No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - Shares in Made Tech Group rallied on Wednesday, after the IT services specialist boosted its full-year outlook on the back of a strong first half.
The AIM-listed firm, which provides digital, data and technology services to the UK public sector, said revenues in the six months to 30 November had risen 14%, to 21.8m, ahead of expectations.
Sales bookings rocketed 233% to 42m, driven by a major contract award from the Department of Education's Standards and Testing Agency, worth 13.2m over four years.
As a result, adjusted earnings before interest, tax, depreciation and amortisation were 29% stronger at 1.8m and are now expected to come in higher-than-expected in the full year.
As at 0930 GMT, the stock had put on 14% at 31.75p.
It is the second time since November that Made Tech has boosted its full-year outlook.
Rory MacDonald, chief executive, said: "The improving performance is a direct result of the investment we have made into our commercial operations and processes over the last two years.
"We are on track to deliver positive free cash flow and double-digit revenue growth in the 2025 full-year, and the business is in great shape to benefit from new public sector digitalisation programmes, which are expected to be announced in the government spending review in the spring."
Martin O'Sullivan, analyst at Shore Capital, said: "Made Tech's success is attributable to the UK government's commitment to digital transformation, as well as good strategic execution, and we believe it is well-positioned to capitalise on upcoming public sector opportunities.
"The public sector relies on specialist, agile partners like Made Tech to help in the building and ongoing operation of technical elements of their digital services.
"If, as we anticipate, Made Tech continues to strengthen its presence and reputation in the public sector, while successfully enhancing profitability and cash flow, this will undoubtedly drive significant positive implications for its equity value in the long run."