05.02.2025
Operating from four locations across the UK - London, Manchester, Bristol, and Swansea – the Made Tech Group (LON:MTEC) is a provider of digital, data and technology services, which enable central government, healthcare, local government organisations and other regulated industries to digitally transform.
The Interim Results
Following on from our predictions of yesterday, this morning the group announced its Interim Results covering the six-month period to end-November 2024 – they were better than expected and the shares spurting 10% to 30.50p in reaction.
The period reported revenues up 14% at £21.8m (£19.1m), while its adjusted pre-tax profits rose 110% to £1.5m (£0.7m), its sales bookings were 233% better at £42.0m (£12.6m), ending with a contracted backlog of business 44% higher at £80.8m (£56.3m), with a 15% boosted net cash of £9.1m (£7.9m).
Management Comment
CEO Rory MacDonald stated that:
"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."
Analyst Views
This morning analysts at Singer Capital Markets, Harold Evans and James Musker, have reiterated their Buy rating on this group’s shares, looking for a Price Objective of 38p.
They upgraded their forecasts for the group to show £43.0m (£38.6m) in revenues for the current year to end May 2025, with £2.1m (£1.4m) in adjusted pre-tax profits, increasing earnings to 1.2p (0.9p) per share.
The analysts also upgraded their 2026-year figures to £45.0m sales, £2.4m profits and 1.4p per share in earnings.
The period-end net cash positions are estimated to be £9.0m (£7.6m) for 2025 and then £10.6m for 2026 – with the analysts stating that the strong cash balances provide the group with a range of strategic options looking ahead.
They suggest that the group’s plans to reallocate its resources to gaining higher margins, which should lead to strong and continued profit growth in the 2027 Trading Year.
In My View
This group’s shares are gradually edging back toward the 40p level seen just two years ago.
Its recovery is now underway and its shares at only 30.50p, valuing the group at £46.5m, offer some very appealing upside.
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