REG - Made Tech Group PLC - FY25 Trading Update

Made TechAnnouncement

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RNS Number : 4502O  Made Tech Group PLC  26 June 2025

 

26 June 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", the "Group" or the "Company")

 

FULL YEAR TRADING UPDATE

Trading ahead of recently upgraded expectations

 

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 2025 ("FY25").

 

The Board expects to deliver revenue of c.£46.4 million (FY24: £38.6
million), representing an annual increase of c.20% following good momentum in
the second half of the year.  This is ahead of consensus expectations(1)
which were increased at the time of our half year results on 5 February 2025.

 

Adjusted EBITDA(2) is expected to be c.£3.4 million (FY24: £2.4 million),
ahead of consensus expectations and c.42% up on prior year, representing an
increase in margin from 6.2% to c.7.3% as a result of operational
efficiencies, offset by a higher than target contractor base.

 

Net cash was £10.4 million (FY24: £7.6 million), ahead of consensus
expectations, representing a c.37% increase on the prior year.  Made Tech
remains debt free.

 

During FY25, Made Tech won c.£82.1 million in new Sales Bookings(3) (FY24:
£36.0 million), an increase of c.128% against a weak prior year
comparative.  Recent wins included within the FY25 Sales Booking figure
include an £8.4 million three-year contract with the Ministry of Justice's
Legal Aid Agency (LAA) and a number of smaller contracts with clients such the
Department of Health and Social Care.  As a result of this strong sales
performance the Contracted Backlog(4) has increased substantially to c.£92.0
million (FY24: £60.6 million).

 

As a result of the strong momentum, and underpinned by the substantial
Contracted Backlog, the Board now expects trading for FY26 to be ahead of
current market expectations.  The Board is encouraged by the recent
publication of the Spending Review and notes the UK Governments' commitment to
the digital transformation of the public sector. The Board believes that the
Company is well positioned to benefit from this increased investment and
anticipates that the Group will deliver profitable growth and continue to be
free cash flow positive throughout FY26 and FY27.

 

Board Changes

 

After 13 years' service at Made Tech, Chris Blackburn intends to step down
from the Board as an Executive Director with effect from 25 July 2025.
Further details are provided in a separate RNS announcement.

 

Notice of Results

 

The Group will announce its results for the year ended 31 May 2025 in
September 2025.

 

Rory MacDonald, Chief Executive Officer, commented:

 

"I'm pleased with the progress we've made this year, delivering strong revenue
growth, improved profitability and continued free cash flow generation.
Investment in our sales and bid capability is starting to deliver, with a step
change in bookings and a significantly larger Contracted Backlog.

 

The UK Government's renewed focus on digital transformation and data as a
growth asset through the recently announced Spending Review, the State of
Digital Government report, the UK's Modern Industrial Strategy and the
Strategic Defence Review has reinforced a growing long term market opportunity
with clear demand for modern digital technology and the potential for
sustained returns.

 

With a strong balance sheet, significant cash position, tight cost control
measures, and future revenue underpinned by a strong Contracted Backlog, we
believe Made Tech is well placed to continue driving organic growth and to
accelerate progress through targeted inorganic growth opportunities where
appropriate."

 

Notes:

 

 All financials are based on unaudited figures.

 

 (1)  Based on the latest published equity research, the company understands current
      market consensus for the year ended 31 May 2025 (FY25), as at 25 June 2025
      being the day prior to the publication of this announcement, to be revenue of
      £43.0m, Adjusted EBITDA of £3.0m and cash of £9.2m, and for the year ended
      31 May 2026 (FY26) to be revenue of £45.0m, Adjusted EBITDA of £3.4m and
      cash of £10.8m
 (2)  Adjusted EBITDA has been adjusted for the exclusion of depreciation,
      amortisation, impairments, exceptional items and share based payment charge
 (3)  Sales Bookings represent the total value of sales contracts awarded in the
      Period, to be delivered in FY25-FY29
 (4)  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

 

Enquiries:

 

 Made Tech Group plc                                      via Rawlings Financial

 Rory MacDonald, CEO

 Neil Elton, CFO

 Singer Capital Markets (Nominated Adviser & Broker)      Tel: +44 (0) 20 7496 3000

 Jennifer Boorer / Asha Chotai

 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.

 

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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