Made Tech Group PLC · LSE:MTEC
Made Tech — FY2022 Earnings Presentation
31 slides from Made Tech's earnings presentation, September 2022
Slide 1: Full Year Results
Full Year Results 12 months ended 31st May 2022 Rory MacDonald, CEO Debbie Lovegrove, CFO
Slide 2: Watch the presentation
Watch the presentation
Slide 3: Presenters
Full Year Results Presenters Rory MacDonald Debbie Lovegrove CEO CFO STRICTLY CONFIDENTIAL The content of this document may not be disclosed to third parties without prior consent from Made Tech Group Plc 3
Slide 4: Agenda
Agenda 01. Business Overview Rory MacDonald 02. Financial Results Debbie Lovegrove 03. Strategic Plan Rory MacDonald 04. Outlook Rory MacDonald 05. Q&A Rory MacDonald & Debbie Lovegrove
Slide 5: Business Overview
Business Overview Rory MacDonald CEO
Slide 6: Highlights for FY22
Business Overview Highlights for FY22 Excellent financial performance Revenue Growth ● Accelerated revenue growth £29.3m ● Gross margin strengthened by a favourable revenue mix ● Profit, cash, sales bookings and backlog all grown significantly Significant expansion of our client base and offerings ●
Slide 7: Key Performance Indicators
Business Overview Key Performance Indicators REVENUE GROSS PROFIT ADJUSTED EBITDA2 SALES BOOKINGS3 £29.3m £11.3m £2.6m £51.1m +120% +125% +618% +115% (FY21: £13.3 million) (FY21: £5.0m) (FY21: loss £0.5m) (FY21: 23.8m) CONTRACTED HEADCOUNT UTILISATION NEW CLIENTS BACKLOG1 £38.2m 478 81% 12 +133% +10
Slide 8: Offerings & Capabilities
Business Overview Offerings & Capabilities Transform Deliver Run Cloud & Engineering Managed Service Design & Digital Delivery Change Service Industry User Centered Design Transition Solution Advisory Data & AI Security Cyber Security Operations Center FY22/FY23 Pre-FY22 Service Lines Service Lines
Slide 9: Clients
Business Overview Clients Central Government Local Government Health & Social Care STRICTLY CONFIDENTIAL The content of this document may not be disclosed to third parties without prior consent from Made Tech Group Plc 9
Slide 10: Market Opportunity
Business Overview Market Opportunity Strong Driving Large That is Growing Tailwinds… Market… Quickly.. Total1 Global Market Government technology $100b - $200b ✔ no longer fit for purpose Total2 UK Market Drive to digital, to automate £12b - £15b ✔ and drive efficiencies Reduction in large scale Add
Slide 11: Client Expansion
Business Overview Decades of Growth Ahead GLOBAL MARKET Client Expansion $90b USA $10b CA Opportunity Opportunity $4b SGP Opportunity Total UK Market £12b - £15b Law & Defence Police Devolved $3b AUS Opportunity Addressable Market Today: £2-3b Transport Security Services Made Tech Service & Solution
Slide 12: Our People
Business Overview Our People Significant increase in headcount to 478 (2021: 235) Headcount Retention Rate 478 73% ● 217 experienced hires (270 total new hires), with 35% in Technology (Cloud, Engineering, Data), 13% in Delivery, 31% in UCD and 20% in Management ● Successfully scaled our Academy prog
Slide 13: Financial Results
Financial Results Debbie Lovegrove CFO
Slide 14: Highlights
Financial Results Highlights GROSS PROFIT ORGANIC REVENUE GROSS PROFIT MARGIN GROWTH £29.3m £11.3m 38.4% 97% CAGR Over the last 4 years +120% +125% 0% +8% (FY21: £13.3 million) (FY21: £5.0m) (FY21: 37.6%) (FY21: 89% over 3 years to FY21) ADJUSTED EBITDA CASH FLOW FROM ADJUSTED EBITDA NET CASH MARGIN
Slide 15: Strong Revenue & EBITDA Growth
Financial Results Strong Revenue & EBITDA Growth Revenue Growth Adjusted EBITDA Growth R CAG 97% ● Topline revenue growth has accelerated, increasing ● Group returned to profitability and delivered £2.6m of 120% YoY, accelerating the Group’s CAGR from 89% to Adjusted EBITDA in FY22 97% ● Revenue grow
Slide 16: Resilient Revenue
Financial Results Resilient Revenue Industry Diversification & Expansion Client Retention & Expansion ● Continued focus on diversification across industries to ● Repeat business, enabling long term business growth. increase resilience around changes in government policy. ● New client acquisition unlo
Slide 17: Long-term Visibility
Financial Results Long-term Visibility ● Contracted Backlog at Bookings & Revenue Waterfall £38.2m (FY21: £16.4m) which gives us a very strong foundation to build the future business upon. ● Signed or have sight of contracts which take us through to FY25. ● Circa 60% of our revenue for FY23 is eithe
Slide 18: Summary P&L
Financial Results Summary P&L ● Strong Revenue growth of 120% on an organic £m FY22 FY21 Variance Variance like-for-like basis % Revenue 29.3 13.3 16 +120% ● Gross Margin of 38% in line with prior year despite continuing macro challenges Gross Profit 11.3 5.0 6.3 +125% ● Admin include share based pa
Slide 19: Balance Sheet
Financial Results Balance Sheet ● Intangible assets Includes IP developed internally for BALANCE SHEET FY22 FY21 products and/or business solutions that acts as As at 31 May (£m) business accelerators for the industries that we serve Fixed Assets 0.9 0.8 (circa 7% of total revenue) Intangible assets
Slide 20: Cashflow
Financial Results Cashflow ● Cash flow from Operations positive of £1.7m (FY21: CASHFLOW FY22 FY21 £0.3m) As at 31 May (£m) Cash flow from operating activities 1.7 0.3 ● £13.5 million net cash injection from IPO process Capital expenditure (0.4) (0.3) ● Dividend payments in FY21 to previous owners (p
Slide 21: Forward Guidance
Financial Results Forward Guidance Revenue ● Anticipate phasing of Revenue to follow FY22 with 40/60 H1/H2 split Gross Profit Margin ● Expect our Gross Profit margin to be in line with FY22 (38%) EBITDA ● Expect EBITDA to be H2 weighed as we unwind significant contactor usage in H1 Share Based Payme
Slide 22: Strategic Plan
Strategic Plan Rory MacDonald CEO
Slide 23: Overview of Plan
Strategic Plan Overview of Plan Growth Operations People Offerings & Industry Geographic Operational Employee Capabilities Expertise Coverage Excellence Experience Expansion of Deepening & Purposeful and Build & optimise Provide an industry capabilities to provide expansion of our intelligent expans
Slide 24: Growth: Offerings & Capabilities
Strategic Plan Growth Offerings & Capabilities What we are doing Why it is important How we track progress Current priorities Expansion of capabilities to To win larger contracts and ● Revenue by Capability Incubating: provide an end-to-end digital scale the impact we’re Practice ● Managed Services
Slide 25: Growth: Industry Expertise
Strategic Plan Growth Industry Expertise What we are doing Why it is important How we track progress Current priorities Deepening & expansion of Enhances our status as ● Client Satisfaction Incubating: our industry verticals. trusted advisors, helping to ● Revenue by Industry ● Defence charge a prem
Slide 26: Growth: Geographic Coverage
Strategic Plan Growth Geographic Coverage What we are doing Why it is important How we track progress Current priorities Purposeful and intelligent Enables us to harness local ● Employees per Location ● UK expansion into new talent, contribute to local ● Geographic location of ○ London territories w
Slide 27: Operations: Operational Excellence
Strategic Plan Operations Operational Excellence What we are doing Why it is important How we track progress Current priorities Build & optimise Enables our billable staff to ● Employee Satisfaction Incubating: best-in-class operational work efficiently, minimising ● Utilisation by Capability ● Hybri
Slide 28: People: Employee Experience
Strategic Plan People Employee Experience What we are doing Why it is important How we track progress Current priorities Provide an industry leading Critical part of our culture ● eSAT ● Reward & Total employee experience with a and a core value, which ● Engagement Levels Compensation focus on perso
Slide 29: Business Outlook
Business Outlook Rory MacDonald CEO
Slide 30: Positive Outlook
Business Outlook Positive Outlook Business trading inline with Healthy demand environment revised market expectations, with with >£13M of new contracts very good visibility through to signed in Q1 and a very strong FY’24 and >£40m annual run pipeline of opportunities. rate. Continued focus on the ex
Slide 31: Q&A
Q&A 44 MadeTech