Big Technologies founder talks collapse as profits rebound from boardroom battle
Big Technologies’ bitter battle with founder Sara Murray has flared up again after settlement talks collapsed, overshadowing a return to statutory profit and a raised outlook at the electronic monitoring group.
The AIM-listed company said on Monday that mediated discussions with Murray had ended without an agreement, meaning it would continue pursuing legal proceedings against its founder unless fresh settlement talks emerge.
The breakdown comes three months after Murray attempted to oust four Big Technologies directors at a heated annual meeting, where one was ultimately voted off the board.
Murray, who owns around a quarter of the company, was herself removed from the company last year after Big Technologies accused her of concealing beneficial ownership interests and forging documents connected with a share restructuring before its 2021 flotation.
She has denied the allegations and previously told Morning Wire the company had made “a whole heap of false allegations” against her.
Big Technologies said today its “preferred outcome” remained a settlement but added that, “in the absence of meaningful settlement discussions”, it would continue to litigate.
The latest dispute comes despite Big Technologies drawing a line under separate litigation with former shareholder, Buddi, in January, agreeing a £38.5m settlement.
The company paid £33.4m towards that settlement during the first half, helping push cash down from £96.7m a year earlier to £67.1m.
Exceptional legal cash costs nevertheless fell to £2.6m from £5.3m over the same period last year.
Big Technologies swings back into profit
Away from the legal fight, Big Technologies returned to profit in the first half and said its full-year results should come in slightly ahead of expectations.
The company reported an operating profit of £9.1m for the six months to June, reversing a £27.1m loss a year earlier.
Revenue rose to £26.9m from £24.8m, helped by new contracts coming online across the Americas and Europe.
The firm also generated £9.6m in free cash flow during the period, up from £6.7m a year earlier.
The company won a seven-year contract in Chile expected to bring in around $26m (£19m), alongside new business in Peru, Mexico and six contracts in the US.
Acting chief executive Charles Lewinton said Big Technologies was “exceptionally well positioned” to accelerate growth after what he described as “a year of transition”.
The company expects its full-year performance to come in slightly ahead of analysts’ forecasts.
The stronger trading has done little to settle the fight over the company Murray founded.
At June’s AGM, Murray voted against the re-election of all four directors standing for another term. Three survived with around 60 per cent shareholder backing, while non-executive director Camilla Macun was voted out.
Murray told Morning Wire at the time that the vote showed “huge disquiet” among shareholders and called on the board to change course or be replaced.