REG - Made Tech Group PLC - Half Year Results
05/02/2025 07:00
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RNS Number : 9220V Made Tech Group PLC 05 February 2025
5 February 2025
MADE TECH GROUP PLC
("Made Tech" or the "Group")
Interim Results for the six months ended 30 November 2024
Strong trading performance ahead of recently upgraded expectations
Made Tech Group Plc, a leading provider of digital, data, and technology
services to the UK public sector, is pleased to announce its unaudited half
year results for the six months ended 30 November 2024 ("H1 FY25" and the
"Period").
Financial highlights
H1 FY25 H1 FY24 Change FY24
Revenue £21.8m £19.1m +14% £38.6m
Gross Profit(1) £7.8m £6.7m +16% £13.2m
Gross Profit Margin(1) 35.8% 35.1% 34.2%
Adjusted EBITDA(2) £1.8m £1.4m +29% £2.4m
Adjusted EBITDA Margin 8.2% 7.3% 6.2%
Statutory Profit/(loss) before Tax £0.4m (£1.0m) +140% (£3.0m)
Adjusted Profit before Tax(3) £1.5m £0.7m +110% £1.4m
Sales Bookings(4) £42.0m £12.6m +233% £36.0m
Contracted Backlog(5) £80.8m £56.3m +44% £60.6m
Net Cash £9.1m £7.9m +15% £7.6m
Strategic and Operational highlights
● Revenue up 14% at £21.8m (H1 FY24: £19.1m) which is now expected to be ahead
of recently upgraded market expectations(6) and sales bookings of £42.0m up
233% (H1 FY24: £12.6m)
● Adjusted EBITDA up 29% to £1.8m (H1 FY24: £1.4m) with Adjusted EBITDA margin
increasing to 8.2% (H1 FY24: 7.3%); FY25 Adjusted EBITDA now expected to be
ahead of recently upgraded market expectations
● Robust balance sheet with £9.1m of net cash (FY24: £7.6m)
● Strategic drive by Government, outlined in the recent Budget, to use
technology to transform public services in an agile and cost-effective manner
means that Made Tech is well placed to deliver long term growth
● Client retention remains strong, with the Group retaining all its clients in
the Period, expanding remits and securing renewals
Current Trading and Outlook
● Strong trading performance expected for FY25 underpinned by £80.8m Contracted
Backlog, with the Group on track to achieve double-digit percentage annual
revenue growth for FY25 and free cash flow positive for the year
● A strong sales pipeline, active bids, and Government stated priorities
indicate a positive outlook for FY26 and beyond
● Structural growth drivers for the market remain strong and the board looks to
the future with confidence
Rory MacDonald, CEO of Made Tech, said:
"It is a pleasure to announce these results to shareholders. This improving
performance is a direct result of the investment we have made into our
commercial operations and processes over the last two years. We are on track
to deliver positive free cash flow and double-digit revenue growth in FY25 and
the business is in great shape to benefit from new public sector
digitalisation programmes, which are expected to be announced in the UK
Government Spending Review in the Spring.
"The structural growth drivers for our market remain strong and the board and
I are increasingly confident in the outlook for the business in FY26 and
beyond."
Notes:
All financials are based on unaudited figures.
(1) H1 FY24 and FY24 Gross Profit and Gross Margin restated to include the full
cost of delivery consultants in line with revised accounting policy applied in
FY25 (see details in Chief Financial Officer's Review)
(2) Adjusted EBITDA has been adjusted for the exclusion of depreciation,
amortisation, impairments, exceptional items and share based payment charge
(3) Adjusted profit before tax means profit before tax, 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 FY25-FY28
(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 2025 (FY25) to be revenue of
£38.0m and Adjusted EBITDA of £2.8m, and for the year ended 31 May 2026
(FY26) to be revenue of £40.0m and Adjusted EBITDA of £3.0m
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 Tel: +44 (0) 7715 769078
Cat Valentine madetech@rfpr.co.uk
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/)
CHIEF EXECUTIVE OFFICER'S REVIEW
I am pleased to present our interim results for the six months ended 30
November 2024. During the Period, revenue increased by 14% to £21.8 million
(H1 FY24: £19.1 million), while adjusted EBITDA grew by 29% to £1.8 million
(H1 FY24: £1.4 million). Our cash balance at the end of November stood at
£9.1 million, reflecting a 15% increase from £7.9 million in H1 FY24 (FY24:
£7.6m), driven by a strong cash-flow performance. We generated £1.7m of free
cash-flow in H1, marking significant progress against our stated ambition to
generate positive free cash-flow by the FY25 year end.
Sales Bookings reached £42.0 million (H1 FY24: £12.6 million), driven by our
largest single contract award from the Department for Education, Standards and
Testing Agency for £13.2m (over 4 years). Additionally, our Contracted
Backlog expanded by 44% to £80.8 million (H1 FY24: £56.3 million).
The investment that we have made in our commercial operations and new
processes that we have put in place over the past two years have enabled us to
deliver this strong revenue, Adjusted EBITDA, and Sales Booking growth, as
well as return to operating cash generation and an increased contracted order
book. This highlights our ability to deliver returns for shareholders while
positioning Made Tech for continued growth in both the near and longer term.
Market Opportunity
We remain focused on the UK public sector technology market, which is
substantial, with around £18 billion being spent annually across central
government, health, defence, police, local authorities, and education.
Although overall market growth is around 2.5%, the areas we serve are
expanding more rapidly at approximately 15% per annum. This equates to an
estimated £3 billion addressable market for Made Tech in the UK.
Historically, large IT providers have dominated this market. However,
high-profile IT failures, such as the NHS National Programme for IT and the
Horizon scandal, have led to a shift towards smaller, more agile providers.
This shift aligns with Made Tech's positioning and offerings within the
market.
Technology's potential to drive efficiency, reduce costs, and enhance public
services remains central to Government digital transformation initiatives.
This month, the new Procurement Act will come into effect. This legislation,
which followed the UK's exit from the EU, grants the Government greater
flexibility over procurement processes, allowing it to prioritise domestic
suppliers and refine criteria for contract awards. As a UK-based technology
provider with deep public sector expertise and a proven track record, we
expect to benefit from these changes, which strengthen our competitive
position.
Although a general election was widely expected in autumn 2024, it was called
in May, earlier than anticipated. While this caused a brief period of
instability, it reduced uncertainty for our clients and allowed us to
accelerate certain operational plans. With the new Government now in power, we
have seen some decision-making processes elongate and programmes paused to
reflect new policy directions. However, these challenges were expected and,
overall, the environment remains stable. The new Government's focus on
technology, to achieve its five key missions, signals sustained demand for
digital technology.
The Autumn Budget outlined the Government's priorities and reinforced the role
that technology will play in delivering its agenda. With the Spring Budget
approaching, we expect further clarity on these priorities. While budget
constraints are likely, many of our public sector clients have indicated that
technology is a key focus in their submissions to the Treasury, suggesting a
positive outlook for technology investment.
Artificial Intelligence ('AI') remains a key topic across society and
government, offering significant potential for driving better public services;
from improved healthcare diagnostics to more efficient administration. The
successful application of AI depends on reliable data and solid
infrastructure, areas in which Made Tech has expertise. We anticipate that AI
will drive the next wave of digital transformation and bring changes in how
the government operates. We have been taking active steps to ensure that our
organisation is equipped to take advantage of the opportunities offered by AI
as well as mitigating against the potential challenges.
We note the recent supplier consolidation in the technology services market,
particularly among smaller firms. While some have exited the market or merged,
Made Tech continues to stand out as a strong independent entity with a clearly
defined market proposition. We believe our independence differentiates us and
will enable us to capture increasing market share.
Overall, the market dynamics remain encouraging, presenting a significant
opportunity for the years ahead. With a proven track record of delivering
value, speed, and reliability, Made Tech continues to be a trusted partner in
supporting our clients' evolving needs.
Clients
We continue to maintain very strong customer retention. All key customers were
retained during the Period with the Group securing several successful renewals
and expansions of remits. This ongoing loyalty from our clients reflects the
high quality of service that we provide and the trust that we have built with
them.
We are seeing a clear trend of contract durations and sizes increasing,
indicating a growing confidence in our ability to deliver long-term value.
Notably, we have secured several wins within the criminal justice system,
further strengthening our position in this important sector.
We are particularly delighted to have won the Department for Education (DfE)
Standards and Testing Agency (STA) contract, which is a significant milestone
for us. This win not only diversifies our revenue streams but also shows our
ability to deliver a national scale programme of work that will have a lasting
impact on public services.
We are not always successful and were disappointed not to win a place on the
new Digital Capability for Health 2 framework. However, we can see further
opportunities to expand our footprint in the health sector, as we see it as an
important growth market over the coming years.
Our latest Customer Satisfaction (CSAT) score was 92%, providing us with
valuable insights into how we can improve and further develop the strategic
nature of our relationships with our clients. We are committed to
continually enhancing the customer experience and deepening our partnerships.
We have also bid on several contracts in partnership with other organisations,
expanding into new areas in which we have identified strong potential for
growth. These collaborative efforts not only broaden our reach but also
strengthen our capabilities as we seek to diversify and expand our portfolio
and increase the range of commercial partners we work alongside.
Software
Our software product business is a crucial component of how we deliver on our
mission to use technology to improve public services. We recognise that some
of our clients' challenges are best addressed through Software-as-a-Service
('SaaS') solutions rather than bespoke services. In sectors such as local
government, policing, and parts of the NHS, many problems are replicated
across numerous bodies, and thus better addressed with a scalable SaaS
solution.
Our primary focus here is local government, where we are leveraging insights
shared by clients to better understand and address the specific needs of this
sector. While we are currently seeing a slower sales cycle with our existing
product than initially expected, once deployed, we have found strong advocacy
among clients, which has led to valuable upsell and cross-sell opportunities.
This demonstrates the inherent potential for expansion within existing
accounts.
We are still in the very early commercialisation phase of our software
business, working to prove the commercial model and scale its impact across
key public sector areas. It represents an exciting growth opportunity for Made
Tech, both organically and through acquisition. In the medium to long term,
we expect that our software products business will become an increasingly
important area of focus.
People
Overall staff numbers, excluding contractors, have remained relatively stable
at 346 during the Period, with a rise in the percentage of contractors as a
proportion of delivery consultants from approximately 6% in H1 last financial
year to around 18% at the end of H1 this year. This increase was partly due to
the anticipated volatility surrounding the General Election and, in part, to
support the delivery of recent bid wins. While this approach has allowed
flexibility, we aim to reduce contractor numbers to no more than 10% of the
workforce over the next 18 months, as we grow our operations and maintain
efficiency.
Our employee retention rate currently stands at 80%, which is in line with
industry averages.
We are committed to creating an environment in which employees can thrive and
do their best work. We believe that a supportive and empowering culture is key
to driving success. We invest significantly in learning and development,
helping our team stay ahead in a rapidly changing industry while driving
innovation.
We place strong emphasis on hybrid and flexible working. By offering
flexibility, we empower our team to work in ways that suit them and our
clients, enhancing their ability to contribute whilst maintaining
productivity. To align the interests of employees, shareholders, and clients,
we launched our Sharesave scheme in October. This initiative strengthens our
shared commitment to the long-term success of the organisation and reinforces
our collaborative culture.
We are committed to creating an environment that continuously improves. We
recognise the need to adapt to the evolving needs of our people and the
challenges and opportunities in our industry. This focus on improvement is
central to our culture, fostering an environment where innovation, creativity,
and collaboration thrive.
A key aspect of this commitment is our People Forum, a mechanism for gathering
feedback from employees. The forum serves as a platform for staff to share
insights and ideas, which inform decisions made by the executive team and the
board. This communication ensures that we stay connected to the needs and
aspirations of our people and make informed decisions that drive both
individual and organisational growth.
We are pleased to see improvement in our employee satisfaction scores,
indicating that the actions we have taken to enhance the workplace are having
a positive impact. While progress is encouraging, there is always more to do.
Employee satisfaction is an ongoing journey, and we remain focused on
identifying areas for development to ensure we continue to provide a
supportive and fulfilling environment.
As part of our strategy to nurture talent and promote diversity, we are proud
to be an approved apprenticeship training provider. This allows us to offer
training and development opportunities to early talent, contributing to the
growth of the next generation of skilled professionals. Our apprenticeship
programme demonstrates our commitment to high-quality training and our broader
responsibility within the educational ecosystem. This initiative contributes
to the development of future talent and supports our Environmental, Social,
and Governance ('ESG') strategy, fostering a diverse workforce and making a
positive societal impact.
The Board
As previously announced, we welcome Stephen Lake to the board as a
Non-Executive Director and thank Phil Pavitt for his dedicated service.
Stephen brings valuable experience in product, service, and government, and we
are confident he will play an important role in the continued growth and
success of the organisation.
Summary and Outlook
Our strong performance in the first half has carried through into the second
half of the year to date. We are on track to achieve double-digit percentage
annual revenue growth for FY25 and Adjusted EBITDA growth ahead of recently
upgraded expectations, and we remain firmly on track to be free cash flow
positive for the year.
Since the end of the Period, bid activity has remained buoyant and we remain
confident of further contract wins in the near term, further strengthening our
pipeline and supporting our growth trajectory. We expect sales momentum to
continue putting us in a strong position heading into FY26. With good
tailwinds supporting our strategy, Made Tech is well placed for continued
growth. Our strong balance sheet and growing net cash position also afford us
optionality when assessing organic investment or potential acquisitions.
I would like to express my thanks to both our clients and colleagues, who have
contributed to this success. We are looking forward to our Capital Markets
Day later this year, where we will provide more detailed updates on our
ambitions, strategy and performance.
Rory MacDonald
Chief Executive Officer
CHIEF FINANCIAL OFFICER'S REVIEW
The unaudited half year results for the six months ended 30 November 2024 show
solid growth in sales, revenue, profitability and cash generation.
H1 2025 H1 2024 Change
Revenue £21.8m £19.1m +14%
Adjusted EBITDA £1.8m £1.4m +29%
Operating Profit/(Loss) £0.3m (£1.1m) +127%
Adjusted Profit before tax £1.5m £0.7m +110%
Basic Earnings per Share (pence) 0.16 (0.62)
Adjusted Diluted Earnings per Share (pence) 0.66 (0.18)
Revenue and Sales Bookings
Revenue for the Period of £21.8m (H1 FY24: £19.1m) was 14% up compared to
the same period in the prior year as we saw activity build during the half
year.
Sales bookings of £42.0m in the Period (H1 FY24: £12.6m) were 233% up
against a particularly weak prior year performance and exceeded total bookings
for the whole of FY24 of £36.0m. This strong performance has resulted in a
Contracted Backlog, representing the value of contracted revenue that has yet
to be recognised, of £80.8m, up from £60.6m at the end of FY24. Bid
activity remains particularly robust, and this combined with the healthy order
book, positions the Group well for the period ahead. It is worth noting that
as the substantial majority of contracted revenue is delivered on a time and
material basis and with the majority of public holidays and annual leave
falling in the second half of the year, we would expect revenue and margins to
be lower in H2 on a like-for-like basis. Notwithstanding this effect, the
strength of our revenue performance is such that we now expect the FY25
outcome to be ahead of recent upgraded current market expectations for both
revenue and Adjusted EBITDA.
Gross Profit and Adjusted EBITDA
Gross Profit increased to £7.8m, up from £6.7m in H1 FY24, and Gross Margins
improved from 35.1% in H1 FY24 to 35.8% in H1 FY25 on a like-for-like basis.
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 H1 FY24 Gross Profit and
Margins were £7.1m and 37.1% (restated as £6.7m and 35.1%) and FY24 were
£14.0m and 36.3% (restated as £13.2m and 34.2%).
During the Period the business has seen a further improvement in consultant
utilisation resulting in an increase in like-for-like margins. This has in
part been offset 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 in the run-up to
the UK General Election. The average contractor to employee ratio in H1 FY25
was 9%, up from 6% in H1 FY24. We expect this ratio to peak towards the end
of FY25 before reducing to our target level of c.10% by the end of FY26.
Adjusted EBITDA of £1.8m and margin of 8.2% in the first half was ahead of H1
FY24 (EBITDA of £1.4m; 7.3% margin). Adjusted EBITDA represents operating
profit before depreciation, amortisation, impairment of intangible assets,
share-based payment charges and exceptional items.
Total headcount, including contractors, increased to 426 people (H1 FY24:
388). Administrative expenses increased from £5.4m in H1 FY24 to £6.0m in H1
FY25 as the business realised further operational efficiencies whilst at the
same time investing in the commercial and sales operation to help drive top
line growth.
Operating profit of £0.3m in the Period represents a significant turnaround
from the loss of £1.1m in the same period last year. Operating profit is
stated after share-based payments, depreciation, amortisation of intangibles,
impairments and exceptional items.
Share-based payments
The share-based payments charge for the Period under IFRS2 'Share-based
payments' was £1.0m (H1 FY24: £0.5m). This charge relates to awards made
under the Long Term Incentive Plan (LTIP), the Group Restricted Share Plan
('RSP') and the Save As You Earn ('SAYE') scheme. The SAYE scheme allows all
employees to participate in the growth journey of the business, and was
launched in October 2024 resulting in 38% of all staff participating. LTIP
awards are based on demanding performance criteria that align senior
management with shareholders.
Depreciation, amortisation and exceptional costs
The depreciation charge on tangible assets reduced to £0.1m (H1 FY24: £0.2m)
and amortisation of intangible assets reduced to £0.3m (H1 FY24: £0.6m).
Management anticipates a moderate increase in capital expenditure over the
forthcoming period as it invests in new IT equipment. Intangible assets
comprise historic investment in Capability IP. All R&D costs in the
Period, including investment in technology platforms, were charged to the
income statement.
There were no exceptional costs (H1 FY24: £0.3m) or impairment charges during
the Period (H1 FY24: £0.9m).
Earnings per Share ('EPS')
Adjusted diluted EPS increased to 0.66 pence (H1 FY24: 0.18 pence), driven
primarily by an increase in underlying operating profit. This was partially
offset by the higher number of weighted average number of diluted shares,
resulting from new performance based LTIPs granted in the year and the launch
of a Group SAYE scheme. No new shares were issued during the Period.
On a statutory basis, basic EPS increased to 0.16 pence, and diluted EPS
increased to 0.15 pence, up from a loss of 0.62 pence in H1 FY24.
Balance Sheet and Cash Flow
The Group is debt free and has a strong balance sheet with cash increasing by
£1.5m during the Period to £9.1m (FY24: £7.6m) / H1 FY24: £7.9m). This
strong net cash position gives us optionality when considering organic and
inorganic investment. Cash generated from operations in the Period was £1.6m
(H1 FY24: £0.4m). The Company invested £0.2m (H1 FY24: nil) in an Employee
Benefit Trust ('EBT') for the settlement of future share options. As a
result the EBT holds 2.4% of the issued share capital of the Company.
Debtor days have increased to 53 (H1 FY24: 45) primarily as a result of
client-side delays in processing payments; management continues to work with
clients to resolve this. Given that the UK Government is the primary
counterparty, management does not foresee a risk of default.
The Board anticipates that during FY25 the Group will continue to generate
positive free cash flow.
Neil Elton
Chief Financial Officer
Consolidated statement of comprehensive income
6 months to 6 months to 12 months to
30 November 2024 30 November 2023 31 May 2024
£'000 £'000 £'000
Unaudited Unaudited Audited
Revenue 21,752 19,134 38,568
Cost of Sales (13,967) (12,421) (25,378)
Gross Profit(1) 7,785 6,713 13,190
Administrative expense (5,993) (5,352) (10,866)
Share-based payments (1,027) (481) (80)
Depreciation and Amortisation (431) (784) (1,212)
Impairment of Intangible Assets - (884) (4,315)
Exceptional items - (314) -
Other income - 15 52
Operating Profit/(loss) 334 (1,087) (3,231)
Finance Expense 116 112 234
Profit/(loss) before tax 450 (975) (2,997)
Taxation (215) - 544
Profit/(loss) after tax 235 (975) (2,453)
(1) H1 FY24 and FY24 Gross Profit and Gross Margin restated in line with revised
accounting policy applied in FY25 (see details in Chief Financial Officer's
Review)
Consolidated statement of financial position
30 November 2024 30 November 2023 31 May 2024
£'000 £'000 £'000
Unaudited Unaudited Audited
Assets
Non-current assets
Intangible assets 840 4,504 1,120
Property, plant, and equipment 258 312 203
Total non-current assets 1,098 4,816 1,323
Current assets
Trade and other receivables 8,087 7,288 6,662
Cash and cash equivalents 9,107 7,878 7,648
17,194 15,166 14,310
Total assets 18,292 19,982 15,633
Current Liabilities
Trade and other payables 4,575 5,126 3,094
Loans and borrowings 143 47 -
Total current liabilities 4,718 5,173 3,094
Non-current Liabilities
Loans and borrowings - - -
Deferred tax liability 50 92 50
Total non-current liabilities 50 92 50
Total Liabilities 4,768 5,265 3,144
Net assets 13,524 14,717 12,489
EQUITY
Share capital 75 75 75
Share premium 13,421 13,421 13,421
Share-based payment reserve 4,929 4,879 4,129
Capital redemption reserve 12 12 12
Retained deficit (4,913) (3,670) (5,148)
Total equity 13,524 14,717 12,489
Consolidated statement of changes in equity
Share-based payment reserve Deferred Share reserve Capital redemption reserve £'000
Share Capital Share Premium £'000 £'000 Retained Earnings
£'000 £'000 £'000 Total
£'000
Balance at 01 June 2023 75 13,421 4,398 - 12 (2,695) 15,211
Loss for the period - - - - - (975) (975)
Share-based payments charge - - 481 - - - 481
Total Transactions with equity owners - - 481 - - (975) (494)
Balance at 30 November 2023 75 13,421 4,879 - 12 (3,670) 14,717
Loss for the period - - - - - (1,478) (1,478)
Share-based payments charge - - (750) - - - (750)
Total Transactions with equity owners - - (750) - - (1,478) (2,228)
Balance at 31 May 2024 75 13,421 4,129 - 12 (5,148) 12,489
Profit for the period - - - - - 235 235
Purchase of equity shares (200) (200)
Share-based payments charge - - 1,000 - - - 1,000
Total Transactions with equity owners - - 800 - - 235 1,035
Balance at 30 November 2024 75 13,421 4,929 - 12 (4,913) 13,524
Consolidated statement of cash flow
6 months to 6 months to 12 months to
30 November 2024 30 November 2023 31 May 2024
£'000 £'000 £'000
Unaudited Unaudited Audited
Cash flows from operating activities:
Profit /(loss) after tax 235 (975) (2,453)
Share-based payment charge 1,000 481 80
Tax charge/(credit) 215 - (42)
Finance income (116) (112) (234)
Loss on disposal of property, plant, and equipment - 7 8
Depreciation and Amortisation 431 784 1,212
Impairment of Intangible Assets - 884 4,315
Increase in trade and other receivables (1,425) (1,095) (469)
Increase/(decrease) in trade and other payables 1,268 390 (1,639)
Cash generated by operations 1,608 364 778
Income taxes (paid)/received - - -
Net cash flows from operating activities 1,608 364 778
Investing activities
Purchase of property, plant, and equipment (9) (17) (89)
Addition of intangible assets - (962) (1,257)
Interest and other fees received 121 122 248
Net cash used by investing activities 112 (857) (1,098)
Financing activities
Purchase of equity shares (200) - (349)
Interest paid (2) - (12)
Repayment of lease liability (56) (94) (143)
Interest paid on lease liability (3) (9) (2)
Net cash used by financing (261) (103) (506)
Net increase/(decrease) in cash and cash equivalents 1,459 (596) (826)
Cash and cash equivalents at beginning of Period 7,648 8,474 8,474
Cash and cash equivalents at end of Period 9,107 7,878 7,648
Notes
1. General information
Made Tech Group Plc is a company incorporated on 13 September 2019 and
domiciled in England and Wales, registration number 12204805. The Company's
registered office is 4 O'Meara Street, Southwark, London, SE1 1TE. The
Company's shares are traded on AIM, a market operated by the London Stock
Exchange.
The interim financial information is unaudited.
2. Basis of preparation
The unaudited condensed consolidated interim financial information has been
prepared in accordance with IAS 34 Interim Financial Reporting. They do not
include all disclosures that would otherwise be required in a complete set of
financial statements and should be read in conjunction with the 2024 annual
report.
The interim results for the six months to 30 November 2024 are unaudited and
do not therefore constitute statutory accounts in accordance with Section 434
of the Companies Act 2006.
Statutory accounts for the year ended 31 May 2024 have been filed with the
Registrar of Companies and the auditor's report was unqualified, did not
contain any statement under Section 498(2) or 498(3) of the Companies Act 2006
and did not contain any matters to which the auditors drew attention without
qualifying their report.
3. Basis of consolidation
The consolidated financial information comprises Made Tech Group Plc and its
subsidiary Made Tech Limited and Made Tech Learning Limited. Subsidiaries are
consolidated from the date of acquisition being the date on which the Group
obtains control.
4. Accounting policies
The accounting policies used in the preparation of the interim consolidated
financial information for the six months ended 30 November 2024 are in
accordance with the recognition and measurement criteria of IFRS and are
consistent with those which were adopted in the annual financial statements
for the year ended 31 May 2024.
5. Earnings per Share
Basic earnings per share is calculated by dividing the profit attributable to
ordinary shareholders of the parent company by the weighted average number of
ordinary shares in issue during the period.
To arrive at the adjusted diluted share number, the Directors have calculated
an adjusted share number by taking the weighted average basic shares and
included the maximum shares to be issued in respect of contingent
consideration to be paid based on performance measures met in the period,
together with the maximum share options outstanding.
H1 FY25 H1 FY24 FY24
'000 '000 '000
Weighted average basic shares for the purposes of basic earnings per share 149,287 149,287 149,287
Effect of dilutive potential ordinary shares from share options in issue 11,250 7,494 5,409
Weighted average number of diluted shares for the purpose of diluted earnings 160,537 156,781 154,696
per share
Basic earnings per share (pence) 0.16 (0.62) (1.64)
Diluted earnings per share (pence) 0.15 (0.62) (1.64)
Adjusted basic earnings per share (pence) 0.71 0.19 0.95
Adjusted diluted earnings per share (pence) 0.66 0.18 0.92
6. Reconciliation to adjusted EBITDA
H1 FY25 H1 FY24 FY24
£'000 £'000 £'000
Operating profit/(loss) 334 (1,087) (3,231)
Add back Depreciation and Amortisation 431 784 1,212
Add back Impairment of Intangible Assets - 884 4,315
Add back Share-based payment expense 1,027 481 80
Add back Exceptional items - 314 -
Adjusted EBITDA 1,792 1,376 2,376
7. Reconciliation to adjusted profit before tax
H1 FY25 H1 FY24 FY24
£'000 £'000 £'000
Profit/(loss) before tax 450 (975) (2,997)
Add back share-based payment expense 1,027 481 80
Add back Impairment of Intangible Assets - 884 4,315
Add back Exceptional items - 314 -
Adjusted profit before tax 1,477 704 1,398
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