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/