Big Technologies revenue, earnings rise in first half

Monitoring technology specialist Big Technologies reported a 19% rise in first-half revenue on Tuesday, reaching £27.3m, up from £22.9m in the same period in 2022.

The AIM-traded company said its gross margin rose to 73.3% for the six months ended 30 June - a 190 basis point increase from the 71.4% it recorded a year earlier.

That was driven by revenue growth and the scalability of its operational model.

Big Technologies reported adjusted EBITDA of £16.1m, with a margin of 59.1%, up from £13.7m but down from 60.1% year-on-year, respectively.

There was a significant increase in cash generated from operating activities, amounting to £12.4m, rising from £11.3m and reflecting the company's robust trading performance.

The net cash balance stood at £75.4m as of 30 June 2023, compared to £56.9m a year earlier.

Operationally, the firm reported continued growth in deploying electronic monitoring devices for clients globally.

Big Technologies said it had made notable progress on its future product roadmap, with several new products nearing completion, as efforts to engage potential new clients in Europe and beyond remained a strategic focus.

Looking ahead, Big Technologies said it was poised for sustained growth.

The board said the company’s substantial financial resources would allow for versatile business investment and the ability to leverage emerging, value-enhancing opportunities.

It said that, with high recurring revenue levels, it remained optimistic about the firm’s revenue prospects for the latter half of 2023 and expected continued strong cash flow.

However, if sterling's strength remained unchanged without any new contract acquisitions, the company was forecasting a full-year revenue close to £54m and an adjusted EBITDA margin of about 60%, aligning with the lower end of the current market expectations.

“We have delivered pleasing revenue and profit performance during the first half of the financial year, clearly illustrating our proven, resilient and cash-generative business model,” said chief executive officer Sara Murray.

“We continued to support new and existing customers with our product offering, helping to keep societies and communities safe around the world.”

Murray said the firm had a pipeline of exciting new products in the final stages of development and expected to release those to customers in the second half of the year.

“The demand for all our products remains strong, and the solid foundations on which our business is built means it is well positioned with the financial resources in place to take advantage of value-enhancing opportunities as they arise.”

At 1239 BST, shares in Big Technologies were down 4.54% at 219.55p.

Reporting by Josh White for Sharecast.com.