REG - Made Tech Group PLC - Trading Update

Made TechAnnouncement

02/05/2023 07:00

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RNS Number : 9869X  Made Tech Group PLC  02 May 2023

2 May 2023

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.

 

MADE TECH GROUP PLC

("Made Tech", the "Group" or the "Company")

 

Trading Update

 

Made Tech, a leading provider of digital, data and technology services to the
UK public sector, announces a trading update ahead of the full year ending 31
May 2023 ("FY23").

 

The Group has traded well so far during H2 FY23, with improved utilisation
levels and continued momentum in our Sales Bookings(1) and Contracted
Backlog(2). In particular, March 2023 delivered a very strong financial
performance.

 

Recently, however, several of the Group's clients have moved the start date of
work packages, which had previously been scheduled for April and May 2023,
into FY24. As a result of this rephasing, which the Board believes is
connected to the new public sector budget year, the Group now expects to
report lower than anticipated revenue for FY23 of c. £40 million.

 

Gross Margin in H2 FY23 to date has improved, following the Group's strategic
move away from using contractors and improvements in billed utilisation. The
Group's fixed cost base, however, is set up to match previously anticipated
revenue levels. The recent rephasing of activity has, accordingly,
disproportionately impacted the expected adjusted EBITDA(3) outcome for FY23,
which is now estimated to be at least £1.5 million.

 

The Company's balance sheet remains strong with net cash, following continued
investment in product development, of £7.9m as at 30 April 2023. The sales
pipeline for our new IP product lines is very healthy: our first client is
live and in implementation.

 

Rory MacDonald, Chief Executive Officer, commented:

 

"We continue to make significant progress as a business, delivering
substantial revenue growth and progress against our strategic priorities. We
have our strongest ever Contracted Backlog at £61 million (30 November 2022:
£47.8 million), an increase of 130% in Sales Bookings to a record £75
million (30 November 2022: £32.6 million), and a portfolio of new and
existing clients, who are positive advocates for our business. Our new IP
product lines are in their early stages but starting to build momentum, with
two live products, whose sales pipelines are developing nicely.

 

Whilst recent events are very disappointing, the Group has a strong pipeline
of new business opportunities, from both new and existing customers, for which
it is very well positioned.

 

I am as committed as ever to building a successful company which delivers
significant long-term value to all stakeholders and remain confident in the
prospects of the business."

 

 (1)  Sales Bookings represent the total value of sales contracts awarded in the
      year, to be delivered in FY23-FY26
 (2)  Contracted Backlog is the value of contracted revenue that has yet to be
      recognised
 (3)  EBITDA has been adjusted for the exclusion of depreciation, amortisation,
      exceptional items and share based payment charges

 

 Enquiries:

 

 Made Tech Group plc                                      via Belvedere PR

 Rory MacDonald, CEO

 Deborah Lovegrove, 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 to the UK
public sector. Founded in 2008 and now with a headcount of over 460 and
offices in four UK locations (London, Manchester, Bristol and Swansea), Made
Tech provides services that enable central government, healthcare and local
government organisations to digitally transform.

 

Made Tech's purpose is to "positively impact the future of society by
improving public sector 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.

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

 

 

 

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