That's a BIGGIE for MTEC. Mkt cap is only £14m! |
Some good news at last !
Made Tech awarded £19.5m new contract with DLUHC
Made Tech, a leading provider of digital, data and technology services to the UK public sector, is pleased to announce that it has been awarded a new contract with The Department for Levelling Up, Housing & Communities ("DLUHC"), worth up to £19.5m revenue to the Group over a 24 month period with a 12 month extension option. Made Tech will work with DLUHC on the design and development of new digital tools and services. The first of these services to be delivered under this contract is expected to be the Privately Rented Property Portal - a national private rented sector database. |
That's a hefty contract, with an extension, relative to MTEC's market valuation |
Bottom in? |
@chris
I took that same point away myself, I think it is so beaten up now you buy, hold and forget for a while, if contracts do start coming in we will all be kicking ourselves for being so abstemious in our investments, and yet...! |
Thought it was interesting that Richard Penny was very impressed with the FD........ |
Has the new CFO bought any shares since starting? |
As we know it is dirt cheap, thanks interesting interview… |
Richard Penny, of Crux Asset Management, shares his views on MTEC @55.35. |
You just might be lucky and receive a bid. |
Biggest ever volume days since company listed Interesting |
Decent volume already....... |
Dr Biotech
Everyone's holding is miniscule.
Ask the institutions who bought the IPO at 122p in September 2021. |
CEO says:
'I look forward to updating our stakeholders further as we progress through 2024.'
I'm surprised there are any stakeholders left.
I guess only those burnt at the stake LOL |
Certainly wouldn't compare it to a bio - they almost always have little to no revenue and a just a gamble on making clinical progress.
However I get the point that it needs to become profitable - or more to the point show that it can deliver profitable projects. At the moment its just blather "experienced senior management" bit of self promotion - where's the proof they can deliver?
My holding here is miniscule, and I won't increase it until I have some confidence that they know what they are doing. |
Booking down 61% & revenue down 7% |
basically it's the same that happens with many biotechnology companies, whose EV is also lower than the cash at hand.
They collect cash from shareholders through an IPO or rights issue, and then burn that cash reporting period after reporting period because they spend the money in R&D without revenue from any new medicine.
Made Tech got 12M and now there're just 7.9M.
certainly it seems in the last report the cash outflow is due to working capital movements, but it must show it can generate cash to change the current market sentiment. |
Basically reads that any new contract would be a massive bonus....... |
With £7.9m net cash, the EV is currently only £5.55m @the current shareprice. |
 Interim Results for the six months ended 30 November 2023
Strong profit performance in line with management expectations
Made Tech Group announce its unaudited half year results for the six months ended 30 November 2023.
Strategic and Operational highlights
● Adjusted EBITDA up 180% to £1.4m (H1 FY23: £0.5m) with Adjusted EBITDA margin increasing significantly to 37.1% (H1 F23: 32.9%) on revenue down 7% at £19.1m (H1 FY23: £20.6m)
● Net Cash £7.9m (£9.0m)
● Ongoing investment in senior leadership and commercial team to drive continuing programme of growth and productivity initiatives
● Strategic drive by government to digitally transform public services in an agile and cost effective manner means that Made Tech is well placed to deliver long term growth
Current Trading and Outlook
● The Group remains on track to meet FY24 profit expectations, with revenue slightly down on prior year
● Despite the challenging market and uncertainty created by the forthcoming general election, the Board anticipates further profit improvement in FY25 as a result of ongoing productivity and cost control initiatives
● Healthy Contracted Backlog of £61.3m (£47.8m) underpins revenue expectations for FY24 and into FY25
Rory MacDonald, CEO of Made Tech, said: "Made Tech is focused on ensuring that it is fit and ready to capitalise on the structural growth opportunities that we see in the UK public services market, with an efficient, right-sized cost base, experienced senior management, and an achievable strategic growth plan in place, whilst also maintaining our reputation for excellence amongst our clients. We are making progress, delivering improvements on profitability and cash generation and appointing key new members to our team, and I look forward to updating our stakeholders further as we progress through 2024." |
The new Procurement Bill.
Goes live in October 24
Streamlining Bidding Processes
At a high level, the goals propose to simplifying processes, removing barriers for SMEs, and driving better value for money. One primary aim is streamlining procedures to boost SME participation in government contracts. Measures include requiring procurement entities to proactively evaluate and mitigate SME-specific challenges throughout the procurement lifecycle.
For example, the Act allows SMEs to show proof of required insurance only upon contract award rather than during bidding. This spares SMEs from carrying unnecessary costs pre-award when outcomes are uncertain.
Additionally, the Act mandates smaller, more tailored contract lots and enables direct price negotiations between procurers and suppliers. In principle, this flexibility caters better to SME capabilities versus rigid tendering processes |
£1.4M new order on contracts finder. |
Sp action looks like going to bust |
Made Tech appear to be up against a brick wall.
They are not an SME so have to play with the big boys, thats getting more difficult.
All the big players are looking for growth. (just like Made Tech).
The company is also totally dependent on the UK Govt for orders. ( Local and national ).
Thus, no income from the private sector to smooth the bumps along the road.
The boss having milked the city, hook line and sinker, may buy it back.
That view might be worth a punt .
Half a dozen big orders could do the same trick if they arrive very quickly. |
Hardly. Made Tech is debt free and has a strong balance sheet with £7.9m net cash at the end of November. At the current market cap of £12.7m the EV is only £4.8m at the current shareprice. Interims are due next Monday so there will be an update on their current prospects. |
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