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Massive vlumes atm?
Made Tech CEO, Rory MacDonald and CFO, Neil Elton present interim results for the six months ended 30 November 2023, followed by Q&A.
Watch the video here: https://www.piworld.co.uk/company-videos/made-tech-mtec-interim-results-presentation-febuary-24/
Or listen to the podcast here: https://piworld.podbean.com/e/made-tech-mtec-interim-results-presentation-febuary-24/
NHS Contract wins £1.4 m26 Feb 2024 23:46
Another contract wins announced today, 1.4m with NHS for a year. How this is priced at 8.50p, a no brainer in my opinion. Strong results today suggest they've made adjustments in the eight places. Will be loading more when some money comes in. GLA
Another contract wins announced today, 1.4m with NHS for a year. How this is priced at 8.50p, a no brainer in my opinion. Strong results today suggest they've made adjustments in the eight places. Will be loading more when some money comes in. GLA
Buyers moving in obviously seeing the value here, must be ripe for rerate after those great results
EBIDTA is a financial term for BS as the famous Charlie Monger once said. Net losses are the hard facts and hence the cash on hand reducing. It look like they can and should make a PAT in the next results but the BOD comes across as weak on the calls and presentations. Let’s see if any bottom line progress in the next results, meanwhile it’s a value trap unless it gets brought out in an M&A. DYOR
Exactly. These numbers from MTEC are very good:
* Adjusted Profit before Tax is up +343%.
* Adjusted EBITDA is up +180%.
* Contracted Backlog is up +28% at £61.3m.
* Drive by government to digitally transform public services in an agile and cost effective manner means that Made Tech is well placed to deliver long term growth.
* The re-rate in the share price must be coming soon. This was 37p 12 months ago and 140p in 2021.
* 9p a share undervalues the MTEC business significantly on the numbers and messaging above....
Good luck, Brighty
Very good results indeed, should see a strong re rate
How is this priced @ £12m mkt cap?
180% increase in EBITDA
Huge cash position
Should see double figures today
Made Tech Group (LSE: NTEQ)
9.13p (9-9.5p)
Mkt Cap: £13.72m
Next Results: Interims Monday 26th
Made Tech, provide digital, data and technology services to UK public services and will report Interim to November a week today. The shares are down from 43p over the year and the last trading update reported a collapse in Sales Bookings to c£12.6m compared to £32.6m. Then, last month a new CFO was appointed who is from Learning Technologies, the global educational technology business which grew from $80m to $2bn through a combination of organic and acquisitive growth.
Made Tech services, enable central government, healthcare, local government organisations and other regulated industries to digitally transform with half the 6 highest spending govt organisations are clients. Its increases productivity, efficiency and sustainability which is still a growing market. The calamitous fall off in the forward order was said to be a short-term hiccup due to the procurement market being adversely impacted by the uncertainty created by the upcoming General Election. But other reasons could have longer term implications on prospects. There are four key strategic missions delivered to clients: Modernise legacy technology and working practices; Accelerate digital service and technology delivery; Drive better decisions through data and automation; and Enable technology and delivery skills to build better systems. The use of AI and robotics could either prove and opportunity or a threat.
Interim Turnover is set to be moderately lower at £19.1m but with an improved EBITDA of £1.4m with a jump in margin from 2% to 7%. The Contracted Backlog is c. £61m and implies a couple of years work and £4.3m EBITDA. The management focus has is sensibly on further improving productivity and cost control so increase the value gained from the existing contracts.
Financials
Its debt free and has a strong balance sheet with £7.9m net cash expected at the interims.
Trading Strategy
Even with doubt on a post-election bounce back there seems enough in the tank for the shares to recover then growth by acquisition or perhaps the client list will attract predatory interest.
To the long term holders, my question is
what is happening with this company? Seems to be a buy at 9.5p and MCap of £13.81M or am I missing something?
can anyone give some background on this?
Those that have been in since 140p must be really scratching their heads at the current share price. I mean, sure, they haven't set the world alight in terms of growth and describing the business as 'flatlining' over the past few years would be a reasonable summary but the balance sheet is almost identical to what it was when the share price was 140p, in all aspects.
Punchy at 140p definitely but this does look like far more of an extreme on the flip side at 9p.
In your words “Get them while u can”
“Their costs are too high and margins may come under more pressure now”
They have reduced that cash spend considerably and are continue to do so. Take note of the reduced burn. So my point is valid.
Take a look at proactis takeover around £70m with 35m of debt etc. take a look at iris acquisitions. The so called “bad news” you’d expect is priced in now given drop of near 30%.
Net assets worth more than current mcap as I said.
"So their IP, contracts, recurring revenue and annual fees are worth nothing basically."
Worth little of all this brings is a loss making company, making no positive cashflow and eats into cash resources left.
It is only worth something if you can a profit from it.
Their costs are too high and margins may come under more pressure now,
Some of their competitors are not having the same problem..look at TRIAD
Exactly, it doesn't make any sense to me at all.
Apart from the directors own 42 percent of the company and continue to purchase whilst its low.
Back in here. End of 23 they had 15.1m in net assets. So current mcap is less than this. Disjointed and wrongly down. I wouldn’t be surprised to see this being took private soon or approached. Move cash to one side from update. Company is valued at 5.5m? lol. So their IP, contracts, recurring revenue and annual fees are worth nothing basically.
Looks like 2024 not going to be a good year for this. Time to buy and hold and look forward to 2025/26. Patience on this one. DYOR.
Not the day I was hoping for I must say, the results still look good and the amount of people buying up its still clearly very good value for money. I do think this is deliberately being played down for a buyout in my honest and humble opinion.
Not exactly signposting a healthy year ahead…
Not a positive forward outlook .
Warning of that election will impact contracts this year .
Expect thing to improve year after though
However it’s competitors are doing ok , reading whatever into that
Staying out
Excellent results today. EBITDA increased by 180% against the prior period to £1.4m.
13p a share currently undervalues MTEC significantly. A re-rate is on the cards here. MTEC's share price was over x 10 at 140p not so long ago and just 12 months ago was over 40p a share.
* MTEC also saw revenue for the period of £19.1m.
* MTEC is debt free and has a strong balance sheet with £7.9m net cash at the Period end.
* During the Period MTEC won £12.6m in new contracts.
Good luck, Brighty
It's had a large and persistent seller that appears to have cleared on 7.1.24. Has a little retrace after that for some small percentage profit takers, now seems to be re rating - timed nicely for Feb update. Dropped so far when very little has changed.
Totally agree, companies with a similar revenue and EBITA are much higher priced. I do think there has been some strategy to keep the price low. Timed nicely with some director buys!!!!
MTEC's share price was 140p not so long ago. Yes x 10 f the current share price. This is crazy. The share price was at 40p last Feb. DYOR but 14p a share really under values MTEC based on the recent guidance of FY revenue up 37% to £40.2m, cash of £8.5m, contracted backlog growth of 44%, EBITDA of £1.5m and sales bookings up nearly 40% at £69.9m.
Once the trading update is released next month it looks as though a share price re-rate could be on the cards here.....
Good luck, Brighty