Made Tech Group - market-beating Interims on strong organic growth, shares 35p, TP 60p

Mark Watson-Mitchell - 26.02.2026

This morning, Made Tech Group (LON:MTEC), a leading provider of digital, data, and technology services to the UK public sector, announced its unaudited half-year results for the six months to end-November 2025.

The results were strong and market-beating, making the group's shares look appealing at 35p.

Made Tech at The Home Office

The Business

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.

The group operates from three locations across the UK - London, Manchester, and Bristol.

Interim Results

The £52.3m -capitalised digital transformation group reported its strong interim results revenue increasing by 28% to £27.8m and adjusted EBITDA growing by 35% to £2.4m, exceeding recently upgraded expectations.

The company maintained a robust balance sheet with £11.9m in net cash and no debt.

Despite a decrease in sales bookings to £13.4m compared to the prior year's £42.0m, the contracted backlog stands at £74.4m, and trading continues to be strong, with management anticipating adjusted EBITDA to be materially ahead of market consensus.

Management Comment

CEO Rory MacDonald stated that:

"Made Tech has delivered an exceptional first half, with record revenue and profitability, and strong current trading ahead of recently upgraded expectations.

We have continued to improve operational leverage and cash generation, while maintaining a strong balance sheet.

Our sales pipeline remains robust, and while bookings can be lumpy between periods, recent bid activity and conversions support our confidence in continued momentum in H2 FY26 and into FY27.

We look forward to sharing details on contract awards and progress over the coming months."

Current Trading and Outlook

The group has reported that trading in the second half of FY26 has continued strongly, combined with a solid Contracted Backlog, further new contract awards and a robust sales pipeline.

It states that as a result of this momentum and improved operational leverage, the Board anticipates that adjusted EBITDA will be materially ahead of current market expectations.

The group's near-term focus remains unchanged: delivery excellence, disciplined investment, pipeline conversion, and continued improvement in margins and cash generation.

Broker's View

Analyst Kai Korschelt, at Canaccord Genuity Capital Markets, has a Buy note out on the group's shares, with a 60p Target Price.

The estimates for the current year to end-May 2026, are for £57.4m (£46.4m) sales, with adjusted pre-tax profits of £4.6m (£2.9m), lifting earnings to 2.2p (1.4p) per share.

For 2027, the estimates suggest £60.6m sales, £5.6m profits, generating 2.9p per share in earnings.

Canaccord considers that:

"While some digital transformation/DX services stocks have come under pressure due to perceived business model risks from GenAI, we view this as more of an opportunity than a threat, at least for the next 5 years.

Its core UK public sector end-market is well behind on broader technology adoption including GenAI and relies heavily on IT Service companies due to a lack of skilled own resources.

Some government departments are trialling copilots but adoption and implementation into workflows and data estates is negligible.

Government departments therefore need partners with strong AI & data expertise to help identify where and how to leverage GenAI.

This 'discovery' should be followed by designing & building the architectures to implement 3rd party or bespoke copilots & agents.

We believe MTEC's track record of building custom applications including the 'heavy lifting' transforming and integrating the underlying data estates to be 'fit for purpose' positions it well to benefit."

My View

I stand by my 2022 set Target Price of 45p, with the shares having risen to 42p last August, before easing off again.

Now at just 35p, the shares of Made Tech offer some useful upside over the next year or so.

(Profile 24.08.22 @ 34p set a Target Price of 45p)