Grocery tech group Eagle Eye Solutions has accelerated its growth rate in its first quarter as relationships with Asda and Sainsbury’s powered revenues 74% higher year on year.
The business, which validates and redeems digital promotions in real-time for the grocery, retail and hospitality industries, reported sales of £2.3m in the first three months of the new financial year.
Non-executive chairman Malcolm Wall told shareholders at the AGM today that significant contracts won and the developments to the software platform in the prior year gave Eagle Eye “strong momentum” heading into the first quarter.
Almost £2m of the total revenue in the period was contributed from the Eagle Eye AIR platform, a 105% year-on-year increase, driven by the deepening of its tier 1 relationships in the UK and internationally, as well as increased transactional revenue in its grocery and hospitality accounts.
Total first quarter redemption volumes increased by 121% to 11.7 million thanks to the nationwide roll-out by Asda in February 2016.
Eagle Eye has also run several digital campaigns through its network with brands such as Coca-Cola and Heineken.
Eagle Eye appointed Tim Mason, former deputy CEO of Tesco, as its new chief executive as part of a raft of board changes in September.
Wall said at the AGM: “Since the board changes, the company has solidified its customer strategy which now consists of three clearly defined stages; to ‘win’ and bring customers onto the Eagle Eye AIR platform; ‘deepen’ relationships with the company’s customers as the breadth of the product portfolio becomes more developed; ‘transact’ higher redemption volumes through the platform as it becomes increasingly relevant to customers. The board is very pleased that the first quarter has seen good progress against each of these stages.
“This gives good visibility on delivering half year revenue in line with management’s expectations and further gives confidence on the expectations for the full year.”
Eagle Eye increased revenues 33% to £6.5m in the year to 30 June after winning new contracts with Sainsbury’s and international accounts with Canadian grocery giant Loblaws. However, losses widened at the group as a result of heavy investment in its growth, with an adjusted EBITDA loss of £1.8m.
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