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Made Tech has capped off its financial year ending 31st May 2025 with a solid performance that demonstrates the public sector specialist's growing momentum in what remains a challenging market environment. The company's full-year trading update shows revenue climbing 20% to £46.4m, well ahead of the low single-digit growth seen across the broader UK public sector IT services market, comfortably ahead of consensus expectations, and representing a strong recovery from FY24's 4% decline. More encouraging still is the trajectory through the second half, which suggests Made Tech's investment in sales capabilities is beginning to translate into sustained commercial traction.
Profitability metrics tell an equally positive story. Adjusted EBITDA increased 42% to £3.4m, lifting margins from 6.2% to 7.3%. While the company acknowledges a higher than targeted contractor base has tempered some operational efficiencies, the underlying direction remains firmly upward. The balance sheet continues to strengthen, with net cash rising 37% to £10.4m whilst maintaining a debt-free position.
The standout metric remains sales bookings, which surged 128% to £82.1m against the weak FY24 comparative of £36.0m. More tellingly, this represents a solid 17% increase over the healthier FY23 figure of £69.9m - an impressive performance considering the challenging market backdrop during the period (see (see Made Tech continues to make hay | TechMarketView). Central government departments and agencies, one of Made Tech's key stomping grounds, were operating with uncertainty whilst awaiting details of the Spending Review 2025, creating a difficult trading environment that other suppliers have widely reported. Recent contract wins include an £8.4m three-year engagement with the Ministry of Justice's Legal Aid Agency, alongside multiple smaller deals with departments including Health and Social Care. This performance has lifted the contracted backlog substantially to £92.0m, providing enhanced revenue visibility.
Made Tech's positioning appears well-aligned with government priorities. The recent Spending Review's emphasis on digital transformation, coupled with initiatives around data as a growth asset, creates a favourable backdrop for the company's four strategic missions: modernising legacy technology, accelerating digital service delivery, driving better decisions through data and automation, and enabling technology skills. As an independent player with an exclusive focus on public sector digital transformation, Made Tech maintains a clearly defined market proposition.
Looking ahead, the board expects FY26 trading to exceed current market expectations, underpinned by the enlarged contracted backlog. The results also suggest Made Tech is making good progress in tackling the growing pains that were evident in earlier periods (Made Tech: Signs of growing pains? | TechMarketView), with the appointment of experienced UK Managing Director Vicki Chauhan - who brings expertise from fast-growing organisations - appearing to support the company's organisational maturation. Whilst the transformation isn't complete, these results indicate progress on the right track.
With profitable growth anticipated and continued free cash flow generation forecast through FY27, Made Tech appears to have established a platform for sustained progress. The upcoming September results announcement will provide more detail on this encouraging trajectory; however, the trading update suggests Made Tech is successfully capitalising on its market positioning whilst building operational resilience.
Posted by: Georgina O'Toole at 09:57
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results
IT+services