REG - Made Tech Group PLC - Final Results
24/09/2025 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250924:nRSX5277Aa&default-theme=true
RNS Number : 5277A Made Tech Group PLC 24 September 2025
24 September 2025
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" or the "Group")
Final Results 2025
Strong performance and momentum into FY26
Made Tech Group plc, a leading provider of digital, data, and technology
services to the UK public sector, is pleased to announce its audited final
results for the year ended 31 May 2025 ("FY25" or the "Period").
Financial highlights
FY25 FY24 Change
Revenue £46.4m £38.6m +£7.8m +20%
Gross profit(1) £14.8m £13.2m +£1.6m +13%
Gross profit margin(1) 32.0% 34.2% -220bps
Adjusted EBITDA(2) £3.5m £2.4m +£1.1m +47%
Adjusted EBITDA margin 7.5% 6.2% +134bps
Statutory profit/(loss) before tax £2.0m £(3.0)m +£5.5m +166%
Adjusted profit before tax(3) £2.9m £1.4m +£1.5m +104%
Sales Bookings(4) £82.1m £36.0m +£46.1m +128%
Contracted Backlog(5) £92.2m £60.6m +£31.6m +52%
Net cash £10.4m £7.6m +£2.8m +36%
Strategic and Operational highlights
● Substantial growth in Sales Bookings, revenue, and Adjusted EBITDA, reflecting
focus on client delivery, improved productivity and cost control
● Ongoing investment in commercial leadership and strategic service lines, such
as Data & AI, enabling the business to better support its clients and
drive growth
● Focus on enhancing quality of earnings with growth in Managed Services
practice area, technology partnerships, and continued disciplined investment
in software IP
● Strong balance sheet with substantial cash, no debt, and positive free cash
flow
Post year end highlights and outlook
● Strong start to FY26 with revenue, Adjusted EBITDA and cash conversion in line
with management's expectations
● Solid Contracted Backlog underpinning expectations for FY26
● UK Government emphasising the significant role technology will play in
delivering its priorities supports confidence for long term growth
Rory MacDonald, CEO, said:
"I'm delighted by the progress we've achieved this year, with strong revenue
growth, improved profitability, and solid free cash flow. Our focus on sales
and bidding has paid off, driving a marked increase in Sales Bookings and a
materially larger Contracted Backlog.
The UK Government's emphasis on digital transformation, highlighted in the
State of Digital Government report, the UK's Modern Industrial Strategy, and
the Strategic Defence Review, continues to underline the scale of the
long-term opportunity. With the Spending Review now concluded, the demand for
modern digital services is clearer than ever, offering the potential for
sustained growth.
With a strong balance sheet, substantial cash reserves, disciplined cost
control, and FY26 revenue already supported by our strong Contracted Backlog,
Made Tech is well positioned to build on this momentum."
Notes:
(1) FY24 Gross Profit and Gross Margin restated to include the full cost of
delivery consultants in line with revised accounting practice applied in FY25
(2) Adjusted EBITDA has been adjusted for the exclusion of impairments,
exceptional items and share based payment charge
(3) Adjusted profit before tax means profit before tax before impairments, share
based payment charge and exceptional items
(4) Sales Bookings represent the total value of sales contracts awarded in the
Period, to be delivered in future financial periods
(5) Contracted Backlog is the value of contracted revenue that has yet to be
recognised. FY24 reduced by £5.0m to account for prior period contract
expiries
(6) Based on the latest published equity research, the company understands current
market consensus for the year ended 31 May 2026 (FY26), as at 23 September
2025 being the day prior to the publication of this announcement, to be
revenue of £50.1m, Adjusted EBITDA of £3.9m and cash of £13.0m, and for the
year ended 31 May 2027 (FY27) to be revenue of £55.1m, Adjusted EBITDA of
£4.4m and cash of £16.1m
Enquiries:
Made Tech via Rawlings Financial
Rory MacDonald, Chief Executive Officer
Neil Elton, Chief Financial Officer
Canaccord Genuity Limited (Nominated Adviser & Broker) Tel: +44 (0) 20 7523 8000
Simon Bridges / Harry Gooden / Andrew Potts / Elizabeth Halley-Stott
Rawlings Financial PR Limited Email: madetech@rfpr.co.uk
Cat Valentine Tel: +44 (0) 7715 769078
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.
The Group operates from three locations across the UK - London, Manchester,
and Bristol.
More information is available at https://investors.madetech.com/
(https://investors.madetech.com/) .
CHAIR'S REPORT
I am pleased to present Made Tech's audited annual results for the year ended
31 May 2025.
Summary of the year
The Group has made excellent progress despite a difficult government
procurement environment for digital services during 2024 and into early
2025. Following a weaker performance in FY24, sales bookings of £82.1m in
FY25 were 128% up on the prior year (FY24: £36.0m). Revenue of £46.4m
(FY24: £38.6m) increased by 20% and, as we exited FY25, the Contracted
Backlog, being the value of contracted sales less revenue recognised, was
£92.2m, representing a healthy increase of 52% on the FY24 year-end balance
of £60.6m. This is very pleasing and provides a solid underpinning for
revenue delivery in FY26.
The Group has also made good progress increasing productivity during the year,
which has helped to offset competitive pricing pressures and a temporarily
higher contractor base within the business. As a result, whilst gross
margins reduced from 34.2% in FY24 to 32.0% in FY25, Adjusted EBITDA margins
increased from 6.2% to 7.5% over the same period.
Strategic delivery
Our core market, the UK public sector, is increasingly focused on digital
transformation to achieve efficiency in the face of resource constraints. The
political clarity following the General Election and the Spending Review
through to 2028-29 is expected to continue to drive significant investment in
digital initiatives. Major government strategy papers consistently highlight
the critical role of digital and technology, creating substantial
opportunities for Made Tech as the Government looks to execute on this
vision. The board is confident, given the Group's capabilities and
reputation for reliable delivery, that the long term growth prospects for Made
Tech and the sector are encouraging.
In FY25, the business has continued to focus on improving profitability
through increased productivity, driven primarily through improved capacity
management, reporting and processes. As we look to improve our quality of
earnings by diversifying our customer base, increasing the proportion of
revenue generated from longer term, fixed price and recurring projects, we
have also continued to invest in developing our capability propositions and
have seen continuing success in growing our Data & AI and Managed Services
practices.
We put the needs of our clients at the heart of what we do, working as a
strategic partner to deliver effective and meaningful results at pace. We
focus on delivering value for money for our clients; independent client
feedback highlights how our clients value our proactive and collaborative
contribution to solving their issues. In short, we care about how we work
with our clients and the outcomes we deliver.
We have invested in senior management and new commercial leads to help open up
new markets and deepen our relationships with our clients. Our Services
division comprises three industry groups; Health & Life Sciences, Public
Safety & Defence, and Central & Devolved Government, which aim to
deepen our domain expertise and client relationships. Health & Life
Sciences has grown significantly, delivering critically important NHS
modernisation programs. Public Safety & Defence secured strong sales
bookings at the Ministry of Justice and is building a presence in the defence
space. Central & Devolved Government, our largest group, achieved
substantial sales bookings and revenue growth, delivering a wide range of
nationally important programs that underpin the UK Government's priorities
with strong digital foundations.
In the Local Government sector, Made Tech is focused on delivering scalable
SaaS solutions to address some of the issues faced by our clients. Our
Software division complements our service offering in Local Government with
recurring revenue and scalable solutions that best address our clients'
requirements. We have made tangible progress in developing client-led modules
for the local government housing market, addressing specific sector needs.
Whilst scaling remains challenging, we are seeing early success in up-sell
conversions and are actively exploring M&A opportunities to accelerate
growth and build an increased contribution to Group revenue and value.
Our people are fundamental to the success and sustainability of Made Tech. We
rely on their skills, motivation and commitment to deliver services and
solutions to our clients. We continue to recruit talented individuals across
the UK combining a regional hub-based hybrid working strategy, taking account
of the needs of our people for flexible working patterns, whilst at the same
time optimising the quality of service we are able to provide to our clients
through an on-site presence.
In FY25, we launched a SAYE scheme for all eligible employees, to enable them
to participate in the equity growth ambition of the Company. Following the
successful take-up, we are planning to launch another scheme later this year.
Our financial position remains strong. Made Tech is debt free and was free
cash flow positive in FY25, helping take our cash balance from £7.6m at the
end of FY24 to £10.4m at the end of the year. This robust position provides
more than sufficient funds to deliver our plans for future organic growth.
This financial strength gives us the flexibility to take advantage of
opportunities as they arise. In FY26, alongside a focus on growing our
client base and revenues, we will further look to improve productivity,
profitability and generate positive free cash flow.
A responsible business
Made Tech's mission is to provide software and technology services that enable
clients to deliver and run public services, improving efficiency for the
government and providing a better experience for citizens. Alongside the needs
of our investors and employees, the requirements of our clients and the
communities we serve are paramount in setting our strategy.
We are committed to continuing to develop our environmental, social and
governance priorities embedded within our overall strategy and as a
fundamental part of what it means to be Made Tech. We are committed to
sourcing, designing and offering services and products which support social
responsibility and environmental sustainability.
We have an established Social Value Working Group, comprising enthusiastic
volunteers from across our business, to advise and assist management in
incorporating social value initiatives into the overall strategic delivery of
the Group.
We are developing our social value reporting to better support our work with
clients in helping them reach their own social value targets, and in better
identifying the social value initiatives that are within our control, and the
appropriate ways in which we can effect change for the better. We recognise
the importance of creating a fairer and more equitable society. We are proud
that our gender, ethnicity, and other diversity measures remain materially
better than the industry average for the technology sector.
We are also proud to have achieved carbon neutral status for the third year
running and are busy implementing initiatives aimed at further reducing our
carbon footprint.
Further details are provided in the Social Value report in the FY25 Annual
Report.
The board
In January 2025, Stephen Lake joined the board as an independent Non-Executive
Director. At the same time Phil Pavitt stepped down from the board, having
been with the Company since its IPO in September 2021.
Stephen Lake has over 30 years' experience at senior executive and board level
in leading digital, data, and tech growth businesses, across the quoted,
public and private sectors, including Reuters, QinetiQ and Ordnance Survey.
The expertise he brings to the Made Tech board includes harnessing the value
of leading-edge digital and data solutions, profitably scaling businesses and
product lines, and risk management of digital, data and technology
operations.
After 13 years in the business, Chris Blackburn stepped down from the board in
July 2025 and left Made Tech at the end of August 2025. Almost since its
inception, Chris has been an integral part of the business fulfilling a number
of different roles, including as Chief Operating Officer and latterly leading
the commercialisation of the Software Division.
Helen Gilder who has been an independent Non-Executive Director since the IPO
and currently acts as Chair of the Audit Committee has announced her intention
to step down from the board at the conclusion of the FY25 Annual General
Meeting ("AGM"). Stephen Lake will assume her responsibilities as Chair of
the Audit Committee at that time.
I would like to thank Chris, Helen and Phil for their respective contributions
to the business over recent years and wish them all well for the future.
As a board, we take our governance responsibilities very seriously and believe
that these allow the Group to pursue its strategy with pace and reduced
risk. The approach to our wide range of responsibilities is set out in the
Corporate Governance report in the FY25 Annual Report. With effect from the
AGM, the board will comprise two independent Non-Executive Directors and two
Executive Directors. At this stage the board has no plans to add a further
Non-Executive Director to replace Helen Gilder. We will however keep the
composition of the board under regular review and, in line with best practice,
all directors will put themselves up for re-election at the forthcoming AGM.
Current trading and outlook
The UK Government has emphasised the significant role technology will play in
delivering its priorities and we believe the Group is well-positioned to
capitalise on these opportunities. Notwithstanding government budgetary
pressures, we anticipate this will lead to increased business momentum for
Made Tech over the coming years.
The Group has traded in line with management's expectations in the first
quarter of FY26 delivering robust revenue, Adjusted EBITDA and cash flow
performance. The Contracted Backlog remains strong and underpins management's
confidence in delivering consensus market expectations for FY26. We look
forward to updating investors further at a Capital Markets Day to be held in
early 2026.
In summary, we are well placed to continue Made Tech's progress as an
increasingly important provider of technology services and products to the UK
public sector and we look forward to delivering long-term returns and value
for all our stakeholders.
Joanne Lake
Non-Executive Chair
CHIEF EXECUTIVE'S REVIEW
FY25 was a strong year for Made Tech. We delivered growth across every key
metric, executed our strategy and outperformed a challenging market. I would
like to thank our clients for entrusting us with their most critical digital
programmes, our employees for their relentless efforts, and our shareholders
for their continued support.
We began the year with a clear strategy: to focus on delivering digital, data,
and technology services to the UK public sector, improve operational
efficiency, and invest in capability where we see long-term demand. We stayed
true to that plan. Revenue reached a record £46.4m (FY24: £38.6m), up 20%.
Adjusted EBITDA grew 47% to £3.5m (FY24: £2.4m), with margins improving from
6.2% to 7.5%. We generated strong free cash flow and ended the year with
£10.4m in gross cash (FY24: £7.6m) and no debt.
Sales momentum was particularly strong. We secured £82.1m in new bookings
(FY24: £36.0m), more than double the prior year, and increased our contracted
backlog to £92.2m (FY24: £60.6m). This positions us well for FY26 with a
strong pipeline of committed work.
While the broader IT services market faced headwinds we bucked the trend. We
grew revenue, secured significant new mandates and improved the way we
operate. Over the year, we upgraded our market expectations and consistently
delivered ahead of those revisions, reflecting the momentum in the business.
We enter FY26 focused, well capitalised and eager to continue delivering.
Public Sector Market
The UK public sector remains the core market for our business. While the wider
economic environment has remained challenging, government departments continue
to face sustained pressure to deliver more with fewer resources, making
digital transformation one of the most important levers for achieving
efficiency and improving outcomes.
The timing of the General Election provided welcome political clarity earlier
than expected. Although a period of adjustment was inevitable, the new
Government has set out a mission-led agenda that is shaping departmental
priorities. These missions offer clear focus and alignment across Whitehall
and are expected to stimulate investment in digital initiatives that will be
critical to achieving policy goals.
The conclusion of the nine-month Spending Review in May 2025, which has now
set budgets through to 2028-29, provides departments with the certainty needed
to plan and commit to longer-term programmes. This certainty gives suppliers
such as Made Tech the confidence to invest, align with long-term priorities,
and deliver at greater scale. At the same time, the continued weakness of
private sector demand has created a more competitive environment for public
sector work, underlining the importance of capability, efficiency and trusted
delivery.
Over the past year, several key strategy papers have reinforced the central
role of digital and technology in the public sector. The State of Digital
Government Review set a strong tone of ambition, while recognising the
delivery challenges that remain. The Strategic Defence Review made hundreds of
references to digital and technology, reflecting the scale of modernisation in
defence.
The Industrial Strategy continues to highlight digital skills and capability
as drivers of economic growth, and the NHS 10 Year Health Plan sets clear
expectations for digital to improve patient care and system efficiency.
These trends highlight a market with a clear commitment to modernising public
services through technology. As focus shifts from strategy to execution,
demand for digital capability will rise, opening significant opportunities for
trusted delivery partners like Made Tech.
UK Services Division
Our Services business is structured around an industry group and service line
matrix. This model enables us to scale with our ambition, remain close to our
clients and deliver consistently high-quality outcomes.
Industry groups lead client relationships, go-to-market activity and domain
expertise, while service lines provide the specialist capability and people
needed to deliver. Together, this balance of specialism and flexibility
ensures clients benefit from both deep insight and delivery at scale. The
business adapts industry groupings from time to time to most appropriately
address client requirements, and management does not consider these industry
groups as operating segments for reporting purposes.
Over the past year, we have focused on maturing this model by improving
alignment, efficiency and accountability across the matrix. We were pleased to
welcome Vicki Chauhan as Managing Director of UK Services. Vicki is
strengthening our operational foundations and preparing the business for its
next stage of growth.
Industry Groups
Our clients are at the heart of our business. Their satisfaction and long-term
partnerships are fundamental to our growth, enabling us to expand our market
presence and generate valuable referrals and repeat business. By structuring
our business around specific industry groups, we can deepen our domain
expertise, tailor our services to sector needs, and build lasting client
relationships.
This focus enables us to anticipate industry trends and align more closely
with our clients' priorities. It also provides our people with clear
opportunities to build careers in specialised domains, supporting both
professional development and delivery excellence.
Health & Life Sciences
Our Health & Life Sciences industry group has continued to grow,
delivering critical programmes that support the modernisation of the NHS and
the wider health system. Health & Life Sciences revenue grew by 18% during
the year, driven primarily by a significant contract win at the Department of
Health and Social Care, alongside ongoing delivery within NHS England.
We are proud to be contributing to high-profile programmes that directly
improve frontline care and patient experience. These include enabling
pharmacies to access patient records, supporting more joined-up care, and
leading the migration of Lloyd George records, helping the NHS move away from
legacy paper-based systems.
While we were disappointed not to secure a place on the Digital Capability for
Health 2 framework, we remain actively engaged with NHS organisations and
continue to see opportunities to expand our impact through direct awards and
existing frameworks.
Public Safety & Defence
Our Public Safety & Defence industry group delivered strong sales bookings
in the period, despite significant spending restrictions with one of our key
clients, reflecting the strength of our delivery, relationships and
positioning across the sector. As a result of a number of contracts coming
up for renewal in FY25, the contracted backlog was reduced coming into the
year, and as a result revenue in the year was flat. However, the strong
sales in FY25, and resulting increase in contracted backlog set Public Safety
& Defence Industry up well for FY26.
We secured a significant number of new wins in the justice sector, where we
continue to play an important role in supporting national priorities. This
includes programmes to increase prison capacity through improved digital and
data infrastructure, and initiatives to enhance the effectiveness of
electronic monitoring.
We also invested in developing our presence in the defence sector, appointing
our first dedicated hire and building new partnerships. We have made progress
in securing a place on a number of frameworks, creating a strong platform for
longer-term growth in this strategically important market.
Central & Devolved Government
Central & Devolved Government is our largest industry group and delivered
a very successful year, growing revenue by 41%. This reflects the strength of
our long-standing relationships as well as our ability to win important new
clients. During the year we secured significant renewals with key departments
and added new engagements that broaden our footprint across government.
We are working on a wide range of nationally important programmes. These
include supporting the Department for Science, Innovation and Technology with
its machinery of government change as digital responsibilities transition from
the Cabinet Office, delivering the core technology behind the Homes for
Ukraine programme, and helping to modernise the planning system. We are also
delivering the Department for Education's Reception Baseline Assessment, a
national programme for the assessment of children entering school and
supporting the Department for Business and Trade to move away from
discontinued technology.
These programmes demonstrate our role in supporting mission-led government
priorities, ensuring that policy goals are underpinned by strong digital
foundations. This breadth of work underlines our position as a trusted
delivery partner at the centre of government transformation, helping
departments respond to new challenges while modernising the technology and
services that underpin them.
Service Lines
Technology
Our Technology service line has been reshaped to deepen expertise in areas of
critical demand, including Cloud, Architecture, Software Engineering and
Cyber. This clearer structure allows us to deploy specialist capability more
effectively and support more complex programmes.
We are continuing to invest in Artificial Intelligence ("AI")-enabled software
engineering, which can reshape how teams deliver digital services. Used
thoughtfully, these approaches have the potential to improve productivity,
accelerate delivery and raise the standard of engineering outcomes.
Several senior hires have joined the team, bringing experience of delivering
large-scale architecture and transformation programmes. This strengthens our
ability to support more complex initiatives across central government, health
and defence.
Demand for Microsoft technology solutions has increased, and we are delivering
significantly more work on Azure, Dynamics and the wider Microsoft ecosystem.
Alongside this, we also continue to build on our strong relationship with AWS,
working closely with their public sector team. These partnerships keep us at
the forefront of best practice in cloud architecture and enhance our ability
to design secure, scalable digital services.
Data & AI
Our Data & AI practice has expanded significantly and is now a core
element of almost every client engagement. We have doubled the size of the
practice this year, reflecting sustained demand for data-driven transformation
and the growing importance of AI in public service delivery. We deliver
critical programmes at the Department for Education, Ministry of Justice,
Department of Health and Social Care, and across the housing sector, helping
clients unlock insights, improve performance, and lay the groundwork for AI
adoption.
We have also begun building a partnership with Databricks, which gives us
access to advanced data tooling and strengthens our ability to deliver modern
data platforms and machine learning solutions. These developments position us
strongly to lead in data and AI across the public sector, moving clients
beyond pilots and proofs of concept into meaningful delivery at scale.
Strategy & Design
Our Strategy & Design service line has been reorganised to deepen
capability across core disciplines, including Research, Service Design,
Content, Product and Business Analysis. By embedding expertise earlier in the
delivery lifecycle, we can shape programmes more effectively around user and
organisational needs.
The team is scaling to support larger and more complex transformation
initiatives. It now plays a central role on a number of high-profile national
programmes, including work with the Met Office, where we are helping to
modernise services and translate complex policy and data requirements into
accessible, high-impact digital solutions.
Managed Services
More clients are transitioning onto our Managed Services offering,
complementing project-based deliverables with longer-term engagements that
enable them to run stable operations. This service line is an increasingly
important part of our strategy, reflecting the evolving nature of the work we
deliver as clients seek partners who can support them throughout the full
lifecycle of transformation.
We appointed a new leader during the year, with experience in building
large-scale managed services. This is helping us evolve our operating model to
handle larger client environments and increasingly sophisticated service
needs. We are also focused on improving processes and frameworks to ensure
smooth transitions and consistently high client experience.
The revenue model for this service line is committed, long-term, and
predictable, with high renewal potential and strategic value. As it expands,
we see Managed Services as a potential area for targeted acquisition to
accelerate scale and capability.
Delivery
Our Delivery function remains central to ensuring consistent, high-quality
outcomes for clients. It provides governance, oversight and support across
engagements, helping us respond quickly to client needs while maintaining
delivery excellence. During the year, we recruited and promoted three Delivery
Directors, each aligned to an industry group, providing focused leadership,
improving visibility and ensuring that delivery remains closely tied to client
strategy.
We also established an internal Project Management Office to streamline
operations, improve consistency and enhance how we track and manage
performance. As the business grows, we are seeing an increase in fixed-price
opportunities, particularly in outcome-focused transformations. In response,
we are evolving our governance and controls to manage risk effectively while
remaining agile and client-centred.
These improvements underscore our commitment to scaling delivery without
compromising quality and to maintaining long-term trust with clients through
consistent and dependable execution.
Software Division
Software remains a central part of our long-term strategy, complementing our
services business and creating opportunities for scalable, recurring revenue.
Building this capability has taken longer than anticipated, reflecting both
the complexity of the local government market that we are targeting and the
scale of the technical deficit faced by our clients.
Over the past year, we have made tangible progress by working closely with
clients to develop new modules that directly address sector needs. These
include solutions for damp and mould management, inspection scheduling, and
compliance with Awaab's Law. Each of these developments strengthens our
product suite and positions us to respond to pressing regulatory and
operational challenges in the housing sector.
We have maintained a disciplined investment approach, focusing resources on
client-led product development and go-to-market activity while keeping costs
low. This ensures our software offering evolves in line with market demand
without adding unnecessary overhead.
Achieving the scale required to fully realise our software ambitions remains
challenging, and we are actively exploring M&A opportunities to accelerate
our progress. Targeted acquisitions could broaden our product set, expand our
market share, and provide the scale needed to establish the software division
as a meaningful contributor to Group growth.
Although sales cycles are lengthy, our pipeline is building strongly, and
client feedback is encouraging. We remain confident that, over time, our
software products will grow into an increasing driver of both revenue and
long-term value creation for Made Tech.
Investing in our people
We are building a stronger organisation for the future, one that rewards and
supports our people while ensuring we deliver for clients and shareholders.
Staff attrition reduced to 15%, reflecting the positive impact of our
investment in culture, engagement, and professional development. We welcomed
86 new colleagues and celebrated 50 promotions or internal transitions.
To support career growth, we have launched a new career grading, and
competency framework, providing colleagues with a transparent pathway for
progression. This was complemented by a management development programme that
is strengthening leadership capability across the business. We also continued
to expand our apprenticeship and early-career programmes, ensuring a strong
pipeline of future talent that benefits both the Company and our clients.
Employee satisfaction scores rose again, confirming that our people are
feeling the benefits of these changes. We also introduced our first Save As
You Earn scheme, providing colleagues with the opportunity to share directly
in the Company's long-term success.
Flexibility remains at the core of how we work. Many of our colleagues
combine working from home, at one of our hub offices in London, Manchester or
Bristol, or at one of our client sites across the nation. We also support
our teams in working flexible hours that allow them to balance personal
commitments such as childcare whilst ensuring that they are present for their
clients and colleagues. We recognise the value of bringing people together
to collaborate, learn, and connect. This year, we opened a new London office,
providing modern and adaptable space to support teamworking and hybrid
collaboration. Our approach strikes a balance between autonomy on a day-to-day
basis and meaningful opportunities for connection with clients and colleagues.
Current Trading & Outlook
We look ahead with confidence in both the near and the long term. The
government remains committed to leveraging technology to drive efficiency and
deliver new policy objectives, and we are well-positioned to support this
ambition across our core markets.
We enter FY26 with a substantial contracted backlog and an active pipeline.
Since late summer we have seen an acceleration in government procurement, and
we are bidding on a substantial pipeline of opportunities. We expect sales
bookings to remain uneven quarter-to-quarter, reflecting the timing of large
contract awards, though overall momentum remains strong.
The year has started strongly. The Group has traded in line with management's
expectations in the first quarter of FY26 delivering robust revenue, Adjusted
EBITDA and cash flow performance. We are investing in a significantly larger
employee workforce, reducing reliance on contractors and building capacity for
sustained growth.
With favourable market conditions, rising demand for digital transformation,
and a clear plan in place, FY26 is expected to be a year of further progress
as we scale, convert opportunities, and we are targeting delivering meaningful
growth in revenue, profitability, cash generation and shareholder value.
Rory MacDonald
Founder & Chief Executive Officer
FINANCIAL REVIEW
Revenue
There has been considerable uncertainty in the UK public sector digital
procurement market over the past year, resulting from the lead up to the UK
general election in 2024, delays resulting from the government spending
review, and increasing competitive market pressures. Despite these
headwinds, Group revenue for the year ended 31 May 2025 grew by 20% to £46.4m
(FY24: £38.6m). Sales bookings, which can be lumpy in nature, increased by
128% to £82.1m, against a weak prior year performance (FY24: £36.0m). At
the year-end the Group had a Contracted Backlog of £92.2m, representing a 52%
increase on the previous year (FY24: £60.6m).
The Group saw growth amongst its Central government customers including some
substantial new wins with the Ministry of Housing, Communities and Local
Government and the Department of Education. Whilst small in terms of the
Group we were encouraged by the increased revenue generated from our
early-stage SaaS product sales and in particular the upsell opportunities that
were converted during the year.
In line with our strategic objective of diversifying the range of services
that we offer to our clients, we continued to invest in capabilities such as
Data & AI and Managed Services, where we saw substantial year-on-year
sales growth.
Gross profit
As a result of the increase in revenue, gross profit increased by 13% from
£13.2m to £14.8m, although gross margins reduced from 34% in FY24 to 32% in
FY25.
Prior period Gross Profit and Gross Margin have been restated to include the
full cost of delivery consultants (for example time spent on account
management and training) which had previously been reallocated to
Administrative expenses. Previously reported Gross Profit and Margins for
FY24 were £14.0m and 36.3%.
During the Period the business has seen a further improvement in consultant
utilisation resulting in an increase in like-for-like margins. However, this
improvement in productivity was offset, particularly in the second half of the
year, by an increase in the proportion of work being delivered by partners
(where Made Tech operates as the prime supplier) and an increased proportion
of contractors compared with the same period last year. The increase in
contractor numbers during FY25 was part of a deliberate strategy to mitigate
against the risk of volatility in client demand and project timings in the
run-up to the UK General Election. The average contractor to employee ratio
in FY25 was 19%, up from 9% in FY24. This ratio peaked at approximately 20%
towards the end of FY25. Since the beginning of 2025 we have accelerated
recruitment and we plan to reduce the ratio of contractors to our target level
of c.10% by the end of FY26.
Total headcount (excluding contractors and partners) increased from 349 at
31 May 2024 to 374 at 31 May 2025.
Adjusted EBITDA
Adjusted EBITDA for FY25 was £3.5m (FY24: £2.4m), representing a
year-on-year increase of 47%. The Adjusted EBITDA margin also increased to
7.5%, up from 6.2% in FY24. This increase in Adjusted EBITDA margin reflects
the improved productivity resulting from reduced costs in certain support
functions, offsetting the year-on-year reduction in gross margins set out
above. Support operations are now better targeted at delivering on strategic
priorities whilst allowing for continued investments in market and technical
capabilities, enabling Made Tech to better support its clients and drive
growth.
Operating profit
The operating profit for the year of £1.7m represents a £4.9m improvement on
the operating loss of £3.2m reported in FY24. The operating profit is
stated after a £0.9m share-based payment charge (FY24: £0.1m), depreciation
of £0.3m (FY24: £0.4m) and amortisation of intangibles of £0.6m (FY24:
£0.8m). There were no impairment charges (FY24: £4.3m) or other
exceptional charges in the year (FY24: £nil).
At the beginning of FY24, the Company commenced the commercialisation of a
number of its product and service offerings that had been in development over
the previous years. At the end of FY24 the Company impaired £4.3m of these
intangible assets related primarily to the development of its Technology
Platform IP, being the SaaS solutions aimed primarily at the Local Government
housing market. The remaining intangible assets related to Capability IP,
which is based around some of the Group's core technical service offerings,
and are due to be fully amortised over the period FY25 and FY26. The
resulting amortisation charge in the year was £0.6m (FY24: £0.8m).
The share-based payment charge for the period under IFRS 2 was £0.9m (FY24:
£0.1m). This charge relates to awards made under the Long Term Incentive
Plan ("LTIP") and the Restricted Share Plan ("RSP") as well as an all-employee
Sharesave scheme which was launched in October 2024 with a 38% take-up by
eligible employees. The Board anticipates making further awards under the
LTIP in FY26 and inviting employees to participate again in the annual
Sharesave plan. As a result we expect the share based payment charge to
increase in FY26.
Taxation
The total taxation charge was £0.6m (FY24: £0.5m credit), giving rise to an
effective tax charge of 29% (FY24: 18%). The charge is higher than the UK
standard rate of taxation due to certain non-recoverable costs such as the
amortisation of intangible assets, against which tax relief was recognised in
prior periods. Tax losses were fully utilised during FY25. In future
years, we would expect the Group's effective rate of tax to move closer to the
UK corporation tax rate.
Basic earnings per share
Statutory profit after tax increased to £1.4m, up from a loss of £2.5m in
FY24. The statutory basic profit per share was 0.94p (FY24: loss of 1.64p
per share). Adjusted diluted EPS (see note 11) was 1.29p, 40% up on the
prior year (FY24: 0.92p) primarily as a result of the increase in Adjusted
EBITDA.
Cash flow
Cash at the year end was £10.4m, up from £7.6m at the end of FY24. As a
result of increased profitability and improved working capital management, net
operating cash inflows increased substantially from £0.8m in FY24 to £3.1m
in FY25. Investment in intangible IP was reduced as the Company moved from
development to commercialisation of its SaaS technology platform products; the
Company has not capitalised development expenditure in the year (FY24: £1.3m)
but research and development was expensed as incurred during the year for
£0.3m (FY24: nil). The Company invested £0.2m (FY24: £0.3m) in an Employee
Benefit Trust ('EBT') for the settlement of future vested share options. As
a result, the EBT holds 2.2% of the issued share capital of the Company.
The Board anticipates that during FY26, as in FY25, the Group will generate
positive free cash flow.
Capital allocation, funding priorities and dividend
The Board remains committed to a capital allocation policy that prioritises
investment in the business to drive growth by either investing in its own IP
or through targeted acquisitions. The Board believes that the opportunities
ahead of us are significant and sees the government's increasing spend in
digital as a long-term trend.
The Group's current cash reserves provide sufficient capital to fund planned
product development and working capital as the business continues to grow.
The Company currently has no debt. The Board will consider using debt
financing as appropriate to finance inorganic growth opportunities on a
prudent and sustainable basis.
The Board does not anticipate paying a dividend in the near term as it
prioritises its strategy for growth, but will keep this under review in the
future.
Balance Sheet
The Group has a strong balance sheet with net assets of £14.5m (FY24:
£12.5m) underpinned by £10.4m of cash at the year-end. Trade debtors of
£7.0m (FY24: £6.7m) are held primarily with government clients. Debtor
days increased from 42 to 43 during the year with no bad debts. Trade and
other payables increased from £3.1m in FY24 to £3.8m at the end of FY25.
The Company has entered into a number of office leases which fall under
IFRS16. As a result the right-of-use assets have been capitalised as a
tangible asset (£1.1m; FY24: £nil) and related lease liabilities of £1.1m
(FY24: £nil).
Neil Elton
Chief Financial Officer
CONSOLIDATED STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME
Note FY25 FY24
£'000 £'000
Revenue 5 46,434 38,568
Cost of sales (31,592) (25,379)
Gross profit ( 1 ) 14,842 13,189
Administrative expenses (11,369) (10,865)
Share-based payments 19 (884) (80)
Depreciation/amortisation 12/13 (873) (1,212)
Impairment 12 - (4,315)
Other income 9 - 52
Operating profit/(loss) 1,716 (3,231)
Net Interest 8 251 234
Profit/(loss) before tax 1,967 (2,997)
Taxation (expense)/credit 10 (570) 544
Profit/(loss) for the period 1,397 (2,453)
Total comprehensive loss attributable to the owners of the parent 1,397 (2,453)
Earnings/(loss) per share:
Earnings/(loss) per ordinary share 11 0.94p (1.64p)
Diluted profit/(loss) per ordinary share 11 0.88p (1.64p)
( 1 ) Gross Profit for FY24 restated to include the full cost of delivery
consultants in line with accounting practice applied in FY25. Previously
reported Gross Profit for FY24 was £14,012k.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Note FY25 FY24
£'000 £'000
Assets
Non-current assets
Tangible assets 13 1,223 203
Intangible assets 12 560 1,120
Deferred tax asset 10/18 204 -
Total non-current assets 1,987 1,323
Current assets
Trade and other receivables 14 6,972 6,662
Cash and cash equivalents 10,415 7,648
Total current assets 17,387 14,310
Total assets 19,374 15,633
Equity and liabilities
Equity
Share capital 75 75
Share premium 13,421 13,421
Share-based payment reserve 4,731 4,129
Capital redemption reserve 12 12
Retained deficit (3,751) (5,148)
14,488 12,489
Non-current Liabilities
Deferred tax liability 10/18 - 50
Lease liabilities 16 630 -
Total non-current liabilities 630 50
Current liabilities
Trade and other receivables 15 3,799 3,094
Lease liabilities 16 457 -
Total current liabilities 4,256 3,094
Total liabilities 4,936 3,144
Total equity and liabilities 19,374 15,633
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Capital Share Premium Share-based payment reserve Retained deficit Total equity
£'000 £'000 £'000 £'000 £'000
Capital redemption reserve
£'000
Balance at 1 June 2023 75 13,421 4,398 12 (2,695) 15,211
Loss for the period - - - - (2,453) (2,453)
Transactions with equity owners:
Share-based payment reserve - - 80 - - 80
Share-based reserve - purchase of shares - - (349) - - (349)
Total transactions with equity owners - - (269) - - (269)
Balance at 31 May 2024 75 13,421 4,129 12 (5,148) 12,489
Profit for the period - - - - 1,397 1,397
Transactions with equity owners:
Share-based payment reserve - - 802 - - 802
Share-based reserve - purchase of shares - - (200) - - (200)
Total transactions with equity owners - - 602 - - 602
Balance at 31 May 2025 75 13,421 4,731 12 (3,751) 14,488
CONSOLIDATED CASH FLOW STATEMENT
Note FY25 FY24
£'000 £'000
Profit/(Loss) for the period 1,397 (2,453)
Adjustments for:
Tax charge 10 570 (42)
Net finance credit in the income statement 8 (251) (234)
Loss on disposal of property, plant and equipment 9 8
Depreciation of property, plant and equipment and amortisation of intangible 12/13 873 1,212
assets
Impairment - 4,315
Share-based payment 19 884 80
Cash flows from operating activities before changes in working capital 3,482 2,886
Increase in trade and other receivables (310) (469)
Decrease in trade and other payables (107) (1,639)
Net cash flows used by operating activities 3,065 778
Cash flows from investing activities
Purchase of property, plant and equipment 13 (139) (89)
Development of intangibles 12 - (1,257)
Interest and other fees received 8 265 248
Net cash flows generated/(used) by investing activities 126 (1,098)
Cash flows from financing activities
Purchase of equity shares 19 (200) (349)
Interest and other fees paid 8 (5) (12)
Share exercised (82) -
Repayment of lease liability (128) (143)
Interest paid on lease liability (9) (2)
Net cash flows used by financing activities (424) (506)
Net increase/(decrease) in cash and cash equivalents 2,767 (826)
Cash and cash equivalents at the start of the period 7,648 8,474
Cash and cash equivalents at the end of the period 10,415 7,648
NOTES TO THE FINANCIAL STATEMENTS
1. Company information
The consolidated financial information represents the results of Made Tech
Group Plc (the "Company") and its subsidiaries, together comprising the Group
("Made Tech" or the "Group").
Made Tech Group Plc is a company incorporated and domiciled in England and
Wales, registration number 12204805. The address of its registered office is
Fora, 35-41 Folgate Street, London, E1 6BX.
Made Tech Group Plc is listed on the AIM market.
The principal activity of Made Tech Group Plc (the "Company") is that of a
holding company. The main trading company of the Group is Made Tech Limited
(registration number 06591591) and the principal activity of this company is a
provider of digital, data and technology services to the UK public sector.
Service offerings include digital service delivery, embedded capabilities,
data infrastructure and insights and legacy application transformation.
2. Accounting policies
Accounting convention
The principal accounting policies adopted in the preparation of the financial
statements are set out below. They have been consistently applied to the
periods presented. The financial statements are presented in Pounds Sterling
rounded to the nearest thousand (£'000) except where specified.
Basis of preparation of the consolidated financial statements
The Group financial statements have been prepared in accordance with
UK-adopted International Accounting Standards and the Companies Act 2006. The
Company financial statements have been prepared under FRS 102. Both financial
statements have been prepared on the historical cost basis with the exception
of certain items which are measured at fair value as disclosed in the
accounting policies set out below. These policies have been consistently
applied to all years presented unless otherwise stated.
Prior year restatements
During the year, the Company reassessed the classification of Amounts owed by
Group undertakings and determined that they are more appropriately presented
as non-current assets rather than current assets, to reflect the expected
timing of settlement. As a result, the comparative figures have been restated
to reclassify these balances from current to non-current assets.
In addition, the Company has restated Gross Profit for FY24 to include the
full cost of delivery consultants within cost of sales, in line with the
revised accounting practice applied in FY25. This change better reflects the
nature of these costs as directly attributable to revenue.
Investments in subsidiary
The Company investments in subsidiaries are stated at cost less any
accumulated impairment losses. Where indicators of impairment exist, the
carrying amount of the investment is assessed against the recoverable amount,
which is based on the subsidiary's net asset position and future trading
forecasts.
Going concern
The Directors have considered the Group's cash flow forecasts and have
performed a sensitivity analysis based on the latest 12 month forecast ending
30 September 2026. This analysis, which excludes non-identified opportunities,
reflects the company's financial position and operational performance under a
range of assumptions, including revenue forecasts, cost structures, and
working capital requirements. The budget was approved by the Board in June
2025 and is based on a reasonable view of market conditions and operational
plans.
The Directors have no grounds for concern regarding the Group's ability to
meet its obligations as they fall due and continue to operate within the
existing cash balance and working capital facilities. As such, they have
concluded that the company does not require additional funding to maintain
liquidity over the forecast period.
In light of the above, the Directors have a reasonable expectation that the
Company and the Group have adequate resources to continue in operational
existence for at least 12 months from the date of approval of the financial
statements. Consequently, they continue to adopt the going concern basis in
preparing the Annual Report and Accounts.
Standards and amendments to existing standards adopted in these accounts
In the current year, the Group has applied the following standards and
amendments for the first time for its annual reporting period commencing 1
June 2024:
● IAS 1 Presentation of Financial Statements (Amendment -
Classification of Liabilities as Current or Non-Current);
● IAS 1 Presentation of Financial Statements (Amendment - Non-Current
Liabilities with covenants);
● IFRS 16 Leases (Amendment - Lease Liability in a Sale and
Leaseback);
● IAS 7 Statement of Cash Flows (Amendment - Supplier Finance
Arrangements); and
The standards and amendments effective have not had any significant impact on
the disclosures or on the amounts reported in these financial statements, and
no significant impact expected for standards in issue but not in effect.
Standards, amendments and interpretations to existing standards that are not
yet effective and have not been early adopted by the Company in the 31 May
2025 financial statements
At the date of authorisation of these financial statements, certain new
accounting standards and interpretations have been published that are not
mandatory for 31 May 2025 reporting periods and have not been early adopted by
the Group. The Directors continue to monitor developments in the accounting
standards they see as relevant, but do not expect that the adoption of these
standards will have a material impact on the financial statements of the Group
in the current or future reporting periods and on foreseeable future
transactions.
Basis of consolidation
The Group's consolidated financial statements incorporate the results of the
parent company and all of its subsidiary undertakings. The parent controls a
subsidiary if it is exposed, or has rights, to variable returns from its
involvement with the subsidiary and has the ability to affect those returns
through its power over the subsidiary. The existence and effect of potential
voting rights that are currently exercisable or convertible are considered
when assessing whether the Group controls another entity. Subsidiaries are
fully consolidated from the date on which control is transferred to the Group.
They are deconsolidated on the date control ceases.
Inter-company transactions, balances and unrealised gains and losses (where
they do not provide evidence of impairment of the asset transferred) on
transactions between Group companies are eliminated.
Accounting policies of subsidiaries have been changed where necessary to
ensure consistency with policies adopted by the Group.
Revenue recognition
Revenue is the fair value of the total amount receivable by the Group for
supplies of services. VAT or similar local taxes and trade discounts are
excluded. The Group's source of revenue is from the provision of digital, data
and technology services to the UK public sector and product subscription and
support services.
The majority of the provision of services contracts are typically "time and
materials" whereby the customer is contractually bound to pay for services for
each hour or day spent in delivering a contractually agreed services scope.
Materials are incidental expenses incurred whilst delivering the services.
These contracts typically have no payment milestones or bundling with other
services and have no variable element. Revenue is therefore recognised in line
with the chargeable "time and materials" which are allocated to the contracted
project. The Company recognises revenue each month once as it provides these
services for the duration of the contract. At the balance sheet date, an asset
is recognised for unbilled amounts for services provided yet to be invoiced.
Payment for the services is based on the agreed payment terms.
For fixed-price service contracts, the company recognises the revenue when the
performance obligation is satisfied, which may be by the completion and
approval of milestones described and priced in the contract or based on the
actual labour hours and costs incurred at the end of the reporting period when
performance obligations over time criteria have been met.
For product subscription contracts the client pays fees at regular intervals
to access the functionalities, support and maintenance of the software.
Current contracts are recognised ratably over the contract term.
Revenue contract liability is recorded when cash payments are received in
advance of satisfying the performance obligation. Contract liabilities are
recognised in profit or loss in the period when the Group completes the agreed
services to the customers. In all other cases payments are due from customers
within 30-60 days (depending on the credit terms applicable) of the service
being agreed and invoiced.
Interest income and expenditure are reported on an accruals basis.
EBITDA and adjusted EBITDA
Earnings before interest, taxation, depreciation and amortisation ("EBITDA")
and adjusted EBITDA are non‑GAAP measures used by management to assess the
operating performance of the Group. EBITDA is defined as operating profit
before depreciation and amortisation. Exceptional items, impairment and
share-based payment charges are excluded from EBITDA to calculate adjusted
EBITDA.
The Directors primarily use the adjusted EBITDA measure when making decisions
about the Group's activities. As they are non-GAAP measures, EBITDA and
adjusted EBITDA measures used by other entities may not be calculated in the
same way and hence are not directly comparable.
Intangible assets
Internally generated intellectual property
An internally generated intangible asset consisting of intellectual property
arising from development (or the development phase) of an internal project is
recognised if, and only if, all of the following have been demonstrated:
• the technical feasibility of completing the
intangible asset so that it will be available for use or sale;
• the intention to complete the intangible asset and
use or sell it;
• the ability to use or sell the intangible asset;
• how the intangible asset will generate probable
future economic benefits;
• the availability of adequate technical, financial
and other resources to complete the development and to use or sell the
intangible asset; and
• the ability to measure reliably the expenditure
attributable to the intangible asset during its development.
The amount initially recognised for internally generated intangible assets is
the sum of the expenditure incurred from the date when the intangible asset
first meets the recognition criteria listed above. Where no internally
generated intangible asset can be recognised, development expenditure is
charged to profit or loss in the period in which it is incurred.
Subsequent to initial recognition, internally generated intangible assets are
reported at cost less accumulated amortisation and accumulated impairment
losses. Internally generated intangibles not yet in use are not amortised but
are subject to annual impairment testing.
Internally generated intangible assets have been amortised over three to five
years.
Research expenditure is recognised as an expense in the period in which it is
incurred.
Tangible assets
Tangible assets are recorded at cost net of accumulated depreciation and any
provision for impairment. Depreciation is provided to write off the cost of
the asset less any residual value over its useful economic life in line with
below. The residual values of assets are reviewed annually and revised where
necessary. Assets' useful economic lives are as follows:
Furniture and
fittings
25% reducing balance
Office
equipment
3 years straight line
Leasehold improvements
25% reducing balance
Right-of-use lease
assets straight line
over the lease term
Impairment
For the purposes of assessing impairment, assets are grouped at the lowest
level for which there are separately identifiable cash flows. As a result,
some assets are tested individually for impairment and some are tested at
cash-generating unit level.
Intangible assets not yet available for use are tested for impairment at least
annually. All other individual assets or cash-generating units are tested for
impairment whenever events or changes in circumstances indicate that the
carrying amount may not be recoverable. An impairment loss is recognised for
the amount by which the carrying amount exceeds the recoverable amount of the
asset or cash-generating unit. The recoverable amount is the higher of fair
value, reflecting market conditions, less costs to sell, and value in use
based on an internal discounted cash flow evaluation. The cash flow
evaluations are a result of the Directors' estimation of future sales and
expenses based on their past experience and the current market activity within
the business. All assets are reassessed and impairment losses previously
recognised may be reversed where the recoverable amount exceeds the carrying
value in subsequent periods.
Any impairment charge arising from the review of the carrying value of assets,
where material, is disclosed separately on the face of the consolidated income
statement.
Financial assets
Financial assets and liabilities are recognised when the Group becomes party
to the contractual obligations of a financial instrument. They are measured
initially at fair value, net of transaction costs. The Group subsequently
classifies and measures its financial assets as either financial assets at
fair value through profit or loss, at amortised cost, or fair value through
comprehensive income, as appropriate. The classification depends on the
purpose for which the financial assets were acquired. At the reporting year
end the financial assets of the Group were all classified as loans or
receivables held at amortised cost.
Trade receivables
These assets are non-derivative financial assets with fixed or determinable
payments that are not quoted in an active market. They arise principally
through the provision of goods and services to customers but also incorporate
other types of contractual monetary assets.
They are initially recognised at fair value and measured subsequent to initial
recognition at amortised cost using the effective interest method, less any
impairment loss.
The Group's financial assets comprise trade receivables, other receivables
(excluding prepayments) and cash and cash equivalents.
Trade and other receivables - impairment
The Group applies an expected credit loss model to calculate the impairment
losses on its trade receivables. The Group applies the simplified approach to
providing for expected credit losses prescribed by IFRS 9, which permits the
use of the lifetime expected loss provision for all trade receivables. Trade
receivables at the reporting date have been put into groups based on days past
the due date for payment and an expected loss percentage has been applied to
each group to generate the expected credit loss provision for each group and a
total expected credit loss provision has thus been calculated.
Financial liabilities
The Group's financial liabilities include trade and other payables and
borrowings which include lease liabilities.
Financial liabilities are recognised when the Group becomes a party to the
contractual agreements of the instrument. All interest-related charges are
recognised as an expense in the income statement.
Trade payables are recognised initially at their fair value, net of
transaction costs and subsequently measured at amortised cost less settlement
payments.
Leases
At inception the Group assesses whether a contract contains a lease. This
assessment involved the exercise of judgement about whether the Group obtains
substantially all the economic benefits from the use of that asset and whether
the Group has the right to direct the use of the asset.
The Group recognises a right-of-use asset and a lease liability at the lease
commencement date. The right-of-use asset is initially measured at cost, which
comprises the initial amount of the lease liability adjusted for any lease
payments made before the commencement date, plus any initial direct costs
incurred and an estimate of costs to dismantle and remove the underlying asset
or to restore the underlying asset or the site on which it is located, less
any lease incentive received.
The right-of-use asset is subsequently depreciated using the straight-line
method from the commencement date to the earlier of the end of the useful life
of the right-of-use asset or the end of the lease term. The estimated useful
lives of right-of-use assets are determined on the same basis as those of
property and equipment. In addition, the right-of-use asset is periodically
reduced by impairment losses, if any, and adjusted for certain remeasurements
of the lease liability.
The Group has elected not to recognise right-of-use assets and lease
liabilities for short-term leases that have a lease term of 12 months or less
and leases of low value assets which it defines as having a purchase cost of
£5,000 or less. The Group recognises the lease payments associated with these
leases as an expense on a straight-line basis over the lease term.
The lease liability is measured at amortised cost using the effective interest
method.
The Group presents right-of-use assets in "property, plant and equipment" and
lease liabilities in "borrowings" in the statement of financial position.
Taxation
Current tax
Current income tax assets and liabilities comprise those obligations to fiscal
authorities in the countries in which the Group carries out its operations.
They are calculated according to the tax rates and tax laws applicable to the
fiscal period and the country to which they relate. All changes to current tax
liabilities are recognised as a component of tax expense in the income
statement unless the tax relates to an item taken directly to equity, in which
case the tax is also taken directly to equity. Tax relating to items
recognised in other comprehensive income is recognised in other comprehensive
income.
Deferred tax
Deferred income taxes are calculated using the liability method on temporary
differences between the carrying amounts of assets and liabilities and their
tax bases.
A deferred tax asset is recognised for all deductible temporary differences to
the extent that it is probable that taxable profit will be available against
which the deductible temporary differences can be utilised. Deferred tax
is not provided on the initial recognition of goodwill, nor on the initial
recognition of an asset or liability unless the related transaction is a
business combination or, at the time of the transaction, affects neither
accounting profit nor taxable profit (tax loss). Deferred tax on temporary
differences associated with shares in subsidiaries is not provided if reversal
of these temporary differences can be controlled by the Group and it is
probable that reversal will not occur in the foreseeable future. In addition,
tax losses available to be carried forward as well as other income tax credits
to the Group are assessed for recognition as deferred tax assets.
Deferred tax liabilities are always provided for in full. Deferred tax assets,
such as those resulting from assessing deferred tax on the expense of
share-based payments, are recognised to the extent that it is probable that
future taxable profits will be available against which the temporary
differences can be utilised. Deferred tax assets and liabilities are
calculated at tax rates that are expected to apply to their respective period
of realisation, provided they are enacted or substantively enacted at the
balance sheet date.
Provisions, contingent liabilities and contingent assets
Provisions are recognised when the present obligations arising from legal or
constructive commitment resulting from past events will probably lead to an
outflow of economic resources from the Group which can be estimated reliably.
Provisions are measured at the present value of the estimated expenditure
required to settle the present obligation, based on the most reliable evidence
available at the reporting date taking into account risks and uncertainties
surrounding the obligation.
All provisions are reviewed at each balance sheet date and adjusted to reflect
the current best estimates.
Employee benefits
The Group provides a range of benefits to employees, including annual bonus
arrangements, paid holiday arrangements and defined contribution pension
plans.
Short-term benefits, including holiday pay and other similar non-monetary
benefits, are recognised as an expense in the period in which the service is
received.
Termination benefits are recognised immediately as an expense when the Group
is demonstrably committed to terminate the employment of an employee or to
provide termination benefits.
Defined contribution pension plan
The Group operates a defined contribution pension scheme. The assets are held
separately from those of the Company in an independently administered fund.
The pension cost charge represents contributions payable by the Company to the
fund.
The cost of pensions in respect of the Group's defined contribution scheme is
charged to the income statement in the period in which the related employee
services were provided.
Share-based payments
The Group operates equity settled share-based compensation plans for the
remuneration of its employees.
All employee services received in exchange for the grant of any share-based
compensation are measured at their fair values. These are indirectly
determined by reference to the share options awarded. Their value is appraised
at the grant date and excludes the impact of any non-market vesting conditions
(e.g. profitability or sales growth targets).
All share-based compensation is ultimately recognised as an expense in the
income statement with a corresponding credit to the share-based payment
reserve, net of deferred tax where applicable. If vesting periods or other
vesting conditions apply, the expense is allocated over the vesting period,
based on the best available estimate of the number of share options expected
to vest. Fair value of the awards are measured using the Black-Scholes
valuation model if they are not subject to a market-based performance
condition and have a fixed term; Monte Carlo simulations are applied when
there are non-market vesting conditions of the shares issued and Finnerty
model when the awards are subject to a holding period. Non-market vesting
conditions are included in assumptions about the number of options that are
expected to become exercisable. Estimates are subsequently revised if there is
any indication that the number of share options expected to vest differs from
previous estimates. No adjustment to expense recognised in prior periods is
made if fewer share options ultimately are exercised than originally
estimated. The impact of the revision of the original estimates, if any, is
recognised in the statement of comprehensive income over the remaining vesting
period, with a corresponding adjustment to the share-based payment reserve.
Where modifications are made to the vesting or lapse dates of options the
excess of the fair value of the revised options over the fair value of the
original options at the modification date is expensed over the remaining
vesting period.
Equity and reserves
Issued share capital
Ordinary shares are classified as equity. The nominal value of shares is
included in share capital.
Share premium
The share premium account represents the excess over nominal value of the fair
value of consideration received for equity shares, net of the expenses of the
share issue.
Share-based payment reserve
The share-based payment reserve represents the total value expensed at the
balance sheet date in relation to the fair value of the share options at their
grant date expensed over the vesting period under the relevant share
option schemes.
Accumulated deficit
The retained earnings include all current and prior period results for the
Group and the results of the Group's subsidiaries as determined by the income
statement net of dividends paid.
3. Judgements in applying accounting policies and key sources of
estimation uncertainty
The preparation of financial statements requires management to make
judgements, estimations and assumptions that affect the amounts reported for
assets and liabilities as at the year-end date and the amounts reported for
revenues and expenses during the year. These judgements and estimates are
based on management's best knowledge of the relevant facts and circumstances,
their historical experience and other factors including expectations of future
events. Actual results may differ from the amounts included in the financial
statements. The estimates and assumptions that have a significant risk of
material adjustment to the carrying amount of assets and liabilities within
the next financial year are summarised below:
Judgements in applying accounting policies
Development costs
Capitalisation of development costs in accordance with IAS 38 requires
analysis of the technical feasibility and commercial viability of the project
in the future. This in turn requires a long-term judgement to be made about
the development of the industry in which the development will be marketed.
Where the Directors consider that sufficient evidence exists surrounding the
technical feasibility and commercial viability of the project which indicates
that the costs incurred will be recovered they are capitalised within
intangible fixed assets. The amount of the capitalisation is based on
estimates to judge the percentage of the time relevant staff spend on
projects. Where insufficient evidence exists, the costs are expensed to the
income statement. Following the impairment review at the end of FY24
management concluded that expenditure on IP in FY25 did not meet the
requirements for capitalisation under IAS38. Management will keep this
judgement under regular review as the respective commercial use cases are
developed.
Sources of estimation uncertainty
Intangible assets useful life
The useful life of the Group's intangible assets has been estimated based on
the classification of intellectual properties into two categories: Technology
Platforms and Capability IP. Management's judgement in this estimation
process incorporates a comprehensive analysis of market conditions, potential
client needs, competitive developments, and internal expertise to assess the
obsolescence risk associated with the developed technology.
Technology Platforms refer to internal software solutions designed to enhance
reporting capabilities, expedite data processing, and prioritise client needs.
The Group has determined the useful life of these products to be 5 years,
reflecting the expected period over which the software will generate economic
benefits.
Capability IP encompasses training materials, organisational assessment tools,
and other resources that support the scaling of new practices, thereby
enhancing the Group's ability to deliver secure, efficient, and innovative
solutions. The useful life of these capabilities has been estimated at 3
years, based on the anticipated duration of their relevance and utility in the
Group's operations.
In accordance with IFRS, the Group will review the estimated useful lives of
these intangible assets at least annually and adjust them as necessary to
reflect changes in circumstances or expectations regarding their economic
benefits
Impairment of intangible assets
Determining whether intangible assets are impaired requires an estimation of
the value in use of the cash‑generating unit to which the intangibles have
been allocated. The value in use calculations require an estimation of the
future cash flows expected to arise from the cash-generating units and a
suitable discount rate to calculate the present value.
An assessment of impairment of intangibles is performed if there is an
indicator of impairment. The key estimate for the carrying value of the
intangibles is the cash flows associated with the investment and the Weighted
Average Cost of Capital ("WACC"). Each intangible is reviewed regularly to
ensure that it generates discounted positive cash flows.
The same principles used in the assessment of impairment of goodwill are used
for estimating the "value in use" of the cash flows of the investment. Where
there is an indication of impairment, the investment is impaired by a charge
to the consolidated income statement. The key area of uncertainty is revenue
growth. Management performs sensitivity analysis to ascertain the level of
growth rate that will start to impair the investment on a yearly basis.
4. Financial instruments - risk management
The Board of Directors of Made Tech Group Plc has overall responsibility for
the determination of the Group's risk management objectives and policies. The
Group has in place a risk management programme that seeks to limit the adverse
effects on the financial performance of the Group. All funding requirements
and financial risks are managed based on policies and procedures adopted by
the Board.
The Group does not enter into derivative transactions or trade in financial
instruments and the Directors believe the Group is not materially exposed to
commodity price risk.
The Group is exposed to the following financial risks:
• credit risk;
• liquidity risk; and
• interest rate risk.
The Group is exposed to risks that arise from its use of financial
instruments. The principal financial instruments used by the Group, from which
financial instrument risk arises, are as follows:
• trade and other receivables;
• cash and cash equivalents; and
• trade and other payables.
To the extent financial instruments are not carried at fair value in the
consolidated statement of financial position, book value approximates to fair
value.
Financial instruments by category
Financial assets At 31 May 2025 £'000 At 31 May 2024 £'000
Cash and cash equivalents 10,415 7,648
Trade receivables 5,443 4,429
Other receivables 1,529 2,233
Financial assets at amortised cost 17,387 14,310
Financial liabilities At 31 May 2025 £'000 At 31 May 2024 £'000
Current
Trade payables 589 356
Accruals 1,640 1,469
Social security and other taxes 1,213 623
Other payables 357 646
Trade and other payables 3,799 3,094
Current
Borrowings - lease liability 457 -
Loans and borrowings 457 -
Non-current
Borrowings - lease liability - non-current 630 -
Loans and borrowings - non-current 630 -
Financial liabilities at amortised cost 4,886 3,094
The key risks to the Group and the policies and procedures put in place by
management to manage them are summarised below:
Interest rate risk
The Group is not exposed to cash flow interest rate risk from bank borrowings
at variable rates. As at 31 May 2025 there are no loans outstanding (FY24:
£nil); therefore there is no exposure to interest rate risk.
Credit risk
Credit risk is the risk of financial loss to the Group if a customer or
counterparty to a financial instrument fails to meet its contractual
obligations. The Group is mainly exposed to credit risk from credit sales. The
Group's net trade receivables for the two reported periods are disclosed in
the financial assets table above.
The Group considers that its exposure to credit risk is negligible as it
primarily carries out work for public sector entities without the risks
attached to normal commercial credit sales.
The Directors do not consider that there is any concentration of risk within
other receivables.
Credit risk on cash and cash equivalents is considered to be small as the
counterparties are substantial banks with high credit ratings. The maximum
exposure is the amount of the deposit.
Liquidity risk
Liquidity risk arises from the Group's management of working capital. It is
the risk that the Group will encounter difficulty in meeting its financial
obligations as they fall due.
At 31 May 2025 Within 1 month 1-3 months 3-12 months 2-5 years 5+ years
£'000 £'000 £'000 £'000
Trade Payables 328 261 - - -
Accruals 1,640 - - - -
Lease liability 16 71 406 650 -
Other payables 1,570 - - - -
3,538 261 457 630 -
At 31 May 2024 Within 1 month 1-3 months 3-12 months 2-5 years 5+ years
£'000 £'000 £'000 £'000
Trade Payables 316 40 - - -
Accruals 1,290 179 - - -
Other payables 1,269 - - - -
2,875 219 - - -
Capital management
The Group's capital is made up as follows:
At At
31 May 2025 31 May 2024
£'000 £'000
Share capital - issued 75 75
Share premium 13,433 13,433
Share based payment reserve 4,731 4,129
Accumulated deficit (3,751) (5,148)
14,488 12,489
The Group's objectives when maintaining capital are:
● to safeguard the entity's ability to continue as a going concern, so
that it can continue to provide returns for shareholders and benefits for
other stakeholders; and
● to provide an adequate return to shareholders by pricing services
commensurately with the level of risk.
The capital structure of the Group consists of shareholders' equity as set out
in the consolidated statement of changes in equity. All working capital
requirements are financed from existing cash resources, fundraising and
borrowings.
Made Tech Group plc financial instruments are initially recognised at
transaction price, including transaction costs, and are subsequently measured
at amortised cost using the effective interest method, less impairment for
financial assets.
Financial assets include trade receivables, other receivable and cash and cash
equivalents. Financial liabilities include trade payables and other short term
creditors.
5. Revenue from contracts with customers
Revenue from operations arises from:
At At
31 May 2025 31 May 2024
£'000 £'000
Provision of digital services 46,434 38,568
Group revenue is almost wholly related to digital and technology services.
Whilst the Group is also developing a complementary software products business
it currently represents a de minimis proportion of the Group's revenues and
costs and in large part leverages the resources of the services business.
For these reasons management considers that the Group has only one operating
segment and therefore the results of the Group comprise the segment
performance.
Significant customers
The Group had four customers that exceeded 10% of revenue in the year (FY24:
four customers).
Customer A accounted for £8.7m (or 19%) of total Group revenue during FY25
(FY24: £7.0m or 18%).
Customer B accounted for £6.3m (or 14%) of total Group revenue (FY24: £4.0m
or 10%).
Customer C accounted for £5.0m (or 11%) of total Group revenue (FY24:
£5.4m or 14%).
Customer D accounted for £4.6m (or 10%) of total Group revenue (FY24:
£3.4m or 9%).
6. Operating profit/(loss)
The operating profit/(loss) has been arrived at after charging/(crediting):
Year to Year to
31 May 2025 31 May 2024
£'000 £'000
Fees paid to the Group's auditors (see below) 66 65
Other accountancy fees 33 29
Loss on disposal of property, plant and equipment 9 8
Advertising expense 214 329
Depreciation of property, plant and equipment and amortisation of intangible 873 1,212
assets
Staff costs 29,109 26,903
Year to Year to
31 May 2025 31 May 2024
£'000 £'000
Analysis of the fees paid to the Group's auditors
Audit of the Group and Company's financial statement 66 65
Total fees paid to Groups auditors 66 65
7. Staff costs
Staff costs (including Directors) consist of:
Year to Year to
31 May 2025 31 May 2024
£'000 £'000
Wages and salaries (including bonuses) 24,144 24,097
Other taxable benefits 82 87
Social security costs 2,766 2,624
Pensions 1,315 1,271
Share-based payments 802 80
Total Staff costs 29,109 28,160
In the FY24, staff costs included £1,256,899 that was capitalised as
intangible assets. In FY25, no staff costs were capitalised but research and
development was expensed as incurred during the year for a total of £301,337
(see note 12).
Key management of the Group is considered to be the Board of Directors.
Details of Directors' remuneration is disclosed in the Report of the
Remuneration Committee in the FY25 Annual Report.
Defined contribution pension scheme
The amount recognised in the income statement as an expense in relation to the
Group's defined contribution pension scheme is £1,314,919 (FY24:
£1,146,515). Included within accruals and other creditors is £260,731 (FY24:
£230,588) for outstanding contributions to the defined contribution pension
scheme.
The average monthly number of employees during the period was as follows:
Year to Year to
31 May 2025 31 May 2024
£'000 £'000
Key management 6 6
Operations and administration 345 358
Total employees 351 364
8. Interest receivable/(payable)
Year to Year to
31 May 2025 31 May 2024
£'000 £'000
Interest received 265 248
Interest on bank loans and bank fees (5) (12)
Interest on lease liability (9) (2)
Total interest receivable 251 234
9. Other income
Year to Year to
31 May 2025 31 May 2024
£'000 £'000
Insurance claims - 41
Royalties and partnerships - 11
Total other income - 52
10. Taxation
The following tax was recognised in the income statement:
Year to Year to
31 May 2025 31 May 2024
£'000 £'000
Corporation tax - -
Total current tax expense 824 -
R&D tax credit - (502)
Deferred tax
Origination and reversal of timing differences (254) (42)
Tax charge/(credit) for the year 570 (544)
The tax assessed for the year is different from the standard rate of
corporation tax as applied in the respective trading domains where the Group
operates.
The Group's tax charge can be reconciled to the profit/(loss) in the income
statement and effective tax rate as follows:
Year to Year to
31 May 2025 31 May 2024
£'000 £'000
Profit/(loss) before tax 1,967 (2,997)
Tax credit at the UK corporation tax rate of 25% (FY24: 25%) 492 (749)
Effects of:
Fixed asset differences 64 38
Expenses not deductible for tax purposes 335 1,297
Utilisation of losses brought forward (83) (456)
Unused tax losses - 173
IP capitalisation - (314)
R&D tax credit - (502)
Sundry items 16 11
Movements in deferred tax provision (254) (42)
Tax charge/(credit) for the year 570 (544)
Deferred tax Year to Year to
31 May 2025 31 May 2024
£'000 £'000
At 1 June (50) (92)
Deferred tax recognised 254 -
Charge - 42
At 31 May 204 (50)
Current taxes comprise the income taxes of the Group companies which posted a
taxable profit for the year, while deferred taxes show changes in deferred tax
assets and liabilities which were recognised by the Group on the temporary
differences between the carrying amount of assets and liabilities and their
amount calculated for tax purposes and, on consolidation adjustments,
calculated using the rates that are expected to apply in the year these
differences will reverse.
The Group has recognised a deferred tax asset of £253,823 (FY24: £nil) in
respect of the likelihood of the options being exercised. The assessment is
based on the total share-based expenses of £802,416 (FY24: £80,463).
This deferred tax asset arises from temporary differences between the
accounting treatment and the tax deductibility of share-based payment. While
the expense is recognised in the income statement over the vesting period, the
corresponding tax deduction is generally available only upon exercise of the
options.
The deferred tax asset has been measured using the applicable corporation tax
rate expected to apply when the temporary difference reverses.
Management has assessed the recoverability of deferred tax assets based on the
expected future taxable profits, as reflected in the current budget approved
by the Board of Directors.
At the reporting date, the Group has no unused tax losses (FY24: £0.7m)
available for offset against future profits.
11. Earnings/(loss) per ordinary share
Year to Year to
31 May 2025 31 May 2024
£'000 £'000
Earnings/(loss) for the period 1,397 (2,453)
Weighted average number of ordinary shares in issue for the year ('000) 149,287 149,287
Diluted weighted average shares ('000) 159,472 149,287
Earnings/(loss) per ordinary share (pence):
Basic earnings/(loss) per share 0.94p (1.64p)
Diluted earnings/(loss) per share 0.88p (1.64p)
Where a loss has been recorded the effect of options is not dilutive and
therefore the basic and diluted figure is the same.
For diluted earnings per share, the weighted average number of ordinary shares
in issue is adjusted to assume conversion of all potentially dilutive ordinary
shares. The Company has potentially dilutive ordinary shares arising from
share options granted to employees. Options are dilutive under the Group
Restricted Share Plan ("RSP") where the exercise price, together with the
future IFRS 2 charge of the option, is less than the average market price of
the Company's ordinary shares during the year. Options under the LTIP schemes,
as defined by IFRS 2, are contingently issuable shares and are therefore only
included within the calculation of diluted EPS if the performance conditions,
as set out in note 19, are satisfied at the end of the reporting period,
irrespective of whether this is the end of the vesting period or not.
The calculation of adjusted earnings per share is based on the after tax
adjusted operating loss after adding back certain costs as detailed in the
table below. Adjusted earnings per share figures are given to exclude the
effects of share-based payments and exceptional items, all net of taxation,
and are considered to show the underlying performance of the Group.
The adjusted basic earnings per share is calculated by dividing the adjusted
profit/(loss) after tax for the year by the weighted average number of
ordinary shares in issue during the period.
Year to Year to
31 May 2025 31 May 2024
£'000 £'000
Profit/(loss) for the period 1,397 (2,453)
Share based payments (including associated taxes) 884 80
Exceptional items - (502)
Impairment of intangible - 4,315
Tax effect of the above (221) (20)
Adjusted profit after tax for the year 2,060 1,420
Weighted average number of ordinary shares in issue for the year ('000) 149,287 149,287
Effect of dilutive potential ordinary shares from share options 10,185 5,409
Weighted average number of ordinary shares for the purposes of diluted 159,472 154,696
earnings per share ('000)
Adjusted Basic earnings per share 1.38p 0.95p
Adjusted diluted earnings per share 1.29p 0.92p
12. Intangible assets
Intangible assets relate to development activities to develop new software
products (IP) to improve existing and/or create new products. All intangible
assets have an identifiable future economic benefit to the Group at the point
the costs are incurred.
Technology Platforms Capability IP £'000 Total
£'000 £'000
Cost
At 1 June 2023 2,496 2,517 5,013
Additions 1,257 - 1,257
At 31 May 2024 3,753 2,517 6,270
Additions - - -
At 31 May 2025 3,753 2,517 6,270
Amortisation and Impairment
At 1 June 2023 - - -
Charge for period 275 560 835
Impairment 3,478 837 4,315
At 31 May 2024 3,753 1,397 5,150
Charge for period - 560 560
At 31 May 2025 3,753 1,957 5,710
Net book value
At 31 May 2024 - 1,120 1,120
At 31 May 2025 - 560 560
Up until the end of FY24 the Group capitalised costs relating to the creation
of certain intellectual property assets. The Group classified two types of
intellectual properties: Technology Platforms and Capability IP.
Capability IP comprises six Cash Generating Units ("CGUs") based around some
of the core capabilities of the Group such as Data & AI, and
Transformation. Amortisation of all Capability IP CGUs commenced in June
2023 over a useful life of three years, ending on 31 May 2026.
Technology Platforms comprised five CGUs and related to investments in SaaS
products. Amortisation of four of the CGUs commenced in June 2023 as
commercialisation of the products began and were amortised over five years.
Impairment tests conducted in FY24 led to a £4.3m impairment of all
Technology Platforms and Academy assets.
At 31 May 2025, the directors performed a review of each CGU to identify
potential impairment triggers in accordance with IAS36. No impairment triggers
were identified.
In addition management undertook an impairment review to assess the value in
use of the six Capability IP CGUs which all had a remaining estimated useful
economic life of one year ending 31 May 2026. The assumptions used in the
review which include WACC and revenue growth rates were analysed for different
sensitivities and in all scenarios no impairment was indicated. The
assumptions used in the impairment review are subjective and provide key
sources of estimation uncertainty, specifically in relation to growth
assumptions, future cash flows and the determination of discount rates. The
actual results may vary and accordingly may cause adjustments to the Group's
valuation in future years. Sensitivity analyses performed in the impairment
review indicate sufficient headroom in the event of reasonably possible
changes in key assumptions.
In FY25 research and development was expensed as incurred during the year for
a total of £301,337.
13. Tangible assets
Furniture, fittings and equipment
Land and buildings £'000 Right-of-use assets
£'000 £'000 Total
£'000
Cost
At 1 June 2023 33 839 766 1,638
Additions 5 84 - 89
Disposals - (53) (766) (819)
At 31 May 2024 38 870 - 908
Additions - 139 1,206 1,345
Disposals (38) (26) - (64)
At 31 May 2025 - 983 1,206 2,189
Depreciation
As at 1 June 2023 24 480 635 1,139
Charge for period 3 243 131 377
Eliminated on disposal - (45) (766) (811)
At 31 May 2024 27 678 - 705
Charge for period 3 156 154 313
Eliminated on disposal (30) (22) - (52)
At 31 May 2025 - 812 154 966
Net book value
At 31 May 2024 11 192 - 203
At 31 May 2025 - 171 1,052 1,223
14. Trade and other receivables
Year to Year to
31 May 2025 31 May 2024
£'000 £'000
Trade receivables - gross 5,443 4,429
Less: provision for impairment - -
Trade receivables - net 5,443 4,429
Other receivables 1,529 2,233
Total trade and other receivables 6,972 6,662
The Company has adopted the IFRS 9 simplified approach to measuring expected
credit losses using a lifetime expected credit loss provision for trade
receivables.
The historical loss rates are adjusted for current and forward‑looking
information on macroeconomic and other factors affecting the Company's
customers.
The Company has experienced no credit losses in its history and, because its
ultimate customer is substantially the UK Government, it does not believe it
will do so in the future. As a result, the Company has not made a provision
based on expected credit loss.
Trade receivable and other receivables (includes accrued revenue amounting to
£0.8m (FY24: £1.3m) have not been discounted as they are short-term debts.
15. Trade and other payables
Year to Year to
31 May 2025 31 May 2024
£'000 £'000
Trade payables 589 356
Accruals 1,640 1,469
Tax and social security 1,213 623
Other payables 357 646
Total trade and other payables 3,799 3,094
16. Leases
The Company leases office premises. Under IFRS 16, where appropriate, these
leases have been classified as a right-of-use asset. The lease liability is
included within tangible assets on the statement of financial position. There
are no other long-term leased assets.
Right-of-use assets Year to Year to
31 May 2025 31 May 2024
£'000 £'000
Balance as at 1 June - 131
Additions 1,206 -
Depreciation charge for year (154) (131)
Balance at 31 May 1,052 -
Lease liability
Maturity analysis - contractual discounted cash flows
Less than one year 461 -
One to five years 692 -
Total lease liabilities at 31 May 1,153 -
Lease liabilities included in the statement of financial position:
Current 457 -
Non-current 630 -
Amounts recognised in the Consolidated income statement
The Consolidated income statement shows the following amounts relating to
leases:
Year to Year to
31 May 2025 31 May 2024
£'000 £'000
Interest paid on lease liability 9 2
Any expense for short-term and low value leases is not material and has not
been presented.
17. Analysis of net cash/(debt)
Lease liabilities
Cash £'000 Total
£'000 £'000
At 1 June 2023 8,474 (140) 8,334
Operating cash flow 778 - 778
Investment and financing movements (1,604) - (1,604)
Payment of lease liabilities - 140 140
At 31 May 2024 7,648 - 7,648
Operating cash flow 3,065 - 3,065
Investment and financing movements (298) - (298)
Lease liability - (1,206) (1,206)
Interest on lease liability - (9) (9)
Payment of lease liabilities - 128 128
At 31 May 2025 10,415 (1,087) 9,328
For the purposes of the statement of cash flows, cash and cash equivalents
comprise cash held by the Group and short-term bank deposits with an original
maturity of three months or less. Lease liabilities reflect commitments
arising under IFRS16.
18. Deferred tax
Deferred tax liabilities are analysed as follows.
Year to Year to
31 May 2025 31 May 2024
£'000 £'000
Accelerated capital allowances (50) (50)
Share-based payment expenses 254 -
Total deferred tax 204 (50)
Changes during each year are as follows:
Accelerated capital allowances Share-based payment expenses Total
£'000 £'000 £'000
Balance at 1 June 2023 (92) - (92)
Tax credit in respect of current year 42 - 42
Balance at 31 May 2024 (50) - (50)
Tax credit in respect of current year - 254 254
Balance at 31 May 2025 (50) 254 204
19. Share-based payments
In the year ended 31 May 2025 the Group recognised total expenses of £884,248
(FY24: £80,463) in respect of equity‑settled share-based payment awards
under IFRS 2 Share-based Payment.
Details of the maximum number of ordinary shares which may be issued in future
periods in respect of Long Term Incentive Plan ('LTIP'), Restricted Share
('RSA') and Save-as-you-Earn ('SAYE') awards outstanding at 31 May 2025 are
shown below:
LTIP RSAs SAYE Number of shares Total Number of shares
Number of shares Number
of shares
At 1 June 2024 3,106,363 2,302,761 - 5,409,124
Granted 4,947,416 371,134 1,258,445 6,576,995
Forfeited - (114,538) - (114,538)
Exercised (107,815) (753,647) - (861,462)
At 31 May 2025 7,945,964 1,805,710 1,258,445 11,010,119
Details of share awards granted in the year ended 31 May 2025 are set out
below.
LTIPs FY25* LTIPs FY25* LTIPs FY25** SAYE RSAs
01 June 2024 01 June 2024 01 June 2024 22 November 2024 08 January 2025
Awards 2,754,083 1,500,000 693,333 1,258,445 371,134
Performance criteria Absolute TSR, EPS and eNPS Absolute TSR, EPS and eNPS Revenue and account margin n/a n/a
Share price at grant date (pence) 16 16 16 22 24
Exercise price (pence) 0 0 0 17 0
Expected volatility 40.67% 42.41% n/a n/a n/a
Expected life (years) 3 4 1,2,3 1,2,3 1,2,3
Expected dividend yield 0% 0% 0% n/a 0%
Risk-free interest rate 4.55% 4.45% n/a n/a n/a
Fair value (pence) - holding period 9 n/a 15 n/a 23
Fair value (pence) - no holding period 10 (TSR) / 16 (EPS) 10 (TSR) / 16 (EPS) 16 9 25
FY25 LTIPs
Unapproved LTIP awards were granted to senior executives of the Group and are
subject to challenging performance targets as summarised below.
*The vesting of these LTIP awards is subject to the Group achieving the
following performance targets:
Performance conditions Weighting Performance targets
Absolute TSR performance 50% TSR growth over a 3 or 4 year period from 31/05/2024 subject to a minimum CAGR
of 25%
EPS 50% Growth in EPS over a 3 year period from the financial year 31/05/2024 subject
to a minimum CAGR of 15%
**The vesting of these LTIP awards is subject to the Group achieving the
following performance targets:
Performance conditions Weighting Performance targets
Revenue and account margin 100% Revenue growth subject to minimum CAGR of 10% to 20%, and minimum account
margin over a 3 year period from 31/05/2024
SAYE
A contributory share option scheme with an option price of 16.7 pence made
available to all eligible employees. The options have a contract start date
of 1 January 2025 and are exercisable from 1 January 2028.
RSAs
Vesting is based on continued service only. As such, the IFRS 2 Share-based
Payment fair value of each award granted was equal to the face value of
awards.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END FR PKNBPCBKDNCBRecent news on Made Tech
See all newsREG - Made Tech Group PLC - Final Results
AnnouncementREG - Made Tech Group PLC - Holding(s) in Company
AnnouncementREG - Made Tech Group PLC - Appointment of Nominated Adviser and Sole Broker
AnnouncementREG - Made Tech Group PLC - Grant of Awards / PDMR Dealings
AnnouncementREG - Made Tech Group PLC - Directorate Change
Announcement