Big Technologies (BIG) H1 2024 earnings summary

Executive summary

• Delivered robust profitability and strong cash generation despite a 3% revenue decline in H1 2024, mainly due to the end of a major contract in Colombia and adverse currency movements.

• Maintained a significant net cash balance of £92.9m, supporting a strong balance sheet and financial flexibility.

• Expanded US business development efforts are showing early traction, with new customer accounts and a major US contract extended to 2030.

• Launched Buddi AlcoTag, a new body-worn alcohol detection device, and advanced migration to 4G technology.

Financial highlights

• Revenue decreased 3% year-over-year to £26.5m in H1 2024; at constant currency, the decline was 1%.

• Gross margin fell to 70.0% (down 330bps), impacted by revenue decline, customer mix, higher depreciation, and operational costs.

• Adjusted EBITDA was £14.3m (down 11%), with a margin of 54.0% (down 510bps).

• Adjusted operating profit dropped 18% to £11.5m; adjusted diluted EPS was 3.9p (down from 4.3p).

• Cash generated from operations was £11.2m, with net cash increasing to £92.9m.

Outlook and guidance

• Full-year 2024 results expected at the lower end of market expectations, with adjusted EBITDA guidance of £27.0m–£28.3m (pre-share-based payments and one-off legal costs).

• Revenue anticipated to be lower in H2 2024 versus H1; return to growth expected in 2025 and beyond, supported by favorable market tailwinds.

• Assumes no further adverse currency impacts in H2 2024.