Built Cybernetics says annual revenue up but costs remain high

Built Cybernetics PLC shares were lower on Monday, despite the company swinging to a pretax profit and rising revenue, as it noted high operational costs and the discontinuation of properties and subsidiaries.

Shares in Built Cybernetics fell 4.7% to 1.81 pence each on Monday afternoon in London.

The London-based company, focused on smart buildings, reported revenue of £20.1 million for the year ended September 30, up 7.7% from £18.6 million in the prior year.

Built Cybernetics swung to a £77,000 pretax profit from continuing operations, against a £1.3 million loss. Its attributable post-tax loss narrowed to £31,000 from £1.7 million.

However, the company noted that it decided to exit the Anders + Kern distribution business in September, selling it to its management for a nominal amount and incurring a £500,000 impairment related to its acquisition in 2023.

Built Cybernetics also reported a £585,000 impairment from revaluing its freehold property, which one of its subsidiaries sold in September, 2024, for £2.5 million. The proceeds were used to repay a chunk of the company’s debt, despite bank debt rising year-on-year to £1.5 million from £606,000, driven by the £1.1 million raised through convertible loan notes.

Additionally, central costs more generally absorbed operational profitability. Built Cybernetics said that as a small and acquisitive group, ‘we have a relatively high level of operational gearing, through staffing, IT and property costs, which can make it difficult to reduce costs sufficiently quickly to immediately avoid losses when faced with...unpredicted falls in revenue’.

A £264,000 provision, relating to a professional indemnity insurance levy by The Wren Group Ltd, also impacted the company’s pretax result.

Non-Executive Chair Clive Carver said that the Smart Core control hub software shows promise, while ‘EcoDriver [an energy monitoring platform] also looks set for continued growth and the recently acquired MapBI business [a geospatial information system] has started well’.

‘The cross over between the design architecture business and our Smart Building activities is proceeding in line with management expectations. With three separate software led Smart Buildings businesses and an architectural division returned to profitability we look to the future with confidence,’ he added.

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