Annual results to November from bombed-out Eagle Eye, the provider of vehicle telematics and asset information solutions, were issued late in the day without PR fanfare.

Unsurprising, since the figures revealed a widening of pre-tax losses to £869,000 (£617,000) on turnover of £1.06m (£861,000), with Eagle Eye reporting an increase in its net cash outflow from operations from £500,000 in 2005 to an even heftier £827,000 last year.

The Manchester-based company, which joined AIM by way of a reversal into cash shell New Capital Invest in 2000, has proved an inveterate loss maker (losses reached £11.2m in 2004) in a technology sub-sector that has flattered to deceive.

Nevertheless, in his results statement, chairman Rodney Graves insisted demand for vehicle telematics solutions from the motor insurance and vehicle leasing sectors is on the rise and thus Eagle Eye, which has successfully expanded a domestic and overseas customer base including Alstom and luxury car dealership H R Owen, is intent on pushing on with product innovation. He says new marketing and sales initiatives are being put in place to boost sales and was at pains to flag up growth at the top line as well as in gross margins with the group’s overhead costs contained.

Despite progress, Eagle Eye is faced with cutthroat competition in the UK market and has lately relied on loan agreements with directors and key shareholders to continue the fight. Growth Company Investor urges any existing shareholders to sell up shrunken holdings and reinvest elsewhere. Sell.

Eagle-i Holdings	AIM	£9.8m	3.00p	0.00p
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