Trading Update and Notice of Interim Results

RNS Number : 6603V

Made Tech Group PLC

15 December 2021

 

15 December 2021

MADE TECH GROUP PLC

("Made Tech" or "the Group")

Trading Update and Notice of Interim Results

Strong revenue growth and performance in line with expectations

Made Tech Group plc, a leading provider of digital, data and technology services to the UK public sector, today announces a trading update for the six-month period ended 30 November 2021.

Financial Highlights

-  Revenue growth of 131% to £11.7m (FY21 H1: £5.1m).

-  Gross profit up 98% to £4.6m (FY21 H1: £2.3m).

-  New contract bookings exceeds £25m, including the award of our largest ever contract worth £7m.

-  Return to operational profitability, with investment during FY21 unwinding in H1.

Operational Highlights

-  Successful IPO and admission to AIM on 30 September 2021.

-  Significant momentum with hiring post-IPO, with 43 experienced permanent hires signed in October and November.

-  Sourced our largest Academy intake to date, with training scheduled to commence in January.

-  Strong growth from our long-term client accounts through new contracts, extensions, renewals, and the uptake of new service offerings.

-  Double digit percentage increases in billable utilisation and average billable day rates, following the rollout of new systems and operational processes.

-  Won several new clients across Central Government, Local Government, Health and Devolved Administrations.

-  Expanded our regional presence, with recruitment underway in five new locations and our first hires confirmed in the Midlands, North East and Scotland.

Made Tech's sales performance for the first half of the year has been very strong and is showing excellent momentum, with in excess of £25m in new contracts awarded by existing and new clients in H1. These contracts are expected to be delivered over the next 2 years. These bookings are ahead of management's expectations for H1 and provide a strong foundation as the Group moves into the second half of the financial year and beyond.

Whilst Made Tech is not immune to the well-publicised challenges in the hiring market, impacting both availability and cost of qualified staff, management has implemented a number of initiatives to continue the Group's hiring strategy, including an expansion of its successful Academy programme. Since IPO, the Group has hired 43 experienced employees, as well as recruiting 20 entry-level employees for the next Academy programme in January 2022.

Margins have remained in line with management expectations, with H1 Gross Margin at 39.1% (FY21 H1: 45.6%) and a return to profitability following the operational investments made in FY21.

Management remains confident in continuing to deliver exceptional revenue growth and, whilst challenges persist in recruitment and staff costs, the Board remains confident in delivering on its expectations for the current financial year and beyond.

The Group expects to announce its Interim Results for the six-month period ended 30 November 2021 by the end of February 2022. 

Rory MacDonald, CEO of Made Tech, commented: 

"We are delighted to report a strong H1 performance in our first trading update to the market. As stated at the time of our IPO, our strategy is to achieve sustained growth in revenue, profit, and cash generation by delivering high-quality services to our public sector clients. We have a clear plan to capture the market opportunity ahead of us, and we're making significant progress, which this trading update demonstrates.

Looking ahead, the Group's significant new contract bookings and robust pipeline underpin the Board's confidence in the outlook. Whilst mindful of the ongoing challenges in the hiring market, we look forward to continuing to deliver significant growth in the second half of FY22 and beyond, and remain incredibly positive and enthusiastic about the long-term prospects for the business."

Enquiries:

Made Tech	c/o SEC Newgate
Rory MacDonald, CEO Deborah Lovegrove, CFO
Singer Capital Markets (Nominated Adviser & Joint Broker) Mark Taylor / Jen Boorer / Harry Gooden / Asha Chotai	Tel: [phone]
Berenberg (Joint Broker) Mark Whitmore / Ciaran Walsh / Alix Mecklenberg-Solodkoff	Tel: [phone]
SEC Newgate (Financial PR) Bob Huxford / Robin Tozer / Ian Silvera	Tel: [phone] Email: [e-mail]

This announcement contains inside information for the purposes of the retained UK version of the EU Market Abuse Regulation (EU) 596/2014 ("UK MAR") and is disclosed in accordance with the Company's obligations under UK MAR. This announcement is being made on behalf of the Company by the directors named above.

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 240 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

 

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