Made Tech Share Discussion Threads

[simon gordon] 01/9/2022 16:30

If anyone's got the figures from the latest broker note on net cash projections for 22/23/24 they could share that would help to deduce whether they are generating any cash.

TIA

[bones] 01/9/2022 16:22

That’s fair enough, someuwin. I just need to see what the final results commentary says about the employment costs that were flagged at the interims as impacting FY22 and FY23. I personally don’t see how those are resolved in the current economic environment. They’ve increased their headcount viciously and by stating IR35 as being a factor, that suggests they’ve had to fork out for a lot of contractors rather than employees.

This affects a lot of companies incidentally.

[royalalbert] 01/9/2022 16:17

Having a look at this, seems to be good buying now.

[someuwin] 01/9/2022 16:12

From Today's Buy rec in Shares Mag...

[someuwin] 01/9/2022 16:05

Mkt cap £43m. Cash of £12. So EV of just over £30m. Could be a very cheap entry level.

I hold some TRD too but consider KNOS a better example of where (hopefully) this will grow in the future. Only time will tell.

[sunshine today] 01/9/2022 15:40

No worries, good luck

[mjneish] 01/9/2022 15:24

Fair enough. Some background reading is obviously required.

[sunshine today] 01/9/2022 15:24

Following last weeks trading update it appears the institutions have had a chat with management and taken a view to sell, and quick.

In any event, it’s completely backfired, on the directors, who may have possibly done better to perform first, then shout from the hilltops.

[sunshine today] 01/9/2022 15:12

Yes Triads revenues has been falling for years, as they transitioned the business model from low margin contract work, to high margin in house contracts.

The proof is in the pudding with and end of losses , then breakeven, and last year £1.1M profit, ( from the lower revenue.)

This year, particularly in the second half, I expect revenue growth to appear as well, in conjunction with yet higher gross margins, that match those here.

The stock also yields 5%, a payout, with respect, your unlikely to see here in the foreseeable future.

If either company successfully wins some large contracts on RM6263 investors my flood in ,as neither have that opportunity priced in today.

Good luck

[mjneish] 01/9/2022 14:48

Just had a look here, after noticing the drop in the share price.

This is a difficult one to value I think. Revenue is growing fast, but until now their administrative expenses have been killing their profits and there's no guidance at all as to what they will be next time round. They've connected these expenses to head-count, so if there's a way to see how this has been changing in the last few years it may be possible to quantify it.

BTW (since TRD was mentioned earlier) TRD's revenue has been falling for the past four years at least.

[bones] 01/9/2022 13:41

Thanks cottoner. I also edited my post for the date of the interims that actually came out at end of February. I await the finals with interest!

[cottoner] 01/9/2022 13:37

You won't have to wait that long.

Made Tech Group plc, a leading provider of digital, data and technology services to the UK public sector, will announce its Audited Final Results for the year ended 31 May 2022 ("FY22" or the "Period") on Monday, 12 September 2022.

[bones] 01/9/2022 13:35

The recent trading update was a bit naughty in my opinion. Full of upbeat stuff but not a single mention or report of the issues that were raised just six months ago at the interim results that caused the share price (then) to plummet from around 100p to 40p. To remind newcomers, this was said at end of February.

”Whilst pleased with the Group's financial performance in H1, the board are mindful of the challenges relating to IR35 and staffing of public sector contracts and increased overhead costs, which we now expect to impact our trading performance in Q4 FY22 and the early part of FY23.”

The other thing about those interims was the cash flow statement showing a £10.2M increase in cash but that was after allowing for £13.5M cash raised in the IPO. In other words, they spent over £3M of cash. The IPO where the directors cleaned up to the tune of £58M by selling to institutions at 122p a share. I have much admiration for them for that opportunism! I would have done the same if offered a plate of riches like that for a company turning over £13M at the time while making a loss.

Until the final results come out in the next two months, I could not be a buyer as I would want to see what is said about the matters which were raised at the interims, not to mention whether they actually make a profit and generate cash from earnings. Until, then, it stays a barge pole for me.

[sunshine today] 01/9/2022 13:11

Umm, new low, is not what holders were expecting.

Probably best to wait until real profits show up, ( not EBITDA ), rather than speculating with a company’s shares, that have got off to an extremely rough start, since floatation.

Good luck.

[masurenguy] 01/9/2022 01:35

Scope for outsized returns as Made Tech helps Britain go digital
Market remains suspicious but there is a great little business waiting to emerge
01 September 2022

Public sector digital technology company Made Tech (MTEC:AIM) has the potential to be a big part of Government plans to get public services online in future. Set-up by founder and chief executive Rory MacDonald in 2008, it quickly developed a reputation for getting the job done, cutting its teeth on projects with the Home Office, DVLA, HMRC, Department for Education...........

[sunshine today] 29/8/2022 15:57

Before you can bid for crown contracts your company needs to win a position on the various government frameworks.

Some frameworks have thousands of suppliers, and small value contracts, others like RM6263 have proportional fewer suppliers, (103) combined with a massive spend of £4BN.

I have copied and pasted the above list from the crown commercial site.

Shareholders here can draw their own conclusions.

My personal view.

RM6263 will probably be the most important framework for both companies for the next 2- 4 years.

With an extremely limited choice of just 103 suppliers.

Triad as I have said previously get an extra leg up, being an SME, and having won positions on both lots 1 and 2.

Next one needs to look at the number of lots and frameworks each company has been awarded.

The more frameworks (and lots), the more chance of winning bids.

Again TRD scores more highly.

Finally TRD is smaller, and requires fewer winning bids to drive revenues and profits.


For information
Framework agreements come up for renewal every 2- 3 years

Good luck

[sunshine today] 29/8/2022 15:37

MADE TECH LIMITED

Digital Specialists and Programmes (RM6263)
Quality Assurance and Testing for IT Systems 2 (RM6148)
Technology Services 3 (RM6100)

https://www.crowncommercial.gov.uk/suppliers/1457/triad-
group-plc

TRIAD GROUP PLC

Artificial Intelligence (AI) (RM6200)
Data and Application Solutions (RM3821)
Digital Specialists and Programmes (RM6263)
Quality Assurance and Testing for IT Systems 2 (RM6148)
Technology Services 3 (RM6100)

A possible slight worry for Made Tech shareholders is the companies own “Framework Page” appears to have not been updated, with some frameworks now expired, and others only applicable to SME”S. ( Which they no longer are.)

[bones] 27/8/2022 11:07

Dr B, I agree there will be differences. Made Tech, if they can demonstrate that their investment will start to generate bottom line profits at pace, will undoubtedly see an improved share performance. I just worry about them overcooking the pace of expansion which can lead to being caught high and dry if the economy really starts to tank.

Good luck with it. MTEC is due a turn up in sentiment after the recent big fall following their profit warning but their cash outflows do worry me a bit. I feel happier seeing cash inflows and dividends plus a spot of new growth thrown in. Triad’s directors were regularly buying shares throughout 2021 at current prices. Drawback is its illiquidity making it hard to buy and sell in volume.

[dr biotech] 27/8/2022 09:50

Thanks for the detailed explanation, as above I’ve only glanced at triad.

So it’s looks like a growth vs a more mature company? They are going to be valued differently.

The point made (by another poster) about MTEC not being an SME is lost somewhat on me. Sure I understand that SMEs are going to be favoured in some tenders, but to keep within the 250 personnel limit will limit the size of the company.

[bones] 26/8/2022 23:26

Triad are transitioning from high revenue/low margin contractor work to high margin consultancy. There should be an acceleration in their revenues this year and a vast increase in gross margins. It should mean they make proper profits from which they can pay dividends.

Made Tech are further along in that regard at the revenue level but are spending fortunes to expand rapidly hence they will at best break even this year, where it matters, the bottom line profit before tax. Plus they are spending cash faster than they earn it.

Revenue is vanity, profit is sanity, etc. So what if MTEC revenues have doubled if they will only again break even and not pay a dividend to their suffering shareholders who have lost 70% in the last 12 months?

Triad may be boring but their share price has held up very well all year and should progress if their strategy does fulfil its promise. I like that Triad increase cash and pay dividends and have no debt.

There are differences in where each company is and they have a different approach but they serve the same market.

It’s all about opinion. Personally I hope we all do well.

I’m well up on the post 5 comparison (MTEC 134.5p, TRD 107.5p) so far so let’s see where we go in 2022 with MTEC on 36.5p and TRD on 122.5! TRD have paid 6p in dividends since last October when I posted no.5.

[dr biotech] 26/8/2022 18:35

At a quick glance Triads revenues contracted over the last 12months, revenues here up 120%. Am I missing something?

[cottoner] 26/8/2022 15:42

From a few days ago:

Made Tech Achieves AWS Government Competency Status

Made Tech a provider of digital, data and technology services to the UK public sector, announced today that it has achieved Amazon Web Services (AWS) Government Competency status. This designation recognises Made Tech as an AWS Partner that has the ability to deliver AWS projects at pace and at scale to transform digital services across the public sector.

This competency program is designed to help customers identify AWS Partners with industry experience and expertise to support the seamless integration and deployment of its solutions.

“Made Tech is empowering the public sector to deliver and continuously improve digital services that are user-centric, data-driven and freed from legacy technology,” said Ian Southward, Chief Commercial Officer at Made Tech. “The AWS Government Competency status is further recognition of our public sector expertise, putting us in an even better position to service government organisations.

By leveraging the agility, breadth of services, and pace of innovation that AWS enables, we can modernise working practices, accelerate digital delivery and drive better decisions through data, to further improve outcomes for users and citizens.”

As public sector technology delivery experts, Made Tech specialises in delivering world-class digital services in the cloud with minimum impact on the operation of an organisation; building data platforms that scale to drive the insights needed for a truly predictive government. This results in modernising legacy applications to enable digital transformation, including service design through transition and transformation, as well as continuous improvement and support.

“Made Tech has demonstrated excellent knowledge of the AWS offering over the years and has helped us gain a good understanding in how to build our ecosystem better,” said Rashmi Shetty, Development and Integration Manager at London Borough of Hackney. “Their team has been working very closely with us, assisting with upskilling internal staff members, helping us demonstrate the benefits of platform APIs and promote their adoption. They have also worked with us on building the base for our data platform and helped us demonstrate that we can provide efficient and reliable services whilst still keeping lights on, helping us to achieve our digital transformation journey.”

[masurenguy] 26/8/2022 15:28

Duplication