REG - Made Tech Group PLC - Full Year Trading Update

Made TechAnnouncement

27/06/2024 07:00

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RNS Number : 0479U  Made Tech Group PLC  27 June 2024

27 June 2024

 

MADE TECH GROUP PLC

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

 

Full Year Trading Update

Trading in line with consensus expectations and cash ahead

 

Made Tech, a leading provider of digital, data and technology services to the
UK public sector, is pleased to announce a trading update for the year ended
31 May 2024 ("FY24").

 

The Board expects to deliver revenue of c.£38.5 million (FY23: £40.2
million), in line with consensus expectations following good momentum in the
second half of the year.

 

Adjusted EBITDA(1) is expected to be c.£2.3 million (FY23: £1.5 million),
slightly ahead of consensus expectations and substantially ahead of the prior
year, representing an increase in margin from 3.8% to 6.0% as a result of
operational efficiencies implemented across the Group.

 

Net cash was £7.6 million (FY23: £8.5 million), materially ahead of
consensus expectations.  This strong performance primarily reflects good cash
collection in the second half of the year and a reduction in capitalised
R&D spend as the Company focuses on the early commercialisation of its
SaaS portfolio of products.  Made Tech remains debt free.

 

During the year, Made Tech won £36.0 million in new Sales Bookings(2) (FY23:
£69.9 million) in a challenging procurement market, including a two year
£19.5 million contract with The Department for Levelling Up, Housing &
Communities and a 12 month extension option.  Work has already commenced
under this contract.  The Contracted Backlog(3) remains strong at c.£65.4
million (FY23: £67.9 million).

 

FY25 has started positively with c.£11 million in new contracts awarded in
June, including a £7.5 million contract with the Met Office and a further
Department of Health & Social Care award worth £2.3 million, both over
two years. The Company maintains its revenue and profit guidance for FY25,
underpinned by the recent contract wins.  The Board anticipates that the
Group will generate positive cash flow in FY25 and as a result expects the
cash position at the end of FY25 to be further substantially improved.

 

Notice of Results

 

The Group will announce its results for the year ended 31 May 2024 in
September 2024, at which time it will provide further guidance on the year
ahead.

 

 

Rory MacDonald, Chief Executive Officer, commented:

 

"Our financial year FY25 has started strongly, with £11 million in new
contracts awarded within the first month. This adds to the contracted backlog
of £65.4 million at the close of FY24, underpinning our confidence as we
begin the new financial year.

 

The snap General Election announcement was a positive surprise, eliminating
timing uncertainty for our clients and the Group. During this pre-election
period, we are seeing minimal operational impact on our current contracts and
pipeline, with the business continuing to perform well.

 

We are pleased to see the main party manifestos emphasise the significant role
technology will play in delivering their priorities and expect the Group to be
well-positioned to capitalise on the post-election opportunities. We
anticipate this will lead to increased trading momentum for the Group over the
coming years and the beginning of a new wave of growth.

 

I would like to thank our employees for their hard work and dedication, and
our clients for their continued trust and partnership. Together, we are
driving forward and improving public services."

 

 (1)  EBITDA has been adjusted for the exclusion of depreciation, amortisation,
      impairments, exceptional items and share based payment charges
 (2)  Sales Bookings represent the total value of sales contracts awarded in the
      year, to be delivered in FY25-FY28
 (3)  Contracted Backlog is the value of contracted revenue that has yet to be
      recognised
 (4)  FY24 results are subject to audit

 

 Enquiries:

 

 Made Tech Group plc                                      via Belvedere PR

 Rory MacDonald, CEO

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

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

 Cat Valentine                                            Tel: +44 7715 769078

 Keeley Clarke                                            Tel: +44 7967 816525

 

About Made Tech:

 

Made Tech is a provider of digital, data and technology services, which enable
central government, healthcare, local government organisations and other
regulated industries to digitally transform.

 

Made Tech's purpose is to "positively impact the future of society by
improving public services technology". To achieve this the company has four
key strategic missions: Modernise legacy technology and working practices;
Accelerate digital service and technology delivery; Drive better decisions
through data and automation; and Enable technology and delivery skills to
build better systems.

 

The Group operates from four locations across the UK - London, Manchester,
Bristol and Swansea.

 

More information is available at https://investors.madetech.com/
(https://investors.madetech.com/)

 

 

 

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