REG - Made Tech Group PLC - Trading Update and Notice of Interim Results

Made TechAnnouncement

15/12/2021 07:00

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RNS Number : 6603V  Made Tech Group PLC  15 December 2021

 

 

15 December 2021

 

MADE TECH GROUP PLC

("Made Tech" or "the Group")

 

Trading Update and Notice of Interim Results

 

Strong revenue growth and performance in line with expectations

 

Made Tech Group plc, a leading provider of digital, data and technology
services to the UK public sector, today announces a trading update for the
six-month period ended 30 November 2021.

 

Financial Highlights

 

-     Revenue growth of 131% to £11.7m (FY21 H1: £5.1m).

-     Gross profit up 98% to £4.6m (FY21 H1: £2.3m).

-     New contract bookings exceeds £25m, including the award of our
largest ever contract worth £7m.

-     Return to operational profitability, with investment during FY21
unwinding in H1.

 

 

Operational Highlights

 

-     Successful IPO and admission to AIM on 30 September 2021.

-     Significant momentum with hiring post-IPO, with 43 experienced
permanent hires signed in October and November.

-     Sourced our largest Academy intake to date, with training scheduled
to commence in January.

-     Strong growth from our long-term client accounts through new
contracts, extensions, renewals, and the uptake of new service offerings.

-     Double digit percentage increases in billable utilisation and
average billable day rates, following the rollout of new systems and
operational processes.

-     Won several new clients across Central Government, Local
Government, Health and Devolved Administrations.

-     Expanded our regional presence, with recruitment underway in five
new locations and our first hires confirmed in the Midlands, North East and
Scotland.

 

Made Tech's sales performance for the first half of the year has been very
strong and is showing excellent momentum, with in excess of £25m in new
contracts awarded by existing and new clients in H1. These contracts are
expected to be delivered over the next 2 years. These bookings are ahead of
management's expectations for H1 and provide a strong foundation as the Group
moves into the second half of the financial year and beyond.

 

Whilst Made Tech is not immune to the well-publicised challenges in the hiring
market, impacting both availability and cost of qualified staff, management
has implemented a number of initiatives to continue the Group's hiring
strategy, including an expansion of its successful Academy programme. Since
IPO, the Group has hired 43 experienced employees, as well as recruiting 20
entry-level employees for the next Academy programme in January 2022.

 

Margins have remained in line with management expectations, with H1 Gross
Margin at 39.1% (FY21 H1: 45.6%) and a return to profitability following the
operational investments made in FY21.

 

Management remains confident in continuing to deliver exceptional revenue
growth and, whilst challenges persist in recruitment and staff costs, the
Board remains confident in delivering on its expectations for the current
financial year and beyond.

 

The Group expects to announce its Interim Results for the six-month period
ended 30 November 2021 by the end of February 2022.

 

Rory MacDonald, CEO of Made Tech, commented:

"We are delighted to report a strong H1 performance in our first trading
update to the market. As stated at the time of our IPO, our strategy is to
achieve sustained growth in revenue, profit, and cash generation by delivering
high-quality services to our public sector clients. We have a clear plan to
capture the market opportunity ahead of us, and we're making significant
progress, which this trading update demonstrates.

Looking ahead, the Group's significant new contract bookings and robust
pipeline underpin the Board's confidence in the outlook. Whilst mindful of the
ongoing challenges in the hiring market, we look forward to continuing to
deliver significant growth in the second half of FY22 and beyond, and remain
incredibly positive and enthusiastic about the long-term prospects for the
business."

 

Enquiries:

 Made Tech                                                      c/o SEC Newgate
 Rory MacDonald, CEO

 Deborah Lovegrove, CFO

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

 Mark Taylor / Jen Boorer / Harry Gooden / Asha Chotai

 Berenberg (Joint Broker)                                       Tel: +44 20 3207 7800

 Mark Whitmore / Ciaran Walsh / Alix Mecklenberg-Solodkoff

 SEC Newgate (Financial PR)                                     Tel: +44 20 3757 6880

 Bob Huxford / Robin Tozer / Ian Silvera                        Email: madetech@secnewgate.co.uk

 

This announcement contains inside information for the purposes of the retained
UK version of the EU Market Abuse Regulation (EU) 596/2014 ("UK MAR") and is
disclosed in accordance with the Company's obligations under UK MAR. This
announcement is being made on behalf of the Company by the directors named
above.

 

 

About Made Tech

 

Made Tech is a high-growth provider of digital, data and technology services
to the UK public sector. Founded in 2008 and with a headcount of over 240
across multiple UK locations, Made Tech provides services that enable central
government, healthcare and local government organisations to digitally
transform.

 

The Group's purpose is to "positively impact the future of society by
improving public sector technology". To achieve this the Group 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.

 

More information is available at www.madetech.com

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