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Highlights

  • Canaccord Genuity maintains a BUY rating on Made Tech with a target price of GBp 55.00, implying a 52.78% upside.

  • FY25 revenue expected to grow ~20% to £46.4 million, with EBITDA margin improving to ~7.3%.

  • Sales bookings surged 128% YoY to £82.1 million, with Contracted Backlog rising to £92 million.

Made Tech Group PLC (LSE:MTEC), a prominent UK public sector digital services provider, has secured a BUY rating from Canaccord Genuity, with a price target of GBp 55.00, reflecting a 52.78% upside from its current market price of GBp 36.00. The upbeat analyst sentiment aligns with Made Tech’s FY25 performance and deepening pipeline of government contracts.

Revenue, Profitability, and Cash All Beat Expectations

Made Tech expects to close FY25 with ~£46.4 million in revenue, a significant jump from £38.6 million in FY24 — roughly 20% year-on-year growth, outpacing previous consensus expectations.

Adjusted EBITDA is forecast at £3.4 million, marking a 42% increase compared to the previous year, as margins improve from 6.2% to approximately 7.3%. This margin growth was achieved despite a higher-than-targeted contractor base.

Meanwhile, net cash rose to £10.4 million, a 37% increase YoY.

Sales Bookings Soar 128%, Contracted Backlog Hits £92M

The company’s robust sales performance underpins the BUY rating, with £82.1 million in FY25 sales bookings, more than doubling from £36 million in FY24.

Notable wins included:

  • An £8.4 million, 3-year contract with the Ministry of Justice's Legal Aid Agency,

  • Multiple contracts with the Department of Health and Social Care,

  • Two separate engagements with the Department for Business and Trade, each worth £6 million,

  • A new £6 million, 2-year extension of its digital partnership for the MoJ’s Electronic Monitoring programme.

This success lifted the Contracted Backlog to £92 million, compared to £60.6 million a year earlier.

Positioned for Profitable, Long-Term Growth

As the UK Government continues to prioritise digital transformation, particularly in the public sector, Made Tech stands out as a well-positioned beneficiary. The recent Spending Review further validates expectations of sustained government investment in digital services.

The company anticipates double-digit growth in both revenue and EBITDA for FY25, with guidance for continued free cash flow positivity in FY26 and FY27.