Made Tech LON:MTEC, the AIM-listed IT Services company, has delivered on its promise and been one of the most aggressive upward movers on the AIM market in the last year.
The company uprated its own forecasts when it published its half-year results to end-November a few weeks ago. It reported a 14% increase in revenue to £21.8m, surpassing market expectations. Sales bookings soared 233% to £42m.
Adjusted EBITDA rose 29% to £1.8m, with an improved 8.2% margin. The company maintains a robust balance sheet with £9.1m in net cash.
Manchester-based Made Tech provides digital, data, and technology services, primarily serving the public sector. Established in 2008, the company collaborates with central and local governments, healthcare institutions, and public infrastructure organisations to facilitate digital transformation. With operational hubs in London, Manchester, Bristol, and Swansea, Made Tech offers services including digital service delivery, data infrastructure and insights, cloud engineering, and legacy application transformation.
Over the years, Made Tech has expanded its service offerings and client base, focusing on enabling public sector entities to modernise their digital capabilities. The company’s strategic initiatives aim to support the UK government’s drive to utilise technology for transforming public services in an agile and cost-effective manner.
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Government-led initiatives drive growth
The company said that government-led initiatives to drive public sector digital transformation position Made Tech well for long-term growth, with strong client retention and contract renewals supporting future expansion.
The company’s shares opened the week (24th February) at 29.12p, up 234% over one-year. However, Made Tech’s shares did hit 32.5p earlier this month, after release of the company’s interims and has fallen back a bit as the excitement subsided.
Made Tech is on track for double-digit revenue growth in FY25, backed by an £80.8m contracted backlog and expectations of positive free cash flow. A strong sales pipeline, active bids, and Government digitalisation priorities support a positive outlook for FY26 and beyond.
The company’s chief executive, Rory MacDonald expressed confidence in a statement in the company’s strategic positioning, highlighting the impact of recent commercial investments and the potential for further growth following the UK Government Spending Review in Spring 2025.
Made Tech well-positioned across the public sector
The software company remains well-positioned in the £18bn UK public sector IT market, with an estimated £3bn addressable market. A shift towards smaller, agile IT providers, combined with new procurement laws favouring UK-based suppliers, strengthens Made Tech’s competitive edge. AI adoption is also expected to drive future growth, aligning with the company’s expertise in data and digital transformation. Despite recent supplier consolidation, Made Tech continues to grow as a strong independent provider, winning key contracts in criminal justice, education, and local government.
Operationally, Made Tech maintains a 100% client retention rate, with increasing contract sizes and durations, demonstrating confidence in its long-term value. While its Software-as-a-Service (SaaS) business is still in early stages, strong advocacy from clients suggests significant growth potential. Employee headcount remains stable at 346, with a focus on reducing contractor reliance and improving staff retention and engagement through initiatives like the Sharesave scheme and apprenticeship programs.
Looking ahead, Made Tech expects double-digit revenue growth for FY25, EBITDA ahead of expectations, and positive free cash flow. With a strong bid pipeline, a solid balance sheet, and potential for organic expansion and acquisitions, the company is well-positioned for continued success in FY26 and beyond.
The company has experienced a massive uprating in its share price over the last 12-months, however, the question remains whether Made Tech can maintain this rate of growth, which would be phenomenal, but challenging. A lot of Made Tech’s future performance is framed on the outcome of the UK Government’s strategic review.
