Last checked at 1 Feb 2024 07:00
1 February 2024
MADE TECH GROUP PLC
("Made Tech" or "the Group")
Trading Update and Notice of Results
Made Tech, a leading provider of digital, data and technology services to UK public services, is pleased to provide a half year update on trading for the six months ended 30 November 2023 (the "Period"). The Group expects to publish its half-year results for the Period on 26 February 2024.
Highlights
? Group revenue of c.£19.1m (H1 FY23: £20.6m)
? Adjusted EBITDA1 of c.£1.4m (H1 FY23: £0.5m), representing margin of 7% (H1 FY23: 2% margin)
? Net cash at Period end of £7.9m (H1 FY23: £9.0m; H2 FY23: £8.5m)
? Sales Bookings2 of c.£12.6m (H1 FY23: £32.6m)
? Contracted Backlog3 of c.£61.3m (H1 FY23: £47.8m; H2 FY23: £67.9m)
Financials
Made Tech is pleased to deliver a strong EBITDA performance in the first half in line with the Board's
expectations. Adjusted EBITDA increased by 180% against the prior period to c.£1.4m. Revenue for the period was c.£19.1m (H1 2023: £20.6m), 7% below that reported in the prior period.
The Adjusted EBITDA margin increase from 2% in H1 2023 to 7% in the Period, was driven by an increase in billable utilisation, a reduction of contractor numbers and targeted restructuring initiatives. Management continues to focus on further productivity and cost control measures to further improve margin performance over time.
Made Tech is debt free and has a strong balance sheet with £7.9m net cash at the Period end (H2 2023: £8.5m).
During the Period, Made Tech won £12.6m in new contracts (H1 2023: £32.6m) in a challenging procurement market. Included within these wins are three new Sales Bookings collectively worth £10.7m as set out below:
Client | Value | Contract duration |
Department for Business and Trade | £1.9m | 1 years |
Government Digital Service | £5.0m | 2 years |
Ministry of Justice | £3.8m | 1.5 years |
The Board anticipates that the procurement market will be impacted by the uncertainty created by the upcoming General Election in the short term. Notwithstanding this temporary market backdrop the strong improvements made to Made Tech's operating model and margins, the investment in its commercial offering, combined with its strong balance sheet and Contracted Backlog, position the Group well to execute on its growth strategy.
Rory MacDonald, CEO of Made Tech, said:
"I am pleased to report that we have strengthened the business in the Period, to deliver much improved margins and a credible EBITDA performance.
We have a promising pipeline of new business opportunities, although the market is undoubtedly challenging right now and we expect this to remain so ahead of the general election. The medium term drivers of demand in our market remain strong and we are focused on making further improvements to the business and putting all the necessary building blocks in place to enable us to capitalise on the increase in trading momentum that we expect post the election. "
Online analyst briefing
Made Tech will hold an analyst briefing online at 9.30am Monday, 26 February 2024 in respect of its half-year results. Equity research analysts interested in joining the meeting should contact Belvedere Communications.
Notes:
All financials are based on unaudited figures.
1EBITDA has been adjusted for the exclusion of depreciation, amortisation, exceptional items and share based payment charges
2Sales Bookings represent the total value of sales contracts awarded in the Period, to be delivered in FY24-FY27
3Contracted Backlog is the value of contracted revenue that has yet to be recognised
Market expectations for FY24 as published on Bloomberg: Revenue £40.0m and Adjusted EBITDA £2.0m
Enquiries:
Made Tech Group plc Rory MacDonald, CEO Neil Elton, CFO | via Belvedere PR |
Singer Capital Markets (Nominated Adviser & Broker) Jennifer Boorer / Harry Gooden / Asha Chotai | Tel: +44 20 7496 3000
|
Belvedere Communications (Financial PR) Cat Valentine Keeley Clarke | Email: madetech@belvederepr.com Tel: +44 7715 769078 Tel: +44 7967 816525 |
About Made Tech:
Made Tech is a provider of digital, data and technology services, which enable central government, healthcare, local government organisations and other regulated industries to digitally transform.
Made Tech's purpose is to "positively impact the future of society by improving public services technology". To achieve this the company has four key strategic missions: 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 Group operates from four locations across the UK - London, Manchester, Bristol and Swansea.
More information is available at https://investors.madetech.com/