Last checked at 20 Jan 2023 07:00
20 January 2023
Big Technologies plc
("Big Technologies" or the "Company" and the "Group")
Trading Update
Big Technologies plc, the UK-based remote people monitoring technology company, issues the following trading update ahead of the announcement scheduled for 29th March 2023 of its full year results for the year ended 31st December 2022.
The Group has continued to gain momentum following its strong set of results in the first half of the financial year and, as a result, revenue for the year ended 31st December 2022 is expected to be approximately £50 million (2021: £37.6 million) and adjusted EBITDA to be in excess of £30 million (2021: £20.6 million). These results are marginally ahead of current market expectations1.
Net cash (stated prior to lease liabilities of £0.7 million) as at 31st December 2022 increased to £67.5 million which provides the Group with significant financial flexibility to continue to invest in our operations and technology.
As we look forward to 2023, the Group expects to deliver further revenue growth as we continue to increase our market share and scale-up our business operations.
1: The Company has compiled forecasts from four analysts with current market forecasts for 2022 revenue to be in the range of £48.0m to £49.0m, with a consensus of £48.7m, and for adjusted EBITDA to be in the range of £27.8m to £29.2m, with a consensus of £28.6m.
Sara Murray OBE, Chief Executive Officer, commented:
"We are delighted that the business has delivered another year of significant growth, ahead of market expectations. Against a challenging backdrop, characterised by supply chain and economic disruption, this performance is even more pleasing. The successful implementation of a significant national monitoring contract in New Zealand received positive feedback from the customer. This is a testament to the strength of our technology solutions and the quality and commitment of our people. Market drivers remain strong, with the business well-positioned to maintain delivery of revenue growth in 2023 and beyond."
For further information please contact:
Big Technologies | +44 (0) 19 2360 1910 |
Sara Murray (Chief Executive Officer) Daren Morris (Chief Financial Officer) | |
Zeus (Nominated Adviser and Sole Broker) | +44 (0) 20 3829 5000 |
Jamie Peel / Dan Bate / Kieran Russell (Investment Banking) Benjamin Robertson (Equity Capital Markets) |
About Big Technologies
Big Technologies is the parent company of Buddi, which was founded in 2005 by its current CEO, Sara Murray, following an initial idea to create a GPS device small enough for a child to carry. Today, Big Technologies is a proven supplier of innovative and high-quality products and services to the remote personal monitoring industry. Big Technologies provides products and services under a number of brand and trading names, with 'Buddi' being the most well-known and being used in respect of activities within the core criminal justice market. Big Technologies (under the buddi brand) has created a leading, integrated technology platform (including both hardware and software solutions) for remote monitoring of individuals, providing state-of-the-art Electronic Monitoring (EM) solutions on a SaaS-like, subscription basis.
Electronic Monitoring in the criminal justice sector involves utilising location technologies to remotely monitor and manage people at all stages of the criminal justice system. The Company's focus on the Criminal Justice market in the immediate term has been demand-driven, with significant opportunities created by a combination of favourable market tailwinds as electronic location devices are increasingly recognised as alternatives to imprisonment, and superior technological capability enabling the Company to meet this demand effectively.
Big Technologies' criminal justice solution has been iteratively developed over a 10-year period, utilising the knowledge of an experienced management team listening to customers. The solution consists of a proprietary software platform with modular monitoring hardware, capable of being adapted to multiple applications. The Company's criminal justice solution is principally focussed around the "Buddi Smart Tag", an electronic monitoring hardware device, and "Buddi Eagle", the in-house developed, cloud-based monitoring software. Collectively, the hardware and the intelligent tools integrated into Big Technologies' software enable real-time tracking of monitored individuals with high levels of accuracy and reliability. Buddi evidences a substantial reduction in false alerts when compared to competitor systems which, combined with the reduction in subsequent investigations, can result in substantial cost savings for customers.
In addition to the high levels of accuracy, the Buddi Smart Tag has several key advantages over its competitors' devices. The tag is lighter, smaller, has longer battery life and offers a simple, contact free and shorter installation process, providing substantial staff cost savings for customers. This superior product design, coupled with the intelligent monitoring software, typically comes at a small price premium to competitor devices. However, the overall effectiveness and reliability of the solution, combined with the substantial cost savings delivered as a result of reduced monitoring costs, have helped Big Technologies deliver strong revenue growth from both existing and new customers. The Company leases its devices and software solutions to customers typically based on daily or monthly rates.