Shares in Made Tech Group (LON:MTEC) jumped after the firm announced the biggest contract award in its history. As a result, the AIM-listed business, which provides digital, data and technology services to the UK public sector, raised its earnings guidance for a second time this year.
Biggest ever contract
The company has been appointed as part of a consortium which won a ‘significant’ four-year contract with an unnamed government department. The total amount attributable to Made Tech over the life of the contract is £40 million.
Revenue from the contract will commence in FY27 with a bigger contribution coming in FY28. The award follows a ‘significant’ acceleration in bookings in H2 2026 and takes the order backlog to around £115 million.
Guidance raised for a second time
The firm now sees FY27 revenue between £63 million and £66 million and adjusted EBITDA between £6.3 million and £6.6 million. This compares with recently upgraded market estimates of £60.3 million and £6 million respectively.
‘This is the largest contract award in our history and marks an important milestone in our growth’, commented CEO Rory MacDonald. ‘The award also endorses our position at the centre of a number of critical programmes across government.
‘Importantly, it also provides greater visibility over future revenues and underpins the board’s confidence in upgrading its expectations for FY27 while reinforcing our confidence in the Group’s medium-term growth trajectory.’
We’ve said it before, providing servives direct to HMG is good business. You get paid on time and in full, and there’s plenty of work to go round.
The UK public sector digital market is forecast to grow from £16.8bn in 2024 to £18.5bn in 2028. That means there is a significant, long-term opportunity for smaller ‘disruptors’ like Made Tech.
The more work the firm wins, the more it becomes a ‘preferred bidder’ on future contracts. Also, as today’s announcement shows, by partnering with other firms it’s increasing its chances of winning.
The current contracted backlog of £115 million provides visibility well into FY27 and FY28. No wonder the shares have popped to a four-year high.
