TIDMBIG
RNS Number : 2821A
Big Technologies PLC
19 January 2024
19 January 2024
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
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 26 March 2024 of its full year
results for the year ended 31 December 2023.
The Group has continued to perform in line with the board's
expectations with revenue for the year ended 31 December 2023
expected to be approximately GBP55 million (2022: GBP50.2 million)
and adjusted EBITDA to be approximately GBP33 million (2022:
GBP30.5 million). These results are in line with current market
expectations(1) .
Outlook for 2024
Revenue from our contract to provide electronic monitoring
services to one of our 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. A number
of recent new contract wins are expected to partially offset the
potential revenue loss from Colombia.
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 these developments, we expect Group 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.
The Group continues to see opportunities to expand market share
and scale-up the business and is in the process of releasing its
first innovative substance detection technology to priority
customers. We have enjoyed contract renewals across the business
and won a number of new customers in recent months which will start
to contribute revenues during 2024 and 2025. A return to growth is
expected for 2025 and beyond.
(1: The Company has compiled forecasts from four analysts with
current market forecasts for 2023 revenue to be in the range of
GBP54.0 to GBP54.5m, with a consensus of GBP54.3m, and for adjusted
EBITDA to be in the range of GBP32.7m to GBP32.8m, with a consensus
of GBP32.7m.)
Sara Murray OBE, Chief Executive Officer, commented:
"In difficult market conditions, 2023 has seen the Group deliver
a strong performance with continued growth in sales, profits and
our cash reserves. 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. We are obviously disappointed with the
outcome in Colombia, with a customer that we have served well for a
number of years. We see a pipeline of attractive business
opportunities around the globe and will continue to work diligently
to replace this revenue stream."
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.
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