Grocery tech firm Eagle Eye has sunk to a first-half loss after losing a major contract in the US.
Revenues in the six months to 31 December also declined 5% year on year to £23m following the end of the contract with Neptune Retail Solutions (NRS) in August last year.
It led to a pre-tax loss of £1.2m in the period, compared with a profit of £1.6m a year ago, while adjusted EBITDA fell 28% to £4.3m.
However, Eagle Eye managed to offset some of the impact of the loss of the higher-margin NRS contract with further cost efficiencies during the half.
Excluding the loss of the contract, sales improved by 16% in the half.
Eagle Eye, which powers loyalty programmes for supermarkets in the UK such as Tesco, Asda and Morrisons, said it ended the first half with £42.2m in annual recurring revenue (ARR), a rise of 29% on a year ago.
The group added the underlying momentum in ARR was backed by eight new multi-year contract wins for its AIR platform and AI offering with major global customers. It also registered four significant wins in the US in the half.
Eagle Eye highlighted the potential market opportunity in AI, with its revenues from tech up 23% to £3.6m in the six months.
CEO Tim Mason said Eagle Eye recorded a strong first-half performance ahead of board expectations.
“We continue to build upon our leadership in applied AI for retail,” he added. “Our EagleAI solutions saw strong growth in H1, and the integration of AIR and EagleAI has further increased the attractiveness of our products, providing retailers in our core verticals and others too with the means to embed AI within their digital marketing activities at scale, and positioning us well to capture the growing demand for AI-powered loyalty and personalisation, globally.
“We are confident in building on our momentum in the second half and into FY27, while maintaining a disciplined focus on margin progression and long-term shareholder value creation.”
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