REG - Made Tech Group PLC - Trading Update

Made TechAnnouncement

19/08/2022 07:00

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RNS Number : 5339W  Made Tech Group PLC  19 August 2022

 19 August 2022

MADE TECH GROUP PLC

("Made Tech" or the "Group")

 

TRADING UPDATE

Strong accelerating growth in FY22 with significant opportunities ahead

 

Made Tech Group plc, a leading provider of digital, data and technology
services to the UK public sector, is pleased to announce the following trading
update ahead of its Audited Final Results for the year ended 31 May 2022
("FY22" or the "Period"), which are scheduled to be released in September.

 

Highlights*

 

 ●    Revenue of £29.3m (FY21: £13.3m) - up 120%
 ●    Gross profit margin maintained at 38% (FY21: 38%)
 ●    Adjusted EBITDA(1) of £2.6m (FY21: loss of £0.5m) - up 618%
 ●    Cash at 31 May 2022 of £12.3m (FY21: £0.9m)
 ●    Sales Bookings(2) in FY22 totalling £51.1m (FY21: £23.8m) - up 115%
 ●    Contracted backlog(3) at £38.2m (FY21: £16.4m) - up 133%
 ●    Headcount of 478 (414 permanent employees and 64 contractors) at 31 May 2022
      (31 May 2021: 235) - recruitment target achieved despite increased demand and
      competition for talent

 

 (1)  Adjusted EBITDA excludes exceptional costs of £0.2m and share based payment
      charges of £2.4m
 (2)  ( )Sales bookings represent the total value of sales contracts awarded in the
      year, to be delivered in FY22-FY25
 (3)  Contracted Backlog is the value of contracted revenue that has yet to be
      recognised
 (*)  Subject to audit

 

The Group delivered substantial organic growth from its long-term client
relationships in the Period, as well as continuing to broaden its client base
with new client wins across Central Government, Local Government, Health and
Devolved Administrations. This included a first major two-year contract with
NHS Digital, worth approximately £19m to the Group. The strong level of
client acquisition achieved in FY22 has continued into the new financial year,
as demonstrated by the recently announced contract with the Met Office, valued
at not less than £7m over a two-year period.

 

Made Tech is a people business, operating in a fast-growing market, and talent
acquisition is essential to the Group's successful growth. Recruitment
accelerated in H2 in line with our strategy, despite the continuing macro
challenges, with headcount increasing by over 100% year on year.

Broadening capability and geographic coverage are key to Made Tech's strategy
to diversify revenue and deliver further organic growth. To support its
growth, the Group expanded its service offering to include new capabilities in
Data and Cyber and continued to increase headcount in User Centred Design. The
geographic coverage of the business was also extended during the year with the
first Made Tech employees being hired in Scotland, Newcastle and the
Midlands.

 

Following an internal review, the Board is pleased to announce the appointment
of Singer Capital Markets as sole broker and nominated adviser to the Group
and Belvedere Communications as financial PR adviser.

 

Outlook

 

With a robust balance sheet and strong levels of client acquisition and talent
recruitment, enabling the fulfilment of the contracted backlog, Made Tech is
well positioned to capitalise on the substantial and continuing growth of the
digital transformation market. Our robust pipeline and record sales bookings
underpin the Board's confidence in the prospects for the business for the
current financial year ("FY23") and beyond.

 

Rory MacDonald, CEO of Made Tech, said:

 

"FY22 was a very significant year for Made Tech, one in which we delivered
exceptionally high levels of organic growth. We navigated the well-documented
macro recruitment challenges to double our headcount year on year and maintain
our gross margin. We have made a strong start to FY23 and look forward to
updating our stakeholders on the Group's progress, when we announce the FY22
results in September."

 

Enquiries:

 

 Made Tech                                                via Belvedere PR

 Rory MacDonald, CEO

 Deborah Lovegrove, CFO

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

 Mark Taylor / Jen Boorer / Harry Gooden / Asha Chotai

 Belvedere PR (Financial PR)                              Email:  madetech@belvederepr.com (mailto:madetech@belvederepr.com)

 Cat Valentine                                            Tel: +44 (0) 7715 769078

 Keeley Clarke                                            Tel: +44 (0) 7967 816525

 

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 470
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 (http://www.madetech.com)

 

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