Made Tech Share Discussion Threads

[chrisdgb] 27/2/2024 08:58

Decent volume already.......

[eagle eye] 26/2/2024 11:02

Dr Biotech

Everyone's holding is miniscule.

Ask the institutions who bought the IPO at 122p in September 2021.

[eagle eye] 26/2/2024 10:50

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

[dr biotech] 26/2/2024 09:53

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.

[blackhorse23] 26/2/2024 09:41

Booking down 61% & revenue down 7%

[gusrezo] 26/2/2024 09:29

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.

[chrisdgb] 26/2/2024 08:56

Basically reads that any new contract would be a massive bonus.......

[masurenguy] 26/2/2024 08:51

With £7.9m net cash, the EV is currently only £5.55m @the current shareprice.

[masurenguy] 26/2/2024 07:11

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."

[sunshine today] 22/2/2024 12:29

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

[sunshine today] 22/2/2024 12:08

£1.4M new order on contracts finder.

[blackhorse23] 22/2/2024 09:32

Sp action looks like going to bust

[sunshine today] 22/2/2024 08:42

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.

[masurenguy] 22/2/2024 01:27

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.

[blackhorse23] 21/2/2024 20:18

Going to bankrupt ??

[gusrezo] 01/2/2024 19:57

The real concern is that this kind of companies need to fund the working capital when they are growing: staff increases and has to receive its paycheck weeks or months before cash from customers arrives. So a cash outflow is justified in growth mode.
But when the reversal happens - the revenue shrinks- then there should be a cash inflow: pending bills are collected while salary expenses decrease.
Just look at the cash flow of staffing companies such as Hays or Page, since they follow a similar pattern.
But this company keeps on burning cash in a year when revenues have stalled and staff has decreased (447 employees according to LinkedIn a year ago, 374 now, and I can figure out most of the people has moved to another job without redundancy pay). This is very very strange.

[sunshine today] 01/2/2024 17:15

ShareProphets

[masurenguy] 01/2/2024 16:40

Where is this article by Steve Moore published ?

[sunshine today] 01/2/2024 15:52

Made Tech – arguing “a credible EBITDA performance”, is CEO Rory MacDonald fooling himself or trying to fool everyone else?

By Steve Moore | Thursday 1 February 2024

The above article is damming to say the least.

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

You need to pay i think, £2.00 to read it.

[bones] 01/2/2024 15:42

Gusrezo - spot on. I’ve occasionally passed comment here since the IPO and each time it is to remark on the hideous cash outflows and how the company continues to comment on artificial profit headlines which conveniently ignore the substantial costs of paying staff in equity and writing down goodwill as though that doesn’t matter to the business.

The only saving grace is they are not loaded with debt unlike the basket case that is TPX.

[sunshine today] 01/2/2024 13:36

I don't think they will be forgiven for going back with the begging bowl to Government clients, mid way through contracts.

[gusrezo] 01/2/2024 13:11

"Net cash at Period end of £7.9m (H1 FY23: £9.0m; H2 FY23: £8.5m)".
The point is: the company got 12m at the IPO. They keep on burning money reporting period after reporting period, it doesn't matter the environment: formerly it was in growth mode, now in steady or shrinking mode.
So the terminal value of such a company is 0, once the cash is over, who is going to lend them or buy more shares?
And they're still remarking the cash position, as if this cash has been generated in the normal course of the business, when they should be ashamed of not being able to generate positive cash flow!!

[sunshine today] 01/2/2024 11:14

An analyst wrote a good page on this company just after it floated.

Investors Chronicle

Any potential investor should read it.

Those that took notice at the time would not have lost 90% plus of their investment to date