27
June 2024
MADE TECH GROUP
PLC
("Made Tech", the "Group" or
the "Company")
Full Year Trading Update
Trading in line with
consensus expectations and cash ahead
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 2024 ("FY24").
The Board expects to deliver revenue
of c.£38.5 million (FY23: £40.2 million), in line with consensus
expectations following good momentum in the second half of the
year.
Adjusted EBITDA1
is expected to be c.£2.3 million (FY23: £1.5
million), slightly ahead of consensus expectations and
substantially ahead of the prior year, representing an increase in
margin from 3.8% to 6.0% as a result of operational efficiencies
implemented across the Group.
Net cash was £7.6 million (FY23:
£8.5 million), materially ahead of consensus expectations.
This strong performance primarily reflects good cash collection in
the second half of the year and a reduction in capitalised R&D
spend as the Company focuses on the early commercialisation of its
SaaS portfolio of products. Made Tech remains debt
free.
During the year, Made Tech won £36.0
million in new Sales Bookings2
(FY23: £69.9 million) in a challenging procurement
market, including a two year £19.5 million contract with The
Department for Levelling Up, Housing & Communities and a 12
month extension option. Work has already commenced under this
contract. The Contracted Backlog3
remains strong at c.£65.4 million (FY23: £67.9
million).
FY25 has started positively with
c.£11 million in new contracts awarded in June, including a £7.5
million contract with the Met Office and a further Department of
Health & Social Care award worth £2.3 million, both over two
years. The Company maintains its revenue and profit guidance for
FY25, underpinned by the recent contract wins. The Board
anticipates that the Group will generate positive cash flow in FY25
and as a result expects the cash position at the end of FY25 to be
further substantially improved.
Notice of Results
The Group will announce
its results for the year ended 31 May 2024 in
September 2024, at which time it will provide further guidance on
the year ahead.
Rory MacDonald,
Chief Executive Officer, commented:
"Our financial year FY25 has started strongly, with £11
million in new contracts awarded within the first month. This adds
to the contracted backlog of £65.4 million at the close of FY24,
underpinning our confidence as we begin the new financial
year.
The snap General Election announcement was a positive
surprise, eliminating timing uncertainty for our clients and the
Group. During this pre-election period, we are seeing minimal
operational impact on our current contracts and pipeline, with the
business continuing to perform well.
We
are pleased to see the main party manifestos emphasise the
significant role technology will play in delivering their
priorities and expect the Group to be well-positioned to capitalise
on the post-election opportunities. We anticipate this will lead to
increased trading momentum for the Group over the coming years and
the beginning of a new wave of growth.
I
would like to thank our employees for their hard work and
dedication, and our clients for their continued trust and
partnership. Together, we are driving forward and improving public
services."
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1
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EBITDA has been adjusted for the exclusion of depreciation,
amortisation, impairments, 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
FY25-FY28
|
|
3
|
Contracted Backlog is the value of contracted revenue that has
yet to be recognised
|
|
4
|
FY24 results are subject to audit
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Enquiries:
|
Made Tech Group plc
Rory MacDonald, CEO
Neil Elton,
CFO
|
via Belvedere PR
|
|
Singer Capital Markets (Nominated Adviser &
Broker)
Jennifer Boorer / Asha
Chotai
|
Tel: +44
20 7496 3000
|
|
Belvedere Communications (Financial PR)
Cat Valentine
Keeley Clarke
|
Email: madetech@belvederepr.com
Tel: +44
7715 769078
Tel: +44
7967 816525
|
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/