Made Tech Group (MTEC) H2 2025 earnings summary

Executive summary

• FY25 revenue rose 20% to £46.4m and Adjusted EBITDA increased 47% to £3.5m, with a 7.5% margin and positive free cash flow.

• Bookings grew 128% to £82.1m and contracted backlog reached £92.2m, up 52% from £60.6m, strengthening revenue visibility.

• Net cash increased 36% to £10.4m; FY26 started in line with expectations, with backlog underpinning management’s growth and profitability outlook.

Financial highlights

• Revenue increased from £38.6m to £46.4m; gross profit rose 13% to £14.8m.

• Adjusted EBITDA was £3.5m versus £2.4m; operating profit was £1.7m versus an operating loss of £3.2m in FY24.

• Gross margin fell 220 bps to 32.0% from 34.2%, reflecting increased contractor and partner delivery in H2.

• Cash generated from operating activities increased 294% to £3.1m; net cash rose to £10.4m from £7.6m.

Outlook and guidance

• FY26 trading started in line with expectations for revenue, Adjusted EBITDA and cash conversion; contracted backlog supports FY26 expectations and contributes to FY27 and beyond.

• The active pipeline and pending bids are weighted to H2 FY26; bid activity increased over the summer.

• Management expects FY26 growth, improved profitability and free cash generation, with UK Government focus on technology delivery supporting long-term demand.

• Contractor share is targeted to decline toward 10% in FY26, with the contractor/employee ratio expected to return to normalised levels by year-end.