LONDON (ShareCast) - (Sharecast News) - Big Technologies reported a decline in first-half revenue and profit on Tuesday, although underlying growth remained positive in its core criminal justice business, as the company secured two significant contract wins for the second half.
In a trading update, the electronic monitoring group said revenue for the six months ended 30 June came in at £24.8m, down from £26.5m in the prior year.

On a constant currency basis, revenue was £26.1m.

Excluding the discontinued Colombia contract, criminal justice revenue showed underlying growth of 4%, while remote care revenue remained flat at £0.3 million.

Adjusted EBITDA fell to £12.5m from £14.3m a year earlier, impacted by an exceptional foreign exchange loss of £4m related to US dollar holdings.

The AIM-traded firm said it had retained a large US dollar cash balance in anticipation of an acquisition that did not proceed, adding that the funds had since been repatriated.

Gross margins remained high at 67.5%, a slight decline from 70% in the prior year.

Underlying administrative expenses were stable, and the group maintained a strong balance sheet, with net cash rising to £94.9m as of 30 June.

"Significant progress has been made in establishing a new organisation and management structure to drive growth in our core markets of criminal justice and remote care," said chief executive Ian Johnson.

"The electronic monitoring market continues to experience significant tailwinds, which together with a clear growth strategy and market leading products, places the group in a strong position to compete for new business globally."

Big Technologies confirmed that it had secured a new contract with Northern Ireland's Department of Justice and renewed its contract with Queensland Corrective Services.

The Queensland deal was a five-year agreement valued at AUD 22m (£10.64m), with the potential for two further two-year extensions.

Interim results for the six months ended 30 June would be released on 30 September.

At 1132 BST, shares in Big Technologies were down 1.71% at 92p.

Reporting by Josh White for Sharecast.com.

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