Made Tech Group Shares Fall Despite Strong First-Half Performance
The shares of Made Tech Group have experienced a decline due to lower revenue and concerns surrounding the procurement market ahead of the U.K. general election. Despite delivering a strong first-half EBITDA performance, in line with expectations, the company's shares are down 21.1% at 10.25 pence as of 0811 GMT.
During the six months ended November 30, the digital, data, and technology services provider reported adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of £1.4 million, compared to £500,000 for the same period last year. The group's revenue also experienced a decrease of 7%, falling from £20.6 million to £19.1 million.
Made Tech Group attributed the decline in new contracts won to the challenging procurement market. While the company secured £12.6 million in new contracts during the period, this was significantly lower than the £32.6 million obtained in the previous year. However, the company did announce three new sales bookings collectively worth £10.7 million.
Chief Executive Officer Rory MacDonald acknowledged the challenging market conditions but expressed optimism about the future, stating, "we have a promising pipeline of new business opportunities." MacDonald also highlighted the company's focus on further improving the business amidst such conditions.
While uncertainties persist due to the upcoming general election, Made Tech Group remains committed to capitalizing on the strong long-term drivers of demand within their market.
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