Big Technologies swings to profit and ups view after interim results

Big Technologies PLC on Monday said it swung to a first-half profit as revenue grew and costs related to litigation fell sharply, while it expects full-year results to be marginally ahead of market expectations.

The Hertfordshire, England-based electronic monitoring solutions provider said pretax profit was £9.5 million in the six months ended June 30, swinging from a loss of £25.7 million a year earlier.

Revenue was £26.9 million, up 5.9% from £25.4 million on a constant-currency basis a year earlier, driven by new business wins coming online during the period. On a reported basis, prior-year revenue was £24.8 million, so the increase was 8.5%.

Cost of sales increased 11% to £9.0 million from £8.1 million.

Administrative costs fell sharply to £8.9 million from £43.9 million. Big Technologies noted that administrative expenses in the first half of 2025 had been significantly affected by costs related to the Buddi litigation.

This related to the acquisition of Buddi Ltd by Big Technologies in 2018. Shareholders with a 7.9% stake in Buddi claimed in High Court that they were were forced to sell their shares in Buddi and not given the opportunity to reinvest in Big Technologies. The case was settled back in January.

Big Technologies said that underlying administrative costs were reduced to £6.6 million in the recent half-year from £7.2 million a year before.

Adjusted earnings before interest, tax, depreciation and amortisation rose 14% to £14.2 million from £12.5 million, while the adjusted Ebitda margin improved to 53% from 50%.

Adjusted operating profit increased 20% to £11.4 million from £9.5 million, while statutory operating profit was £9.1 million, swinging from a £27.1 million loss.

Adjusted basic earnings per share increased 25% to 3.5 pence from 2.8p.

Annual recurring revenue increased 4.5% to £53.2 million from £50.9 million on a constant-currency basis.

Adjusted free cash flow improved to £9.6 million from £6.7 million. Exceptional cash outflows relating to legal fees declined to £2.6 million from £5.3 million.

Cash at bank stood at £67.1 million at June 30, down from £96.7 million a year earlier, after the company made £33.4 million of settlement payments during the first half relating to the Buddi litigation. Big Technologies settled that litigation for £38.5 million in January, agreeing to pay a total of £38.5 million in cash to the claimants.

Operationally, Big Technologies highlighted a seven-year contract awarded to its Buddi business and partner Sonda SA for the Gendarmerie of Chile, which is expected to generate around USD26 million in revenue.

The company also secured a three-year renewal in Guatemala and new business in Peru and Mexico. In the US, it won contracts in Westchester, New York, California, Ohio and Indiana and renewed a statewide contract in Tennessee.

Big Technologies said it is well positioned for further growth in the second half and expects its 2026 results to be marginally ahead of market consensus.

Current analyst consensus is for 2026 revenue of £51.1 million and adjusted Ebitda of £25.3 million.

Acting Chief Executive Officer Charles Lewinton said: "The group's recent successes give us a strong platform from which to win more contracts, deepen our presence in existing markets and convert the significant pipeline of opportunities ahead."

Separately on Monday, Big Technologies said mediated discussions with former CEO Sara Murray had ended.

Murray was suspended and then dismissed as CEO last March owing to concerns about her conduct.

The company said a settlement remained its preferred outcome in the proceedings. However, it said that, in the absence of "meaningful settlement discussions", it will continue to pursue the litigation.

Shares in Big Technologies were 0.9% lower at 96.91 pence in London on Monday afternoon.

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