Big Technologies flags full-year results ahead of expectations

(Sharecast News) - Big Technologies said in an update on Tuesday that it expected to finish 2025 marginally ahead of market expectations for both revenue and adjusted EBITDA, as strong new business momentum offset the lingering impact of contract losses recorded in the prior year. The AIM-traded electronic monitoring specialist said that for the year ended 31 December, it recorded annual recurring revenue of £52.4m, up 12% on a constant currency basis from £46.8m a year earlier.

Growth was driven by strong performance in the Americas, where ARR increased 25%.

Unaudited group revenue totalled approximately £49.7m, compared with £50.3m in 2024, although on a constant currency basis that represented year-on-year growth of 3%.

Excluding the loss of the Colombia contract in the first half of 2024, underlying constant currency revenue growth was 9%.

Adjusted EBITDA for the year was expected to be around £24.6m, down from £27m in 2024, reflecting a change in margin mix and investment in strengthening the group's management team.

The company said the management costs were expected to be cost neutral in future periods following cost-saving actions.

Big Technologies said it remained cash generative, ending the year with cash of £93.4m.

After taking into account the initial £31.5m payment relating to the settlement of the Buddi litigation, cash at year end would have been £61.9m.

Operationally, the group reported a series of new contract wins, including agreements to provide technology via a partner in a southern European country and directly in Aruba.

Those added to previously-announced wins in Lithuania, Latvia, Pierce County and Prince Edward Island, with the new contracts expected to begin operations in 2026.

During the second half of the year, the firm implemented a new organisational structure, appointing regional vice presidents for the Americas, Asia-Pacific and EMEA, alongside new roles covering product quality, regulatory affairs and marketing.

The group also established a US monitoring centre in Tampa, Florida, to support its expanding American customer base, and launched a new alcohol monitoring product, AlcoBreath, which had achieved certification in both the United States and Europe.

In addition, Big Technologies entered into a partnership with Actall Corporation to integrate Buddi's RF tag technology into Actall's HubSens RTLS platform, following a successful technical evaluation in the fourth quarter.

Chief executive Ian Johnson said the group had made good progress despite the impact of earlier contract losses.

"I am pleased to report good progress in 2025 despite the contract losses midway through 2024 impacting the year," he said.

"I am very proud of the strong performance of the regional teams who grew ARR by 12% and underlying revenues by 9% on a constant currency basis."

Johnson added that the company was well positioned for further growth in 2026, citing recent contract awards, best-in-class technology and a robust balance sheet.

"I look forward to continuing to grow the business in 2026," he said.

At 1247 GMT, shares in Big Technologies were up 5.34% at 107.45p.

Reporting by Josh White for Sharecast.com.