Big Technologies has confirmed that mediated settlement talks with founder Sara Murray have collapsed and that it will resume litigation, on the same morning it reported a £9.1m statutory operating profit against a £27.1m loss a year earlier. Murray still controls about a quarter of the voting rights.
The AIM-listed electronic monitoring group, which trades as Buddi, dismissed Murray as chief executive last year after accusing her of concealing beneficial ownership interests and forging documents connected with a share restructuring ahead of its 2021 flotation, which valued the company at £577m. She denies the allegations. Her assets have been frozen during the High Court proceedings, in which the company is claiming £320m.
In its statement the company said its preferred outcome for what it calls the SM proceedings remains a settlement, mediated or otherwise, but that in the absence of meaningful discussions it will continue to litigate.
The shareholding is the reason the dispute keeps returning to the boardroom. Murray holds roughly 25% of the voting rights and used June's annual meeting to vote against the re-election of all four directors standing for another term. Three survived with around 60% shareholder backing; non-executive director Camilla Macun was voted off. Chief executive Ian Johnson retired from the board at the end of July after 16 months in post, and Charles Lewinton is acting chief executive while a permanent successor is sought.
The trading numbers underneath the dispute improved. Revenue rose to £26.9m from £24.8m, up 6% at constant currency, with adjusted EBITDA up 14% to £14.2m. Free cash flow was £9.6m, against £6.7m a year earlier. The board now expects full-year results marginally ahead of consensus, which stands at £51.1m of revenue and £25.3m of adjusted EBITDA across five analyst forecasts.
Cash fell to £67.1m from £96.7m, largely because the company paid £33.4m during the half towards the £38.5m settlement agreed in January with former shareholder Buddi, in a separate action. Exceptional legal cash costs fell to £2.6m from £5.3m.
New business came from a seven-year contract in Chile worth around $26m (£19m), alongside work in Peru and Mexico and six contracts in the United States.
Shares closed Friday at 97.8p, within a 52-week range of 56.2p to 114.5p. The company remains, on its own account, litigating against the founder who holds a blocking-scale stake in it.
Original source: City AM — https://www.cityam.com/big-technologies-founder-talks-collapse-as-profits-rebound-from-boardroom-battle/
