24th Sep 2025 11:59
(Alliance News) - Made Tech Group PLC on Wednesday hailed its "materially larger" contracted backlog, as it reported a swing to full-year profit.
The London-based provider of digital, data and technology services to the UK public sector reported a pretax profit of GBP2.0 million for the financial year that ended May 31, swinging from a loss of GBP3.0 million the prior year.
Driving the improved bottom line was a mix of improved revenue and lower impairment charges. Revenue advanced 20% to GBP46.4 million from GBP38.6 million, with Made Tech noting the prevalence UK public sector headwinds during the period.
In particular, the company reported "considerable uncertainty" with the sector's digital procurement market in the lead up the UK general election last year. It also noted headwinds tied to delays from the government spending review, coupled with increasing market pressures.
Made Tech also reported no impairment charges for financial 2025, improving from GBP4.3 million the prior financial year, and helping to boost the bottom line. The GBP4.3 million charge is owed to impairment tests conducted that resulted in the impairment of all Technology Platforms and Academy assets, it said.
Looking ahead, Made Tech reported a "strong start" to the new financial year, with cash conversion and adjusted earnings before interest, tax, depreciation and amortisation trading in line with its expectations.
The company also noted a "solid contracted backlog", with this underpinning its full-year expectations. Made Tech said this backlog was GBP92.2 million as it exited financial 2025, up 52% from GBP60.6 million at the end of financial 2024.
Chief Executive Rory MacDonald stressed the scale of the growth opportunity as he stated: "The UK government's emphasis on digital transformation, highlighted in the State of Digital Government report, the UK's Modern Industrial Strategy, and the Strategic Defence Review, continues to underline the scale of the long-term opportunity. With the Spending Review now concluded, the demand for modern digital services is clearer than ever, offering the potential for sustained growth."
Shares in the company were 12% lower at 35.80 pence on Wednesday morning in London. However, they have more than doubled over the last 12 months.
CEO MacDonald added: "I'm delighted by the progress we've achieved this year, with strong revenue growth, improved profitability, and solid free cash flow. Our focus on sales and bidding has paid off, driving a marked increase in Sales Bookings and a materially larger contracted backlog.
"With a strong balance sheet, substantial cash reserves, disciplined cost control, and FY26 revenue already supported by our strong contracted backlog, Made Tech is well positioned to build on this momentum."
By Christopher Ward, Alliance News reporter
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