(Alliance News) - Big Technologies PLC shares fell on Friday, after it said it expects 2024 sales to drop on additional costs.
Big Technologies is a Rickmansworth, England-based remote people monitoring technology company. Its shares fell 30% to 90.00 pence each in London on Friday morning.
For 2023, Big Technologies said it performed in line with expectations.
The company expects 2023 revenue to about GBP55 million, up from GBP50.2 million a year earlier.
Adjusted earnings before interest, tax, depreciation and amortisation to be GBP33 million, up from GBP30.5 million.
Big Technologies also updated on its 2024 outlook.
It said revenue from its contract to provide electronic monitoring services to one of its "larger customers", based in Colombia, is expected to end during the first half of 2024.This contract has been subject to short term renewals since September 2021.
Big Technologies added a number of recent new contract wins are expected to partially offset the potential revenue loss from Colombia.
However, the company said: "During the second half of 2023, we have significantly expanded our business development efforts in the US market, the largest market in the world for electronic monitoring and substance detection. We expect this investment to accelerate sales growth in the medium term, but the additional costs are expected to reduce operating profit margins in the US in 2024 until new sales are realised."
As a result of this, Big Technologies expects sales for 2024 to be at least at the level achieved in 2022.
"More detailed guidance for 2024 will be given at the time of our results in March when the outcome in Colombia is known with greater certainty," it added.
Looking further ahead, Big technologies said a return to growth is expected for 2025 "and beyond."
By Sophie Rose, Alliance News senior reporter
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Big Technologies (BIG)