(Sharecast News) - Remote monitoring technology specialist Big Technologies reported double-digit organic revenue growth of 10% in its preliminary results on Tuesday, reaching £55.2m compared to £50.2m in 2022.
The AIM-traded firm said that despite a slight decrease in gross margin to 70.7% in 2023 from 72.5% a year earlier, it maintained strong profitability, with statutory operating profit at £16.8m, down from £20.6m, and adjusted operating profit rising to £28.2m from £27.1m.
Adjusted EBITDA reached £33m, up from £30.5m year-on-year, with the margin relatively stable at 59.8%, compared to 60.7% a year earlier.
Operational highlights included the establishment of a new office in Latin America and the mobilisation of resources to support a new customer in the Asia-Pacific region.
The company said it also expanded its business development efforts in the US, bolstering its sales team to drive growth in the country.
Additionally, Big Technologies launched Buddi substance detection technologies and finalised the development of its first body-worn alcohol detection technology, the Buddi AlcoTag.
Looking ahead, the company said it anticipated maintaining momentum into the new financial year, supported by a solid pipeline of opportunities and a clear strategy for business development and investment.
Despite potential short-term headwinds resulting from the end of a contract in Colombia, Big Technologies said it expected to remain highly profitable and cash-generative in 2024.
The board said it was confident in a return to growth in 2025 and beyond, buoyed by long-term growth drivers in criminal justice, where electronic monitoring offered a viable alternative to incarceration.
"In difficult market conditions, 2023 has seen the group deliver a strong performance with continued growth in sales, profits and our cash reserves," said chief executive officer Sara Murray.
"We continue to invest in the business and in our market-leading suite of monitoring products and expect to see growth in the coming years."
Murray said the company was "obviously disappointed" with the outcome in Colombia, with a customer that it had served for a number of years.
"We see a pipeline of attractive business opportunities around the globe and will continue to work diligently to grow, and decrease concentration in, our revenue stream."
At 1356 GMT, shares in Big Technologies were up 2.34% at 132.53p.
Reporting by Josh White for Sharecast.com.
Big Technologies (BIG)