REG - Made Tech Group PLC - Trading Update and Notice of Results

Made TechAnnouncement

01/02/2024 07:00

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RNS Number : 6112B  Made Tech Group PLC  01 February 2024

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 EBITDA(1) 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 Bookings(2) of c.£12.6m (H1 FY23: £32.6m)

●     Contracted Backlog(3) 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.

 

(1)EBITDA has been adjusted for the exclusion of depreciation, amortisation,
exceptional items and share based payment charges

 

(2)Sales Bookings represent the total value of sales contracts awarded in the
Period, to be delivered in FY24-FY27

 

(3)Contracted 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                                      via Belvedere PR

 Rory MacDonald, CEO

 Neil Elton, CFO
 Singer Capital Markets (Nominated Adviser & Broker)      Tel: +44 20 7496 3000

 Jennifer Boorer / Harry Gooden / Asha Chotai
 Belvedere Communications (Financial PR)                  Email:  madetech@belvederepr.com (mailto:madetech@belvederepr.com)

 Cat Valentine                                            Tel: +44 7715 769078

 Keeley Clarke                                            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/
(https://investors.madetech.com/)

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