The question behind the balance sheet

Big Technologies, which supplies electronic monitoring tags and software to criminal justice agencies under the Buddi brand, has historically been notable on AIM for holding a large cash balance relative to its size. (LSE:BIG) The past year has tested that position, as the group paid to settle a long-running Shareholder claim while continuing to fund separate legal proceedings. There has been no regulatory announcement since 26 October, so this article draws on the unaudited half-year results published on 14 September 2026, whose key sections we have read on the London Stock Exchange.

What the settlement cost

On 16 January 2026 the group agreed to settle a High Court claim brought in 2023 by former Buddi Limited shareholders who held about 7.9% of that company in May 2018. (LSE:BIG) The total was £38.5m: £31.5m payable immediately and £7.0m in equal instalments over 18 months. In the first half the group paid £33.4m in settlement-related amounts. At 30 June, £5.1m remained within other creditors, to be paid in equal instalments over the following 13 months.

As a result, cash at bank fell to £67.1m at 30 June 2026 from £96.7m a year earlier. (LSE:BIG) Statutory Operating Cash Flow was an outflow of £24.2m, compared with an inflow of £5.4m in the first half of 2025, largely reflecting the settlement payments.

Underlying cash generation

Stripping out those items, the Business generated more cash than a year earlier. (LSE:BIG) Adjusted free cash flow, which the company defines as operating cash flow less Capital Expenditure and excluding flows, was £9.6m against £6.7m. legal fee outflows fell to £2.6m from £5.3m. Revenue rose to £26.9m, 6% higher at constant currency, and adjusted EBITDA increased 14% to £14.2m, a Margin of 53%. Annual Recurring Revenue reached £53.2m. The group reported a half-year profit of £7.7m, against a loss of £28.9m a year earlier, when large litigation provisions were booked.

Net revenue retention dipped to 98% from 102%, which the company attributed to the end of an Australian immigration-related contract after that government programme was withdrawn following a legal challenge.

Remaining legal exposure

The group is still pursuing what it calls the SM Proceedings and any related settlement. Provisions at 30 June were £1.1m, down from £42.7m, mainly for fees expected up to a settlement assumed to occur in the second half of 2026. Beyond that, no legal fees for ongoing litigation have been provided; they will be expensed as incurred. No amounts potentially recoverable from Sara Murray or others have been recognised. On our reading, that means further cash costs are possible, while any recovery would represent upside not reflected in the accounts. A separate libel claim from the founder, announced in October, adds to the legal workload.

Guidance and consensus

The board said it was confident that 2026 performance would be marginally ahead of market expectations. The company's own compilation of five analysts showed consensus of £51.1m revenue and £25.3m adjusted EBITDA for 2026. These are analyst forecasts, not company guidance figures. The interim report also noted a seven-year contract in Chile worth about $26m in total revenue with partner Sonda, and a three-year Guatemala renewal.

Risks and what to watch

Key dependencies include the timing and cost of the outstanding litigation, government procurement cycles, contract renewals and currency movements. The group operates with an acting chief executive and an interim chair, so Leadership arrangements remain a point to monitor.

The shares closed at 91.8p in the 3 November session, based on the LSE delayed price captured shortly after midnight on 4 November. A date for full-year 2026 results has not yet been announced; investors will look for the year-end cash balance, progress on the remaining settlement instalments and any update on the SM Proceedings.