Big Technologies (BIG) H2 2024 earnings summary

Executive summary

• Achieved continued market share expansion and introduced several new products, including Smart Tag 5.1, Alco Tag, Sure Tag, Mini+, and SmartBeacon ID.

• Secured 50 new US customers and won significant contracts, such as Riverside County and the Department of Justice in Northern Ireland.

• Maintained high profitability and strong cash generation, with £20.4 million generated from operating activities in 2024.

• Closed 2024 with £4.0 million in monthly recurring revenue, providing excellent visibility for 2025.

Financial highlights

• Revenue for FY 2024 was £50.3 million, down from £55.2 million in FY 2023, primarily due to the end of the Colombia contract.

• Gross margin was 68.1% (2023: 70.7%), reflecting the contract mix shift.

• Adjusted EBITDA margin was 53.7% (2023: 59.8%), with adjusted EBITDA of £27.0 million.

• Net cash position increased to £93.9 million (2023: £85.9 million).

• Operating cash conversion was 76% (2023: 96%), impacted by non-underlying legal fees.

Outlook and guidance

• Guidance for FY25 remains in line with market expectations.

• Q1 FY25 unaudited underlying revenue increased 11% to £12.9 million, excluding the Colombia contract.

• Focus on expanding the US sales team and leveraging positive market reception for alcohol detection solutions.

• FX remains a risk for 2025 as GBP strengthens.