REG - Big Technologies PLC - Trading Statement

Big TechnologiesAnnouncement

20/01/2023 07:00

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RNS Number : 2837N  Big Technologies PLC  20 January 2023

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
expectations(1).

 

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.

 

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