Big Technologies confident after strong 2022
Remote monitoring specialist Big Technologies reported 2022 revenue of £50.2m in its preliminary results on Wednesday, up 33% year-on-year, driven by new contract wins and an increase in revenues earned from existing customers.
The AIM-traded firm said gross margins were up 170 basis points at 72.5%, which it put down to its “scalable operating model” allowing for increased efficiencies.
Its statutory operating profit was £20.6m, up from £13.8m in 2021, while its adjusted operating profit improved to £27.1m from £17.9m.
The company reported adjusted EBITDA of £30.5m, with its adjusted EBITDA margin increasing to 60.7%.
It generated cash of £25.7m from operating activities, and had a net cash balance of £66.8m at year-end on 31 December.
Looking ahead, Big Technologies said it was positioned with the financial resources needed in place to provide flexibility to continue to invest in the business, and take advantage of the value-enhancing opportunities expected to materialise in the coming years.
The board said it was confident of continued growth and strong cash generation for 2023.
Trading remained in line with the board's expectations, with the firm starting the new financial year well.
“I am very pleased that the group has delivered another year of significant growth against a challenging global macroeconomic backdrop, which includes the ongoing impacts of inflation and supply chain constraints,” said chief executive officer Sara Murray.
“We have seen growing demand for our technology products and services, which translated into new contract wins and deployment of a record number of new electronic monitoring devices to customers in the criminal justice sector.”
Murray said the successful implementation of a “significant” national monitoring contract in New Zealand received positive feedback from the end customer, and diversified the firm’s global footprint, enhancing its reputation.
“Market drivers remain strong and we are confident of maintaining momentum and delivering further growth in 2023 and beyond.”
At 0959 BST, shares in Big Technologies were up 1.85% at 248p.
Reporting by Josh White for Sharecast.com.