Made Tech Share Discussion Threads

[simon gordon] 20/8/2022 10:06

Completely insane IPO.

CEO and CFO pocket £37.5m and £19.1m respectively.

In total directors sold c.58m shares at 122p = £70.7m.

How can the market reward them so highly for a fledgling business that is burning cash and yet to truly prove itself?

The directors must have been popping the champagne.

[sphere25] 19/8/2022 15:12

Where is all this buying coming from? Some folk tipping who have some clout?

6.4m without delayed prints. That is the bulls having a decent go at it. The bears are a nightmare to take on atm.

So I have just joined them here to see if this one can pop because this is relentless buying and buyers are just paying well through the offer for sizeable chunks.

Clearly I can't be sure the sellers are done, but have a little go here and see if there is some momentum.

Might have jumped the gun so an exit if it doesn't pop higher (and back to monitoring it) but let's see.



All imo
DYOR

16:37 UPDATE
So it looked like the big sell orders were given to Winterfloods and Berenberg with the price not moving off 35.5p early in the afternoon despite heavy buying pressure, but Winterfloods ended up on the bid and Berenberg were shifting higher to end up on the offer at 37.5p with much smaller buys shifting them higher and stock not being available at some price points.

Now that MIGHT mean the line of shares to be sold is drying up. IF this level of buying continues next week, it has a chance. I was almost forced into buying for a trade here because of the relentless buying.

Three 525k late prints just hit at 36.04p so a buyer has bid the price up to pick those up. It's notable and interesting so I have put it out there.

Roll on next week, let's see if the momentum continues.

16:38 UPDATE

Berenberg have now moved off the offer of 37.5p (to 40p) and onto the bid at 37p at an unusual time of 16:38.


As per always
All imo
DYOR

[dillydally2] 19/8/2022 11:14

CarefulHere the valli pump fest has started

[bones] 19/8/2022 07:51

They still focus on ebitda which is convenient since they pay a lot for share based payments excluded from ebitda. I think they will still show a bottom line loss and their cash is less than they raised in the IPO. Their gross margin is decent and needs to stay that way.

[netcurtains] 19/8/2022 07:36

its worth doing a little sum...

478 * 65k (wages + perks)
against a turnover of £29.3m

(the figures would work if most of the employees are graduate intake, then wages would be a lot lower)

[sphere25] 19/8/2022 07:20

Considering the buys flying in with a very notable 577k already, the market was expecting worse but can the trust be rebuilt here?

There are sellers in size working in the market gradually dragging the price back away from that key 40p breakout level. Pretty much all buying and I count three small sells knocking the bid back, with more following now.

IF this statement is a thing of better times and an actual rebuilding of confidence, then we'd expect to see some substantial (and I mean BIG) buying to follow to clear the big sellers at work and a break above that key 40p.

I will look to have a go then with a tight stop, but just watching for now to see how the exchanges progress.

All imo
DYOR

[battlebus2] 07/6/2022 08:45

Bought a few this morning, maybe the low point we will see 🤞. DYOR ETC

[sunshine today] 22/3/2022 14:58

This company has to get on as many U.K. Government frameworks as it can.



It has won a place on the above, but lot 1 only.

Considering it was a £4BN framework that might be a disappointment.

[sunshine today] 17/3/2022 10:25

Staff morale must be sinking here, with the share price.

[sunshine today] 09/3/2022 15:07

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 300 people across multiple UK locations, Made Tech provides services that enable central government, healthcare and local government organisations to digitally transform.


So can’t bid as a SME for government contracts .


250 max employees

[tomboyb] 01/3/2022 10:00

Look to pick this up at 25p -

Can't see any point at these levels

[sunshine today] 01/3/2022 05:25

It also strikes me that if MTEC can’t deliver staff to agreed government contracts then it’s reputation will quickly be in tatters.

It gets worse, if, as is the case, MTEC contracts are ALL within the public sector.

[sunshine today] 01/3/2022 04:54

Yet TRD is still at a massive discount even after yesterday’s horrible disappointment here yesterday.

[sunshine today] 01/3/2022 04:44

The MTEC business model.

Established a few years ago.

High overheads, with heaps of offices scattered around the country, that eat away at gross margins reducing them to near zero.

Inexperienced staff recruitment teams, with growing churn.

Failing to deliver enough staff to clients, in the public sector.

IR35 causing problems

Falling gross margin.

Major up front training costs

No dividends

Complete loss of investor confidence

////////////////////////////////////////////////////////

The TRD model

Established 32 years ago premium listed on the LSE

With the Group's sharp focus on its consultancy credentials, and with a business model that is extremely well-suited to the needs of the market, I am optimistic about the prospects.

Growing Gross margin.

Remote working ,happy staff

IR35 not an issue with permanent staff.

New staff members hired by in-house experienced team in a structured manner.

Overhead base stable subject only to general wage inflation in a tight labour market.

Pays growing dividends from profits.

Non stop director buying

[terminator101] 28/2/2022 17:57

Wish I'd spotted this overvalued fluff much sooner.

[tomboyb] 28/2/2022 15:28

Not sure why there are buys at 53.5p -

I can buy at BID -

[tomboyb] 28/2/2022 15:27

Problem at this cap is the upside -

I can buy 125k at 53p, which is the Bid -

Expect this to fall below 50p -

[bones] 28/2/2022 15:19

The vendors timed the IPO perfectly. Can’t blame them for cashing out when offered a bucketload of cash.

[bones] 28/2/2022 15:14

Yes, Dave4545, as we’ve been discussing in this thread from November (post 5 onward), comparing to Triad which has a similar business but makes profits on similar turnover but valued at a tenth of Mtec until today.

What is also telling is that not one investor has appeared here to promote the stock on its own thread. The opening post really just advertised the new float but there has been no case for it put forward apart from highlighting ludicrous newspaper tips which have lost their readers a stack.

[sunshine today] 28/2/2022 15:12

They also have v high overheads , heaps of offices.

[dave4545] 28/2/2022 15:07

ebitda £1.2 mil interims next to £80mil+ market cap and that's after a 40%+ fall

Stacks of sub £15 mil stocks doing the same or better.

[bones] 28/2/2022 14:59

Institutions shelled out £85M at a market cap approaching £200M on the back of small turnover but ambitious growth projections. The big red flag was that most of that money went to the founders and selling shareholders and only £13M went to help the company.

[74tom] 28/2/2022 14:25

@dr biotech, was going to say the same thing - Seraphine was a shocker as it was tipped early Feb & warned about 10 trading days later. Made Tech was a bargepole due to the material director sales at IPO - £27m from memory. Still looks overvalued at £81m cap…

[bones] 28/2/2022 13:49

My guess is they make a loss in FY22. Showing a puny £121k profit on £13M turnover for the half year just announced but saying their expectations for late FY22 and early FY23 are crimped.

I bet the loss will be big too given the £3M outflow of cash in this first half which must be likely to continue in the trend.

[sunshine today] 28/2/2022 13:43

Look for the previous owners to take this private at 4P within two years.

How can you possibly add that number of staff, plus the 20% churn, in a booming consultancy market.

While at the same time engaging on new products for new clients.

Margins, gross will be eroded and net will be the odd 1% -3% in my view.


So look for £25M of turnover and £200,000 profit