Big Technologies reports strong growth in IPO year

24th Mar 2022 12:24

(Sharecast News) - Big Technologies reported a 17% increase in revenue in its preliminary results on Thursday, to £37.6m, which it put down to new contract wins and an increase in revenue earned from existing customers.

The AIM-traded firm said gross margins expanded by 300 basis points to 70.8% in the year ended 31 December, as a result of "significant" revenue growth and the group's scalable operating model, leading to increasing efficiencies.

Adjusted EBITDA rose to £20.6m from £15.7m, with adjusted EBITDA margins rising to 54.7% from 53.1%.

Big Technologies said it generated adjusted cash from operating activities of £18.2m, as a result of its "strong" trading performance.

The group recorded a "significant" net cash balance of £48m at year-end on 31 December, including funds raised from its initial public offering in July.

Looking ahead, Big Technologies said it had started 2022 in line with its expectations, with revenue generation having started from the new eight-year contract signed with the New Zealand Department of Corrections.

It said "active engagement" was continuing with a number of potential new customers, representing a "healthy pipeline" of future opportunities.

The group said it did not have any exposure to customers or suppliers in either Russia or Ukraine, with the board adding that it was in a "strong financial position", poised to take advantage of the expected "value-enhancing opportunities" for growth in the years ahead.

"I am very pleased with our continued growth in revenue during the financial year, which clearly illustrates the progress we are making with our customers across the globe," said chief executive officer Sara Murray.

"We expect the growth to continue at a similar level over the next 12 months."

Murray said that as a result of the initial public offering in July, Big Technologies could now demonstrate to customers that it had the financial resources to increase its investment in technology further, and grow its footprint both organically and through acquisition.

"We remain confident about our prospects in developing our company and our innovative technologies."

At 1201 GMT, shares in Big Technologies were up 4.72% at 222p.