of
Finance expense – 15 67 England & Wales. The presentational European Union, these interim financial the current and future economic
Increase in trade and other receivables (1,310) (1,526) (1,496) and functional currency of the Group is statements do not contain sufficient conditions that will prevail over the
Increase in trade and other payables 757 1,271 954 Sterling. Results in this consolidated information to comply with IFRS. forecast period.
Income tax paid (1) – (1) financial information have been prepared
Income tax received – 346 346 to the nearest £1,000. The comparative financial information for On the basis of the above projections,
the year ended 30 June 2017 has been the Directors are confident that the
Net cash flows from operating activities (2,000) (788) (1,966) Eagle Eye Solutions Group plc and its extracted from the annual financial Group has sufficient working capital to
Cash flows from investing activities subsidiary undertakings have not statements of Eagle Eye Solutions Group honour all of its obligations to creditors
Payments to acquire property, plant and equipment (69) (59) (107) applied IAS 34, Interim Financial plc. These interim results for the period as and when they fall due. In reaching
Payments to acquire intangible assets (930) (679) (1,539) Reporting, which is not mandatory for ended 31 December 2017, which are not this conclusion, the Directors have
UK AIM listed Groups, in the preparation audited, do not comprise statutory considered the forecast cash headroom,
Net cash flows used in investing activities (999) (738) (1,646) of this half-yearly financial report. accounts within the meaning of section the resources available to the Group and
Cash flows from financing activities 434 of the Companies Act 2006. The the potential impact of changes in
Net proceeds from issue of equity 34 – 6,048 The accounting policies used in the financial information does not therefore forecast growth and other assumptions,
Proceeds from borrowings – 800 5,600 preparation of the financial information include all of the information and including the potential to avoid or defer
Repayment of borrowings – (300) (5,600) for the six months ended 31 December disclosures required in the annual certain costs and to reduce discretionary
Interest paid – (4) (67) 2017 are in accordance with the financial statements. spend as mitigating actions in the event
Interest received – 3 –
recognition and measurement criteria of of such changes. Accordingly, the
International Financial Reporting Full audited accounts of the Group in Directors continue to adopt the going
Net cash flows from financing activities 34 499 5,981 Standards (‘IFRS’) as adopted by the respect of the year ended 30 June 2017, concern basis in preparing this half-
Net (decrease)/increase in cash and cash equivalents in the period (2,965) (1,027) 2,369 European Union and are consistent with which received an unqualified audit yearly financial information.
Foreign exchange adjustments 8 29 33 those which will be adopted in the opinion and did not contain a statement
Cash and cash equivalents at beginning of period 3,724 1,322 1,322 annual financial statements for the year under section 498(2) or (3) of the
ending 30 June 2018. Companies Act 2006, have been
Cash and cash equivalents at end of period 767 324 3,724 delivered to the Registrar of Companies.16 17
Eagle Eye Solutions Group plc Eagle Eye Solutions Group plc
Interim Report 2018 Interim Report 2018
Notes to the consolidated unaudited
interim financial statements continued Company information For more information, please visit:
www.eagleeye.com
FINANCIAL STATEMENTS
3. Segmental analysis Directors Malcolm Wall
The Group is organised into one principal operating division for management purposes. Revenue is analysed as follows:
Tim Mason
Unaudited Unaudited Audited Steve Rothwell
6 months to 6 months to Year to
31 December 31 December 30 June Lucy Sharman-Munday
2017 2016 2017 Bill Currie
£000 £000 £000
Sir Terry Leahy
Drew Thomson
Development and set up fees 1,614 1,698 3,512
Subscription and transaction fees 4,844 3,366 7,546 Secretary Lucy Sharman-Munday
6,458 5,064 11,058
Company number 8892109
Unaudited Unaudited Audited
6 months to 6 months to Year to
31 December 31 December 30 June Registered office 5 New Street Square
2017 2016 2017
£000 £000 £000
London
EC4A 3TW
AIR revenue 5,575 4,314 9,426
Messaging revenue 883 750 1,632 Nominated adviser and broker Investec Bank plc
6,458 5,064 11,058 2 Gresham Street
London
4. Loss per share EC2V 7QP
The calculation of basic and diluted loss per share is based on the result attributable to ordinary shareholders divided by the Bankers Barclays Bank plc
weighted average number of ordinary shares in issue during the period. The weighted average number of shares for the purpose 27 Soho Square
of calculating the basic and diluted measures is the same. This is because the outstanding share options would have the effect of London
reducing the loss per ordinary share and therefore would not be dilutive. W1D 3QR
Unaudited
Unaudited H1 2018 Unaudited Unaudited Solicitors Taylor Wessing LLP
H1 2018 Unaudited Weighted H1 2017 Unaudited H1 2017
Loss H1 2018 average number Loss H1 2017 Weighted average 5 New Street Square
per share Loss of ordinary per share Loss number of ordinary London
pence £000 shares pence £000 shares
EC4A 3TW
Basic and diluted loss per share (7.24) (1,838) 25,403,284 (6.30) (1,395) 22,158,286
Independent auditor RSM UK Audit LLP
5. Availability of this Interim Announcement Chartered Accountants
Copies of this announcement are available on the Company’s website, www.eagleeye.com. Ninth Floor
3 Hardman Street
Manchester
M3 3HFwww.eagleeye.com Eagle Eye Solutions Group plc Customer service enquiries: Tel: 0844 824 3699 Sales and general enquiries: Tel: 0844 824 3686 Email: info@eagleeye.com Head Office: 31 Chertsey Street Guildford Surrey GU1 4HD
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