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

Made TechAnnouncement

01/02/2023 07:00

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RNS Number : 4953O  Made Tech Group PLC  01 February 2023

1 February 2023

 

MADE TECH GROUP PLC

("Made Tech" or "the Group")

 

H1 Trading Update and Contract Wins

 

Made Tech, a leading provider of digital, data and technology services to the
UK public sector, is pleased to provide a half year update on trading for the
six months ended 30 November 2022 (the "Period"). The Group expects to publish
its half-year results for the Period on Thursday, 23 February 2023.

 

Highlights

 

·      Group revenue growth of 76% to £20.6m (H1 2022: £11.7m)

·      Adjusted EBITDA(1) was in line with management's expectations at
£0.5m (H1 2022: £1.2m)

·      Net cash at Period end of £9.0m (H1 2022: £11.1m)

·      Sales Bookings(2) rose by 23% to £32.6m (H1 2022: £26.5m)

·      Record Contracted Backlog(3) up 53% to £47.8m (H1 2022: £31.3m)

 

Contract wins post-period end

 

The Board is pleased to announce that, in recent weeks, Made Tech has been
awarded three substantial new contracts, collectively worth £27m.

 

 Client                                                Value    Contract duration

 DVLA                                                  £14.0m   2 years
 Department for Levelling Up, Housing and Communities  £8.0m    4 years
 Cabinet Office (GDS)                                  £5.0m    2 years

 

Financials

 

Made Tech delivered a strong performance in the Period, generating
year-on-year revenue growth of 76% to £20.6m. Made Tech entered the second
half with a record Contracted Backlog, which positions the Group strongly for
the remainder of the year and looking into FY 2024.

 

This strong organic growth was achieved despite industry headwinds, caused by
the well-reported Government and market turmoil that occurred during Q2. This
resulted in reduced gross margins in the first half, as was flagged in the
Group's Final Results in September 2022, due to delays to bid submissions and
ongoing project work. However, Made Tech has carefully managed this disruption
through right-sizing headcount, reducing contractor numbers to c.10%, and
improving its cost controls, such that it expects margins to materially
improve in H2.

 

Made Tech is debt free and has a strong balance sheet with £9m net cash at
Period end, positioning the Group well to execute its growth strategy. The
Group's performance in the first half, alongside the new customer wins and
expansions signed post Period end, has been greatly encouraging and underpins
the Board's confidence in the Group's growth prospects.

 

Rory MacDonald, CEO of Made Tech, said:

 

"We are delighted to have delivered another period of strong growth. It is
pleasing to note that our contract sizes continue to grow as we become more
established in the market. These wins, together with the new Home Office
contract announced in November 2022, demonstrate Made Tech's ability to
deliver digital technology successfully, and highlight the strength of our
reputation in this growing market. As a result, the Group remains on track to
meet market expectations for the full year(4) and deliver value to
shareholders over the long term."

 

Online presentations

 

Made Tech will hold an analyst briefing online at 9.00am Thursday, 23 February
2023 in respect of its half-year results. Equity research analysts interested
in joining the meeting should contact Belvedere Communications.

 

Management will also host an online investor presentation with Q&A. This
will be held at 12.30pm on Friday, 24 February 2023. Anyone wishing to
participate should register for the event with PI World at:
https://bit.ly/MTEC_H1_results_webinar
(https://bit.ly/MTEC_H1_results_webinar) .

 

Notes:

 

All financials are based on unaudited figures.

 

(1 ) EBITDA has been adjusted for the exclusion of depreciation,
amortisation, 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 FY23-FY26

 

(3 ) Contracted Backlog is the value of contracted revenue that has yet to be
recognised

 

(4 ) Market expectations for FY23 as published on Bloomberg: Revenue £43m
and Adjusted EBITDA £3.9m

 

 Enquiries:

 Made Tech Group plc                                      via Belvedere PR

 Rory MacDonald, CEO

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

 Jennifer Boorer / Harry Gooden / 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 to the UK
public sector. Founded in 2008 and now with a headcount of over 480 and
offices in four UK locations (London, Manchester, Bristol and Swansea), Made
Tech provides services that enable central government, healthcare and local
government organisations to digitally transform.

 

Made Tech's purpose is to "positively impact the future of society by
improving public sector 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.

https://investors.madetech.com/ (https://investors.madetech.com/)

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