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Eagle Eye Solutions Group PLC on Monday reported the loss of a high-margin contract with one of its US partners. The Guildford, England-based digital marketing firm said that Neptune Retail Solutions, an advertising company focused on digitised shopping incentives, had terminated Eagle Eye’s contract with a national US grocery chain. The CPG-funded contract runs out on August 2, Eagle Eye said. The firm explained this was due to Neptune’s 2023 acquisition of a Quotient Technology Inc, a Salt Lake City, US-based marketer specialising in online promotions. Eagle Eye said it was working on cost reduction measures to ease the blow’s impact, which comes amid the firm’s move towards the software-as-a-service business. The London market did not appear to share Eagle Eye’s confidence in weathering the storm - Eagle Eye shares dropped 38% to 220.00 pence each on Monday morning. The company admitted the contract loss would likely have a material impact on full-year performance. Nonetheless, Eagle Eye predicted it will meet market expectations, which are for revenue of about £47.7 million, with an adjusted margin for earnings before interest, taxation, depreciation and amortisation of 24%. ‘The strength of recent renewals means that 83% of revenue from the remaining top 10 customers is under contract to at least financial 2027. Net recurring revenue excluding the NRS contract remains strong at 117%, as at April 30, 2025,’ Eagle Eye said. ‘While the news of this contract termination is clearly disappointing, it reflects commercial changes at NRS, outside of our control, and we are taking measures to mitigate the financial impact of the loss,’ said Eagle Eye Chief Executive Tim Mason. ‘This is a short-term set back and the fundamentals of the business are strong. We have the industry-leading loyalty and promotions capability globally, with attractive growth prospects and an unchanged opportunity.’ Copyright 2025 Alliance News Ltd. All Rights Reserved.
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