Last checked at 19 Aug 2022 07:00
19 August 2022
MADE TECH GROUP PLC
("Made Tech" or the "Group")
TRADING UPDATE
Strong accelerating growth in FY22 with significant opportunities ahead
Made Tech Group plc, a leading provider of digital, data and technology services to the UK public sector, is pleased to announce the following trading update ahead of its Audited Final Results for the year ended 31 May 2022 ("FY22" or the "Period"), which are scheduled to be released in September.
Highlights*
● | Revenue of £29.3m (FY21: £13.3m) - up 120% |
● | Gross profit margin maintained at 38% (FY21: 38%) |
● | Adjusted EBITDA1 of £2.6m (FY21: loss of £0.5m) - up 618% |
● | Cash at 31 May 2022 of £12.3m (FY21: £0.9m) |
● | Sales Bookings2 in FY22 totalling £51.1m (FY21: £23.8m) - up 115% |
● | Contracted backlog3 at £38.2m (FY21: £16.4m) - up 133% |
● | Headcount of 478 (414 permanent employees and 64 contractors) at 31 May 2022 (31 May 2021: 235) - recruitment target achieved despite increased demand and competition for talent |
1 | Adjusted EBITDA excludes exceptional costs of £0.2m and share based payment charges of £2.4m |
2 | Sales bookings represent the total value of sales contracts awarded in the year, to be delivered in FY22-FY25 |
3 | Contracted Backlog is the value of contracted revenue that has yet to be recognised |
* | Subject to audit |
The Group delivered substantial organic growth from its long-term client relationships in the Period, as well as continuing to broaden its client base with new client wins across Central Government, Local Government, Health and Devolved Administrations. This included a first major two-year contract with NHS Digital, worth approximately £19m to the Group. The strong level of client acquisition achieved in FY22 has continued into the new financial year, as demonstrated by the recently announced contract with the Met Office, valued at not less than £7m over a two-year period.
Made Tech is a people business, operating in a fast-growing market, and talent acquisition is essential to the Group's successful growth. Recruitment accelerated in H2 in line with our strategy, despite the continuing macro challenges, with headcount increasing by over 100% year on year.
Broadening capability and geographic coverage are key to Made Tech's strategy to diversify revenue and deliver further organic growth. To support its growth, the Group expanded its service offering to include new capabilities in Data and Cyber and continued to increase headcount in User Centred Design. The geographic coverage of the business was also extended during the year with the first Made Tech employees being hired in Scotland, Newcastle and the Midlands.
Following an internal review, the Board is pleased to announce the appointment of Singer Capital Markets as sole broker and nominated adviser to the Group and Belvedere Communications as financial PR adviser.
Outlook
With a robust balance sheet and strong levels of client acquisition and talent recruitment, enabling the fulfilment of the contracted backlog, Made Tech is well positioned to capitalise on the substantial and continuing growth of the digital transformation market. Our robust pipeline and record sales bookings underpin the Board's confidence in the prospects for the business for the current financial year ("FY23") and beyond.
Rory MacDonald, CEO of Made Tech, said:
"FY22 was a very significant year for Made Tech, one in which we delivered exceptionally high levels of organic growth. We navigated the well-documented macro recruitment challenges to double our headcount year on year and maintain our gross margin. We have made a strong start to FY23 and look forward to updating our stakeholders on the Group's progress, when we announce the FY22 results in September."
Enquiries:
Made Tech Rory MacDonald, CEO Deborah Lovegrove, CFO
| via Belvedere PR |
Singer Capital Markets (Nominated Adviser & Broker) Mark Taylor / Jen Boorer / Harry Gooden / Asha Chotai
| Tel: +44 (0) 20 7496 3000
|
Belvedere PR (Financial PR) Cat Valentine Keeley Clarke | Email: madetech@belvederepr.com Tel: +44 (0) 7715 769078 Tel: +44 (0) 7967 816525 |
About Made Tech
Made Tech is a high-growth provider of digital, data and technology services to the UK public sector. Founded in 2008 and with a headcount of over 470 across multiple UK locations, Made Tech provides services that enable central government, healthcare and local government organisations to digitally transform.
The Group's purpose is to "positively impact the future of society by improving public sector technology". To achieve this the Group 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.
More information is available at www.madetech.com