Big Technologies PLC on Tuesday reported improved first-half earnings, but set out downbeat guidance.

Shares in the Rickmansworth, England-based remote people monitoring technology company fell 5.9% to 216.50 pence each in London on Tuesday morning.

Revenue in the six months ended June 30 rose 19% to £27.3 million from £22.9 million a year earlier. Pretax profit was 2.1% higher at £9.0 million from £8.9 million.

‘We have delivered pleasing revenue and profit performance during the first half of the financial year, clearly illustrating our proven, resilient and cash-generative business model. We continued to support new and existing customers with our product offering, helping to keep societies and communities safe around the world. We have a pipeline of exciting new products in the final stages of development and expect to release these to customers in the second half of the year. The demand for all our products remains strong and the solid foundations on which our business is built, means it is well positioned with the financial resources in place to take advantage of value-enhancing opportunities as they arise,’ Chief Executive Sara Murray said.

Big Technologies said it has ‘high levels of recurring revenue’ and ‘good revenue visibility’ for the second half of the financial year.

It predicts revenue of £54 million for the whole of 2023, assuming sterling does not strengthen and the company does not achieve new contract wins. That would represent revenue growth of around 7.6% from £50.2 million in 2022.

However, Big expects an adjusted earnings before interest, tax, depreciation, and amortisation margin of around 60%, ‘which is at the lower end of current market expectations’.

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