17 March 2025

Eagle Eye Solutions Group PLC

("Eagle Eye", the "Group" or the "Company")

Half Year Results for the six months ended 31 December 2024

Growth in SaaS revenue and ARR, combined with H2 wins and partnerships provide positive outlook

Eagle Eye, a leading SaaS and AI technology company that creates digital connections enabling personalised, real-time marketing at scale, is pleased to announce its unaudited interim results for the six months ended 31 December 2024 (the "Period" or "H1 2025").

Financial Highlights

Strategic Highlights

Transformational OEM agreement with one of the world's largest enterprise software vendors

Good retention and expansion with blue chip customer base as retailers seek greater personalisation in their loyalty programmes

Contract wins and deepening with customers in H2 provide confidence in FY25 and beyond

Confident in achieving medium-term milestones of £100m revenue and 30% adjusted EBITDA margin, with initiatives implemented to get there faster

Tim Mason, Chief Executive of Eagle Eye, said:

"Personalisation is a priority for retailers around the world - and it's right at the heart of our DNA, with our offerings powering many of the world's largest and most successful loyalty programmes. Whilst the H1 performance was lower than we had hoped, we have reset the business and are ready to scale, with multiple avenues for growth. We have started the second half of the year with renewed momentum, energised by the progress already achieved. The recently announced global OEM partnership represents a transformative opportunity for Eagle Eye, providing a clear path for substantial revenue acceleration from FY27 onwards.

"With a clear line of sight over our 30% adjusted EBITDA margin target, and sufficient growth drivers to exceed £100m in revenue, we are confident in achieving our ambitions."

¹ Period end Annual Recurring Revenue ("ARR") is defined as period exit rate for recurring subscription and transaction revenue (exc SMS) plus any professional services contracted for more than 12 months hence and secured new wins, excluding any seasonal variations and lost contracts.

² Net Revenue Retention ("NRR") rate is defined as the improvement in recurring revenue excluding SMS and new wins in the last 12 months.

³ EBITDA has been adjusted for the exclusion of share-based payment charges along with depreciation, amortisation, interest and tax from the measure of profit.

⁴ EBITA has been adjusted for the exclusion of share-based payment charges along with IFRS3 amortisation associated with acquisitions, interest and tax from the measure of profit.

⁵ Adjusted net cash is defined as cash and cash equivalents less financial liabilities.

*As at 16 March 2025, the Board understands market expectations for FY25 to be Revenue of £47.7m and Adjusted EBITDA of £11.35m.

Enquiries:

About Eagle Eye

Eagle Eye is a leading SaaS and AI technology company enabling retail, travel and hospitality brands to earn the loyalty of their end customers by powering their real-time, omnichannel and personalised consumer marketing activities, at scale.

Eagle Eye AIR is a cloud-based platform, which provides the most flexible and scalable loyalty and promotions capability in the world. More than 1 billion personalised offers are executed via the platform every week, and it currently hosts over 500 million loyalty member wallets for businesses all over the world. Eagle Eye is a certified member of the MACH Alliance and is trusted to deliver a secure service at hundreds of thousands of physical POS destinations worldwide, enabling the real-time issuance and redemption of promotional coupons, loyalty offers, gift cards, subscription benefits and more.

The Eagle Eye AIR platform is currently powering loyalty and customer engagement solutions for enterprise businesses all over the world, including Asda, Tesco, Morrisons, Waitrose and John Lewis & Partners, JD Sports, Pret a Manger, Loblaws, Southeastern Grocers, Giant Eagle, and the Woolworths Group. In January 2024, Eagle Eye launched EagleAI, a next-generation data science solution for personalisation, already being used by leading retailers worldwide including Carrefour, Auchan and Pattison Food Group. Web - www.eagleeye.com

Strategic Report

Eagle Eye continues to be at the forefront of innovation within the global personalised loyalty market. Personalisation is a priority for retailers around the world - and it's right at the heart of our DNA, with our offerings powering many of the world's largest and most successful loyalty programmes.

The growth in our high-margin, recurring software revenue base reflects our continued success in expanding engagement across our blue-chip customer base. Our SaaS revenue increased by 10% in the Period, to £19.5m, including EagleAI revenue growth of 36% to £2.9m, and as a result, we exited the Period with ARR up 16% at £41.0m, providing growing levels of revenue visibility. While trading in the first half of the year did not meet the Board's expectations, as previously announced on 13 January 2025, due to an accelerated decrease in professional services revenue and slower Win rate, we have responded swiftly, accelerating our SaaS transition and laying the foundations for increased scalability and long-term growth.

We are confident in our ability to deliver our next milestone of £100m revenue and newly increased adjusted EBITDA margin of 30%, however we want to get there faster. The Original Equipment Manufacturer (OEM) partnership, announced in January, will be a game-changer for the business, and one of the key building blocks to achieving these ambitions. We have also implemented initiatives to better convert our significant sales pipeline, including an increased focus on the significant US market, with the appointment of an experienced US-based CRO, a greater focus on partners, the productisation of our offering and ongoing AI innovation.

We are encouraged by the level of new wins secured post period end, which includes our first win in Central America, providing entry into an important new geography. These wins, combined with the ongoing expansion with existing customers, provide the Board with confidence in the achievement of FY25 market forecasts. Looking further ahead, the rate at which we have secured a wide range of partners paves the way for greater market reach, increased speed of pipeline conversion, and faster implementations.

With industry leading software, a growing blue chip customer base and now major global partners, the foundation is set to build Eagle Eye into a world-leading SaaS business.

Growing market opportunity

We are seeing a global shift towards personalised engagement in loyalty programmes across industries. While most retailers still rely predominantly on mass marketing, industry leaders are increasingly recognising the higher ROI and improved customer experience that personalised marketing delivers, and the promise of large-scale personalisation is now possible thanks to advances in cloud computing, AI, and real-time consumer communication.

Eagle Eye's AIR platform is supporting this shift, being the most scalable loyalty and promotions personalisation platform in the world. The platform delivers future-proofed loyalty, promotions, subscription, gamification and gifting capabilities to hundreds of retailers and connected partners across more than 90,000 connected stores globally. In 2024, AIR handled up to one billion API requests per day, generated over 850 million personalised offers weekly, and managed 500 million loyalty wallets, a scale unmatched by others.

We have footholds in many of the major, high growth loyalty markets around the world, with considerable potential for further expansion in each. Of these, the US is a primary focus, due to the scale of the opportunity in that region, with North America accounting for 40% of the global loyalty market*.

Now with an increased ability to penetrate the market through the appointment of an experienced US based CRO post period end, on top of the global OEM agreement that will also target the US, we have a further significant opportunity to grow internationally, providing entry into new sectors and geographies.

* Source: Markets and Markets, Loyalty Management Market - Global Forecast to 2028

Route to £100m revenue and 30% adjusted EBITDA margin

Our vision to significantly grow the business remains unchanged. With the new OEM agreement now in place, we are well positioned to accelerate our growth, reinforcing our path toward £100m in revenue over 3-5 years and delivering our increased target adjusted EBITDA margin of 30%.

Since FY19 we have consistently demonstrated growth in our adjusted EBITDA margin, but we have set our ambition to improve margins further to 30% in the medium term. There are three key areas that will drive improvement:

We will also benefit from operational leverage on fixed costs as we scale but will invest some back into the business to fuel growth - particularly in Sales & Marketing in the US. We currently invest just 13% of revenue in global Sales & Marketing.

We agreed a new and increased three-year £10m revolving credit facility with HSBC Innovation Bank during the Period which, alongside our increasing cash reserves, provides increasing optionality, giving us flexibility as we execute on our ambition and pursue new opportunities.

M&A has the potential to accelerate our strategy, and the successful acquisition of EagleAI underscores the value Eagle Eye can bring to other businesses looking to scale, and the benefits they can bring to the Group. We have a proven, strong organic growth strategy, and any future M&A can be considered a lever for accelerating us towards our vision to be a £100m revenue business generating 30% adjusted EBITDA margin.

Win and Deepen activity in H2 provide confidence in FY25

The Period saw Wins with a leading UK grocery retailer, Waterstones Booksellers Limited, Côte, Bettys and Taylors and Transa in Switzerland, and deepening with E.Leclerc, Pret a Manger and JD Sports.

We are pleased to report that we have already seen a positive step forward in our Win rate post period end, adding some of the world's largest retailers to our client roster, and expansion with multiple customers, including the first cross sale of AIR into the existing Untie Nots (now EagleAI) customer base. These include:

* See note 5. Alternative performance measures in the Consolidated Notes to the Financial Statements                            

Multi-year renewals, representing over £64m in Total Contract Value

We are delighted to have secured multi-year contract renewals with many of our largest customers since the start of FY25, providing a strong base of contracted recurring revenue. These include Loblaw, Neptune Retail Solutions and E.Leclerc, and post period end with Southeastern Grocers and Greggs. Together, these represent £18.7m in ARR and £64.0m in total contract value.

Accelerating our Win rate and SaaS transformation

We are focused on four areas of work, which we are confident will enable Eagle Eye to more successfully convert our strong sales pipeline, while accelerating our SaaS transformation. These are:

1.    Progressing the Global OEM agreement

As announced in January 2025, we have signed a game-changing OEM partnership with one of the world's leading enterprise software vendors, accelerating our SaaS transformation and providing confidence in revenue acceleration in future years. The partnership will see elements of the AIR platform directly integrated into the vendor's offerings, with the vendor responsible for selling and delivering the new product, taking us into new markets and sectors. Since the partner maintains the direct relationship with end customers, Eagle Eye will treat the vendor as a single customer for pricing, operating on a transactional model. An early adoption programme with key customers has already commenced. Full marketing is expected post the formal launch, currently scheduled for May 2025 with customers expected to be live from FY26 and material revenue generation from FY27.

2.    Increased focus on partnerships to expand the Group's reach

We are also sharpening our focus on partnerships to expand the Group's reach, facilitate smoother sales processes and reduce our reliance on professional services, with a medium-term goal of achieving 50% of new ARR through partners. 42% of total Win ARR year to date has been referred by partners and we have a significantly progressed partner pipeline across all partnership types compared to FY24.

System Integrators

Alongside the landmark OEM agreement, System Integrator Partnerships are an important focus for us to scale and in H1 95% of our referred partner pipeline has come from System Integrators. They provide increased scalability through a decreased reliance on Professional Services, and a new channel to generate sales opportunities. We have also secured new System Integrator Partnerships in the Period including with EPAM, a leading global provider of digital engineering, cloud and AI-enabled transformation services, a leading business and experience consulting partner, and a Global Teaming agreement with Infosys, a global IT services and consulting company. We have also agreed a new partnership with NETCONOMY, a European expert in end-to-end digitisation, providing digital strategy, platform development, and system integration, with a strong presence in the DACH market as well as significant activity in the Nordics and Benelux.

Technology Partners

Technical integrations have always been at the heart of how Eagle Eye operates due to our central position within an integrated loyalty programme software stack, and we continue to build on this via new technology partnerships, adding value to our existing customer base and facilitating smoother sales processes and additional referrals. New technology partners include Bloomreach, Braze, Odicci, Zonal, Purple, Urban Airship and Ecrebo. These represent best-in-breed solutions that are sought after by our clients.

Google

We continue to work closely with Google and have been awarded Premier Partner status for Google Cloud, assigned to companies that have demonstrated the highest capability and performance with Google Cloud. This comes less than two years since we launched on the Google Cloud Marketplace, demonstrating the scalability of the AIR platform. We were also proud to become a certified member of the MACH Alliance in the Period, a key endorsement of the quality of the Company's technology offering.

3.    Increasing our US focus

The US is the largest loyalty market in the world, where the average loyalty contract is considerably larger than in other regions, due the size of organisations. We have had a good level of success in the US and Canada to date and half of our ARR is now derived from the region. However, this only represents 2% penetration with retailers generating over $1 billion of revenue. Small steps forward in this region can make a transformational difference and therefore it is a focus area for us.

We believe that an increased senior presence will increase our opportunity and our growth. We are therefore delighted to have appointed, post period end, Jeff Baskin as Chief Revenue Officer, who will spearhead our global sales efforts, with a focus on the US. Jeff brings extensive experience in transitioning companies through multiple growth stages, building partnerships and driving revenue generation. He has previously held senior roles at multiple SaaS companies in the US, including Upshop, Radius Networks and Simplexity, selling into some of the world's largest retailers and grocers. Jeff also has deep industry knowledge and is the founder and COO of a consultancy advising grocers on omnichannel commerce and loyalty.

As we see evidence of success, we will invest further to take advantage of the opportunity.

4.    Productisation and Innovation

Productisation

To fuel greater growth through alliances, we're making our technology easier to scale and sell by packaging our offerings and streamlining documentation and support materials for maximum impact.

This is now accelerating in conjunction with the major enterprise software vendor as part of the OEM agreement. This includes creating a suite of APIs to enable AIR's integration into third party platforms, as well as initiatives to enable the platform to scale further to ensure we are prepared for the growth in transactional volumes expected from OEM partnerships.

Alongside this work, we have created a number of packaged integrations to the key strategic technology partners named above across the retail technology stack to remove barriers to sale and get customers up and running faster. In addition, we have also invested in building Eagle Eye Connect, our new Integration Platform, which will accelerate this strategy by providing a framework to build Marketing Automation and CDP connectors quickly and easily to decrease time to value for our customers. Eagle Eye Connect also simplifies and reduces the cost of integrating to the AIR platform for new partners who are looking to become part of our ecosystem.

In order to speed up customer onboarding, we are automating key onboarding tasks and creating baseline configurations to move closer to "one-click" provisioning. We are also streamlining the role and permissions contained within the AIR dashboard, aligned to product packages, which will also highlight deepen opportunities for modules the customers have not yet purchased.

Training and documentation are also being enhanced, adding 'self-serve' training videos to allow customers to self-educate and introduce them to new features and use cases to increase transactions, simplifying our documentation and creating best-practice guides to allow customers to integrate solutions into their tech stack more easily.

Together, these initiatives provide the foundation for increased scalability as a true SaaS business.

Innovation

We were delighted to be ranked as the 3rd most innovative marketing technology company in the world in the TMW 100 awards, reflecting our commitment to innovation.

Our current focus for product innovation is within EagleAI, as we seek to capitalise on the growing interest in AI-powered personalisation execution. We are partnering with E.Leclerc on a Personalised Flyer, with the pilot now live and a full rollout set for later in 2025. This collaboration enhances our presence in the French and US markets, where digital flyers are already well established. We are also continuing with the development of EagleAI's portfolio, including applications that develop audience building, personalised prices and personalised content.

The right team in place to achieve our ambitions

Our people remain our greatest asset, and we continue to invest in their growth and engagement as we ready for the next stage of our journey. This commitment has once again been recognised in various awards, achieving continued high rankings in the Best Companies to Work for, placing 6th in the UK's Best Mid-sized Company to Work For and 7th in the technology category.

In H1 2025, we successfully launched the Purple Playbook-a nine-module soft skills training program-building on our well-established Life Skills initiatives focused on resilience, teamwork, communication, time management and personal development. We also strengthened our employee feedback loop with quarterly SLT review sessions, which have already led to meaningful improvements, including an enhanced US benefits package and better alignment of our product offerings. Additionally, we launched the EDI Alliance, bringing together all ERGs with a shared focus on charitable impact. As we move through this period of transformation, we remain committed to building on the strong foundations we've put in place, ensuring that our people feel supported and empowered to drive our mission forward.

Confident outlook

We have commenced the second half of the year with renewed momentum, energised by the new OEM partnership, as well as new Wins, renewals and Deepening with customers early in H2.

The global OEM partnership represents a transformative opportunity for Eagle Eye, providing a clear path for substantial revenue acceleration from FY27 onwards, and reinforcing our confidence in achieving our 3-5 year goal of £100m in revenue, with an adjusted EBITDA margin of 30%. Accelerating our Win rate remains a key focus and we are pleased to see the building momentum already in the second half of the year. We have added major retailers to our client base and are confident in achieving results for the year ending 30 June 2025 in line with current market expectations.

With growing SaaS revenue, strengthening margins, proven world-class technology and global reach through powerful partners, the outlook for Eagle Eye is positive.

Financial Review

¹ Direct margin excludes indirect operating expenses, share-based payment charges, depreciation, amortisation, interest and tax from the measure of profit

² Adjusted EBITDA excludes share-based payment charges along with depreciation, amortisation, interest and tax from the measure of profit

³ Adjusted EBITA excludes share-based payment charges along with depreciation, amortisation on intangible assets recognised under IFRS 3 on the acquisition of EagleAI, interest and tax from the measure of profit

⁴ Adjusted net cash is cash and cash equivalents less borrowings

Revenue and Gross Profit

During the Period, Group revenue was steady at £24.2m (H1 2024: £24.1m), incorporating double digit growth in EagleAI and overall SaaS revenue, alongside the ongoing decrease in Professional Services and SMS revenue, as the business continues its evolution into a fully scalable, SaaS business. Recurring revenue now represents 82% of total Group revenue, up from 78% in the prior period, reflecting the Group's focus on building stable and predictable revenue streams.

The 10% growth in SaaS revenue was driven by AIR recurring revenue, which increased across all regions to £16.6m, representing 69% of total revenue (H1 2024: £15.5m, 65%). EagleAI recurring revenue saw significant growth, increasing 36% to £2.9m, and now accounting for 12% of total revenue (H1 2024: £2.1m, 9%). As expected and aligned with the Group's strategic shift away from lower-margin services, SMS revenue decreased to £0.3m, now making up just 1% of total revenue (H1 2024: £1.2m, 4%).

The Group's Annual Recurring Revenue ("ARR"), which is our period exit rate for recurring subscription and transaction revenue (excluding SMS) plus any professional services contracted for more than 12 months hence and secured new wins, excluding any seasonal variations and lost contracts, increased by 16% to £41.0m (H1 2024: £35.4m). The growth rate is ahead of recurring revenue growth of 5% due to the deflationary effect of the SMS business on recurring revenue and the timing of new client wins and deepening of existing opportunities going live, in particular with Leclerc and a leading retailer in the UK. £1.6m of period-end ARR relates to new client wins not yet live at 31 December 2024 (H1 2024: £1.1m).

Under IFRS 15, a SaaS business will typically recognise revenue (including implementation revenue from professional services) over time. In some cases, implementation revenue is recognised over the period the service is live. Therefore, during the period of implementation for a new client, no revenue will be recognised, although directly attributable associated costs are also spread over this period, matching revenue and costs. Revenue from professional services that has been deferred into future periods, but delivered and billed, was £5.4m at 31 December 2024 (31 December 2023: £6.0m).

The Group has continued to successfully deepen its relationships with existing clients, resulting in a Net Revenue Retention ("NRR") rate of 104% (H1 2024: 120%). This positive rate was supported by the Group deepening its engagement with Pret a Manger, JD Sports, E.Leclerc and Morrisons and contract renewals for Loblaw, Neptune and E.Leclerc. The successful renewal of these key clients ensures that long-term contract customer churn by value remains low at 0.1% (H1 2024: 1.2%). This reflects the scale and breadth of our offering in meeting our customers' needs.

Gross profit grew by 3% to £23.8m (H1 2024: £23.1m), with the gross margin remaining high at 99%. Cost of sales includes 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.

Direct profit

Direct profit grew by 4% to £16.9m (H1 2024: £16.2m) at an improved margin of 70% (H1 2024: 67%). Direct profit is used as a performance measure by the business as it more accurately reflects the margin directly generated by revenue recognised in the year. In addition to cost of sales as defined above, this measure also includes the cost of the AIR and EagleAI platforms (including associated software licences) and staff costs for employees dedicated to the successful implementation and ongoing running of client services. Our ambition is to see this margin continue to increase as the platform is made more efficient as transaction volumes continue to increase. Excluding the impact of professional services and the low margin SMS business, the direct profit from the AIR and EagleAI SaaS business increased 13% to £14.3m (H1 2024: £12.7m).

Adjusted Operating Expenses and EBITDA

Adjusted operating expenses increased to £17.9m (H1 2024: £17.3m), contributing to a stable adjusted EBITDA of £5.9m (H1 2024: £5.9m). The adjusted EBITDA margin remained strong at 24.4% (H1 2024: 24.4%). 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 £1.6m (H1 2024: loss of £(0.3)m), the increase primarily reflecting a lower share-based payment charge of £0.3m (H1 2024: £1.8m) primarily due to the reduction in expectations for FY25 performance.

Net staff costs, which represent 57% of adjusted operating costs (H1 2024: 61%) decreased to £10.2m (H1 2024: £10.6m), reflecting the impact of lower performance related bonuses and commissions. The increase in IT infrastructure costs was broadly in line with the increase in total recurring revenue, as expected, up 11% to £5.1m (H1 2024: £4.6m). Other operating costs, which are either discretionary or are not correlated to changes in revenue, increased to £2.7m (H1 2024: £2.2m), primarily reflecting adverse movements in foreign exchange rates. Although we hedge elements of our foreign currency net receipts to ensure that the Group is protected from significant and sudden adverse movements in foreign currency exchange rates, this does not prevent some exposure in the income statement. There were no open hedges at 31 December 2024 (30 June 2024: none).

We have continued to invest in the Product, where total spend in the Period was £4.4m (H1 2024: £3.8m). Capitalised product development costs were £1.5m (H1 2024: £1.4m), representing 11% of total staff costs (H1 2024: 10%), whilst amortisation of capitalised development costs was £1.3m (H1 2024: £1.2m). Contract costs (including costs to obtain contracts and contract fulfilment costs), recognised as assets under IFRS 15, were £1.3m (H1 2024: £2.1m) and amortisation of contract costs was £1.3m (H1 2024: £1.7m).

Earnings per Share

The tax credit of £0.1m (H1 2024: charge of £0.1m) primarily reflects the R&D tax credit receivable in France offset by improved profitable operations internationally. With improved profitability, the Group reported a profit after taxation of £1.7m (H1 2024: a loss of £0.4m), resulting in an adjusted basic earnings per share of 5.62p (H1 2024: loss per share (1.42)p), a notable improvement indicative of the Group's strengthening financial health.

Statement of Financial Position

Net assets increased to £35.9m (30 June 2024: £34.1m), driven by the profit made in the period.

Cash and Net Debt

The Group ended the Period with an enhanced net cash position of £11.7m (30 June 2024: £10.4m), underpinning its robust balance sheet. The business moved to a cash inflow for the Period of £1.4m (H1 2024: outflow of £0.9m excluding deferred consideration paid in association with the acquisition of EagleAI) reflecting improved working capital management and the timing of the French R&D tax credit. This reflects a twelve-month free cash flow conversion rate from adjusted EBITA of 70% (H1 2024: 50%). We expect to continue to be cash generative in H2 25 and beyond.

The Company agreed a new and increased three-year £10m revolving credit facility with HSBC Innovation Bank, which replaces the Company's previous £5m revolving loan facility with HSBC. The new facility includes an additional £10m accordion, subject to credit approval at the time, should there be an appropriate investment opportunity. The new facility can also be extended for an additional year and provides the business with improved security and flexibility over its financing options across the medium term as the Company executes on its growth strategy, which is the priority for the Board. The facility is not currently drawn down and the Board does not expect any requirement to use the facility for normal operations.

The Group's strong financial position provides it with the basis for continued investment in growth. The Company continues to prioritise allocating capital to its strategic growth initiatives, which it considers generate the highest long-term shareholder returns. Whilst so, the Board reviews the Group's capital allocation priorities, including M&A, in the context of its cash resources and facilities on an on-going basis to ensure that shareholder returns are optimised.

Consolidated unaudited interim statement of total comprehensive income for the six months ended 31 December 2024

Consolidated unaudited interim statement of financial position as at 31 December 2024

Consolidated unaudited interim statement of changes in equity for the six months ended 31 December 2024

Included in "retained losses" is a cumulative foreign exchange loss of £327,000 (June 2024: loss of £230,000).

Consolidated unaudited interim statement of cash flow for the six months ended 31 December 2024

Notes to the consolidated unaudited interim financial statements

1. Basis of preparation

The Group's half-yearly financial information, which is unaudited, consolidates the results of Eagle Eye Solutions Group plc and its subsidiary undertakings up to 31 December 2024. The Group's accounting reference date is 30 June. Eagle Eye Solutions Group plc's shares are listed on AIM, the market of that name operated by the London Stock Exchange.

The Company is a public limited liability company incorporated and domiciled in England & Wales. The presentational and functional currency of the Group is Sterling. Results in this consolidated financial information have been prepared to the nearest £1,000.

Eagle Eye Solutions Group plc and its subsidiary undertakings have not applied IAS 34, Interim Financial Reporting, which is not mandatory for UK AIM listed groups, in the preparation of this half-yearly financial report.

The accounting policies used in the preparation of the financial information for the six months ended 31 December 2024 are in accordance with the recognition and measurement criteria of UK-adopted International Accounting Standards ('IFRS') and are consistent with those which will be adopted in the annual financial statements for the year ending 30 June 2025.

The profit before interest, tax, depreciation, amortisation and share-based payment charge and other adjusted performance measures are presented in the statement of total comprehensive income as the Directors consider these performance measures provide a more accurate indication of the underlying performance of the Group and are commonly used by City analysts and investors.

While the financial information included has been prepared in accordance with the recognition and measurement criteria of IFRS these interim financial statements do not contain sufficient information to comply with IFRS.

The comparative financial information for the year ended 30 June 2024 has been extracted from the annual financial statements of Eagle Eye Solutions Group plc. These interim results for the period ended 31 December 2024, which are not audited, do not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006. The financial information does not therefore include all of the information and disclosures required in the annual financial statements.

Full audited accounts of the Group in respect of the year ended 30 June 2024, which received an unqualified audit opinion and did not contain a statement under section 498(2) or (3) of the Companies Act 2006, have been delivered to the Registrar of Companies.

2. Going concern basis

As part of their going concern review the Directors have followed the guidelines published by the Financial Reporting Council entitled "Guidance on Risk Management and Internal Control and Related Financial and Business Reporting''. The Directors have prepared detailed financial forecasts and cash flows looking beyond 12 months from the date of this half-yearly financial information. 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.

On the basis of the above projections, the Directors are confident that the Group has sufficient working capital 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, 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 this half-yearly financial information.

3. Segmental analysis

The Group is organised into two principal operating divisions for management purposes. Revenue is analysed as follows:

The majority of the Group's revenue comes from services which are transferred over time.

4. Earnings per share

The calculation of basic earnings per share is based on the result attributable to ordinary shareholders divided by the weighted average number of ordinary shares in issue during the period. The calculation of diluted earnings per share is based on the result attributable to ordinary shareholders divided by the weighted average number of ordinary shares in issue during the period, diluted for the effect of options being converted to ordinary shares. Basic and diluted earnings per share from continuing operations are calculated as follows:

5. Alternative performance measures                            

Adjusted EBITDA and adjusted EBITA are key performance measures for the Group and are derived as follows:

EBITA has been adjusted to exclude share-based payment charges along with IFRS3 amortisation arising on acquisitions, interest and tax from the measure of profit. EBITDA has been adjusted to exclude share-based payment charges along with depreciation, amortisation, interest and tax from the measure of profit.

Direct profit is a key performance measure which is more comparable to the gross profit measure of other SaaS companies and is derived as follows:

6. Adjusted net cash                            

7. Availability of this Interim Announcement

Copies of this announcement are available on the Company's website, www.eagleeye.com.