Made Tech Share Discussion Threads

[weaverbeever] 23/2/2023 16:02

Load up. Great entry price

[oapknob1] 23/2/2023 14:13

Did you get the short Dm ?

[aishah] 23/2/2023 12:23

TechMarketView

Made Tech: Strong H123 growth and positive outlook

Made Tech has continued its strong growth trajectory in the six months to end November 2022 (H123). The company, which provides digital, data, and technology services to the UK public sector grew revenue by 76% - all organically – to £20.6m.

The shape of the business is changing as Made Tech strengthens its relationships with existing clients and takes on larger and longer-term deals. Having taken on nine new clients during the year, the number of active clients increased by 19 to 23. Notably, the number of clients deemed strategic – and contributing between £2.5m and £10m of annual revenues – increased from five to ten. Made Tech points to an increased mandate with the Home Office during the year, and a similar story at both the DVLA and the DLUHC since the year end. The average contract size has increased by 69% to £1.5m.

Central government, local government, and healthcare remain the strategic focus markets, representing 67%, 20%, and 13% of revenues respectively, and all growing during the period. As Made Tech continues to pursue opportunities in these markets, it has invested in the expansion of its User Centred Design and Data teams, stating that they now make a “material contribution”. In addition, it has expanded its Advisory team and is slowly building its Managed Services offering.

In line with management expectations, the adjusted EBITDA for the period suffered – down 58% to £0.5m. The issues cited include increased contractor numbers, client delays to bid submissions and ongoing project work. However, management seeks to reassure that there will be a margin improvement in H2, following improved cost controls, and a reduction in contractor numbers (now standing at 10% vs. 15% in H122, and at the target level).

The continued investment in software product development is something to watch. Made Tech has three products in development and points to the first client being secured. We can expect revenue to be generated from these offerings from 2024 onwards. We would also expect a positive impact on the profit margin if Made Tech is successful in driving forward with these repeatable propositions. In the meantime, a positive outlook for the rest of FY23 and FY24 is backed up by a 24% increased in sales bookings to £32.6m and a “record” contracted backlog of £47.8m (up 54%).

[iandippie] 23/2/2023 11:04

Cash down.EDITDA down.Margins down.No details as to why. Perhaps this is all expected seeing as they think they will meet meet expectations, but come on, these results could not be any briefer! Not impressed as a shareholder.This has also nearly doubled since beginning of Jan, so gut feel is that the share price has caught up with events for now.Time to exit and move on.GLAH.

[qs99] 23/2/2023 08:57

Bones, wells said, i've made a nice turn here and am now out. For time being.

£0.5m EBITDA and cash outflow as you say and market cap £54m, with cash that's fine, but they need to start showing they can make some serious margin to keep that market cap IMO

DYOR and GLA!

[bones] 23/2/2023 08:55

The founder directors won’t lose sleep over the LTIP cancellation. The directors took over £70M cash from investors on the overhyped IPO. The company only got £13M cash at the IPO and over £4M of that has already been spent. There’s a lot of work to be done by the company yet to make themselves profitable. Jury is out for me.

[dr biotech] 23/2/2023 08:49

I wouldn’t get over excited by the cancellation of the LTIP either. They have to achieve a CAGR of 7% on the share price at flotation. So around 150p.

[bones] 23/2/2023 08:43

That is the hope Masurenguy, I agree. They are in a good sector right now so let’s hope they can actually start making some true profits (not “adjusted̶1; ones) and more importantly generate cash. They are miles from that right now.

[masurenguy] 23/2/2023 08:37

The company continues to invest in software development, which is why net cash has declined, and as a result they continue to obtain more new contracts. Obviously the future level of profitability has yet to be determined but they will reach a point where the investment tails off and bottom line profits start to appear.

[bones] 23/2/2023 08:28

With MTEC, I always head straight to the cash flow statement first because that’s where the heart of the action is. They cannot massage cash flow with “adjustments” or capitalise the costs to the balance sheet.

In the six months to 30/11/22, they’ve managed to drop £3.4M in cash! That is a bit ugly to be fair.

Will they be able to convert all of the backlog into profitable (=cash generating) business. That is the question for me.

[masurenguy] 23/2/2023 08:20

I topped up too with my trade also showing as a sell.

[gymratt] 23/2/2023 08:05

Topped up on those results.. both trades showing as sells.

[mammyoko] 23/2/2023 07:39

Don't see that very often - CEO and COO waiving their rights to LTIP for nil consideration. Could this be a rare example of a company being at least partially run for the benefit of its shareholders or is that too favourable an interpretation?

[masurenguy] 23/2/2023 07:15

Cracking set of interims !

Half Year Results for the six months ended 30 November 2022
Strong organic revenue growth and record Contracted Backlog

Made Tech Group is pleased to announce unaudited half year results for the 6 months ended 30/11/2022

-- Strong organic revenue growth of 76%.
-- Adjusted EBITDA in line with management expectations
-- Record Contracted Backlog, providing strong revenue visibility over the remainder of the year
-- Strong cash management with average debtor days reduced to 37 (FY22: 58)

Operational highlights

-- Employee retention rate increased to 85% (H1 FY22: 80%)
-- Active clients increased to 23 (H1 FY22: 19) of which 10 are strategic (H1 FY22: 5)
-- Average contract size rose by 69% to GBP1.5m (H1 FY22: GBP0.9m), demonstrating the Group's strengthened position within its marketplace
-- Continued investment in own software product development in line with expectations. Strong sales pipeline being built for new propositions with first client secured (revenue expected to be recognised in FY24)

Outlook

-- Positive trading in Q3 to date, in line with the Board's expectations
-- Enter the remainder of the year in a strong position, as shown by new contract bookings of GBP29m so far in Q3 over 5 years, including the three substantial new contract wins announced earlier this month
-- Utilisation levels have increased post period end and margins are expected to materially improve in H2
-- The Group remains on track to achieve FY23 results in line with market expectations(5)

Rory MacDonald, CEO of Made Tech, said: "Both our client base and the depth of our client relationships continue to build. In the Period under review, we added nine new clients, including the Met Office, Government Digital Service (GDS) and Crown Commercial Service (CCS). We won a larger mandate with the Home Office and, post the Period end, have secured larger mandates with existing clients, including the DVLA and the Department of Levelling Up, Housing and Communities. Our strong sales performance underlines our success in winning extensions to existing contracts, additional projects with existing and new clients. We look ahead with confidence, based on excellent pipeline visibility, strong alignment of cost base with work streams, and good progress on our strategy to broaden and deepen our client relationships and accelerate product development."

[gymratt] 20/2/2023 12:47

Ah! Thank you both! :0)

[saucepan] 20/2/2023 12:12

See post 249

[gymratt] 20/2/2023 11:38

What date are results?

[aishah] 20/2/2023 11:28

Up 80% since start of the year. Results better be good this Thursday!

[cottoner] 11/2/2023 07:25

Bidstats - Ministry of Justice - 2 month contract for £109K published 10/2/23.

[leeson31] 09/2/2023 11:44

given the 3 contracts they won late last year, id be very surprised if at the least MTEC didn't have a good chance of securing a contract, or two, from the above Cottoner. cheers,

[cottoner] 09/2/2023 11:13

More contracts for MTEC?




extract

"Prime Minister Rishi Sunak has announced the creation of a new government department with responsibilities including innovation in public services.

It is part of a major reorganisation of central government that involves plans to set up four new departments, and raises questions about the future responsibility for digital and data initiatives across government.

According to Sunak’s announcement, a dedicated Department for Science, Innovation and Technology (DSIT) - with Michelle Donelan as chief minister - “will drive the innovation that will deliver improved public services, create new and better paid jobs and grow the economy”.

It added that there will be a focus on turning scientific and technical innovations into practical solutions."

[oapknob1] 07/2/2023 08:51

All adds up.

[cottoner] 07/2/2023 07:34

New in Bidstats - A £3m 2 year contract with the Department for Education.

[tomps2] 06/2/2023 09:39

Made Tech (MTEC) Interim Results webinar

Friday, 24 February, 12:30am

Rory MacDonald, CEO & Debbie Lovegrove, CFO will present interim results for the six months ended 30 November 2022.

Register here: bit.ly/MTEC_H1_results_webinar