Made Tech Group – Interims due Thursday could provide buying opportunity
Made Tech Group (LON:MTEC) – Interims due Thursday could provide buying opportunity
Another group announcing its interim results this week is this £59m digital, data and technology services business.
On Thursday morning it will be reporting its figures for the six months to the end of November last year.
The group’s Trading Update at the start of this month has already given us a very clear pointer of growth.
It has guided that its half-time revenues expanded 76% to £20.6m (£11.7m) and that it saw a 23% lift in its sales bookings to £32.6m (£26.5m), while the group’s contracted backlog was 53% higher at a record £47.8m (£31.3m).
Furthermore, it has already this year picked up another £27m of contracts, securing business from the DVLA, the Cabinet Office and also the Department of Levelling Up, Housing and Communities.
At the time CEO Rory MacDonald stated that:
"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 and deliver value to shareholders over the long term."
The trio of analysts at Singer Capital Markets - Harold Evans, Kevin Ashton and Tom Like – rate the group’s shares as a Buy, looking for a price objective of 76p a share.
Their estimates for the full year to end May 2023 are for sales of £43.0m (£29.3m), adjusted pre-tax profits of £3.4m (£2.3m), worth 2.3p (1.6p) per share in earnings.
For the coming year their estimates are for £50.0m revenues, £4.1m profits and 2.6p earnings.
I see this group’s shares, which were just 26.75p each before the latest Trading Update, now being on a good momentum roll, closing at 39p on Friday night.
They could well ease back on some understandable profit-taking, however, they appear to me to be an excellent purchase for the year, especially if they fall to 35p or thereabouts.
(Profile 24.08.22 @ 34p set a Target Price of 45p)