INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 NOVEMBER 2021

Made Tech Group plc, a leading provider of digital, data and technology services to the UK public sector, is pleased to announce its interim results for the six month period ended 30 November 2021.

H1 FY22 Highlights (H1 F)Y21

• Revenue: UP 131% to £11.7m (£5.1m)
• Gross Profit: UP +98% to £4.6m (£2.3m)
• Gross Profit Margin: DOWN 6.5% to 39.1% (45.6%)
• Adjusted EBITDA: UP 664% to £1.2m (£0.2m)
• Adjusted EBITDA Margin: UP 230% to 10.12% (3.06%)
• Adjusted Profit before Tax: UP 8582% to £1m (£12k)
• Sales Bookings: UP 148% to £26.5m (£10.7m)
• Backlog: UP 170% to £31.3m (£11.6m)
• Cash: UP 669% to £11. 1m (£1.5m)

KEY HIGHLIGHTS

Delivering a strong financial performance

• Revenue up 131% to £11.7m (H1 FY21 £5.1m). Growth is all organic, and revenue growth has accelerated with a historical CAGR of 89% (in the 3 years to FY21), increasing to 131% in H1 FY22
• Adjusted EBITDA increased to £1.2m (H1 FY21: £0.2m) and Adjusted Profit before Tax of £1.0m (H1 FY21: profit of £12k)

Expanding our headcount rapidly

• Headcount has increased by 89% to 216 (H1 FY21: 114), with employee retention at 80.2% (H1 FY21: 83.75%)
• Significant progress in permanent recruitment, with 155 individuals recruited and due to start in H2 FY22. Total headcount is forecast to increase to 429 people by end of April, with 352 of those being permanent employees
• Geographic coverage expanded with our first employees hired in Scotland, Newcastle and the Midlands
• Sourced our most significant Academy intake to date, with 21 members having commenced training in January 2022. Our next Academy begins in May 2022; with over 600 applications received, and we expect to recruit and train at least 50 of those individuals

Growing our market share within chosen industries

• We delivered strong growth from our long-term client relationships, primarily through new contracts, extensions, renewals, and the cross-sell of new service offerings
• Client base expanded with several new wins within Central Government, Local Government, Health and Devolved Administrations
• Within the period, we were awarded our largest contract to date, worth approximately £7m
• As announced today, Made Tech has been awarded a two year contract with NHS Digital with a contract value of approximately £37.5m, with Made Tech expected to receive approximately half of the total contract value

Investing in our core infrastructure to deliver long-term results

• Successful admission to AIM on 30 September 2021
• Appointment of three experienced non-executive directors to the Group board
• Double-digit percentage increases recorded in billable utilisation and average billable day rates, following the rollout of new systems and operational processes
• Commenced the development of intellectual property (IP) to enhance our offering within the industries we serve

Rory MacDonald, CEO, commented:

“We are delighted to report a strong H1 performance in our first set of interim results. As stated at the time of our IPO, our strategy is to achieve sustainable growth in revenue, profit, and cash generation by delivering high-quality services to our public sector clients. We have a clear plan to capture the market opportunity ahead of us, and we’re making significant operational progress.

Despite some short-term challenges relating to IR35 and staffing of public sector contracts and increased overhead costs, which we expect to impact our trading performance in Q4 FY22 and into the first half of FY23, the Group’s significant new contract bookings and robust pipeline underpin the Board’s confidence in the medium term outlook. We look forward to continuing to deliver strong revenue growth in the second half of FY22 and beyond, and remain incredibly positive about the Group’s long-term prospects.”

NEWS IN FULL

In the short video clip below founder and CEO Rory MacDonald outlines the Group’s business and growth plans