Made Tech Group PLC · LSE:MTEC
Made Tech — H1 2023 Earnings Presentation
24 slides from Made Tech's earnings presentation, February 2023
Slide 1: Interim Results
Interim Results Six months ended 30th November 2022 Rory MacDonald, CEO Debbie Lovegrove, CFO
Slide 2: Important Notice
Interim Results Important Notice NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM THE UNITED STATES OF AMERICA, AUSTRALIA, CANADA, NEW ZEALAND, JAPAN, THE REPUBLIC OF SOUTH AFRICA OR THE REPUBLIC OF IRELAND OR ANY JURISDICTION WHERE SUCH DIS
Slide 3: Presenters
Interim Results H1 23 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 H1 FY23
Business Overview Highlights for H1 FY23 Strong financial performance in H1 ● Accelerated organic revenue growth of 76% Revenue Growth ● Gross profit increased YOY by 48%. Gross Profit margin of 33% (H1 FY22: 39%) ● reduction in line with management expectations and set to recover in H2 FY23 Signifi
Slide 7: H1 Key Performance Indicators
Business Overview H1 23 Key Performance Indicators REVENUE GROSS PROFIT ADJUSTED EBITDA2 SALES BOOKINGS3 £20.6m £6.8m £0.5m £32.6m +76% +48% -48% +23% (H1 FY22: £11.7 million) (H1 FY22: £4.6m) (H1 FY22: £1.2m) (H1 FY22: 26.5m) CONTRACTED HEADCOUNT UTILISATION CASH BACKLOG1 £47.8m 484 68% £9M +54% +8
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 FY23 Service Pre-FY23 Lines Service Lines STRIC
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 £14b - £17.5b ✔ and drive efficiencies (2021 - 2025) Reduction in
Slide 11: Client Expansion
Business Overview Long-term structural growth GLOBAL MARKET Client Expansion $90b USA $10b CA Opportunity Opportunity $4b SGP Opportunity Total UK Market £17.5b by 2025 Law & Defence Police Devolved $3b AUS Opportunity Addressable Market Today: £2-3b Transport Security Services Made Tech Service & S
Slide 12: Our People
Business Overview Our People Significant increase in headcount to 484 (H1 FY22: Headcount Retention Rate 260) 484 85% ● Headcount has grown YOY by 86% to 484 (444 permanent employees and 40 contractors) ● Contractor numbers significantly lower than prior (+86%) year: at end of H1 FY23: 10% (H1 FY22: 1
Slide 13: Financial Results
Financial Results Debbie Lovegrove CFO
Slide 14: H1 FY23 Highlights
Financial Results H1 FY23 Highlights GROSS PROFIT REVENUE GROSS PROFIT SALES BOOKINGS MARGIN £20.6m £6.8m 32.9% £32.6m +76% +48% -6 bp +24% (H1 FY22: £11.7m) (H1 FY22: £4.6m) (H1 FY22: 39.1%) (H1 FY22: £26.5m) CONTRACTED CASH USED BY ADJUSTED EBITDA NET CASH BACKLOG OPERATIONS £47.8m £0.5m £1.8m £9m
Slide 15: 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 Average contract size rose by 69% to
Slide 16: Long-term Visibility
Financial Results Long-term Visibility ● Contracted Backlog at Bookings & Revenue Waterfall end of Nov £47.8m (H1 FY22: £31.3m) which gives us a very strong foundation to build the future business upon. ● New contracts awarded post period end of £29m not included in contracted backlog above. ● Signe
Slide 17: Summary P&L
Financial Results Summary P&L ● Strong Revenue growth of 76% on an organic £m H1 FY23 H1 FY22 Variance Variance like-for-like basis % Revenue 20.6 11.7 8.9 +76% ● Gross Margin of 33% (H1 FY22: 39%) Gross Profit 6.8 4.6 2.2 +48% ● Admin costs include share based payment charge in H1 FY23 of £1.5m (H1
Slide 18: Balance Sheet
Financial Results Balance Sheet ● Intangible assets Includes IP developed internally for BALANCE SHEET H1 FY23 H1 FY22 products and/or business solutions that acts as As at 30 November (£m) business accelerators for the industries that we serve Fixed Assets 0.7 0.7 (circa 7% of total revenue) Intang
Slide 19: Cashflow
Financial Results Cashflow ● Cash flow from Operations negative of £1.8m (H1 FY22: CASHFLOW H1 FY23 H1 FY22 negative £1.4m) As at 30 November (£m) Cash flow from operating activities (1.8) (1.4) ● Continued investment in IP of £1.5m in period representing our ambition to scale (H1 FY22: £0.5m) Capita
Slide 20: Strategic Plan
Strategic Plan Rory MacDonald CEO
Slide 21: 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 22: Business Outlook
Business Outlook Rory MacDonald CEO
Slide 23: Positive Outlook
Business Outlook Positive Outlook Business trading inline with Healthy demand environment market expectations, with very with >£29M of new contracts strong visibility through to FY’24. signed in Q3 and a very strong pipeline of opportunities. Continued focus on the execution We hold an excellent pos
Slide 24: Q&A
Q&A 44 MadeTech